South African (JSE) Consumer Discretionary Sector Analysis

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
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
Fri, 03 Jul 2020	R1.5t	R470.6b	R58.3b	13.3x	26.6x	3.3x
Mon, 06 Apr 2020	R1.3t	R493.1b	R66.9b	9.3x	19.4x	2.6x
Thu, 09 Jan 2020	R1.3t	R487.5b	R62.3b	13.4x	21.3x	2.7x

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 11.7x which is lower than its 3-year average PE of 16.5x.

The 3-year average PS ratio of 2.6x is higher than the industry's current PS ratio of 1.3x.

Past Earnings Growth

The earnings for companies in the Consumer Discretionary industry have grown 2.3% per year over the last three years.
Revenues for these companies have grown 9.3% 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	0.17%
Consumer Discretionary	0.45%
Online Retail and Ecommerce	3.34%
Auto Components	1.19%
Hospitality	1.10%
Consumer Services	0.31%
Auto	0%
Leisure	0%
Luxury	0%
Retail Distributors	0%
General Merchanise and Department Stores	-0.73%
Consumer Durables	-1.14%
Specialty Stores	-4.52%

Industry PE

Investors are most optimistic about the General Merchanise and Department Stores industry which is trading above its 3-year average PE ratio of 12.1x.

Analysts are expecting annual earnings growth of 11.0%, which is higher than its past year's earnings decline of 10.4% per year.

Investors are most pessimistic about the Consumer Durables industry, which is trading close to its 3-year average of 4.2x.

Forecasted Growth

Analysts are most optimistic on the Auto Components industry, expecting annual earnings growth of 52% over the next 5 years.
This is better than its past earnings decline of 40% per year.

In contrast, the Specialty Stores industry is expected to see its earnings grow by 5.1% 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
NPN Naspers	R2.48k	3.4% +R14.5b	1.1%	PE12.2x
SUI Sun International	R36.25	6.6% +R552.3m	42.2%	PE15.8x
CLH City Lodge Hotels	R4.93	5.6% +R156.9m	11.8%	PE36.4x
ADH ADvTECH	R18.62	0.6% +R65.0m	8.6%	PE13.9x
MTA Metair Investments	R28.06	1.2% +R63.9m	4.3%	PE12.7x

Aug 24

Sector Valuation and Performance