Does Downer EDI (ASX:DOW) Have A Healthy Balance Sheet?
Nov 23
Australian (ASX) Commercial Services Industry Analysis
UpdatedNov 28, 2022
DataAggregated Company Financials
Companies31
- 7D2.2%
- 3M-2.6%
- 1Y2.4%
- YTD-2.0%
In the last week, the Commercial Services industry is up 2.2%, with Brambles up 3.4%. Overall in the last year, the industry is flat. Earnings are forecast to grow by 14% annually.
Industry Valuation and Performance
Has the Australian Commercial Services Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 28 Nov 2022 | AU$29.3b | AU$25.9b | AU$876.6m | 26.8x | 33.4x | 1.1x |
| Wed, 26 Oct 2022 | AU$27.4b | AU$26.4b | AU$931.5m | 21x | 29.4x | 1x |
| Fri, 23 Sep 2022 | AU$28.8b | AU$25.8b | AU$873.8m | 20.4x | 33x | 1.1x |
| Sun, 21 Aug 2022 | AU$30.5b | AU$26.4b | AU$928.2m | 21.6x | 32.9x | 1.2x |
| Tue, 19 Jul 2022 | AU$27.5b | AU$25.8b | AU$966.9m | 18.3x | 28.4x | 1.1x |
| Thu, 16 Jun 2022 | AU$26.7b | AU$25.7b | AU$949.3m | 18.2x | 28.1x | 1x |
| Sat, 14 May 2022 | AU$27.1b | AU$25.7b | AU$949.0m | 18.4x | 28.5x | 1.1x |
| Mon, 11 Apr 2022 | AU$27.1b | AU$25.1b | AU$885.6m | 19.6x | 30.6x | 1.1x |
| Wed, 09 Mar 2022 | AU$25.9b | AU$25.2b | AU$899.0m | 18.7x | 28.8x | 1x |
| Fri, 04 Feb 2022 | AU$25.9b | AU$25.5b | AU$974.0m | 21.3x | 26.6x | 1x |
| Sun, 02 Jan 2022 | AU$28.8b | AU$25.3b | AU$967.6m | 23.2x | 29.7x | 1.1x |
| Tue, 30 Nov 2021 | AU$27.7b | AU$25.4b | AU$980.6m | 20.7x | 28.3x | 1.1x |
| Thu, 28 Oct 2021 | AU$28.5b | AU$25.0b | AU$935.7m | 20.6x | 30.4x | 1.1x |
| Sat, 25 Sep 2021 | AU$29.0b | AU$25.1b | AU$962.0m | 21.7x | 30.2x | 1.2x |
| Mon, 23 Aug 2021 | AU$30.9b | AU$24.5b | AU$1.0b | 16.8x | 30.7x | 1.3x |
| Sat, 10 Jul 2021 | AU$28.9b | AU$24.5b | AU$1.0b | 17x | 28.6x | 1.2x |
| Fri, 02 Apr 2021 | AU$26.2b | AU$24.3b | AU$807.5m | 19.4x | 32.4x | 1.1x |
| Mon, 04 Jan 2021 | AU$27.0b | AU$24.7b | AU$509.5m | 20.8x | 53x | 1.1x |
| Thu, 08 Oct 2020 | AU$25.5b | AU$25.5b | AU$472.7m | 17.1x | 53.8x | 1x |
| Wed, 01 Jul 2020 | AU$25.7b | AU$25.4b | AU$577.2m | 16x | 44.5x | 1x |
| Sat, 04 Apr 2020 | AU$23.2b | AU$26.4b | AU$837.8m | 13.3x | 27.7x | 0.9x |
| Tue, 07 Jan 2020 | AU$30.3b | AU$26.2b | AU$766.2m | 19.2x | 39.5x | 1.2x |
Price to Earnings Ratio
36x
Current Industry PE
- Investors are relatively neutral on the Australian Commercial Services 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 36.4x.
- The industry is trading close to its 3-year average PS ratio of 1.1x.
Past Earnings Growth
- Both revenue and earnings for companies in the Commercial Services industry have remained mostly flat over the last three years.
- This means that sales and the cost of doing business have remained relatively consistent over this period and subsequently, so have profits.
Industry Trends
Which industries have driven the changes within the Australian Industrials industry?
| AU Market | 1.17% | |
| Industrials | 2.25% | |
| Commercial Services | 2.23% | |
| Diversified Support Services | 2.81% | |
| Environmental and Facilities Services | 0.32% | |
| Commercial Printing | 0% | |
| Office Services and Supplies | 0% | |
| Security and Alarm Services | 0% | |
Industry PE
- Investors are most optimistic about the Diversified Support Services industry even though it's trading below its 3-year average PE ratio of 29.3x.
- Analysts are expecting annual earnings growth of 11.8%, which is higher than its past year's earnings growth of 7.6% per year.
Forecasted Growth
- Analysts are most optimistic on the Environmental and Facilities Services industry, expecting annual earnings growth of 23% over the next 5 years.
- This is better than its past earnings decline of 46% per year.
- In contrast, the Diversified Support Services industry is expected to see its earnings grow by 12% 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$11.91 | 3.4% +AU$541.3m | 16.9% | PE19.5x | |
| DOW Downer EDI | AU$5.16 | 1.6% +AU$52.6m | -8.8% | PE23.7x | |
| CWY Cleanaway Waste Management | AU$2.75 | 0.7% +AU$44.5m | -5.8% | PE77.6x | |
| SGF SG Fleet Group | AU$1.87 | 4.8% +AU$29.1m | -24.5% | PE10.5x | |
| BSA BSA | AU$0.08 | 77.8% +AU$20.0m | -68.6% | PS0.1x |