Union Pacific (NYSE:UNP) Has A Pretty Healthy Balance Sheet
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Has the U.S. Transportation Industry valuation changed over the past few years?
|Tue, 30 Nov 2021||US$621.7b||US$181.1b||US$12.4b||17.7x|
|Thu, 28 Oct 2021||US$635.3b||US$175.5b||US$12.3b||17.3x|
|Sat, 25 Sep 2021||US$582.2b||US$171.8b||US$11.5b||17.7x|
|Mon, 23 Aug 2021||US$587.8b||US$174.4b||US$11.2b||18.7x|
|Sat, 10 Jul 2021||US$643.6b||US$174.2b||US$11.2b||18.8x|
|Fri, 02 Apr 2021||US$544.9b||US$131.7b||US$8.5b||27.1x|
|Mon, 04 Jan 2021||US$484.8b||US$130.2b||US$5.1b||25.1x|
|Thu, 08 Oct 2020||US$417.0b||US$129.3b||US$4.4b||24.9x|
|Wed, 01 Jul 2020||US$366.1b||US$131.7b||US$4.1b||23.5x|
|Sat, 04 Apr 2020||US$306.3b||US$139.1b||US$2.1b||16.2x|
|Tue, 07 Jan 2020||US$381.4b||US$139.4b||US$3.7b||20.4x|
|Mon, 30 Sep 2019||US$363.5b||US$150.8b||US$5.3b||18.1x|
|Thu, 04 Jul 2019||US$405.8b||US$141.0b||US$6.6b||14.7x|
|Sun, 07 Apr 2019||US$328.4b||US$128.5b||US$14.6b||16x|
|Wed, 09 Jan 2019||US$261.5b||US$123.0b||US$16.3b||13.5x|
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 20.3x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Transportation industry have declined 26% per year over the last three years, while revenues for these companies have grown 15% 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, which has decreased profits.
Which industries have driven the changes within the U.S. Transportation industry?
Industry PE: Investors are most optimistic about the Railroads industry, which is trading close to its 3-year average PE ratio of 22.0x. However analysts are expecting annual earnings growth of 8.2%, which is lower than the prior year's growth of 23% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Trucking industry, which is trading close to its 3-year average of 18.7x.
Forecasted Growth: Analysts are most optimistic on the Trucking industry, expecting annual earnings growth of 45% over the next 5 years. However this is lower than its past earnings growth rate of 83% per year. Meanwhile, the Railroads industry is expected to see its earnings grow by 8.2% per year over the next few years.
Which companies have driven the market over the last 7 days?
Old Dominion Freight Line
Hertz Global Holdings
Even though Hertz and its peers faced the same economic headwinds last year, it was only Hertz that filed for bankruptcy. We have identified two major risks facing Hertz, which could impede the expected recovery of the business. Despite these risks, we are impressed about Hertz's future prospects, and we believe a valuation re-rating is on the cards.
Mr. Khosrowshahi took Uber public in May 2019 at $45 per share. Mr. Khosrowshahi made his largest insider purchase of Uber last week. The stock is likely to be volatile in the coming months and may provide opportunities to investors to build a position in the company over a period of time.
Avis Budget Group
The polarizing opinions on Chinese companies are derived from varying discount rates imposed by investors and analysts to reflect the perceived magnitude of regulatory risks. Our initial screening prompted us to inspect DIDI in detail due to the large divergence between its current share price and 2021Q1 business performance when compared to Uber and Grab. We set to find out events that will spark DiDi's recovery only to find that DiDi's recovery will not come as easily due to the events discussed in this article. Our findings suggest that DiDi's future fundamentals are not as optimistic as we've hoped for, this implies that DiDi's earnings will grow into its share price instead. We expect a spike in price when the Chinese state investor begins accumulating DiDi shares for the speculated takeover.