Over the last 7 days, the Utilities industry has remained flat. Unfortunately though, the industry is down 28% over the past 12 months. Looking forward, earnings are forecast to decline by 40% per year.
Sector Valuation and Performance
Has the Russian Utilities Sector valuation changed over the past few years?
Investors are pessimistic on the Russian Utilities 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 4.4x which is lower than its 3-year average PE of 5.0x.
The industry is trading close to its 3-year average PS ratio of 0.35x.
Past Earnings Growth
The earnings for companies in the Utilities industry have remained mostly flat over the last three years.
Meanwhile revenues for these companies have grown 2.7% per year.
This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Which industries have driven the changes within the Russian Utilities sector?
Investors are most optimistic about the Water Utilities industry which is trading above its 3-year average PE ratio of 16.2x.
It looks like they are confident that earnings will grow faster in the future than they have historically.
Investors are most pessimistic about the Gas Utilities industry, which is trading below its 3-year average of 12.1x.
Despite it being negative, analysts are least pessimistic on the Electric Utilities industry since they expect its earnings to decline by only 40% per year over the next 5 years, which isn't as bad as the other industries.
This is a reversal from its past annual earnings growth rate of 28% per year.
In contrast, the Electric Utilities industry is expected to see its earnings decline by 40% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?