Electronic Arts (NASDAQ:EA) Will Want To Turn Around Its Return Trends
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...
U.S. Entertainment Industry Analysis
UpdatedNov 28, 2021
DataAggregated Company Financials
Companies167
- 7D-3.3%
- 3M-2.6%
- 1Y9.9%
- YTD0.2%
Over the last 7 days, the Entertainment industry has dropped 3.3%, driven by a pullback from Walt Disney of 3.8%. This takes the industry's 12 month performance to a gain of 9.9%.
Industry Valuation and Performance
Has the U.S. Entertainment Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sun, 28 Nov 2021 | US$1.2t | US$189.7b | US$8.7b | 31.4x |
| Tue, 26 Oct 2021 | US$1.3t | US$178.6b | US$6.0b | 32.5x |
| Thu, 23 Sep 2021 | US$1.2t | US$176.9b | US$5.3b | 28.6x |
| Sat, 21 Aug 2021 | US$1.1t | US$176.4b | US$6.0b | 28.3x |
| Sat, 05 Jun 2021 | US$1.2t | US$163.5b | -US$1,131,075,436.54 | 41.6x |
| Tue, 09 Mar 2021 | US$1.2t | US$157.4b | -US$2,043,706,112.31 | 41.1x |
| Mon, 30 Nov 2020 | US$963.8b | US$157.5b | US$625.1m | 30x |
| Thu, 03 Sep 2020 | US$934.7b | US$166.3b | US$2.3b | 33.3x |
| Sun, 07 Jun 2020 | US$735.5b | US$175.9b | US$9.9b | 20.5x |
| Sat, 29 Feb 2020 | US$667.3b | US$175.1b | US$13.7b | 20.9x |
| Tue, 03 Dec 2019 | US$716.7b | US$177.6b | US$16.5b | 32.3x |
| Fri, 06 Sep 2019 | US$664.8b | US$170.4b | US$17.0b | 22.8x |
| Mon, 10 Jun 2019 | US$656.0b | US$163.0b | US$17.0b | 27.2x |
| Sun, 03 Mar 2019 | US$588.6b | US$159.1b | US$17.2b | 25.1x |
| Wed, 05 Dec 2018 | US$523.0b | US$154.1b | US$18.7b | 18.8x |
PE Ratio
18.8x
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 30.1x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Entertainment industry have declined 23% per year over the last three years, while revenues for these companies have grown 7.2% 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.
Industry Trends
Which industries have driven the changes within the U.S. Entertainment industry?
| Movies and Entertainment | -2.82% | |
| Interactive Home Entertainment | -3.93% | |
Industry PE: Investors are most optimistic about the Movies and Entertainment industry which is trading above its 3-year average PE ratio of 36.3x. However analysts are expecting annual earnings growth of 31%, which is lower than the prior year's growth of 75% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Interactive Home Entertainment industry, which is trading below its 3-year average of 27.5x.
Forecasted Growth: Analysts are most optimistic on the Movies and Entertainment industry, expecting annual earnings growth of 31% over the next 5 years. However this is lower than its past earnings growth rate of 75% per year. Meanwhile, the Interactive Home Entertainment industry is expected to see its earnings grow by 23% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| BILI Bilibili | 2.5%+US$641.9m | 6.1% | PS9.7x | |
| ROKU Roku | 0.5%+US$142.4m | -14.6% | PE110.5x |
