GrainCorp Limited's (ASX:GNC) Intrinsic Value Is Potentially 45% Above Its Share Price
Does the November share price for GrainCorp Limited ( ASX:GNC ) reflect what it's really worth? Today, we will estimate...
Australian (ASX) Consumer Staples Sector Analysis
UpdatedNov 28, 2021
DataAggregated Company Financials
Companies69
- 7D-1.8%
- 3M-2.2%
- 1Y7.4%
- YTD3.9%
Over the last 7 days, the Consumer Staples industry has dropped 1.8%, driven by a decline by Endeavour Group of 4.3%. This takes the industry's 12 month performance to a gain of 7.4%.
Sector Valuation and Performance
Has the Australian Consumer Staples Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Tue, 30 Nov 2021 | AU$117.2b | AU$144.7b | AU$3.9b | 20.4x |
| Thu, 28 Oct 2021 | AU$115.3b | AU$143.3b | AU$3.7b | 23x |
| Sat, 25 Sep 2021 | AU$116.9b | AU$143.3b | AU$3.7b | 22.5x |
| Mon, 23 Aug 2021 | AU$122.2b | AU$140.5b | AU$3.6b | 22.2x |
| Sat, 10 Jul 2021 | AU$111.5b | AU$140.5b | AU$3.6b | 22.7x |
| Fri, 02 Apr 2021 | AU$100.9b | AU$128.6b | AU$2.9b | 28x |
| Mon, 04 Jan 2021 | AU$99.1b | AU$136.4b | AU$2.7b | 28.1x |
| Thu, 08 Oct 2020 | AU$91.7b | AU$122.5b | AU$2.1b | 29.9x |
| Wed, 01 Jul 2020 | AU$94.0b | AU$122.4b | AU$1.8b | 26.5x |
| Sat, 04 Apr 2020 | AU$87.3b | AU$126.3b | AU$2.3b | 19.7x |
| Tue, 07 Jan 2020 | AU$93.3b | AU$128.6b | AU$2.6b | 21.1x |
| Mon, 30 Sep 2019 | AU$97.8b | AU$128.1b | AU$2.7b | 26.7x |
| Thu, 04 Jul 2019 | AU$88.2b | AU$130.8b | AU$3.0b | 23.8x |
| Sun, 07 Apr 2019 | AU$84.9b | AU$130.2b | AU$2.9b | 23.9x |
| Wed, 09 Jan 2019 | AU$84.1b | AU$129.2b | AU$2.8b | 21.5x |
PE Ratio
22.6x
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 24.3x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Consumer Staples industry have grown 9.2% per year over the last three years, and revenues for these companies have grown 4.0% 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?
| Beverage | 0.12% | |
| Household Products | 0% | |
| Food | -1.49% | |
| Food and Staples Retail | -1.95% | |
| Personal Products | -3.02% | |
Industry PE: Investors are most optimistic about the Personal Products industry which is trading above its 3-year average PE ratio of 45.0x. However analysts are expecting annual earnings growth of 25%, which is lower than the prior year's growth of 79% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Household Products industry, which is trading below its 3-year average of 14.6x.
Forecasted Growth: Analysts are most optimistic on the Personal Products industry, expecting annual earnings growth of 25% over the next 5 years. However this is lower than its past earnings growth rate of 79% per year. Meanwhile, the Food and Staples Retail industry is expected to see its earnings grow by 4.7% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| TWE Treasury Wine Estates | 2.3%+AU$195.0m | 44.0% | n/a | |
| LGL Lynch Group Holdings | 6.2%+AU$24.4m | n/a | n/a | |
| WOW Woolworths Group | 0.05%+AU$24.1m | 8.4% | n/a | |
| RIC Ridley | 4.1%+AU$17.6m | 48.1% | n/a | |
| BUB Bubs Australia | 1.9%+AU$6.1m | -21.9% | n/a |
