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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?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sun, 28 Nov 2021 | UK£207.1b | UK£177.8b | UK£6.3b | 17x |
| Tue, 26 Oct 2021 | UK£214.1b | UK£173.1b | UK£4.1b | 19.4x |
| Thu, 23 Sep 2021 | UK£222.6b | UK£166.0b | UK£2.6b | 21.7x |
| Sat, 21 Aug 2021 | UK£219.9b | UK£162.4b | UK£1.9b | 24.3x |
| Sat, 05 Jun 2021 | UK£221.5b | UK£158.2b | UK£985.0m | 24.7x |
| Tue, 09 Mar 2021 | UK£194.0b | UK£153.6b | UK£270.1m | 23.7x |
| Mon, 30 Nov 2020 | UK£171.1b | UK£155.6b | UK£799.5m | 26x |
| Thu, 03 Sep 2020 | UK£146.2b | UK£159.4b | UK£2.0b | 22x |
| Sun, 07 Jun 2020 | UK£136.2b | UK£173.4b | UK£4.9b | 17.3x |
| Sat, 29 Feb 2020 | UK£170.3b | UK£181.6b | UK£7.7b | 17.6x |
| Tue, 03 Dec 2019 | UK£178.7b | UK£182.3b | UK£8.3b | 16.1x |
| Fri, 06 Sep 2019 | UK£159.0b | UK£176.8b | UK£7.6b | 17.5x |
| Mon, 10 Jun 2019 | UK£153.4b | UK£174.8b | UK£7.7b | 16.7x |
| Sun, 03 Mar 2019 | UK£162.7b | UK£176.6b | UK£8.6b | 16.1x |
| Wed, 05 Dec 2018 | UK£155.0b | UK£172.9b | UK£9.3b | 15.3x |
PE Ratio
15.3x
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?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| VVO Vivo Energy | 25.2%+UK£335.7m | 54.4% | PE15.5x | |
| BME B&M European Value Retail | 4.1%+UK£250.3m | 32.2% | PE14.6x | |
| DOCS Dr. Martens | 3.1%+UK£122.0m | n/a | PE113.8x | |
| ROO Deliveroo | 1.8%+UK£104.4m | n/a | PS3.6x | |
| PETS at Home Group | 2.4%+UK£57.0m | 12.8% | PE19.2x |
