Origin Energy Limited's (ASX:ORG) Low P/E No Reason For Excitement
Dec 16
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Australian (ASX) Utilities Sector Analysis
UpdatedDec 21, 2024
DataAggregated Company Financials
Companies15
- 7D0.5%
- 3M-0.9%
- 1Y8.1%
- YTD7.6%
In the last week, Utilities has been flat. The past year has been better, since the industry has gained 8.1% in that time. In the next few years, earnings are forecast to decline by 8.9% annually.
Sector Valuation and Performance
Has the Australian Utilities Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 21 Dec 2024 | AU$35.6b | AU$33.3b | AU$3.1b | 13x | 11.6x | 1.1x |
| Mon, 18 Nov 2024 | AU$35.0b | AU$33.2b | AU$3.1b | 12.7x | 11.4x | 1.1x |
| Wed, 16 Oct 2024 | AU$36.2b | AU$33.2b | AU$3.1b | 12.7x | 11.8x | 1.1x |
| Fri, 13 Sep 2024 | AU$35.2b | AU$33.3b | AU$3.0b | 12x | 11.7x | 1.1x |
| Sun, 11 Aug 2024 | AU$36.5b | AU$31.6b | AU$3.1b | 18.8x | 11.6x | 1.2x |
| Tue, 09 Jul 2024 | AU$37.0b | AU$31.6b | AU$3.1b | 19.6x | 11.8x | 1.2x |
| Thu, 06 Jun 2024 | AU$36.9b | AU$31.5b | AU$3.2b | 19.9x | 11.7x | 1.2x |
| Sat, 04 May 2024 | AU$34.9b | AU$31.5b | AU$3.2b | 17.9x | 11x | 1.1x |
| Mon, 01 Apr 2024 | AU$33.5b | AU$31.5b | AU$3.2b | 17.6x | 10.6x | 1.1x |
| Wed, 28 Feb 2024 | AU$32.2b | AU$31.6b | AU$3.1b | 12x | 10.5x | 1x |
| Fri, 26 Jan 2024 | AU$31.6b | AU$34.0b | -AU$15,143,251.00 | 20.2x | -2084.6x | 0.9x |
| Sun, 24 Dec 2023 | AU$32.8b | AU$34.0b | -AU$12,793,926.00 | 20.6x | -2566.6x | 1x |
| Tue, 21 Nov 2023 | AU$33.3b | AU$34.0b | -AU$15,604,339.00 | 21x | -2131.3x | 1x |
| Thu, 19 Oct 2023 | AU$34.4b | AU$34.0b | -AU$17,821,768.00 | 21.7x | -1928.1x | 1x |
| Sat, 16 Sep 2023 | AU$34.0b | AU$34.1b | AU$73.9m | 14x | 460.6x | 1x |
| Mon, 14 Aug 2023 | AU$34.3b | AU$34.4b | -AU$1,857,351,660.00 | 18.3x | -18.5x | 1x |
| Wed, 12 Jul 2023 | AU$34.5b | AU$35.6b | -AU$1,363,319,297.00 | 13.5x | -25.3x | 1x |
| Fri, 09 Jun 2023 | AU$34.1b | AU$35.6b | -AU$1,363,328,947.00 | 14x | -25x | 1x |
| Sun, 07 May 2023 | AU$33.7b | AU$35.5b | -AU$1,369,640,078.00 | 8.2x | -24.6x | 0.9x |
| Tue, 04 Apr 2023 | AU$32.8b | AU$35.5b | -AU$1,369,526,175.00 | 8.1x | -24x | 0.9x |
| Thu, 02 Mar 2023 | AU$32.0b | AU$35.5b | -AU$1,369,671,795.00 | 8.2x | -23.3x | 0.9x |
| Sat, 28 Jan 2023 | AU$31.4b | AU$31.0b | -AU$328,992,599.00 | 11.5x | -95.4x | 1x |
| Mon, 26 Dec 2022 | AU$32.8b | AU$31.0b | -AU$328,275,856.00 | 9.3x | -100x | 1.1x |
| Wed, 23 Nov 2022 | AU$32.8b | AU$31.0b | -AU$328,010,390.00 | 7.7x | -99.9x | 1.1x |
| Fri, 21 Oct 2022 | AU$26.5b | AU$31.1b | -AU$327,340,125.00 | 8.1x | -80.9x | 0.9x |
| Sun, 18 Sep 2022 | AU$28.3b | AU$31.0b | -AU$316,202,471.00 | 6.3x | -89.6x | 0.9x |
| Tue, 16 Aug 2022 | AU$30.8b | AU$27.0b | -AU$1,323,000,557.00 | 26x | -23.3x | 1.1x |
| Thu, 14 Jul 2022 | AU$29.4b | AU$27.0b | -AU$1,323,098,256.00 | 22.3x | -22.2x | 1.1x |
| Sat, 11 Jun 2022 | AU$30.8b | AU$27.0b | -AU$1,322,995,224.00 | 29.6x | -23.3x | 1.1x |
| Mon, 09 May 2022 | AU$32.0b | AU$27.0b | -AU$1,322,995,656.00 | 25.3x | -24.2x | 1.2x |
| Wed, 06 Apr 2022 | AU$30.5b | AU$27.0b | -AU$1,322,873,456.00 | 34.5x | -23x | 1.1x |
| Fri, 04 Mar 2022 | AU$42.6b | AU$29.2b | -AU$990,390,158.00 | 40.9x | -43x | 1.5x |
| Sun, 30 Jan 2022 | AU$41.6b | AU$28.3b | -AU$4,020,061,145.00 | 52.3x | -10.3x | 1.5x |
| Tue, 28 Dec 2021 | AU$40.8b | AU$28.2b | -AU$4,020,079,629.00 | 51.8x | -10.2x | 1.4x |
Price to Earnings Ratio
-10.2x
Current Industry PE
- Investors are pessimistic on the Australian Utilities 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 11.6x which is higher than its 3-year average PE of -244x.
- The industry is trading close to its 3-year average PS ratio of 1.1x.
Past Earnings Growth
- Total earnings for the Utilities industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 5.6% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the Australian Utilities sector?
| AU Market | -2.74% | |
| Utilities | 0.46% | |
| Other Utilities | 2.30% | |
| Electric Utilities | 1.25% | |
| Gas Utilities | -2.19% | |
| Renewable Energy | -2.26% | |
| Water Utilities | -4.28% | |
Industry PE
- Investors are most optimistic about the Renewable Energy industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 17.9%, which is higher than its past year's earnings growth of 3.6% per year.
Forecasted Growth
- Analysts are most optimistic on the Water Utilities industry, expecting annual earnings growth of 26% over the next 5 years.
- However this is lower than its past earnings growth rate of 40% per year.
- In contrast, the Gas Utilities industry is expected to see its earnings decline by 25% 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 | |
|---|---|---|---|---|---|
| ORG Origin Energy | AU$10.54 | 1.2% +AU$223.3m | 25.5% | PE13x | |
| AGL AGL Energy | AU$10.98 | 2.3% +AU$168.2m | 17.3% | PE10.4x | |
| TPC TPC Consolidated | AU$8.62 | 0.2% +AU$226.9k | -10.2% | PE18.1x |
