Shareholders Can Be Confident That easyJet's (LON:EZJ) Earnings Are High Quality
Dec 05
U.K. (FTSE) Industrials Sector Analysis
UpdatedDec 05, 2023
DataAggregated Company Financials
Companies222
- 7D0.3%
- 3M2.4%
- 1Y7.6%
- YTD9.2%
The Industrials is pretty flat in the last 7 days, but Rolls-Royce Holdings has stood out, gaining 17%. The past year has been better, since the industry has gained 7.6% in that time. Earnings are forecast to grow by 14% annually.
Sector Valuation and Performance
Has the U.K. Industrials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 05 Dec 2023 | UK£301.4b | UK£288.5b | UK£14.1b | 14.8x | 21.4x | 1x |
| Thu, 02 Nov 2023 | UK£282.7b | UK£283.9b | UK£13.5b | 14x | 20.9x | 1x |
| Sat, 30 Sep 2023 | UK£294.2b | UK£282.6b | UK£13.1b | 15.3x | 22.4x | 1x |
| Mon, 28 Aug 2023 | UK£288.1b | UK£280.2b | UK£12.6b | 14.9x | 22.9x | 1x |
| Wed, 26 Jul 2023 | UK£297.3b | UK£272.5b | UK£11.4b | 14.4x | 26.1x | 1.1x |
| Fri, 23 Jun 2023 | UK£295.0b | UK£271.5b | UK£11.7b | 14.8x | 25.3x | 1.1x |
| Sun, 21 May 2023 | UK£297.1b | UK£271.1b | UK£11.7b | 14.7x | 25.4x | 1.1x |
| Tue, 18 Apr 2023 | UK£297.7b | UK£267.0b | UK£12.1b | 15.1x | 24.7x | 1.1x |
| Thu, 16 Mar 2023 | UK£282.2b | UK£263.0b | UK£11.9b | 15x | 23.7x | 1.1x |
| Sat, 11 Feb 2023 | UK£283.2b | UK£234.4b | UK£11.2b | 17x | 25.2x | 1.2x |
| Mon, 09 Jan 2023 | UK£273.5b | UK£232.5b | UK£11.2b | 17.5x | 24.3x | 1.2x |
| Wed, 07 Dec 2022 | UK£271.7b | UK£231.9b | UK£11.3b | 16.8x | 24x | 1.2x |
| Fri, 04 Nov 2022 | UK£260.2b | UK£222.0b | UK£10.3b | 15.7x | 25.2x | 1.2x |
| Sun, 02 Oct 2022 | UK£269.5b | UK£261.8b | UK£10.9b | 15.2x | 24.6x | 1x |
| Tue, 30 Aug 2022 | UK£289.6b | UK£256.0b | UK£11.4b | 16.6x | 25.5x | 1.1x |
| Thu, 28 Jul 2022 | UK£289.2b | UK£237.9b | UK£11.2b | 17.4x | 25.8x | 1.2x |
| Sat, 25 Jun 2022 | UK£273.7b | UK£236.1b | UK£10.9b | 17.3x | 25.2x | 1.2x |
| Mon, 23 May 2022 | UK£286.5b | UK£233.1b | UK£10.4b | 18.5x | 27.4x | 1.2x |
| Wed, 20 Apr 2022 | UK£304.9b | UK£227.7b | UK£10.1b | 19.5x | 30.1x | 1.3x |
| Fri, 18 Mar 2022 | UK£311.7b | UK£226.6b | UK£9.9b | 19.6x | 31.5x | 1.4x |
| Sun, 13 Feb 2022 | UK£314.2b | UK£227.2b | UK£9.0b | 21.3x | 35x | 1.4x |
| Tue, 11 Jan 2022 | UK£331.1b | UK£226.5b | UK£9.0b | 21.6x | 37x | 1.5x |
| Thu, 09 Dec 2021 | UK£343.9b | UK£224.4b | UK£8.7b | 24.2x | 39.7x | 1.5x |
| Sat, 06 Nov 2021 | UK£346.6b | UK£218.9b | UK£6.7b | 26.7x | 51.8x | 1.6x |
| Mon, 04 Oct 2021 | UK£328.3b | UK£218.0b | UK£6.5b | 26.2x | 50.7x | 1.5x |
| Wed, 01 Sep 2021 | UK£340.0b | UK£216.1b | UK£5.4b | 27.8x | 62.5x | 1.6x |
| Thu, 08 Jul 2021 | UK£311.5b | UK£215.7b | UK£5.4b | 27x | 57.8x | 1.4x |
| Wed, 31 Mar 2021 | UK£289.1b | UK£214.0b | UK£3.8b | 26.8x | 75.3x | 1.4x |
| Sat, 02 Jan 2021 | UK£277.0b | UK£214.2b | UK£2.8b | 23.4x | 98.2x | 1.3x |
Price to Earnings Ratio
98.2x
Current Industry PE
- Investors are pessimistic on the British Industrials 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 21.4x which is lower than its 3-year average PE of 41.8x.
- The 3-year average PS ratio of 1.3x is higher than the industry's current PS ratio of 1.0x.
Past Earnings Growth
- The earnings for companies in the Industrials industry have grown 71% per year over the last three years.
- Revenues for these companies have grown 10% 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. Industrials sector?
| GB Market | 0.37% | |
| Industrials | 0.31% | |
| Airlines | 7.07% | |
| Trade Distributors | 1.91% | |
| Building | 1.80% | |
| Construction | 1.23% | |
| Industrials | 0.79% | |
| Machinery | 0.22% | |
| Aerospace & Defense | -0.17% | |
| Transportation | -0.47% | |
| Professional Services | -0.52% | |
| Logistics | -0.53% | |
| Marine and Shipping | -1.08% | |
| Infrastructure | -1.14% | |
| Commercial Services | -2.25% | |
| Electrical | -3.66% | |
Industry PE
- Investors are most optimistic about the Transportation industry which is trading above its 3-year average PE ratio.
- Analysts expect its future annual earnings growth (52.1%) to be largely in line with prior year's earnings growth.
Forecasted Growth
- Analysts are most optimistic on the Logistics industry, expecting annual earnings growth of 102% over the next 5 years.
- This is better than its past earnings growth rate of 8.1% per year.
- In contrast, the Marine and Shipping industry is expected to see its earnings decline by 8.8% 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 | |
|---|---|---|---|---|---|
| RR. Rolls-Royce Holdings | UK£2.85 | 17.4% +UK£3.5b | 215.0% | PE14.5x | |
| AHT Ashtead Group | UK£49.20 | 3.5% +UK£732.7m | -2.3% | PE16.3x | |
| EZJ easyJet | UK£4.75 | 17.2% +UK£527.1m | 20.9% | PE11.1x | |
| IAG International Consolidated Airlines Group | UK£1.58 | 4.9% +UK£363.7m | 17.3% | PE3.8x | |
| EXPN Experian | UK£29.35 | 0.5% +UK£211.0m | -0.7% | PE32.8x |
