U.K. (FTSE) Beverage Industry Analysis

Industry Valuation and Performance

Has the U.K. Beverage Industry valuation changed over the past few years?

Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 32.7x which is higher than its 3-year average PE of 26.9x. It appears they are confident that earnings will grow faster in the future than they have historically.

Past Earnings Growth: The earnings for companies in the Beverage industry have declined 3.7% 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. Beverage industry?

Industry PE: Investors are most optimistic about the Distillers and Wine Makers industry which is trading above its 3-year average PE ratio of 30.3x. However analysts are expecting annual earnings growth of 9.7%, which is lower than the prior year's growth of 29% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Soft Drinks industry, which is trading below its 3-year average of 25.6x.

Forecasted Growth: Analysts are most optimistic on the Soft Drinks industry, expecting annual earnings growth of 12% over the next 5 years. This is better than it's past earnings growth rate of 9.1% per year. Meanwhile, the Distillers and Wine Makers industry is expected to see its earnings grow by 9.7% per year over the next few years.

Top Stock Gainers and Losers

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