Calculating The Intrinsic Value Of Hill & Smith Holdings PLC (LON:HILS)
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Hill & Smith Holdings...
Has the U.K. Metals and Mining Industry valuation changed over the past few years?
|Sat, 27 Nov 2021||UK£287.2b||UK£277.8b||UK£42.6b||8.1x|
|Mon, 25 Oct 2021||UK£306.8b||UK£270.5b||UK£41.8b||9.1x|
|Wed, 22 Sep 2021||UK£283.9b||UK£268.7b||UK£39.6b||7.6x|
|Fri, 20 Aug 2021||UK£300.8b||UK£265.9b||UK£39.1b||8.9x|
|Fri, 04 Jun 2021||UK£339.3b||UK£242.3b||UK£27.2b||11.7x|
|Mon, 08 Mar 2021||UK£316.3b||UK£222.2b||UK£16.3b||13.2x|
|Thu, 10 Dec 2020||UK£257.5b||UK£241.4b||UK£14.0b||11.2x|
|Wed, 02 Sep 2020||UK£238.0b||UK£261.9b||UK£12.4b||11.8x|
|Sat, 06 Jun 2020||UK£226.2b||UK£279.8b||UK£16.4b||9.2x|
|Tue, 10 Mar 2020||UK£215.1b||UK£283.2b||UK£19.8b||8.4x|
|Mon, 02 Dec 2019||UK£231.2b||UK£302.2b||UK£23.7b||8.4x|
|Thu, 05 Sep 2019||UK£227.8b||UK£294.7b||UK£26.3b||8.9x|
|Sun, 09 Jun 2019||UK£236.4b||UK£288.0b||UK£26.5b||9.3x|
|Sat, 02 Mar 2019||UK£243.3b||UK£293.3b||UK£27.8b||10.2x|
|Tue, 04 Dec 2018||UK£212.3b||UK£284.5b||UK£26.5b||9.8x|
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 9.9x. However, future earnings are expected to decline by 15% which could potentially cause the PE ratio to fall below its historical average.
Past Earnings Growth: The earnings for companies in the Metals and Mining industry have grown 17% 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.
Which industries have driven the changes within the U.K. Metals and Mining industry?
|Diversified Metals and Mining||-2.67%|
|Precious Metals and Minerals||-5.20%|
Industry PE: Investors are most optimistic about the Precious Metals and Minerals industry which is trading above its 3-year average PE ratio of 10.9x. However analysts are expecting annual earnings decline of 2.1%, which is lower than the prior year's growth of 176% per year. So the market might believe that analysts are underestimating future growth or they expect the Precious Metals and Minerals industry's earnings to deteriorate the least compared to other industries. Meanwhile, investors are most pessimistic about the Aluminum industry, which is trading below its 3-year average of 6.6x.
Forecasted Growth: Analysts are most optimistic on the Gold industry, expecting annual earnings growth of 11% over the next 5 years. However this is lower than its past earnings growth rate of 63% per year. Meanwhile, the Steel industry is expected to see its earnings decline by 24% per year over the next few years.
Which companies have driven the market over the last 7 days?
Hill & Smith Holdings
Rio Tinto Group
Eastinco Mining and Exploration