Is Now An Opportune Moment To Examine carsales.com Ltd (ASX:CAR)?
Dec 03
Australian (ASX) Telecom Sector Analysis
UpdatedDec 04, 2022
DataAggregated Company Financials
Companies58
- 7D2.2%
- 3M1.3%
- 1Y-14.5%
- YTD-17.3%
Over the last 7 days, the Telecom industry has risen 2.2%, driven by gains from REA Group of 5.0%. Meanwhile, IVE Group actually underperformed within the industry, shrinking 6.7% in the last week. However, the industry is down 14% over the past year. Looking forward, earnings are forecast to grow by 12% annually.
Sector Valuation and Performance
Has the Australian Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 04 Dec 2022 | AU$108.6b | AU$40.3b | AU$3.0b | 34.1x | 36x | 2.7x |
| Tue, 01 Nov 2022 | AU$104.2b | AU$40.3b | AU$3.0b | 31.7x | 34.5x | 2.6x |
| Thu, 29 Sep 2022 | AU$101.1b | AU$40.3b | AU$3.0b | 31.8x | 33.5x | 2.5x |
| Sat, 27 Aug 2022 | AU$110.0b | AU$39.8b | AU$3.0b | 31.3x | 36.4x | 2.8x |
| Mon, 25 Jul 2022 | AU$107.7b | AU$38.6b | AU$2.8b | 37x | 38.4x | 2.8x |
| Wed, 22 Jun 2022 | AU$99.2b | AU$38.6b | AU$2.8b | 36.6x | 35.4x | 2.6x |
| Fri, 20 May 2022 | AU$107.0b | AU$38.8b | AU$2.8b | 37.9x | 37.9x | 2.8x |
| Sun, 17 Apr 2022 | AU$115.6b | AU$38.8b | AU$2.8b | 42.7x | 40.9x | 3x |
| Tue, 15 Mar 2022 | AU$112.8b | AU$38.8b | AU$2.8b | 39.7x | 40.5x | 2.9x |
| Thu, 10 Feb 2022 | AU$120.1b | AU$38.2b | AU$3.7b | 27.6x | 32.5x | 3.1x |
| Sat, 08 Jan 2022 | AU$125.4b | AU$38.1b | AU$3.6b | 27.5x | 34.5x | 3.3x |
| Mon, 06 Dec 2021 | AU$127.1b | AU$38.3b | AU$3.7b | 29.6x | 34.7x | 3.3x |
| Wed, 03 Nov 2021 | AU$127.9b | AU$38.2b | AU$3.7b | 27.6x | 35x | 3.3x |
| Fri, 01 Oct 2021 | AU$125.2b | AU$38.3b | AU$3.7b | 26.3x | 34.3x | 3.3x |
| Sun, 29 Aug 2021 | AU$121.1b | AU$38.2b | AU$3.7b | 27.1x | 33.1x | 3.2x |
| Mon, 05 Jul 2021 | AU$119.5b | AU$38.2b | AU$3.7b | 25x | 32.6x | 3.1x |
| Thu, 08 Apr 2021 | AU$107.2b | AU$37.5b | AU$3.0b | 34.1x | 35.3x | 2.9x |
| Sun, 10 Jan 2021 | AU$102.6b | AU$36.5b | AU$2.5b | 22.2x | 41.6x | 2.8x |
| Sat, 03 Oct 2020 | AU$88.4b | AU$36.5b | AU$2.1b | 26.4x | 42.5x | 2.4x |
| Tue, 07 Jul 2020 | AU$93.6b | AU$36.1b | AU$1.7b | 27.7x | 56.6x | 2.6x |
| Fri, 10 Apr 2020 | AU$64.0b | AU$34.4b | AU$2.6b | 17.5x | 24.3x | 1.9x |
| Thu, 02 Jan 2020 | AU$80.8b | AU$35.7b | AU$2.8b | 24.2x | 28.6x | 2.3x |
Price to Earnings Ratio
28.6x
Current Industry PE
- Investors are relatively neutral on the Australian Communication 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 37.5x.
- The industry is trading close to its 3-year average PS ratio of 2.7x.
Past Earnings Growth
- The earnings for companies in the Communication Services industry have grown 3.4% per year over the last three years.
- Revenues for these companies have grown 4.2% 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 Telecom sector?
| AU Market | 0.62% | |
| Telecom | 2.17% | |
| Interactive Media and Services | 5.44% | |
| Media | 3.82% | |
| Wireless Telecom | 3.31% | |
| Telecom Services and Carriers | 0.32% | |
| Entertainment | -1.00% | |
Industry PE
- Investors are most optimistic about the Entertainment industry which is trading above its 3-year average PE ratio of 14.3x.
- Analysts are expecting annual earnings growth of 19.2%, which is lower than the prior year's growth of 75.8% per year.
Forecasted Growth
- Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 19% over the next 5 years.
- However this is lower than its past earnings growth rate of 76% per year.
- In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 11% 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 | |
|---|---|---|---|---|---|
| REA REA Group | AU$127.13 | 5.0% +AU$794.0m | -20.9% | PE43.6x | |
| SEK SEEK | AU$23.17 | 7.9% +AU$598.2m | -33.3% | PE34.1x | |
| CAR carsales.com | AU$23.24 | 5.0% +AU$390.0m | -7.7% | PE50.8x | |
| NEC Nine Entertainment Holdings | AU$2.21 | 5.7% +AU$236.2m | -24.8% | PE12.6x | |
| TPG TPG Telecom | AU$5.00 | 1.6% +AU$148.7m | -17.4% | PE46.7x |
