South African (JSE) Consumer Staples Sector Analysis

Sector Valuation and Performance

Has the South African Consumer Staples Sector valuation changed over the past few years?

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 16.3x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Consumer Staples industry have declined 3.6% per year over the last three years, while revenues for these companies have grown 3.3% 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 South African Consumer Staples sector?

Industry PE: Investors are most optimistic about the Food and Staples Retail industry, which is trading close to its 3-year average PE ratio of 23.5x. This is likely because analysts are expecting annual earnings growth of 22%, which is higher than its past year's earnings growth of 17% per year. Meanwhile, investors are most pessimistic about the Food industry, which is trading below its 3-year average of 12.1x.

Forecasted Growth: Analysts are most optimistic on the Food and Staples Retail industry, expecting annual earnings growth of 22% over the next 5 years. This is better than it's past earnings growth rate of 17% per year. Meanwhile, the Food industry is expected to see its earnings grow by 17% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?