Is There Now An Opportunity In Coca-Cola HBC AG (LON:CCH)?
Nov 27
U.K. (FTSE) Beverage Industry Analysis
UpdatedNov 28, 2022
DataAggregated Company Financials
Companies16
- 7D2.5%
- 3M-0.8%
- 1Y-3.2%
- YTD-11.4%
In the last week, the Beverage industry is up 2.5%, with Diageo up 2.4%. In contrast, the industry has lost 3.2% in the last 12 months. Earnings are forecast to grow by 10% annually.
Industry Valuation and Performance
Has the U.K. Beverage Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 28 Nov 2022 | UK£98.5b | UK£26.6b | UK£3.9b | 18.7x | 25.3x | 3.7x |
| Wed, 26 Oct 2022 | UK£94.7b | UK£26.3b | UK£3.9b | 19.4x | 24.6x | 3.6x |
| Fri, 23 Sep 2022 | UK£97.7b | UK£26.3b | UK£3.8b | 23.2x | 25.5x | 3.7x |
| Sun, 21 Aug 2022 | UK£103.4b | UK£26.0b | UK£3.8b | 25.1x | 27x | 4x |
| Tue, 19 Jul 2022 | UK£95.9b | UK£23.6b | UK£3.7b | 22.7x | 26x | 4.1x |
| Thu, 16 Jun 2022 | UK£92.5b | UK£23.7b | UK£3.7b | 25.2x | 25x | 3.9x |
| Sat, 14 May 2022 | UK£100.6b | UK£23.1b | UK£3.6b | 28.8x | 28x | 4.4x |
| Mon, 11 Apr 2022 | UK£105.1b | UK£23.0b | UK£3.6b | 30.4x | 29.3x | 4.6x |
| Wed, 09 Mar 2022 | UK£89.3b | UK£23.2b | UK£3.6b | 26x | 24.8x | 3.9x |
| Fri, 04 Feb 2022 | UK£104.7b | UK£22.7b | UK£3.6b | 28.6x | 28.9x | 4.6x |
| Sun, 02 Jan 2022 | UK£119.6b | UK£21.6b | UK£3.2b | 35.1x | 36.9x | 5.5x |
| Tue, 30 Nov 2021 | UK£104.0b | UK£21.6b | UK£3.2b | 33.2x | 32.1x | 4.8x |
| Thu, 28 Oct 2021 | UK£101.0b | UK£21.3b | UK£3.2b | 31.5x | 31.7x | 4.7x |
| Sat, 25 Sep 2021 | UK£98.3b | UK£21.4b | UK£3.2b | 30.8x | 30.9x | 4.6x |
| Mon, 23 Aug 2021 | UK£100.8b | UK£21.4b | UK£3.2b | 32.5x | 31.7x | 4.7x |
| Sat, 10 Jul 2021 | UK£98.9b | UK£21.2b | UK£3.1b | 30.4x | 31.6x | 4.7x |
| Fri, 02 Apr 2021 | UK£85.9b | UK£20.6b | UK£2.3b | 36.6x | 36.9x | 4.2x |
| Mon, 04 Jan 2021 | UK£83.7b | UK£20.3b | UK£1.6b | 28.8x | 53.4x | 4.1x |
| Thu, 08 Oct 2020 | UK£76.2b | UK£21.0b | UK£1.7b | 25.9x | 43.6x | 3.6x |
| Wed, 01 Jul 2020 | UK£76.9b | UK£21.6b | UK£1.9b | 21.3x | 39.5x | 3.6x |
| Sat, 04 Apr 2020 | UK£72.2b | UK£22.7b | UK£2.9b | 19.9x | 25.2x | 3.2x |
| Tue, 07 Jan 2020 | UK£92.4b | UK£23.3b | UK£3.7b | 23.6x | 24.7x | 4x |
Price to Earnings Ratio
24.3x
Current Industry PE
- Investors are pessimistic on the British Beverage 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 25.3x which is lower than its 3-year average PE of 35.4x.
- The 3-year average PS ratio of 4.4x is higher than the industry's current PS ratio of 3.7x.
Past Earnings Growth
- The earnings for companies in the Beverage industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 4.5% 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 Staples industry?
| GB Market | 1.33% | |
| Consumer Staples | 1.72% | |
| Beverage | 2.54% | |
| Soft Drinks | 3.52% | |
| Distillers and Wine Makers | 2.42% | |
| Brewers | -0.95% | |
Industry PE
- Investors are most optimistic about the Brewers industry which is trading above its 3-year average PE ratio.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
- Investors are most pessimistic about the Soft Drinks industry, which is trading below its 3-year average of 24.5x.
Forecasted Growth
- Analysts are most optimistic on the Soft Drinks industry, expecting annual earnings growth of 19% over the next 5 years.
- This is better than its past earnings growth rate of 0.1% per year.
- In contrast, the Distillers and Wine Makers industry is expected to see its earnings grow by 9.2% per year 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 | |
|---|---|---|---|---|---|
| DGE Diageo | UK£37.63 | 2.4% +UK£2.0b | 0.08% | PE26.3x | |
| CCH Coca-Cola HBC | UK£20.44 | 2.5% +UK£179.6m | -12.8% | PE18.7x | |
| BVIC Britvic | UK£8.04 | 5.9% +UK£114.6m | -9.9% | PE14.9x | |
| FEVR Fevertree Drinks | UK£11.77 | 7.0% +UK£89.8m | -54.7% | PE35.8x | |
| CCR C&C Group | UK£1.81 | 3.9% +UK£26.2m | -19.3% | PE12.6x |