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U.S. Electrical Industry Analysis

UpdatedAug 15, 2022
DataAggregated Company Financials
Companies121
  • 7D5.1%
  • 3M20.0%
  • 1Y-13.8%
  • YTD-13.5%

The Electrical industry is up 5.1% in the last week, with Plug Power up 17%. In the past year, the industry is down 14%. Earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

Has the U.S. Electrical Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 15 Aug 2022US$317.0bUS$106.1bUS$8.6b22.8x37x3x
Wed, 13 Jul 2022US$255.2bUS$105.1bUS$7.5b16.8x33.8x2.4x
Fri, 10 Jun 2022US$287.8bUS$104.8bUS$7.5b19.1x38.3x2.7x
Sun, 08 May 2022US$286.0bUS$104.0bUS$7.8b19.7x36.7x2.7x
Tue, 05 Apr 2022US$327.1bUS$99.4bUS$7.5b21.2x43.7x3.3x
Thu, 03 Mar 2022US$310.1bUS$98.7bUS$7.5b21.9x41.5x3.1x
Sat, 29 Jan 2022US$295.9bUS$94.7bUS$7.6b22.5x39.1x3.1x
Mon, 27 Dec 2021US$343.4bUS$94.3bUS$7.5b23.6x45.7x3.6x
Wed, 24 Nov 2021US$377.8bUS$95.0bUS$7.8b24.4x48.3x4x
Fri, 22 Oct 2021US$327.3bUS$89.2bUS$8.0b23.8x40.8x3.7x
Sun, 19 Sep 2021US$310.2bUS$89.1bUS$8.0b23.2x38.8x3.5x
Tue, 17 Aug 2021US$318.4bUS$89.4bUS$7.9b23.6x40.4x3.6x
Tue, 01 Jun 2021US$291.9bUS$83.0bUS$6.9b27x42.3x3.5x
Fri, 05 Mar 2021US$270.5bUS$81.6bUS$6.0b29.9x44.8x3.3x
Mon, 07 Dec 2020US$252.6bUS$82.4bUS$6.0b29x42x3.1x
Thu, 10 Sep 2020US$203.0bUS$83.2bUS$6.0b23.2x33.8x2.4x
Wed, 03 Jun 2020US$165.7bUS$88.2bUS$7.2b18x23.1x1.9x
Sat, 07 Mar 2020US$166.9bUS$85.3bUS$7.9b20.1x21.2x2x
Tue, 10 Dec 2019US$180.4bUS$85.1bUS$8.3b17.1x21.7x2.1x
Mon, 02 Sep 2019US$154.4bUS$84.9bUS$8.4b15.2x18.4x1.8x
Price to Earnings Ratio

18.4x


Total Market Cap: US$154.4bTotal Earnings: US$8.4bTotal Revenue: US$84.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Electrical Industry Price to Earnings3Y Average 34x202020212022
Current Industry PE
  • Investors are relatively neutral on the American Electrical industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 34.0x.
  • The industry is trading close to its 3-year average PS ratio of 2.8x.
Past Earnings Growth
  • The earnings for companies in the Electrical industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have grown 7.7% 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.

Industry Trends

Which industries have driven the changes within the U.S. Industrials industry?

US Market3.16%
Industrials3.86%
Electrical5.06%
Heavy Electrical Equipment9.32%
Electrical Components4.97%
Industry PE
  • Investors are most optimistic about the Electrical Components industry, which is trading close to its 3-year average PE ratio of 22.5x.
  • Analysts are expecting annual earnings growth of 18%, which is lower than the prior year's growth of 30% per year. So the market might believe that analysts are underestimating future growth.
  • Investors are most pessimistic about the Heavy Electrical Equipment industry, which is trading below its 3-year average of 20.0x.
Forecasted Growth
  • Analysts are most optimistic on the Heavy Electrical Equipment industry, expecting annual earnings growth of 59% over the next 5 years.
  • This is better than its past earnings decline of 8.6% per year.
  • In contrast, the Electrical Components industry is expected to see its earnings grow by 18% per year over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
PLUG Plug PowerUS$29.5417.3%
+US$2.5b
18.2%PS28.6x
GNRC Generac HoldingsUS$280.5213.1%
+US$2.0b
-32.3%PE35.8x
ETN EatonUS$152.442.6%
+US$1.5b
-9.1%PE26.3x
ENVX EnovixUS$22.7557.9%
+US$1.3b
55.9%PS698.9x
BE Bloom EnergyUS$30.4626.4%
+US$1.2b
43.4%PS5.5x
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Latest News

AME

US$129.31

AMETEK

7D

2.4%

1Y

-5.8%

ENVX

US$22.75

Enovix

7D

57.9%

1Y

55.9%

RMO

US$0.77

Romeo Power

7D

-13.5%

1Y

-88.3%

ETN

US$152.44

Eaton

7D

2.6%

1Y

-9.1%

ULBI

US$4.79

Ultralife

7D

-2.4%

1Y

-42.7%
Jul 04

Flux Power: Upgrading Shares On Expectations For Easing Supply Chain And Liquidity Pressures

Company reports respectable Q3 results well ahead of consensus expectations. In addition, backlog levels hit a new record. On the conference call, management disclosed a letter of intent with a large Fortune 100 customer with the potential to generate more than $20 million in revenue over two years. Subsequent to quarter end, the company secured some much-needed liquidity which in combination with lower working capital requirements and projected higher margins should be sufficient for the time being. With near-term liquidity concerns successfully addressed and supply chain disruptions easing, I am upgrading shares to "Hold". Six weeks ago, lithium-ion battery manufacturer Flux Power Holdings (FLUX) or "Flux Power" reported better-than-expected Q3/FY2022 results with both top- and bottom line results exceeding expectations. In addition, the company reported record backlog levels as its book-to-bill ratio for the quarter was substantially above 1 again: Company SEC-Filing According to statements made on the conference call, Flux Power also received a non-binding, multi-year letter of intent ("LOI") from one of its Fortune 100 customers which is looking to secure build slots as part of its ongoing material handling fleet conversion. Potential revenue derived from this LOI might exceed $20 million over a two-year time frame. That said, the massive backlog increase experienced over the past couple of quarters has been partially caused by ongoing supply chain disruptions which have also impacted gross margins: Company Presentation In addition, cash flows have been pressured by the requirement to secure sufficient inventory: Company Presentation Free cash flow for the quarter was negative $4.1 million, a meaningful improvement from the negative $11.3 million recorded in Q2. At the end of Q3, cash and cash equivalents were down to a paltry $3.8 million with another $2.5 million available under the company's $6.0 million revolving credit facility with Silicon Valley Bank. Subsequent to quarter end, the company managed to secure an aggregate $6.0 million in additional liquidity: On May 11, Flux Power entered into an up to $5.0 million subordinated line of credit for short-term working capital purposes until December 31, 2022. As of May 12, aggregate lender commitments under the facility were $4.0 million. That said, terms of the facility are beyond ugly with an interest rate of 15% per annum and meaningful upfront fees. In addition, lenders extracted 160,000 warrants with an exercise price of $2.53. At the election of the company, repayments can be made in cash or common stock. The company also has the right to extend the due date by one year upon payment of a 2% commitment fee. On June 23, Silicon Valley Bank increased the amount of the company's revolving credit facility from $6.0 to $8.0 million in return for an increased interest rate (Prime Rate +3.5%). The bank also extracted 40,800 warrants with an exercise price of $2.23. As a result, Flux Power has removed the recent going concern warning from its quarterly report on form 10-Q: We believe that our existing cash and additional funding available under our SVB Line of Credit, combined with funds available to us under our new subordinated line of credit of up to $4.0 million will be sufficient to meet our anticipated capital resources to fund planned operations for the next twelve months. On the conference call, management pointed to modest improvements in supply chain issues and projected inventory levels to decline going forward which should result in significantly reduced cash usage.