Reece Limited (ASX:REH) Shares Could Be 41% Below Their Intrinsic Value Estimate
Apr 12
Have your own idea? Try our Stock Screener
Australian (ASX) Industrials Sector Analysis
UpdatedApr 14, 2025
DataAggregated Company Financials
Companies128
- 7D1.1%
- 3M-2.9%
- 1Y2.8%
- YTD-3.0%
Over the last 7 days, the Industrials industry has risen 1.1%, driven by gains from Reece of 10%. In the same time, Worley was down 11%. The industry has been flat over the past 12 months despite the gain this week. Looking forward, earnings are forecast to grow by 17% annually.
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 |
|---|---|---|---|---|---|---|
| Mon, 14 Apr 2025 | AU$215.5b | AU$146.5b | AU$8.4b | 15.9x | 25.8x | 1.5x |
| Wed, 12 Mar 2025 | AU$218.4b | AU$146.5b | AU$8.4b | 16.6x | 26.1x | 1.5x |
| Fri, 07 Feb 2025 | AU$214.0b | AU$121.6b | AU$6.7b | 19.6x | 32x | 1.8x |
| Sun, 05 Jan 2025 | AU$210.5b | AU$122.6b | AU$6.7b | 19x | 31.3x | 1.7x |
| Tue, 03 Dec 2024 | AU$210.0b | AU$121.4b | AU$6.6b | 20.3x | 31.9x | 1.7x |
| Thu, 31 Oct 2024 | AU$198.7b | AU$120.2b | AU$6.5b | 19.8x | 30.4x | 1.7x |
| Sat, 28 Sep 2024 | AU$205.2b | AU$120.6b | AU$6.5b | 19.2x | 31.6x | 1.7x |
| Mon, 26 Aug 2024 | AU$205.1b | AU$121.7b | AU$5.9b | 17.4x | 34.6x | 1.7x |
| Wed, 24 Jul 2024 | AU$198.4b | AU$120.9b | AU$5.4b | 18.2x | 36.6x | 1.6x |
| Fri, 21 Jun 2024 | AU$191.4b | AU$120.9b | AU$5.4b | 17.6x | 35.5x | 1.6x |
| Sun, 19 May 2024 | AU$192.4b | AU$121.7b | AU$5.8b | 17.8x | 33.2x | 1.6x |
| Tue, 16 Apr 2024 | AU$199.2b | AU$122.3b | AU$5.8b | 18.7x | 34.3x | 1.6x |
| Thu, 14 Mar 2024 | AU$197.6b | AU$122.0b | AU$5.8b | 17.5x | 33.8x | 1.6x |
| Sat, 10 Feb 2024 | AU$187.7b | AU$117.9b | AU$5.1b | 18.8x | 37x | 1.6x |
| Mon, 08 Jan 2024 | AU$187.9b | AU$117.9b | AU$4.7b | 18.2x | 39.6x | 1.6x |
| Wed, 06 Dec 2023 | AU$176.8b | AU$118.3b | AU$4.8b | 16.6x | 36.9x | 1.5x |
| Fri, 03 Nov 2023 | AU$170.3b | AU$118.5b | AU$4.8b | 16.6x | 35.2x | 1.4x |
| Sun, 01 Oct 2023 | AU$177.6b | AU$118.5b | AU$4.8b | 16.6x | 36.7x | 1.5x |
| Tue, 29 Aug 2023 | AU$180.2b | AU$116.9b | AU$4.1b | 17.2x | 44.1x | 1.5x |
| Thu, 27 Jul 2023 | AU$182.4b | AU$111.0b | AU$3.5b | 19x | 51.5x | 1.6x |
| Sat, 24 Jun 2023 | AU$174.8b | AU$110.0b | AU$3.5b | 18.4x | 50x | 1.6x |
| Mon, 22 May 2023 | AU$178.2b | AU$110.1b | AU$3.5b | 17.5x | 50.8x | 1.6x |
| Wed, 19 Apr 2023 | AU$176.3b | AU$109.8b | AU$3.5b | 17.9x | 50.6x | 1.6x |
| Fri, 17 Mar 2023 | AU$146.4b | AU$94.0b | AU$3.5b | 16.8x | 41.8x | 1.6x |
| Sun, 12 Feb 2023 | AU$147.6b | AU$88.1b | AU$3.9b | 20.1x | 38.4x | 1.7x |
| Tue, 10 Jan 2023 | AU$141.8b | AU$87.3b | AU$3.7b | 19x | 38.3x | 1.6x |
| Thu, 08 Dec 2022 | AU$144.5b | AU$87.7b | AU$3.7b | 18.6x | 38.7x | 1.6x |
| Sat, 05 Nov 2022 | AU$141.6b | AU$88.1b | AU$3.7b | 17.4x | 38x | 1.6x |
| Mon, 03 Oct 2022 | AU$134.4b | AU$87.8b | AU$3.7b | 16.9x | 36.3x | 1.5x |
| Wed, 31 Aug 2022 | AU$146.5b | AU$86.9b | AU$3.7b | 18.6x | 39.6x | 1.7x |
| Fri, 29 Jul 2022 | AU$143.4b | AU$80.7b | AU$4.4b | 18x | 33x | 1.8x |
| Sun, 26 Jun 2022 | AU$137.6b | AU$80.7b | AU$4.3b | 16.1x | 31.8x | 1.7x |
| Tue, 24 May 2022 | AU$153.1b | AU$90.3b | AU$4.7b | 17.6x | 32.4x | 1.7x |
| Thu, 21 Apr 2022 | AU$153.9b | AU$89.8b | AU$4.7b | 19.1x | 32.9x | 1.7x |
Price to Earnings Ratio
32.9x
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 25.8x which is lower than its 3-year average PE of 37.3x.
- The industry is trading close to its 3-year average PS ratio of 1.6x.
Past Earnings Growth
- The earnings for companies in the Industrials industry have grown 21% per year over the last three years.
- Revenues for these companies have grown 18% 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 Industrials sector?
| AU Market | 0.085% | |
| Industrials | 1.09% | |
| Aerospace & Defense | 6.07% | |
| Trade Distributors | 5.57% | |
| Electrical | 2.74% | |
| Commercial Services | 1.80% | |
| Professional Services | 1.58% | |
| Infrastructure | 0.63% | |
| Logistics | -0.14% | |
| Airlines | -0.58% | |
| Industrials | -1.38% | |
| Transportation | -1.58% | |
| Building | -2.70% | |
| Construction | -3.70% | |
| Machinery | -7.26% | |
Industry PE
- Investors are most optimistic about the Infrastructure industry even though it's trading below its 3-year average PE ratio of 108x.
- Analysts are expecting annual earnings growth of 27.0%, which is higher than its past year's earnings growth of 3.8% per year.
Forecasted Growth
- Analysts are most optimistic on the Aerospace & Defense industry, expecting annual earnings growth of 39% over the next 5 years.
- However this is lower than its past earnings growth rate of 181% per year.
- In contrast, the Transportation industry is expected to see its earnings grow by 7.6% 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 | |
|---|---|---|---|---|---|
| SGH SGH | AU$48.20 | 11.3% +AU$2.0b | 22.5% | PE24.7x | |
| CPU Computershare | AU$37.21 | 8.2% +AU$1.6b | 33.1% | PE24.9x | |
| BXB Brambles | AU$20.78 | 4.8% +AU$1.3b | 32.8% | PE22x | |
| REH Reece | AU$16.21 | 9.9% +AU$943.1m | -41.1% | PE27.8x | |
| TCL Transurban Group | AU$13.89 | 2.0% +AU$839.3m | 5.4% | PE575.7x |
