Why We're Not Concerned About SGH Limited's (ASX:SGH) Share Price
Feb 05
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Australian (ASX) Industrials Sector Analysis
UpdatedFeb 06, 2025
DataAggregated Company Financials
Companies130
- 7D-0.8%
- 3M3.7%
- 1Y12.4%
- YTD1.5%
In the last week, Industrials has been flat. As for the the longer term, the industry is up 12% over the past 12 months. As for the next few years, earnings are expected to grow by 16% 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 |
|---|---|---|---|---|---|---|
| Thu, 06 Feb 2025 | AU$212.0b | AU$121.5b | AU$6.7b | 19.5x | 31.7x | 1.7x |
| Sat, 04 Jan 2025 | AU$210.4b | AU$122.6b | AU$6.7b | 19x | 31.3x | 1.7x |
| Mon, 02 Dec 2024 | AU$210.0b | AU$121.4b | AU$6.6b | 20.2x | 31.9x | 1.7x |
| Wed, 30 Oct 2024 | AU$200.2b | AU$120.3b | AU$6.5b | 19.6x | 30.6x | 1.7x |
| Fri, 27 Sep 2024 | AU$205.9b | AU$120.6b | AU$6.5b | 19.1x | 31.7x | 1.7x |
| Sun, 25 Aug 2024 | AU$205.1b | AU$121.7b | AU$5.9b | 17.4x | 34.6x | 1.7x |
| Tue, 23 Jul 2024 | AU$195.9b | AU$120.8b | AU$5.4b | 17.9x | 36.2x | 1.6x |
| Thu, 20 Jun 2024 | AU$191.2b | AU$120.9b | AU$5.4b | 17.7x | 35.5x | 1.6x |
| Sat, 18 May 2024 | AU$192.4b | AU$121.9b | AU$5.8b | 17.8x | 33.2x | 1.6x |
| Mon, 15 Apr 2024 | AU$200.8b | AU$122.3b | AU$5.8b | 18.5x | 34.5x | 1.6x |
| Wed, 13 Mar 2024 | AU$197.8b | AU$122.1b | AU$5.8b | 17.2x | 33.8x | 1.6x |
| Fri, 09 Feb 2024 | AU$187.4b | AU$117.8b | AU$4.9b | 18.4x | 38.1x | 1.6x |
| Sun, 07 Jan 2024 | AU$187.9b | AU$117.9b | AU$4.7b | 18.2x | 39.6x | 1.6x |
| Tue, 05 Dec 2023 | AU$178.3b | AU$118.1b | AU$4.8b | 16.6x | 37.4x | 1.5x |
| Thu, 02 Nov 2023 | AU$168.9b | AU$118.8b | AU$4.9b | 16.6x | 34.7x | 1.4x |
| Sat, 30 Sep 2023 | AU$177.6b | AU$118.5b | AU$4.8b | 16.6x | 36.8x | 1.5x |
| Mon, 28 Aug 2023 | AU$178.8b | AU$116.8b | AU$4.1b | 17.3x | 43.8x | 1.5x |
| Wed, 26 Jul 2023 | AU$182.3b | AU$111.0b | AU$3.5b | 18.7x | 51.4x | 1.6x |
| Fri, 23 Jun 2023 | AU$179.0b | AU$109.8b | AU$3.5b | 18.6x | 51.4x | 1.6x |
| Sun, 21 May 2023 | AU$178.2b | AU$110.1b | AU$3.5b | 17.5x | 50.8x | 1.6x |
| Tue, 18 Apr 2023 | AU$176.4b | AU$109.9b | AU$3.5b | 17.8x | 50.5x | 1.6x |
| Thu, 16 Mar 2023 | AU$147.4b | AU$94.0b | AU$3.5b | 16.7x | 42.1x | 1.6x |
| Sat, 11 Feb 2023 | AU$147.6b | AU$88.1b | AU$3.8b | 20.1x | 38.4x | 1.7x |
| Mon, 09 Jan 2023 | AU$140.4b | AU$87.4b | AU$3.7b | 19.3x | 37.9x | 1.6x |
| Wed, 07 Dec 2022 | AU$146.8b | AU$87.6b | AU$3.7b | 18.9x | 39.4x | 1.7x |
| Fri, 04 Nov 2022 | AU$143.2b | AU$87.9b | AU$3.7b | 17.9x | 38.6x | 1.6x |
| Sun, 02 Oct 2022 | AU$134.4b | AU$87.7b | AU$3.7b | 16.9x | 36.5x | 1.5x |
| Tue, 30 Aug 2022 | AU$146.0b | AU$86.1b | AU$3.8b | 17.4x | 38.4x | 1.7x |
| Thu, 28 Jul 2022 | AU$143.4b | AU$80.7b | AU$4.4b | 18x | 33x | 1.8x |
| Sat, 25 Jun 2022 | AU$137.6b | AU$80.8b | AU$4.3b | 16.1x | 31.7x | 1.7x |
| Mon, 23 May 2022 | AU$152.6b | AU$90.3b | AU$4.7b | 17.3x | 32.3x | 1.7x |
| Wed, 20 Apr 2022 | AU$153.6b | AU$89.8b | AU$4.7b | 19x | 32.9x | 1.7x |
| Fri, 18 Mar 2022 | AU$176.3b | AU$93.9b | AU$4.6b | 18.7x | 38.6x | 1.9x |
| Sun, 13 Feb 2022 | AU$168.5b | AU$81.1b | AU$2.4b | 19.5x | 71.3x | 2.1x |
Price to Earnings Ratio
71.3x
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 31.3x which is lower than its 3-year average PE of 39.1x.
- 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 42% per year over the last three years.
- Revenues for these companies have grown 14% 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 | -0.21% | |
| Industrials | -0.79% | |
| Aerospace & Defense | 5.69% | |
| Electrical | 2.74% | |
| Logistics | 1.09% | |
| Construction | 0.40% | |
| Industrials | 0% | 0 |
| Marine and Shipping | 0% | 0 |
| Professional Services | -0.12% | |
| Trade Distributors | -0.41% | |
| Machinery | -0.88% | |
| Airlines | -1.11% | |
| Commercial Services | -1.22% | |
| Infrastructure | -1.41% | |
| Transportation | -2.50% | |
| Building | -3.75% | |
Industry PE
- Investors are most optimistic about the Aerospace & Defense industry which is trading above its 3-year average PE ratio of 31.0x.
- Analysts are expecting annual earnings growth of 49.9%, which is lower than the prior year's growth of 423.9% per year.
- Investors are most pessimistic about the Airlines industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.
Forecasted Growth
- Analysts are most optimistic on the Aerospace & Defense industry, expecting annual earnings growth of 50% over the next 5 years.
- However this is lower than its past earnings growth rate of 424% per year.
- In contrast, the Transportation industry is expected to see its earnings grow by 7.3% 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$48.98 | 2.1% +AU$418.2m | 38.7% | PE42.8x | |
| ASB Austal | AU$3.94 | 8.2% +AU$108.6m | 87.6% | PE95.9x | |
| CPU Computershare | AU$34.80 | 0.3% +AU$58.6m | 39.8% | PE26x | |
| RDX Redox | AU$4.30 | 2.4% +AU$52.5m | 87.0% | PE25x | |
| IPG IPD Group | AU$4.17 | 10.3% +AU$40.4m | -13.1% | PE19.3x |
