Swiss (SMI) Electronic Equipment and Components Industry Analysis

Industry Valuation and Performance

Has the Swiss Electronic Equipment and Components Industry valuation changed over the past few years?

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 24.5x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Electronic industry have declined 8.5% per year over the last three years, while revenues for these companies have grown 19% 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 Swiss Electronic Equipment and Components industry?

Industry PE: Investors are most optimistic about the Electronic Equipment and Instruments industry which is trading above its 3-year average PE ratio of 31.9x. However analysts are expecting annual earnings growth of 19%, which is lower than the prior year's growth of 69% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Electronic Manufacturing Services industry, which is trading close to its 3-year average of 19.8x.

Forecasted Growth: Analysts are most optimistic on the Electronic Components industry, expecting annual earnings growth of 47% over the next 5 years. This is roughly in line with its past earnings growth rate. Meanwhile, the Technology Distributors industry is expected to see its earnings grow by 16% per year over the next few years.

Top Stock Gainers and Losers

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