South African (JSE) Consumer Discretionary Sector Analysis
UpdatedSep 23, 2023
DataAggregated Company Financials
Companies31
- 7D-0.9%
- 3M4.6%
- 1Y12.2%
- YTD-2.0%
Over the last 7 days, the Consumer Discretionary industry has remained flat, although notably Pepkor Holdings gained 12%. The past year has been better, since the industry has gained 12% in that time. As for the next few years, earnings are forecast to decline by 5.4% per annum.
Sector Valuation and Performance
Has the South African Consumer Discretionary Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 23 Sep 2023 | R830.7b | R697.6b | R103.7b | 9.4x | 8x | 1.2x |
| Mon, 21 Aug 2023 | R953.5b | R690.5b | R105.0b | 8.8x | 9.1x | 1.4x |
| Wed, 19 Jul 2023 | R969.0b | R659.0b | R101.0b | 9.4x | 9.6x | 1.5x |
| Fri, 16 Jun 2023 | R965.2b | R687.4b | R72.8b | 10x | 13.3x | 1.4x |
| Sun, 14 May 2023 | R950.5b | R688.8b | R75.4b | 9.8x | 12.6x | 1.4x |
| Tue, 11 Apr 2023 | R994.5b | R678.9b | R73.0b | 10.1x | 13.6x | 1.5x |
| Thu, 09 Mar 2023 | R1.0t | R673.9b | R73.6b | 11.1x | 13.7x | 1.5x |
| Sat, 04 Feb 2023 | R1.1t | R648.5b | R70.8b | 10.9x | 15.3x | 1.7x |
| Mon, 02 Jan 2023 | R828.2b | R645.1b | R69.7b | 11.3x | 11.9x | 1.3x |
| Wed, 30 Nov 2022 | R809.6b | R643.6b | R69.3b | 10x | 11.7x | 1.3x |
| Fri, 28 Oct 2022 | R747.4b | R632.8b | R250.0b | 9.1x | 3x | 1.2x |
| Sun, 25 Sep 2022 | R834.0b | R633.6b | R250.5b | 10x | 3.3x | 1.3x |
| Tue, 23 Aug 2022 | R882.3b | R612.7b | R236.7b | 9.1x | 3.7x | 1.4x |
| Thu, 21 Jul 2022 | R914.5b | R611.8b | R237.6b | 9.3x | 3.8x | 1.5x |
| Sat, 18 Jun 2022 | R1.1t | R586.3b | R255.7b | 8.9x | 4.1x | 1.8x |
| Mon, 16 May 2022 | R993.5b | R579.3b | R252.3b | 8.6x | 3.9x | 1.7x |
| Wed, 13 Apr 2022 | R1.0t | R566.9b | R228.5b | 8.9x | 4.4x | 1.8x |
| Fri, 11 Mar 2022 | R1.1t | R566.6b | R237.4b | 10.5x | 4.4x | 1.9x |
| Sun, 06 Feb 2022 | R1.3t | R567.5b | R241.8b | 11.6x | 5.5x | 2.4x |
| Tue, 04 Jan 2022 | R1.4t | R567.9b | R246.2b | 11.9x | 5.5x | 2.4x |
| Thu, 02 Dec 2021 | R1.3t | R567.6b | R245.6b | 11.7x | 5.5x | 2.4x |
| Sat, 30 Oct 2021 | R1.4t | R525.3b | R93.6b | 11.8x | 15.5x | 2.8x |
| Mon, 27 Sep 2021 | R1.4t | R520.4b | R90.3b | 12.7x | 15.5x | 2.7x |
| Wed, 25 Aug 2021 | R1.4t | R514.7b | R86.3b | 12.8x | 16.2x | 2.7x |
| Thu, 01 Jul 2021 | R1.6t | R514.7b | R86.3b | 12.1x | 18.6x | 3.1x |
| Sun, 04 Apr 2021 | R1.8t | R502.6b | R82.2b | 13.8x | 21.9x | 3.6x |
| Wed, 06 Jan 2021 | R1.6t | R480.6b | R60.0b | 14.7x | 25.9x | 3.2x |
| Sat, 10 Oct 2020 | R1.5t | R474.7b | R50.8b | 14.5x | 29.2x | 3.1x |
Price to Earnings Ratio
29.2x
Current Industry PE
- Investors are pessimistic on the South African Consumer Discretionary industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 8.0x which is lower than its 3-year average PE of 13.6x.
- The 3-year average PS ratio of 2.2x is higher than the industry's current PS ratio of 1.2x.
Past Earnings Growth
- The earnings for companies in the Consumer Discretionary industry have grown 27% per year over the last three years.
- Revenues for these companies have grown 14% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the South African Consumer Discretionary sector?
| ZA Market | -0.61% | |
| Consumer Discretionary | -0.88% | |
| Specialty Stores | 5.67% | |
| Hospitality | 2.69% | |
| Retail Distributors | 2.35% | |
| Consumer Services | 1.10% | |
| Auto | 0% | |
| Leisure | 0% | |
| Luxury | 0% | |
| Online Retail and Ecommerce | 0% | |
| Consumer Durables | -0.57% | |
| Auto Components | -2.57% | |
| General Merchandise and Department Stores | -3.51% | |
Industry PE
- Investors are most optimistic about the Consumer Services industry even though it's trading below its 3-year average PE ratio of 26.2x.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
Forecasted Growth
- Analysts are most optimistic on the Retail Distributors industry, expecting annual earnings growth of 124% over the next 5 years.
- In contrast, the General Merchandise and Department Stores industry is expected to see its earnings decline by 10% 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 | |
|---|---|---|---|---|---|
| PPH Pepkor Holdings | R17.25 | 12.1% +R6.8b | -17.4% | PE11x | |
| TFG Foschini Group | R97.98 | 6.9% +R2.0b | -19.4% | PE10.4x | |
| MRP Mr Price Group | R135.06 | 5.5% +R1.8b | -25.7% | PE11.2x | |
| SUI Sun International | R42.18 | 6.8% +R658.4m | 34.3% | PE14x | |
| TRU Truworths International | R74.82 | 1.8% +R487.5m | 43.5% | PE8.4x |