Is There An Opportunity With Treasury Wine Estates Limited's (ASX:TWE) 33% Undervaluation?
Sep 24
Australian (ASX) Consumer Staples Sector Analysis
UpdatedSep 24, 2023
DataAggregated Company Financials
Companies70
- 7D-1.5%
- 3M-6.7%
- 1Y-2.1%
- YTD0.8%
Over the last 7 days, the Consumer Staples industry has dropped 1.5%, driven by Woolworths Group declining 2.0%. Over the last year, the industry has been flat overall. As for the next few years, earnings are expected to grow by 9.6% per annum.
Sector Valuation and Performance
Has the Australian Consumer Staples Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 25 Sep 2023 | AU$102.8b | AU$164.0b | AU$3.2b | 21.7x | 32x | 0.6x |
| Wed, 23 Aug 2023 | AU$104.0b | AU$161.6b | AU$3.6b | 20.5x | 28.5x | 0.6x |
| Fri, 21 Jul 2023 | AU$108.3b | AU$161.1b | AU$3.8b | 21.6x | 28.7x | 0.7x |
| Sun, 18 Jun 2023 | AU$108.3b | AU$161.0b | AU$3.8b | 21.7x | 28.8x | 0.7x |
| Tue, 16 May 2023 | AU$111.7b | AU$160.7b | AU$4.1b | 22x | 27.5x | 0.7x |
| Thu, 13 Apr 2023 | AU$114.4b | AU$160.0b | AU$4.0b | 22.6x | 28.4x | 0.7x |
| Sat, 11 Mar 2023 | AU$108.7b | AU$160.0b | AU$4.0b | 21.7x | 27x | 0.7x |
| Mon, 06 Feb 2023 | AU$111.1b | AU$157.3b | AU$3.9b | 20.3x | 28.2x | 0.7x |
| Wed, 04 Jan 2023 | AU$103.8b | AU$157.3b | AU$3.9b | 20.3x | 26.3x | 0.7x |
| Fri, 02 Dec 2022 | AU$106.8b | AU$156.5b | AU$4.3b | 18.5x | 24.9x | 0.7x |
| Sun, 30 Oct 2022 | AU$103.1b | AU$154.8b | AU$4.3b | 18x | 23.9x | 0.7x |
| Tue, 27 Sep 2022 | AU$105.3b | AU$154.8b | AU$4.3b | 15.8x | 24.4x | 0.7x |
| Thu, 25 Aug 2022 | AU$112.6b | AU$151.6b | AU$4.3b | 17.2x | 26.5x | 0.7x |
| Sat, 23 Jul 2022 | AU$113.9b | AU$150.8b | AU$4.2b | 15.2x | 27.3x | 0.8x |
| Mon, 20 Jun 2022 | AU$104.6b | AU$149.8b | AU$4.2b | 16.4x | 25.2x | 0.7x |
| Wed, 18 May 2022 | AU$115.5b | AU$149.4b | AU$4.1b | 18.6x | 28.1x | 0.8x |
| Fri, 15 Apr 2022 | AU$116.2b | AU$148.1b | AU$3.9b | 19.3x | 29.6x | 0.8x |
| Sun, 13 Mar 2022 | AU$107.6b | AU$148.1b | AU$3.9b | 17.9x | 27.4x | 0.7x |
| Tue, 08 Feb 2022 | AU$105.4b | AU$144.4b | AU$4.0b | 21.9x | 26x | 0.7x |
| Thu, 06 Jan 2022 | AU$114.6b | AU$144.4b | AU$4.0b | 23x | 28.3x | 0.8x |
| Sat, 04 Dec 2021 | AU$114.0b | AU$144.7b | AU$3.9b | 20.2x | 29.1x | 0.8x |
| Mon, 01 Nov 2021 | AU$113.0b | AU$143.3b | AU$3.7b | 22.7x | 30.5x | 0.8x |
| Wed, 29 Sep 2021 | AU$114.5b | AU$143.3b | AU$3.7b | 22x | 30.9x | 0.8x |
| Fri, 27 Aug 2021 | AU$119.6b | AU$140.5b | AU$3.6b | 23.1x | 33.3x | 0.9x |
| Sat, 03 Jul 2021 | AU$111.5b | AU$140.5b | AU$3.6b | 22.7x | 31x | 0.8x |
| Tue, 06 Apr 2021 | AU$100.9b | AU$128.6b | AU$2.9b | 28x | 35.2x | 0.8x |
| Fri, 08 Jan 2021 | AU$99.1b | AU$136.4b | AU$2.7b | 28.1x | 37x | 0.7x |
| Thu, 01 Oct 2020 | AU$91.7b | AU$122.5b | AU$2.1b | 29.9x | 43x | 0.7x |
Price to Earnings Ratio
43x
Current Industry PE
- Investors are relatively neutral on the Australian Consumer Staples industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 30.2x.
- The industry is trading close to its 3-year average PS ratio of 0.73x.
Past Earnings Growth
- The earnings for companies in the Consumer Staples industry have grown 15% per year over the last three years.
- Revenues for these companies have grown 10% 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 Staples sector?
| AU Market | -2.74% | |
| Consumer Staples | -1.47% | |
| Beverage | 1.84% | |
| Personal Products | 0.16% | |
| Tobacco | 0% | |
| Food | -1.01% | |
| Household Products | -1.23% | |
| Food and Staples Retail | -1.93% | |
Industry PE
- Investors are most optimistic about the Beverage industry which is trading above its 3-year average PE ratio of 36.0x.
- Analysts are expecting annual earnings growth of 15.3%, which is higher than its past year's earnings decline of 40.1% per year.
Forecasted Growth
- Analysts are most optimistic on the Food industry, expecting annual earnings growth of 33% over the next 5 years.
- This is better than its past earnings decline of 25% per year.
- In contrast, the Food and Staples Retail industry is expected to see its earnings grow by 5.9% 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 | |
|---|---|---|---|---|---|
| TWE Treasury Wine Estates | AU$12.05 | 2.0% +AU$173.2m | -4.0% | PE34.2x | |
| CGC Costa Group Holdings | AU$3.09 | 5.1% +AU$69.7m | 21.7% | PE66.7x | |
| GNC GrainCorp | AU$7.08 | 0.7% +AU$11.1m | -15.0% | PE4.7x | |
| RIC Ridley | AU$2.35 | 1.3% +AU$9.5m | 14.1% | PE17.7x | |
| ING Inghams Group | AU$3.35 | 0.6% +AU$7.4m | 39.0% | PE20.6x |
