Polish (WIG) Food Industry Analysis

Industry Valuation and Performance

Has the Polish Food Industry 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 9.6x. However, future earnings are expected to decline by 19% which could potentially cause the PE ratio to fall below its historical average.

Past Earnings Growth: The earnings for companies in the Food industry have grown 64% per year over the last three years, and revenues for these companies have grown 21% 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 Polish Food industry?

Industry PE: Investors are most optimistic about the Packaged Foods and Meats industry even though it's trading below its 3-year average PE ratio of 12.5x. However analysts are expecting annual earnings decline of 31%, which is lower than the prior year's growth of 92% per year. So the market might believe that analysts are underestimating future growth or they expect the Packaged Foods and Meats industry's earnings to deteriorate the least compared to other industries. Meanwhile, investors are most pessimistic about the Agricultural Products industry, which is trading below its 3-year average of 5.4x.

Forecasted Growth: Despite it being negative, analysts are least pessimistic on the Agricultural Products industry since they expect its earnings to decline by only 14% per year over the next 5 years, which isn't as bad as the other industries. However, this is a reversal from its past annual earnings growth rate of 182% per year. Meanwhile, the Packaged Foods and Meats industry is expected to see its earnings decline by 31% per year over the next few years.

Top Stock Gainers and Losers

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