The Returns On Capital At PageGroup (LON:PAGE) Don't Inspire Confidence
To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'd want to...
Has the U.K. Professional Services Industry valuation changed over the past few years?
|Sun, 28 Nov 2021||UK£97.4b||UK£29.7b||UK£2.6b||33.1x|
|Tue, 26 Oct 2021||UK£95.2b||UK£29.2b||UK£2.4b||37.6x|
|Thu, 23 Sep 2021||UK£97.3b||UK£29.2b||UK£2.5b||37.4x|
|Sat, 21 Aug 2021||UK£93.5b||UK£29.1b||UK£2.4b||31.5x|
|Sat, 05 Jun 2021||UK£82.8b||UK£29.0b||UK£2.2b||42.4x|
|Tue, 09 Mar 2021||UK£73.6b||UK£28.8b||UK£2.1b||34.3x|
|Mon, 30 Nov 2020||UK£77.5b||UK£29.6b||UK£2.1b||36.3x|
|Thu, 03 Sep 2020||UK£77.5b||UK£30.6b||UK£2.2b||27.1x|
|Sun, 07 Jun 2020||UK£79.5b||UK£31.3b||UK£2.5b||18.4x|
|Sat, 29 Feb 2020||UK£77.6b||UK£31.6b||UK£2.8b||22.9x|
|Tue, 03 Dec 2019||UK£78.9b||UK£31.8b||UK£2.9b||22.6x|
|Fri, 06 Sep 2019||UK£79.0b||UK£31.5b||UK£2.8b||18.4x|
|Mon, 10 Jun 2019||UK£75.8b||UK£31.0b||UK£2.7b||21.6x|
|Sun, 03 Mar 2019||UK£68.6b||UK£30.3b||UK£2.7b||20.6x|
|Wed, 05 Dec 2018||UK£66.2b||UK£29.7b||UK£2.8b||21.4x|
Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 33.1x which is higher than its 3-year average PE of 27.1x. 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 Professional Services industry have declined 3.1% 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.
Which industries have driven the changes within the U.K. Professional Services industry?
|Research and Consulting Services||-1.75%|
Industry PE: Investors are most optimistic about the Research and Consulting Services industry which is trading above its 3-year average PE ratio of 30.5x. However analysts are expecting annual earnings growth of 12%, which is lower than the prior year's growth of 30% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the HR Services industry, which is trading close to its 3-year average of 24.3x.
Forecasted Growth: Analysts are most optimistic on the HR Services industry, expecting annual earnings growth of 24% over the next 5 years. This is better than its past earnings decline of 14% per year. Meanwhile, the Research and Consulting Services industry is expected to see its earnings grow by 12% per year over the next few years.
Which companies have driven the market over the last 7 days?
Alpha Financial Markets Consulting
Keystone Law Group