Is There Now An Opportunity In Rotork plc (LON:ROR)?
Nov 28
U.K. (FTSE) Machinery Industry Analysis
UpdatedNov 29, 2022
DataAggregated Company Financials
Companies25
- 7D0.7%
- 3M11.4%
- 1Y-18.7%
- YTD-22.0%
The Machinery industry has stayed flat over the last week. Unfortunately though, the industry is down 19% over the past 12 months. Looking forward, earnings are forecast to grow by 12% annually.
Industry Valuation and Performance
Has the U.K. Machinery Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 30 Nov 2022 | UK£24.5b | UK£12.2b | UK£1.1b | 17.9x | 22.8x | 2x |
| Fri, 28 Oct 2022 | UK£22.5b | UK£12.1b | UK£1.1b | 15.8x | 20.9x | 1.9x |
| Sun, 25 Sep 2022 | UK£20.5b | UK£12.2b | UK£1.1b | 16x | 19x | 1.7x |
| Tue, 23 Aug 2022 | UK£22.3b | UK£12.1b | UK£1.1b | 17x | 20.6x | 1.8x |
| Thu, 21 Jul 2022 | UK£22.2b | UK£11.4b | UK£1.0b | 16.7x | 21.6x | 1.9x |
| Sat, 18 Jun 2022 | UK£21.1b | UK£11.3b | UK£1.0b | 17.5x | 20.6x | 1.9x |
| Mon, 16 May 2022 | UK£23.4b | UK£11.3b | UK£1.0b | 19.5x | 22.9x | 2.1x |
| Wed, 13 Apr 2022 | UK£24.7b | UK£11.0b | UK£1.0b | 18.7x | 24.4x | 2.2x |
| Fri, 11 Mar 2022 | UK£25.0b | UK£10.7b | UK£946.7m | 19.9x | 26.4x | 2.3x |
| Sun, 06 Feb 2022 | UK£27.3b | UK£10.9b | UK£877.3m | 24.3x | 31.1x | 2.5x |
| Tue, 04 Jan 2022 | UK£30.5b | UK£10.9b | UK£875.5m | 25x | 34.9x | 2.8x |
| Thu, 02 Dec 2021 | UK£29.6b | UK£10.9b | UK£864.4m | 25x | 34.2x | 2.7x |
| Sat, 30 Oct 2021 | UK£29.8b | UK£10.8b | UK£856.6m | 27.9x | 34.8x | 2.8x |
| Mon, 27 Sep 2021 | UK£31.0b | UK£10.7b | UK£844.2m | 29x | 36.8x | 2.9x |
| Wed, 25 Aug 2021 | UK£30.7b | UK£10.6b | UK£840.7m | 28.1x | 36.5x | 2.9x |
| Thu, 01 Jul 2021 | UK£28.7b | UK£10.6b | UK£840.7m | 26.2x | 34.1x | 2.7x |
| Sun, 04 Apr 2021 | UK£25.9b | UK£10.5b | UK£742.0m | 29.9x | 34.9x | 2.5x |
| Wed, 06 Jan 2021 | UK£25.3b | UK£10.4b | UK£636.4m | 29.7x | 39.7x | 2.4x |
| Sat, 10 Oct 2020 | UK£21.4b | UK£10.2b | UK£670.4m | 25.4x | 31.9x | 2.1x |
| Fri, 03 Jul 2020 | UK£19.7b | UK£10.4b | UK£708.3m | 22.2x | 27.9x | 1.9x |
| Mon, 06 Apr 2020 | UK£15.8b | UK£10.8b | UK£795.3m | 15.3x | 19.9x | 1.5x |
| Thu, 09 Jan 2020 | UK£22.6b | UK£11.3b | UK£876.0m | 19.3x | 25.8x | 2x |
Price to Earnings Ratio
24.2x
Current Industry PE
- Investors are pessimistic on the British Machinery 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 22.8x which is lower than its 3-year average PE of 30.6x.
- The 3-year average PS ratio of 2.3x is higher than the industry's current PS ratio of 2.0x.
Past Earnings Growth
- The earnings for companies in the Machinery industry have grown 6.1% per year over the last three years, while revenues have remained mostly flat.
- This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.
Industry Trends
Which industries have driven the changes within the U.K. Industrials industry?
| GB Market | 1.10% | |
| Industrials | 0.87% | |
| Machinery | 0.68% | |
| Industrial Machinery | 0.69% | |
| Construction Machinery and Vehicles | 0% | |
| Agricultural Machinery | 0% | |
Industry PE
- Investors are most optimistic about the Industrial Machinery industry even though it's trading below its 3-year average PE ratio of 31.1x.
- Analysts are expecting annual earnings growth of 12.4%, which is higher than its past year's earnings growth of 11.2% per year.
- Investors are most pessimistic about the Construction Machinery and Vehicles industry, which is trading below its 3-year average of 10.8x.
Forecasted Growth
- Analysts are most optimistic on the Industrial Machinery industry, expecting annual earnings growth of 12% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the Construction Machinery and Vehicles industry is expected to see its earnings growth to stay flat 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 | |
|---|---|---|---|---|---|
| HMSG HMS Hydraulic Machines & Systems Group | US$3.50 | n/a US$81.1m | -20.5% | PE4.4x | |
| ROR Rotork | UK£2.92 | 2.4% +UK£58.4m | -14.1% | PE33.2x | |
| WEIR Weir Group | UK£18.18 | 1.1% +UK£49.3m | 9.0% | PE27.4x | |
| PRV Porvair | UK£5.68 | 9.2% +UK£22.1m | -17.7% | PE22.2x | |
| JDG Judges Scientific | UK£78.40 | 2.5% +UK£12.1m | 1.3% | PE50.2x |
