Does CAR Group (ASX:CAR) Have A Healthy Balance Sheet?
Apr 21
Australian (ASX) Telecom Sector Analysis
UpdatedApr 22, 2024
DataAggregated Company Financials
Companies47
- 7D-2.8%
- 3M-6.4%
- 1Y-1.2%
- YTD-6.6%
Over the last 7 days, the Telecom industry has dropped 2.8%, driven by a pullback from CAR Group of 1.2%. Over the last year, the industry has been flat overall. Earnings are forecast to grow by 16% 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 |
|---|---|---|---|---|---|---|
| Tue, 23 Apr 2024 | AU$107.9b | AU$43.6b | AU$2.9b | 28.7x | 37.4x | 2.5x |
| Thu, 21 Mar 2024 | AU$112.9b | AU$43.6b | AU$2.9b | 31.1x | 39.1x | 2.6x |
| Sat, 17 Feb 2024 | AU$115.0b | AU$43.3b | AU$2.8b | 25.1x | 40.7x | 2.7x |
| Mon, 15 Jan 2024 | AU$117.6b | AU$43.2b | AU$3.4b | 20.9x | 34.9x | 2.7x |
| Wed, 13 Dec 2023 | AU$112.5b | AU$43.2b | AU$3.4b | 19.9x | 33.4x | 2.6x |
| Fri, 10 Nov 2023 | AU$112.6b | AU$43.2b | AU$3.4b | 21.9x | 33.4x | 2.6x |
| Sun, 08 Oct 2023 | AU$109.6b | AU$43.2b | AU$3.4b | 20.9x | 32.5x | 2.5x |
| Tue, 05 Sep 2023 | AU$114.8b | AU$43.2b | AU$3.4b | 22.1x | 34.1x | 2.7x |
| Thu, 03 Aug 2023 | AU$115.5b | AU$42.0b | AU$3.3b | 19.7x | 35.3x | 2.7x |
| Sat, 01 Jul 2023 | AU$113.0b | AU$42.4b | AU$3.3b | 21.5x | 34.4x | 2.7x |
| Mon, 29 May 2023 | AU$113.9b | AU$42.4b | AU$3.3b | 20.6x | 34.7x | 2.7x |
| Wed, 26 Apr 2023 | AU$114.4b | AU$42.4b | AU$3.3b | 23x | 34.9x | 2.7x |
| Fri, 24 Mar 2023 | AU$109.5b | AU$42.4b | AU$3.3b | 21.9x | 33.4x | 2.6x |
| Sun, 19 Feb 2023 | AU$110.2b | AU$41.3b | AU$3.5b | 32.8x | 31.6x | 2.7x |
| Tue, 17 Jan 2023 | AU$107.6b | AU$40.3b | AU$3.0b | 35.3x | 35.7x | 2.7x |
| Thu, 15 Dec 2022 | AU$106.9b | AU$40.3b | AU$3.0b | 33.3x | 35.4x | 2.7x |
| Sat, 12 Nov 2022 | AU$106.3b | AU$40.3b | AU$3.0b | 32.1x | 35.2x | 2.6x |
| Mon, 10 Oct 2022 | AU$103.6b | AU$40.3b | AU$3.0b | 30.5x | 34.3x | 2.6x |
| Wed, 07 Sep 2022 | AU$106.5b | AU$40.1b | AU$3.0b | 34.6x | 35.4x | 2.7x |
| Fri, 05 Aug 2022 | AU$111.4b | AU$38.6b | AU$2.8b | 44x | 39.7x | 2.9x |
| Sun, 03 Jul 2022 | AU$101.6b | AU$38.6b | AU$2.8b | 37.2x | 36.2x | 2.6x |
| Tue, 31 May 2022 | AU$107.7b | AU$38.6b | AU$2.8b | 40.8x | 38.4x | 2.8x |
| Thu, 28 Apr 2022 | AU$113.6b | AU$38.8b | AU$2.8b | 42.6x | 40.2x | 2.9x |
| Sat, 26 Mar 2022 | AU$115.7b | AU$38.8b | AU$2.8b | 44.2x | 41.5x | 3x |
| Mon, 21 Feb 2022 | AU$114.8b | AU$38.2b | AU$3.4b | 27.3x | 33.8x | 3x |
| Wed, 19 Jan 2022 | AU$125.7b | AU$38.0b | AU$3.6b | 28x | 34.5x | 3.3x |
| Fri, 17 Dec 2021 | AU$127.8b | AU$38.2b | AU$3.7b | 30x | 34.9x | 3.3x |
| Sun, 14 Nov 2021 | AU$129.1b | AU$38.2b | AU$3.7b | 31.1x | 35.3x | 3.4x |
| Tue, 12 Oct 2021 | AU$124.2b | AU$38.3b | AU$3.7b | 28.6x | 34x | 3.2x |
| Thu, 09 Sep 2021 | AU$122.9b | AU$38.2b | AU$3.7b | 28x | 33.6x | 3.2x |
| Sat, 07 Aug 2021 | AU$118.9b | AU$38.2b | AU$3.7b | 28x | 32.4x | 3.1x |
| Fri, 30 Apr 2021 | AU$110.8b | AU$37.5b | AU$3.0b | 35.4x | 36.5x | 3x |
Price to Earnings Ratio
36.5x
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 35.4x.
- The 3-year average PS ratio of 2.8x is higher than the industry's current PS ratio of 2.5x.
Past Earnings Growth
- The earnings for companies in the Communication Services industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 5.1% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the Australian Telecom sector?
| AU Market | -2.96% | |
| Telecom | -2.79% | |
| Wireless Telecom | 12.39% | |
| Entertainment | -2.07% | |
| Interactive Media and Services | -2.58% | |
| Telecom Services and Carriers | -2.90% | |
| Media | -5.16% | |
Industry PE
- Investors are most optimistic about the Entertainment industry which is trading above its 3-year average PE ratio of 31.1x.
- Analysts are expecting annual earnings growth of 30.0%, which is higher than its past year's earnings growth of 2.9% per year.
Forecasted Growth
- Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 30% over the next 5 years.
- This is better than its past earnings growth rate of 2.9% per year.
- In contrast, the Telecom Services and Carriers 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 | |
|---|---|---|---|---|---|
| REA REA Group | AU$181.67 | 3.5% +AU$809.9m | 29.7% | PE85.1x | |
| SEK SEEK | AU$25.01 | 2.5% +AU$213.4m | 2.8% | PE86.4x | |
| CAR CAR Group | AU$33.83 | 1.4% +AU$184.3m | 44.5% | PE36.9x | |
| TLS Telstra Group | AU$3.69 | 0.3% +AU$115.4m | -14.2% | PE21x | |
| TPG TPG Telecom | AU$4.26 | 1.4% +AU$111.3m | -19.6% | PE161.3x |
