If EPS Growth Is Important To You, Sasol (JSE:SOL) Presents An Opportunity
Jan 11
South African (JSE) Market Analysis & Valuation
UpdatedJan 27, 2023
DataAggregated Company Financials
Companies240
- 7D0.4%
- 3M10.1%
- 1Y1.2%
- YTD3.9%
The market has been flat over the last week. Similarly, the market is flat for the past 12 months. Earnings are forecast to grow by 6.9% annually.
Market Valuation and Performance
Has the South African Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 27 Jan 2023 | R6.4t | R5.2t | R658.8b | 8.5x | 9.8x | 1.2x |
| Sun, 25 Dec 2022 | R6.0t | R5.2t | R656.2b | 8.4x | 9.2x | 1.2x |
| Tue, 22 Nov 2022 | R6.1t | R5.2t | R838.3b | 8.5x | 7.2x | 1.2x |
| Thu, 20 Oct 2022 | R5.7t | R5.2t | R842.0b | 8.4x | 6.7x | 1.1x |
| Sat, 17 Sep 2022 | R5.7t | R5.1t | R820.2b | 8.9x | 7x | 1.1x |
| Mon, 15 Aug 2022 | R6.1t | R5.2t | R754.3b | 8.7x | 8.1x | 1.2x |
| Wed, 13 Jul 2022 | R5.9t | R5.3t | R788.4b | 8.6x | 7.5x | 1.1x |
| Fri, 10 Jun 2022 | R6.3t | R5.2t | R790.0b | 8.9x | 8x | 1.2x |
| Sun, 08 May 2022 | R6.3t | R5.2t | R786.8b | 9.4x | 8x | 1.2x |
| Tue, 05 Apr 2022 | R7.2t | R5.2t | R762.2b | 9.8x | 9.5x | 1.4x |
| Thu, 03 Mar 2022 | R7.4t | R5.2t | R756.0b | 10.6x | 9.8x | 1.4x |
| Sat, 29 Jan 2022 | R6.9t | R5.1t | R769.1b | 10.6x | 9x | 1.4x |
| Mon, 27 Dec 2021 | R6.8t | R5.1t | R765.5b | 10.6x | 8.8x | 1.3x |
| Wed, 24 Nov 2021 | R6.7t | R5.1t | R758.1b | 10.5x | 8.8x | 1.3x |
| Fri, 22 Oct 2021 | R6.7t | R5.0t | R579.0b | 11.1x | 11.5x | 1.3x |
| Sun, 19 Sep 2021 | R6.3t | R5.0t | R547.9b | 11.7x | 11.6x | 1.3x |
| Tue, 17 Aug 2021 | R6.6t | R4.9t | R513.3b | 11.5x | 12.8x | 1.4x |
| Tue, 01 Jun 2021 | R6.7t | R4.6t | R373.6b | 12.7x | 18x | 1.5x |
| Fri, 05 Mar 2021 | R6.4t | R4.4t | R198.9b | 11.6x | 32.4x | 1.5x |
| Mon, 07 Dec 2020 | R5.6t | R4.3t | R131.3b | 12.2x | 42.7x | 1.3x |
| Thu, 10 Sep 2020 | R5.5t | R4.3t | R106.7b | 12.2x | 51.2x | 1.3x |
| Wed, 03 Jun 2020 | R4.9t | R4.4t | R222.0b | 11x | 22.2x | 1.1x |
| Sat, 07 Mar 2020 | R5.4t | R4.4t | R317.9b | 10.2x | 16.8x | 1.2x |
Price to Earnings Ratio
18.5x
Current Market PE
- Investors are pessimistic on the South African market, indicating that they anticipate earnings will not grow as fast as they have historically.
- The market is trading at a PE ratio of 9.8x which is lower than its 3-year average PE of 19.6x.
Past Earnings Growth
- The earnings for South African listed companies have grown 27% per year over the last three years.
- Revenues for these companies have grown 5.9% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Sector Trends
Which sectors have driven the changes within the South African Market?
| ZA Market | 0.36% | |
| Consumer Discretionary | 2.71% | |
| Financials | 1.34% | |
| Telecom | 1.14% | |
| Tech | 0.12% | |
| Utilities | 0% | |
| Industrials | -0.037% | |
| Healthcare | -0.55% | |
| Consumer Staples | -0.58% | |
| Real Estate | -1.12% | |
| Energy | -1.41% | |
| Materials | -1.60% | |
Sector PE
- Investors are most optimistic about the Consumer Staples sector even though it's trading below its 3-year average PE ratio of 24.8x.
- Analysts are expecting annual earnings growth of 8.8%, which is lower than the prior year's growth of 22.8% per year.
- Investors are most pessimistic about the Energy sector, which is trading below its 3-year average of 4.8x.
Forecasted Growth
- Analysts are most optimistic on the Tech sector, expecting annual earnings growth of 48% over the next 5 years.
- This is better than its past earnings decline of 3.4% per year.
- In contrast, the Energy sector is expected to see its earnings decline by 9.0% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | Sector | |
|---|---|---|---|---|---|---|
| NPN Naspers | R3.50k | 4.6% +R30.5b | 49.2% | PE19.7x | Consumer Discretionary | |
| SOL Sasol | R318.67 | 8.2% +R15.5b | -5.7% | PE5.3x | Materials | |
| MTN MTN Group | R142.48 | 5.4% +R13.1b | -15.1% | PE13.5x | Telecom | |
| SBK Standard Bank Group | R173.66 | 2.6% +R7.3b | 18.8% | PB1.3x | Financials | |
| NED Nedbank Group | R226.76 | 5.3% +R5.6b | 21.3% | PB1.1x | Financials |
Market Insights
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