Does Downer EDI (ASX:DOW) Have A Healthy Balance Sheet?
Nov 23
Australian (ASX) Industrials Sector Analysis
UpdatedNov 30, 2022
DataAggregated Company Financials
Companies152
- 7D0.7%
- 3M-1.0%
- 1Y-3.0%
- YTD-8.7%
The Industrials is pretty flat in the last 7 days, but Brambles has stood out, gaining 3.1%. As for the longer term, the industry has declined 3.0% in the last year. As for the next few years, earnings are expected to grow by 21% per annum.
Sector Valuation and Performance
Has the Australian Industrials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 30 Nov 2022 | AU$147.7b | AU$87.7b | AU$3.7b | 18.9x | 39.5x | 1.7x |
| Fri, 28 Oct 2022 | AU$139.4b | AU$87.7b | AU$3.7b | 18x | 37.8x | 1.6x |
| Sun, 25 Sep 2022 | AU$135.3b | AU$87.6b | AU$3.7b | 17.5x | 36.8x | 1.5x |
| Tue, 23 Aug 2022 | AU$148.2b | AU$82.8b | AU$4.4b | 18.8x | 33.7x | 1.8x |
| Thu, 21 Jul 2022 | AU$142.8b | AU$80.8b | AU$4.4b | 18x | 32.8x | 1.8x |
| Sat, 18 Jun 2022 | AU$134.6b | AU$80.7b | AU$4.3b | 15.8x | 31.1x | 1.7x |
| Mon, 16 May 2022 | AU$149.6b | AU$90.4b | AU$4.7b | 17.7x | 31.6x | 1.7x |
| Wed, 13 Apr 2022 | AU$151.5b | AU$89.6b | AU$4.7b | 18.8x | 32.5x | 1.7x |
| Fri, 11 Mar 2022 | AU$174.1b | AU$93.8b | AU$4.6b | 18.4x | 38.2x | 1.9x |
| Sun, 06 Feb 2022 | AU$169.8b | AU$79.8b | AU$689.6m | 19.2x | 246.2x | 2.1x |
| Tue, 04 Jan 2022 | AU$183.2b | AU$79.6b | AU$651.7m | 19.9x | 281.1x | 2.3x |
| Thu, 02 Dec 2021 | AU$174.7b | AU$79.1b | AU$705.6m | 19.4x | 247.7x | 2.2x |
| Sat, 30 Oct 2021 | AU$173.5b | AU$77.8b | AU$582.4m | 20.2x | 298x | 2.2x |
| Mon, 27 Sep 2021 | AU$167.9b | AU$76.6b | AU$709.6m | 19.2x | 236.6x | 2.2x |
| Wed, 25 Aug 2021 | AU$168.5b | AU$75.9b | AU$758.1m | 17.6x | 222.3x | 2.2x |
| Thu, 01 Jul 2021 | AU$161.4b | AU$74.4b | AU$723.6m | 17.9x | 223.1x | 2.2x |
| Sun, 04 Apr 2021 | AU$148.3b | AU$73.5b | AU$44.8m | 16.3x | 3308.1x | 2x |
| Wed, 06 Jan 2021 | AU$153.1b | AU$74.1b | -AU$856,962,675.90 | 17.2x | -178.7x | 2.1x |
| Sat, 10 Oct 2020 | AU$141.5b | AU$79.7b | AU$635.0m | 16.7x | 222.8x | 1.8x |
| Fri, 03 Jul 2020 | AU$131.4b | AU$87.1b | -AU$1,682,558,132.18 | 16.5x | -78.1x | 1.5x |
| Mon, 06 Apr 2020 | AU$110.2b | AU$91.4b | AU$366.8m | 15.7x | 300.4x | 1.2x |
| Thu, 09 Jan 2020 | AU$153.3b | AU$94.2b | AU$2.0b | 22.9x | 75.7x | 1.6x |
Price to Earnings Ratio
35.1x
Current Industry PE
- Investors are pessimistic on the Australian Industrials industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 39.5x which is lower than its 3-year average PE of 385x.
- The industry is trading close to its 3-year average PS ratio of 1.8x.
Past Earnings Growth
- The earnings for companies in the Industrials industry have declined 5.5% per year over the last three years,
- Revenues have also declined 3.4% per year.
- This means overall sales from these companies are declining and profits are subsequently falling as well.
Industry Trends
Which industries have driven the changes within the Australian Industrials sector?
| AU Market | 0.20% | |
| Industrials | 0.66% | |
| Logistics | 3.54% | |
| Trade Distributors | 2.39% | |
| Commercial Services | 1.05% | |
| Construction | 0.55% | |
| Infrastructure | 0.40% | |
| Professional Services | 0.11% | |
| Machinery | 0.051% | |
| Industrials | 0% | |
| Marine and Shipping | 0% | |
| Transportation | -0.30% | |
| Building | -0.35% | |
| Electrical | -0.82% | |
| Airlines | -0.82% | |
| Aerospace & Defense | -3.56% | |
Industry PE
- Investors are most optimistic about the Infrastructure industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 34.4%, which is lower than the prior year's growth of 59.0% per year.
Forecasted Growth
- Analysts are most optimistic on the Airlines industry, expecting annual earnings growth of 48% over the next 5 years.
- In contrast, the Transportation industry is expected to see its earnings grow by 6.1% 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 | |
|---|---|---|---|---|---|
| BXB Brambles | AU$12.11 | 3.1% +AU$499.7m | 21.6% | PE19.7x | |
| TCL Transurban Group | AU$14.29 | 1.0% +AU$430.5m | 5.8% | PE2316x | |
| REH Reece | AU$15.50 | 4.0% +AU$381.1m | -31.9% | PE25.5x | |
| APM APM Human Services International | AU$3.07 | 6.2% +AU$165.1m | 13.7% | PE68.5x | |
| ALX Atlas Arteria | AU$7.05 | 1.1% +AU$116.1m | 10.3% | PE39.3x |
