U.K. (FTSE) Food Industry Analysis

Industry Valuation and Performance

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

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 16.2x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Food industry have grown 4.3% per year over the last three years, and revenues for these companies have grown 2.7% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.K. Food industry?

Industry PE: Investors are most optimistic about the Agricultural Products industry which is trading above its 3-year average PE ratio of 12.6x. However analysts are expecting annual earnings decline of 7.4%, which is lower than the prior year's growth of 113% per year. So the market might believe that analysts are underestimating future growth or they expect the Agricultural Products industry's earnings to deteriorate the least compared to other industries. Meanwhile, investors are most pessimistic about the Packaged Foods and Meats industry, which is trading below its 3-year average of 18.8x.

Forecasted Growth: Analysts are most optimistic on the Packaged Foods and Meats industry, expecting annual earnings growth of 17% over the next 5 years. This is better than it's past earnings growth rate of 10% per year. Meanwhile, the Agricultural Products industry is expected to see its earnings decline by 7.4% per year over the next few years.

Top Stock Gainers and Losers

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