F5 (NASDAQ:FFIV) Has A Rock Solid Balance Sheet
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Has the U.S. Communications Industry valuation changed over the past few years?
|Sun, 28 Nov 2021||US$365.7b||US$93.1b||US$14.0b||29.4x|
|Tue, 26 Oct 2021||US$333.6b||US$89.8b||US$12.6b||24.6x|
|Thu, 23 Sep 2021||US$334.1b||US$91.8b||US$12.7b||22.1x|
|Sat, 21 Aug 2021||US$352.3b||US$92.0b||US$12.8b||20.4x|
|Sat, 05 Jun 2021||US$320.5b||US$89.0b||US$11.8b||30.7x|
|Tue, 09 Mar 2021||US$280.1b||US$87.6b||US$11.0b||31.6x|
|Mon, 30 Nov 2020||US$259.9b||US$87.4b||US$10.4b||32.4x|
|Thu, 03 Sep 2020||US$252.2b||US$88.5b||US$11.0b||30.3x|
|Sun, 07 Jun 2020||US$274.9b||US$90.5b||US$10.5b||27.1x|
|Sat, 29 Feb 2020||US$235.8b||US$93.2b||US$10.9b||20.3x|
|Tue, 03 Dec 2019||US$265.7b||US$92.6b||US$11.3b||17.5x|
|Fri, 06 Sep 2019||US$280.7b||US$92.1b||US$12.7b||22.2x|
|Mon, 10 Jun 2019||US$304.4b||US$89.1b||US$14.6b||16.3x|
|Sun, 03 Mar 2019||US$322.5b||US$88.0b||US$14.4b||22.4x|
|Wed, 05 Dec 2018||US$300.1b||US$86.2b||US$2.4b||23x|
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 24.5x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Communications industry have grown 80% per year over the last three years, and revenues for these companies have grown 2.6% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Which industries have driven the changes within the U.S. Communications industry?
Industry PE: Investors are most optimistic about the Communications Equipment industry which is trading above its 3-year average PE ratio of 24.5x. 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.
Forecasted Growth: Analysts are most optimistic on the Communications Equipment industry, expecting annual earnings growth of 8.2% over the next 5 years. However this is lower than its past earnings growth rate of 23% per year.
Which companies have driven the market over the last 7 days?
CommScope Holding Company
The adoption of remote work, education, and entertainment environments during the pandemic have increased the demand for CALX's services significantly. Their customer base (broadband service providers) is increasing rapidly. Their cash from operations and balance sheet are rapidly improving in response to the revenue growth. Ongoing supply chain issues may challenge their growth and margins through 2022. I believe a growth-oriented investor should consider CALX for watchlist.