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Nov 26
U.K. (FTSE) Consumer Discretionary Sector Analysis
UpdatedNov 28, 2022
DataAggregated Company Financials
Companies164
- 7D1.2%
- 3M2.7%
- 1Y-23.5%
- YTD-27.9%
Flutter Entertainment is up 2.0%, leading the way for the Consumer Discretionary industry, which has gained 1.2%. Meanwhile, Dr. Martens actually underperformed within the industry, shrinking 28% in the last week. In contrast, the industry has lost 23% in the last 12 months. As for the next few years, earnings are expected to grow by 20% per annum.
Sector Valuation and Performance
Has the U.K. Consumer Discretionary Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 28 Nov 2022 | UK£175.3b | UK£201.5b | UK£8.5b | 10.1x | 20.7x | 0.9x |
| Wed, 26 Oct 2022 | UK£160.7b | UK£195.2b | UK£7.8b | 8.1x | 20.5x | 0.8x |
| Fri, 23 Sep 2022 | UK£161.3b | UK£192.6b | UK£8.4b | 9.3x | 19.2x | 0.8x |
| Sun, 21 Aug 2022 | UK£177.3b | UK£190.5b | UK£8.7b | 11.6x | 20.3x | 0.9x |
| Tue, 19 Jul 2022 | UK£166.5b | UK£184.3b | UK£8.2b | 11.4x | 20.2x | 0.9x |
| Thu, 16 Jun 2022 | UK£172.2b | UK£186.7b | UK£8.5b | 13x | 20.2x | 0.9x |
| Sat, 14 May 2022 | UK£178.4b | UK£183.4b | UK£8.0b | 13.2x | 22.3x | 1x |
| Mon, 11 Apr 2022 | UK£183.2b | UK£177.1b | UK£6.9b | 13.8x | 26.6x | 1x |
| Wed, 09 Mar 2022 | UK£176.6b | UK£185.6b | UK£6.6b | 14.1x | 26.9x | 1x |
| Fri, 04 Feb 2022 | UK£216.1b | UK£185.6b | UK£6.5b | 15.9x | 33.3x | 1.2x |
| Sun, 02 Jan 2022 | UK£240.2b | UK£186.0b | UK£6.4b | 18.6x | 37.7x | 1.3x |
| Tue, 30 Nov 2021 | UK£198.1b | UK£177.8b | UK£6.3b | 16.3x | 31.6x | 1.1x |
| Thu, 28 Oct 2021 | UK£216.7b | UK£173.5b | UK£4.7b | 19.5x | 45.6x | 1.2x |
| Sat, 25 Sep 2021 | UK£219.4b | UK£167.4b | UK£3.3b | 22.2x | 66.3x | 1.3x |
| Mon, 23 Aug 2021 | UK£220.9b | UK£162.4b | UK£1.9b | 24.4x | 115.5x | 1.4x |
| Sat, 10 Jul 2021 | UK£215.9b | UK£161.5b | UK£1.7b | 23.9x | 124x | 1.3x |
| Fri, 02 Apr 2021 | UK£209.6b | UK£156.3b | UK£778.6m | 24.6x | 269.2x | 1.3x |
| Mon, 04 Jan 2021 | UK£182.7b | UK£153.2b | UK£181.9m | 24x | 1004.7x | 1.2x |
| Thu, 08 Oct 2020 | UK£151.2b | UK£155.7b | UK£999.6m | 27.4x | 151.3x | 1x |
| Wed, 01 Jul 2020 | UK£136.1b | UK£161.8b | UK£2.9b | 18.9x | 47.2x | 0.8x |
| Sat, 04 Apr 2020 | UK£116.6b | UK£177.2b | UK£6.1b | 13.2x | 19.2x | 0.7x |
| Tue, 07 Jan 2020 | UK£189.6b | UK£181.8b | UK£8.1b | 19.3x | 23.4x | 1x |
Price to Earnings Ratio
21.6x
Current Industry PE
- Investors are pessimistic on the British 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 20.7x which is lower than its 3-year average PE of 127x.
- The 3-year average PS ratio of 1.1x is higher than the industry's current PS ratio of 0.87x.
Past Earnings Growth
- The earnings for companies in the Consumer Discretionary industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 3.4% 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 U.K. Consumer Discretionary sector?
| GB Market | 1.33% | |
| Consumer Discretionary | 1.21% | |
| Retail Distributors | 3.21% | |
| Leisure | 2.82% | |
| Specialty Stores | 2.38% | |
| Consumer Durables | 2.03% | |
| Hospitality | 1.71% | |
| General Merchanise and Department Stores | 1.26% | |
| Auto Components | 0.68% | |
| Online Retail and Ecommerce | -0.13% | |
| Consumer Services | -1.38% | |
| Auto | -3.45% | |
| Luxury | -6.23% | |
Industry PE
- Investors are most optimistic about the Hospitality industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 32.0%, which is lower than the prior year's growth of 38.6% per year.
Forecasted Growth
- Analysts are most optimistic on the Auto industry, expecting annual earnings growth of 85% over the next 5 years.
- In contrast, the Consumer Durables industry is expected to see its earnings growth to stay flat 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 | |
|---|---|---|---|---|---|
| FLTR Flutter Entertainment | UK£117.95 | 2.0% +UK£404.5m | 14.5% | PS3.3x | |
| ENT Entain | UK£14.07 | 5.0% +UK£391.6m | -18.4% | PE38.8x | |
| FRAS Frasers Group | UK£8.88 | 7.9% +UK£299.1m | 30.0% | PE16.4x | |
| JD. JD Sports Fashion | UK£1.25 | 4.1% +UK£255.3m | -43.5% | PE19.7x | |
| WTB Whitbread | UK£26.32 | 4.8% +UK£242.2m | -7.2% | PE16.9x |
