New Zealand (NZX) Utilities Sector Analysis

Sector Valuation and Performance

Has the New Zealand Utilities Sector valuation changed over the past few years?

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 38.8x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Utilities industry have grown 3.6% per year over the last three years, and revenues for these companies have grown 6.5% 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 Utilities sector?

Industry PE: Investors are most optimistic about the Renewable Energy industry which is trading above its 3-year average PE ratio of 55.3x. However analysts are expecting annual earnings decline of 4.0%, which is lower than the prior year's growth of 31% per year. So the market might believe that analysts are underestimating future growth or they expect the Renewable Energy industry's earnings to deteriorate the least compared to other industries. Meanwhile, investors are most pessimistic about the Other Utilities industry, which is trading below its 3-year average of 34.9x.

Forecasted Growth: Analysts are most optimistic on the Electric Utilities industry, expecting annual earnings growth of 17% over the next 5 years. This is better than it's past earnings growth rate of 3.3% per year. Meanwhile, the Renewable Energy industry is expected to see its earnings decline by 4.0% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?