Returns On Capital At ARB (ASX:ARB) Paint A Concerning Picture
Oct 04
Australian (ASX) Auto Components Industry Analysis
UpdatedDec 01, 2023
DataAggregated Company Financials
Companies9
- 7D0.6%
- 3M-6.8%
- 1Y7.2%
- YTD17.6%
Over the last 7 days, the Auto Components industry has remained flat, although notably Adrad Holdings declined by 4.3%. As for the the longer term, the industry is up 7.2% over the past 12 months. Looking forward, earnings are forecast to grow by 10% annually.
Industry Valuation and Performance
Has the Australian Auto Components Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 01 Dec 2023 | AU$5.5b | AU$2.3b | AU$151.9m | 15.8x | 36.4x | 2.4x |
| Sun, 29 Oct 2023 | AU$5.4b | AU$2.3b | AU$151.9m | 15.4x | 35.2x | 2.3x |
| Tue, 26 Sep 2023 | AU$5.9b | AU$2.3b | AU$151.9m | 17.1x | 39x | 2.6x |
| Thu, 24 Aug 2023 | AU$5.8b | AU$2.3b | AU$172.3m | 18.3x | 33.4x | 2.5x |
| Sat, 22 Jul 2023 | AU$5.1b | AU$2.3b | AU$148.6m | 22.9x | 34.1x | 2.2x |
| Mon, 19 Jun 2023 | AU$4.9b | AU$2.3b | AU$148.6m | 19.7x | 32.7x | 2.1x |
| Wed, 17 May 2023 | AU$5.1b | AU$2.3b | AU$148.6m | 20.6x | 34x | 2.2x |
| Fri, 14 Apr 2023 | AU$5.4b | AU$2.3b | AU$148.6m | 21.1x | 36.4x | 2.4x |
| Sun, 12 Mar 2023 | AU$5.4b | AU$2.3b | AU$148.6m | 23.9x | 36.3x | 2.4x |
| Tue, 07 Feb 2023 | AU$5.5b | AU$2.1b | AU$161.5m | 21.5x | 34.2x | 2.7x |
| Thu, 05 Jan 2023 | AU$4.8b | AU$2.1b | AU$161.5m | 19.7x | 29.7x | 2.3x |
| Sat, 03 Dec 2022 | AU$5.1b | AU$2.1b | AU$161.5m | 21.1x | 31.6x | 2.5x |
| Mon, 31 Oct 2022 | AU$4.7b | AU$2.1b | AU$161.5m | 18.5x | 29.2x | 2.3x |
| Wed, 28 Sep 2022 | AU$4.6b | AU$1.9b | AU$157.5m | 18.3x | 29x | 2.4x |
| Fri, 26 Aug 2022 | AU$5.1b | AU$1.9b | AU$163.2m | 21.1x | 31.2x | 2.7x |
| Sun, 24 Jul 2022 | AU$5.1b | AU$1.7b | AU$188.4m | 20.9x | 27.1x | 3x |
| Tue, 21 Jun 2022 | AU$4.4b | AU$1.7b | AU$188.4m | 17x | 23.1x | 2.6x |
| Thu, 19 May 2022 | AU$5.5b | AU$1.7b | AU$188.4m | 20.2x | 29.3x | 3.2x |
| Sat, 16 Apr 2022 | AU$6.4b | AU$1.7b | AU$188.4m | 24.4x | 33.9x | 3.7x |
| Mon, 14 Mar 2022 | AU$5.9b | AU$1.7b | AU$188.4m | 23.7x | 31.5x | 3.5x |
| Wed, 09 Feb 2022 | AU$7.0b | AU$1.6b | AU$201.9m | 25.6x | 34.6x | 4.5x |
| Fri, 07 Jan 2022 | AU$7.5b | AU$1.6b | AU$201.9m | 64.9x | 37.2x | 4.8x |
| Sun, 05 Dec 2021 | AU$6.8b | AU$1.6b | AU$201.9m | 18.8x | 33.4x | 4.4x |
| Tue, 02 Nov 2021 | AU$6.7b | AU$1.6b | AU$201.9m | 20.6x | 33.4x | 4.3x |
| Thu, 30 Sep 2021 | AU$6.3b | AU$1.6b | AU$202.4m | 19.7x | 31.3x | 4.1x |
| Sat, 28 Aug 2021 | AU$6.7b | AU$1.5b | AU$196.3m | 19.8x | 34.1x | 4.4x |
| Sun, 04 Jul 2021 | AU$6.0b | AU$1.5b | AU$196.3m | 20x | 30.4x | 3.9x |
| Wed, 07 Apr 2021 | AU$5.1b | AU$1.4b | AU$176.8m | 18.2x | 29x | 3.6x |
| Sat, 09 Jan 2021 | AU$4.8b | AU$1.3b | AU$155.9m | 22.8x | 30.6x | 3.7x |
Price to Earnings Ratio
50.3x
Current Industry PE
- Investors are optimistic on the Australian Auto Components industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 36.4x which is higher than its 3-year average PE of 32.5x.
- The 3-year average PS ratio of 3.2x is higher than the industry's current PS ratio of 2.4x.
Past Earnings Growth
- The earnings for companies in the Auto Components industry have grown 19% per year over the last three years.
- Revenues for these companies have grown 23% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Australian Consumer Discretionary industry?
| AU Market | 0.80% | |
| Consumer Discretionary | 0.96% | |
| Auto Components | 0.61% | |
| Auto Parts and Equipment | 0.61% | |
| Tires and Rubber | 0% | |
Industry PE
- Investors are most optimistic about the Auto Parts and Equipment industry which is trading above its 3-year average PE ratio of 32.5x.
- Analysts are expecting annual earnings growth of 10.2%, which is higher than its past year's earnings growth of 4.4% per year.
- Investors are most pessimistic about the Auto Parts and Equipment industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 32.5x.
Forecasted Growth
- Analysts are most optimistic on the Auto Parts and Equipment industry, expecting annual earnings growth of 10% over the next 5 years.
- This is better than its past earnings growth rate of 4.4% per year.
- In contrast, the Auto Parts and Equipment industry is expected to see its earnings grow by 10% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| ARB ARB | AU$31.61 | 2.9% +AU$72.4m | 7.4% | PE29.4x | |
| GUD GUD Holdings | AU$11.07 | 3.5% +AU$52.1m | 35.0% | PE15.8x | |
| PWH PWR Holdings | AU$9.82 | 1.9% +AU$18.1m | -10.9% | PE45.4x | |
| SFC Schaffer | AU$17.71 | 1.4% +AU$3.4m | -0.8% | PE17.7x |