a2 Milk (NZSE:ATM) May Have Issues Allocating Its Capital
Apr 16
New Zealand (NZX) Consumer Staples Sector Analysis
UpdatedApr 24, 2024
DataAggregated Company Financials
Companies17
- 7D1.6%
- 3M7.1%
- 1Y-11.8%
- YTD8.0%
The Consumer Staples industry is up 1.6% in the last week, with a2 Milk up 4.5%. During this same period, the Synlait Milk underperformed, falling 7.4%. In contrast, the industry has lost 12% in the last 12 months. As for the next few years, earnings are expected to grow by 16% per annum.
Sector Valuation and Performance
Has the New Zealand Consumer Staples Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 24 Apr 2024 | NZ$11.2b | NZ$31.8b | NZ$1.6b | 11.9x | 7x | 0.4x |
| Fri, 22 Mar 2024 | NZ$12.4b | NZ$31.8b | NZ$1.7b | 11.2x | 7.4x | 0.4x |
| Sun, 18 Feb 2024 | NZ$11.3b | NZ$33.2b | NZ$1.5b | 11.1x | 7.3x | 0.3x |
| Tue, 16 Jan 2024 | NZ$11.0b | NZ$33.2b | NZ$1.5b | 11.9x | 7.1x | 0.3x |
| Thu, 14 Dec 2023 | NZ$10.7b | NZ$33.2b | NZ$1.5b | 10.7x | 6.9x | 0.3x |
| Sat, 11 Nov 2023 | NZ$10.6b | NZ$33.2b | NZ$1.6b | 11.5x | 6.6x | 0.3x |
| Mon, 09 Oct 2023 | NZ$11.0b | NZ$33.2b | NZ$1.6b | 11.9x | 6.9x | 0.3x |
| Wed, 06 Sep 2023 | NZ$11.8b | NZ$34.7b | NZ$1.6b | 13.1x | 7.3x | 0.3x |
| Fri, 04 Aug 2023 | NZ$12.7b | NZ$34.5b | NZ$1.7b | 14.3x | 7.6x | 0.4x |
| Sun, 02 Jul 2023 | NZ$12.8b | NZ$34.5b | NZ$1.6b | 15.1x | 7.7x | 0.4x |
| Tue, 30 May 2023 | NZ$12.8b | NZ$34.2b | NZ$1.2b | 14.7x | 10.3x | 0.4x |
| Thu, 27 Apr 2023 | NZ$12.3b | NZ$34.2b | NZ$1.3b | 14.4x | 9.8x | 0.4x |
| Sat, 25 Mar 2023 | NZ$13.2b | NZ$34.3b | NZ$1.2b | 13.4x | 11.2x | 0.4x |
| Mon, 20 Feb 2023 | NZ$14.1b | NZ$31.8b | NZ$1.0b | 14.3x | 14.1x | 0.4x |
| Wed, 18 Jan 2023 | NZ$14.4b | NZ$31.8b | NZ$1.0b | 14.4x | 14.3x | 0.5x |
| Fri, 16 Dec 2022 | NZ$14.1b | NZ$31.8b | NZ$1.0b | 13.9x | 14.1x | 0.4x |
| Sun, 13 Nov 2022 | NZ$13.6b | NZ$31.7b | NZ$957.4m | 16x | 14.2x | 0.4x |
| Tue, 11 Oct 2022 | NZ$13.7b | NZ$31.7b | NZ$957.4m | 17.5x | 14.3x | 0.4x |
| Thu, 08 Sep 2022 | NZ$14.0b | NZ$30.2b | NZ$814.8m | 18.1x | 17.1x | 0.5x |
| Sat, 06 Aug 2022 | NZ$13.6b | NZ$29.8b | NZ$706.9m | 19.9x | 19.3x | 0.5x |
| Mon, 04 Jul 2022 | NZ$13.0b | NZ$29.8b | NZ$722.0m | 17.6x | 18.1x | 0.4x |
| Wed, 01 Jun 2022 | NZ$13.0b | NZ$29.8b | NZ$719.7m | 16.3x | 18.1x | 0.4x |
| Fri, 29 Apr 2022 | NZ$13.2b | NZ$29.6b | NZ$704.6m | 21.3x | 18.7x | 0.4x |
| Sun, 27 Mar 2022 | NZ$14.5b | NZ$29.5b | NZ$744.2m | 20.9x | 19.4x | 0.5x |
| Tue, 22 Feb 2022 | NZ$15.3b | NZ$28.4b | NZ$697.4m | 23.3x | 21.9x | 0.5x |
| Thu, 20 Jan 2022 | NZ$14.7b | NZ$28.4b | NZ$758.3m | 28.7x | 19.4x | 0.5x |
| Sat, 18 Dec 2021 | NZ$14.9b | NZ$28.4b | NZ$758.3m | 11.8x | 19.7x | 0.5x |
| Mon, 15 Nov 2021 | NZ$15.2b | NZ$28.2b | NZ$756.6m | 23.4x | 20.1x | 0.5x |
| Wed, 13 Oct 2021 | NZ$15.1b | NZ$28.2b | NZ$756.6m | 23.4x | 20x | 0.5x |
| Fri, 10 Sep 2021 | NZ$14.5b | NZ$27.5b | NZ$850.4m | 24x | 17x | 0.5x |
| Sun, 08 Aug 2021 | NZ$14.8b | NZ$27.5b | NZ$850.4m | 21.1x | 17.4x | 0.5x |
| Sat, 01 May 2021 | NZ$18.2b | NZ$27.6b | NZ$971.3m | 21.6x | 18.7x | 0.7x |
Price to Earnings Ratio
18.7x
Current Industry PE
- Investors are pessimistic on the New Zealander Consumer Staples 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 7.0x which is lower than its 3-year average PE of 13.9x.
- The industry is trading close to its 3-year average PS ratio of 0.44x.
Past Earnings Growth
- The earnings for companies in the Consumer Staples industry have grown 18% per year over the last three years.
- Revenues for these companies have grown 4.8% 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 New Zealand Consumer Staples sector?
| NZ Market | -0.18% | |
| Consumer Staples | 1.58% | |
| Food | 1.84% | |
| Beverage | 0.50% | |
| Tobacco | 0% | |
| Household Products | 0% | |
| Personal Products | -3.27% | |
| Food and Staples Retail | -3.96% | |
Industry PE
- Investors are most optimistic about the Personal Products industry which is trading above its 3-year average PE ratio of 23.3x.
- Analysts are expecting annual earnings growth of 36.4%, which is higher than its past year's earnings decline of 72.5% per year.
- Investors are most pessimistic about the Food industry, which is trading below its 3-year average of 13.7x.
Forecasted Growth
- Analysts are most optimistic on the Personal Products industry, expecting annual earnings growth of 36% over the next 5 years.
- This is better than its past earnings decline of 72% per year.
- In contrast, the Beverage industry is expected to see its earnings grow by 7.1% 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 | |
|---|---|---|---|---|---|
| ATM a2 Milk | NZ$6.52 | 4.5% +NZ$202.4m | 10.5% | PE28.2x | |
| FCG Fonterra Co-operative Group | NZ$2.36 | 0.9% +NZ$32.1m | -12.6% | PE2.7x | |
| DGL Delegat Group | NZ$6.70 | 0.8% +NZ$5.1m | -26.0% | PE11.8x | |
| PGW PGG Wrightson | NZ$1.98 | 2.1% +NZ$3.0m | -54.7% | PE16.4x | |
| SAN Sanford | NZ$4.05 | 0.5% +NZ$1.9m | -3.6% | PE37.8x |