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South African (JSE) Stock Market Analysis
UpdatedNov 27, 2021
DataAggregated Company Financials
Companies248
- 7D-4.9%
- 3M-2.5%
- 1Y12.4%
- YTD7.6%
Over the last 7 days, the market has dropped 4.9%, driven by pullbacks in every sector, especially the Financials sector. Although the market is actually up 12% over the past year.
Market Valuation and Performance
Has the South African Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sat, 27 Nov 2021 | R6.4t | R5.1t | R773.7b | 10x |
| Mon, 25 Oct 2021 | R6.7t | R5.0t | R580.7b | 11.3x |
| Wed, 22 Sep 2021 | R6.3t | R5.0t | R553.3b | 11.5x |
| Fri, 20 Aug 2021 | R6.4t | R4.9t | R513.3b | 11.4x |
| Fri, 04 Jun 2021 | R6.7t | R4.6t | R373.6b | 12.7x |
| Mon, 08 Mar 2021 | R6.4t | R4.4t | R198.9b | 11.6x |
| Thu, 10 Dec 2020 | R5.6t | R4.3t | R131.3b | 12.2x |
| Wed, 02 Sep 2020 | R5.5t | R4.3t | R106.7b | 12.2x |
| Sat, 06 Jun 2020 | R4.9t | R4.4t | R222.0b | 11x |
| Tue, 10 Mar 2020 | R5.4t | R4.4t | R317.9b | 10.2x |
| Mon, 02 Dec 2019 | R5.9t | R4.3t | R340.5b | 11.6x |
| Thu, 05 Sep 2019 | R6.4t | R4.2t | R345.1b | 12x |
| Sun, 09 Jun 2019 | R6.5t | R4.1t | R349.2b | 12x |
| Sat, 02 Mar 2019 | R6.5t | R4.0t | R473.9b | 12.2x |
| Tue, 04 Dec 2018 | R6.1t | R4.0t | R466.8b | 11.3x |
PE Ratio
11.3x
Current Market PE: Investors are relatively neutral on the market at the moment, considering it's trading close to its 3-year average PE ratio of 11.8x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for South African listed companies have grown 18% per year over the last three years, and revenues for these companies have grown 8.7% 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?
| Energy | -0.62% | |
| Telecom | -0.63% | |
| Healthcare | -2.22% | |
| Industrials | -2.52% | |
| Real Estate | -3.87% | |
| Materials | -4.17% | |
| Consumer Staples | -4.23% | |
| Tech | -4.43% | |
| Financials | -6.39% | |
| Consumer Discretionary | -6.73% | |
| Utilities | -10.26% | |
Sector PE: Investors are most optimistic about the Healthcare sector which is trading above its 3-year average PE ratio of 14.9x. However analysts are expecting annual earnings growth of 25%, which is lower than the prior year's growth of 68% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Energy sector, which is trading below its 3-year average of 5.2x.
Forecasted Growth: Analysts are most optimistic on the Real Estate sector, expecting annual earnings growth of 51% over the next 5 years. However this is lower than its past earnings growth rate of 133% per year. Meanwhile, the Consumer Discretionary sector is expected to see its earnings decline by 37% 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 | Sector | |
|---|---|---|---|---|---|
| KIO Kumba Iron Ore | 3.4%+R4.5b | -22.4% | PE3.6x | Materials | |
| GFI Gold Fields | 1.9%+R2.9b | 34.7% | PE10x | Materials | |
| MTN MTN Group | 0.7%+R2.1b | 127.2% | PE37.4x | Telecom | |
| BAW Barloworld | 5.3%+R1.4b | 97.4% | PE10.2x | Industrials | |
| TGA Thungela Resources | 13.1%+R1.1b | n/a | n/a | Energy |
