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U.K. (FTSE) Consumer Discretionary Sector Analysis

UpdatedNov 28, 2021
DataAggregated Company Financials
Companies156
  • 7D-3.4%
  • 3M-9.8%
  • 1Y7.8%
  • YTD0.6%

Over the last 7 days, the Consumer Discretionary industry has dropped 3.4%, driven by a decline by Entain of 10%. Meanwhile, Vivo Energy actually outperformed within the industry, gaining 25% in the last week. This takes the industry's 12 month performance to a gain of 7.8%.

Sector Valuation and Performance

Has the U.K. Consumer Discretionary Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPE
Sun, 28 Nov 2021UK£207.1bUK£177.8bUK£6.3b17x
Tue, 26 Oct 2021UK£214.1bUK£173.1bUK£4.1b19.4x
Thu, 23 Sep 2021UK£222.6bUK£166.0bUK£2.6b21.7x
Sat, 21 Aug 2021UK£219.9bUK£162.4bUK£1.9b24.3x
Sat, 05 Jun 2021UK£221.5bUK£158.2bUK£985.0m24.7x
Tue, 09 Mar 2021UK£194.0bUK£153.6bUK£270.1m23.7x
Mon, 30 Nov 2020UK£171.1bUK£155.6bUK£799.5m26x
Thu, 03 Sep 2020UK£146.2bUK£159.4bUK£2.0b22x
Sun, 07 Jun 2020UK£136.2bUK£173.4bUK£4.9b17.3x
Sat, 29 Feb 2020UK£170.3bUK£181.6bUK£7.7b17.6x
Tue, 03 Dec 2019UK£178.7bUK£182.3bUK£8.3b16.1x
Fri, 06 Sep 2019UK£159.0bUK£176.8bUK£7.6b17.5x
Mon, 10 Jun 2019UK£153.4bUK£174.8bUK£7.7b16.7x
Sun, 03 Mar 2019UK£162.7bUK£176.6bUK£8.6b16.1x
Wed, 05 Dec 2018UK£155.0bUK£172.9bUK£9.3b15.3x
PE Ratio

15.3x

Total Market Cap: UK£155.0bTotal Earnings: UK£9.3bTotal Revenue: UK£172.9b0%0%0%3 Year10 Year
201920202021

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 19.7x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Consumer Discretionary industry have declined 12% per year over the last three years, while revenues have remained mostly flat. This means that although sales have remained flat, 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 U.K. Consumer Discretionary sector?

Consumer Durables-2.13%
Specialty Stores-2.55%
General Merchanise and Department Stores-2.76%
Retail Distributors-3.10%
Consumer Services-3.22%
Leisure-3.69%
Hospitality-4.17%
Luxury-4.33%
Online Retail and Ecommerce-4.35%
Auto Components-9.47%
Auto-10.77%

Industry PE: Investors are most optimistic about the Auto Components industry which is trading above its 3-year average PE ratio of 57.9x. This is likely because analysts are expecting annual earnings growth of 54%, which is higher than its past year's earnings decline of 34% per year. Meanwhile, investors are most pessimistic about the Specialty Stores industry, which is trading below its 3-year average of 15.4x.

Forecasted Growth: Analysts are most optimistic on the Auto Components industry, expecting annual earnings growth of 54% over the next 5 years. This is better than its past earnings decline of 34% per year. Meanwhile, the Leisure industry is expected to see its earnings grow by 8.0% per year over the next few years.

Top Stock Gainers and Losers

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

Company7D1YValuation
VVO Vivo Energy25.2%+UK£335.7m54.4%PE15.5x
BME B&M European Value Retail4.1%+UK£250.3m32.2%PE14.6x
DOCS Dr. Martens3.1%+UK£122.0mn/aPE113.8x
ROO Deliveroo1.8%+UK£104.4mn/aPS3.6x
PETS at Home Group2.4%+UK£57.0m12.8%PE19.2x
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