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Brazilian (BOVESPA) Consumer Discretionary Sector Analysis

UpdatedNov 30, 2022
DataAggregated Company Financials
Companies60
  • 7D-1.3%
  • 3M-14.9%
  • 1Y-35.1%
  • YTD-30.2%

Over the last 7 days, the Consumer Discretionary industry has dropped 5.9%, driven by a pullback from Lojas Renner of 6.6%. Overall the industry is down 38% in 12 months. Earnings are forecast to grow by 50% annually.

Sector Valuation and Performance

Has the Brazilian Consumer Discretionary Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 30 Nov 2022R$197.5bR$422.0bR$7.1b9.7x27.9x0.5x
Fri, 28 Oct 2022R$237.7bR$403.0bR$9.6b9.8x24.7x0.6x
Sun, 25 Sep 2022R$251.6bR$403.1bR$9.7b10.4x25.9x0.6x
Tue, 23 Aug 2022R$227.4bR$384.7bR$9.6b10.1x23.6x0.6x
Thu, 21 Jul 2022R$207.6bR$376.1bR$10.5b8.1x19.7x0.6x
Sat, 18 Jun 2022R$200.0bR$376.2bR$10.6b8.1x18.9x0.5x
Mon, 16 May 2022R$240.7bR$360.4bR$11.7b9.2x20.5x0.7x
Wed, 13 Apr 2022R$278.3bR$352.5bR$11.1b10.3x25.1x0.8x
Fri, 11 Mar 2022R$269.4bR$332.7bR$12.0b9.8x22.4x0.8x
Sun, 06 Feb 2022R$303.6bR$354.0bR$12.3b11.3x24.7x0.9x
Tue, 04 Jan 2022R$310.7bR$354.0bR$12.3b10.9x25.2x0.9x
Thu, 02 Dec 2021R$316.9bR$353.8bR$12.3b11x25.8x0.9x
Sat, 30 Oct 2021R$355.9bR$329.1bR$10.7b11.9x33.2x1.1x
Mon, 27 Sep 2021R$442.1bR$327.3bR$10.6b13x41.7x1.4x
Wed, 25 Aug 2021R$495.1bR$327.1bR$10.6b15.1x46.7x1.5x
Thu, 01 Jul 2021R$557.5bR$325.8bR$11.3b16.2x49.5x1.7x
Sun, 04 Apr 2021R$469.7bR$287.2bR$7.2b15.4x64.8x1.6x
Wed, 06 Jan 2021R$526.6bR$270.3bR$4.6b18.8x115.1x1.9x
Sat, 10 Oct 2020R$489.2bR$259.0bR$2.5b22.6x194.4x1.9x
Fri, 03 Jul 2020R$449.5bR$248.6bR$3.1b23.8x145.5x1.8x
Mon, 06 Apr 2020R$268.1bR$239.4bR$7.9b13.7x34.1x1.1x
Thu, 09 Jan 2020R$432.4bR$241.5bR$12.1b20.4x35.7x1.8x
Price to Earnings Ratio

30.7x


Total Market Cap: R$395.5bTotal Earnings: R$12.9bTotal Revenue: R$264.2bTotal Market Cap vs Earnings and Revenue0%0%0%
Brazilian Consumer Discretionary Sector Price to Earnings3Y Average 66.4x202020212022
Current Industry PE
  • Investors are pessimistic on the Brazilian Consumer Discretionary 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 27.8x which is lower than its 3-year average PE of 66.4x.
  • The 3-year average PS ratio of 1.3x is higher than the industry's current PS ratio of 0.47x.
Past Earnings Growth
  • The earnings for companies in the Consumer Discretionary industry have declined 18% per year over the last three years.
  • Meanwhile revenues for these companies have grown 17% 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, which has decreased profits.

Industry Trends

Which industries have driven the changes within the Brazilian Consumer Discretionary sector?

BR Market1.66%
Consumer Discretionary-1.28%
Leisure3.67%
General Merchanise and Department Stores1.56%
Consumer Durables1.51%
Luxury0.10%
Auto0%
Retail Distributors0%
Auto Components-1.71%
Online Retail and Ecommerce-1.79%
Hospitality-2.69%
Consumer Services-3.17%
Specialty Stores-4.15%
Industry PE
  • Investors are most optimistic about the Luxury industry which is trading above its 3-year average PE ratio of 4.1x.
    • Analysts are expecting annual earnings growth of 24.0%, which is higher than its past year's earnings growth of 17.3% per year.
Forecasted Growth
  • Analysts are most optimistic on the Hospitality industry, expecting annual earnings growth of 169% over the next 5 years.
  • In contrast, the Auto Components industry is expected to see its earnings grow by 13% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
MGLU3 Magazine LuizaR$3.401.8%
+R$400.6m
-56.4%PS0.6x
SOMA3 Grupo de Moda SOMAR$11.592.1%
+R$188.3m
-11.0%PE29.6x
GRND3 GrendeneR$6.503.0%
+R$171.3m
-22.4%PE9.8x
DIRR3 Direcional EngenhariaR$14.577.2%
+R$146.0m
43.1%PE12.3x
CYRE3 Cyrela Brazil Realty Empreendimentos e ParticipaçõesR$14.492.0%
+R$106.1m
6.5%PE6.7x
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