Investors Met With Slowing Returns on Capital At Insimbi Industrial Holdings (JSE:ISB)
Mar 24
South African (JSE) Industrials Sector Analysis
UpdatedApr 22, 2024
DataAggregated Company Financials
Companies29
- 7D-1.1%
- 3M-3.0%
- 1Y-6.5%
- YTD-5.5%
Over the last 7 days, the Industrials industry has dropped 1.1%, driven by a pullback from Bidvest Group of 0.6%. Meanwhile, Barloworld actually outperformed within the industry, gaining 6.3% in the last week. However, the industry is down 6.5% over the past year. As for the next few years, earnings are expected to grow by 11% per annum.
Sector Valuation and Performance
Has the South African Industrials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 23 Apr 2024 | R170.2b | R440.6b | R19.9b | 5.3x | 8.6x | 0.4x |
| Thu, 21 Mar 2024 | R169.3b | R417.3b | R20.6b | 5.2x | 8.2x | 0.4x |
| Sat, 17 Feb 2024 | R165.1b | R404.5b | R20.7b | 5.5x | 8x | 0.4x |
| Mon, 15 Jan 2024 | R181.0b | R423.0b | R28.0b | 6.6x | 6.5x | 0.4x |
| Wed, 13 Dec 2023 | R173.2b | R423.5b | R28.0b | 6x | 6.2x | 0.4x |
| Fri, 10 Nov 2023 | R185.4b | R409.4b | R25.5b | 5.8x | 7.3x | 0.5x |
| Sun, 08 Oct 2023 | R187.0b | R409.0b | R25.5b | 5.5x | 7.3x | 0.5x |
| Tue, 05 Sep 2023 | R194.8b | R402.0b | R25.3b | 5.6x | 7.7x | 0.5x |
| Thu, 03 Aug 2023 | R190.7b | R410.8b | R27.5b | 5.6x | 6.9x | 0.5x |
| Sat, 01 Jul 2023 | R185.6b | R411.1b | R27.6b | 5.6x | 6.7x | 0.5x |
| Mon, 29 May 2023 | R171.9b | R407.8b | R27.0b | 5.7x | 6.4x | 0.4x |
| Wed, 26 Apr 2023 | R180.9b | R401.0b | R25.5b | 5.5x | 7.1x | 0.5x |
| Fri, 24 Mar 2023 | R183.1b | R398.6b | R25.4b | 5.5x | 7.2x | 0.5x |
| Sun, 19 Feb 2023 | R183.3b | R389.7b | R25.3b | 5.5x | 7.2x | 0.5x |
| Tue, 17 Jan 2023 | R174.0b | R389.0b | R25.2b | 5.6x | 6.9x | 0.4x |
| Thu, 15 Dec 2022 | R172.2b | R380.4b | R24.7b | 5.8x | 7x | 0.5x |
| Sat, 12 Nov 2022 | R175.1b | R374.4b | R25.0b | 6.6x | 7x | 0.5x |
| Mon, 10 Oct 2022 | R164.1b | R372.2b | R24.8b | 6.3x | 6.6x | 0.4x |
| Wed, 07 Sep 2022 | R187.0b | R382.5b | R22.5b | 7.1x | 8.3x | 0.5x |
| Fri, 05 Aug 2022 | R181.6b | R369.8b | R21.2b | 6.9x | 8.6x | 0.5x |
| Sun, 03 Jul 2022 | R177.8b | R366.9b | R20.5b | 7.8x | 8.7x | 0.5x |
| Tue, 31 May 2022 | R187.8b | R365.1b | R20.2b | 9x | 9.3x | 0.5x |
| Thu, 28 Apr 2022 | R188.5b | R363.1b | R19.9b | 8.5x | 9.5x | 0.5x |
| Sat, 26 Mar 2022 | R206.1b | R433.9b | R21.5b | 8.5x | 9.6x | 0.5x |
| Mon, 21 Feb 2022 | R209.6b | R428.6b | R21.8b | 9.3x | 9.6x | 0.5x |
| Wed, 19 Jan 2022 | R270.7b | R428.0b | R21.8b | 8.7x | 12.4x | 0.6x |
| Fri, 17 Dec 2021 | R261.4b | R427.6b | R21.6b | 8.3x | 12.1x | 0.6x |
| Sun, 14 Nov 2021 | R194.1b | R437.1b | R17.8b | 8.3x | 10.9x | 0.4x |
| Tue, 12 Oct 2021 | R193.5b | R430.8b | R17.4b | 8.1x | 11.1x | 0.4x |
| Thu, 09 Sep 2021 | R184.0b | R429.9b | R17.4b | 8.3x | 10.6x | 0.4x |
| Sat, 07 Aug 2021 | R188.2b | R426.8b | R16.3b | 8x | 11.6x | 0.4x |
| Fri, 30 Apr 2021 | R165.0b | R418.7b | R11.2b | 8.6x | 14.7x | 0.4x |
Price to Earnings Ratio
14.7x
Current Industry PE
- Investors are relatively neutral on the South African Industrials industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 8.9x.
- The industry is trading close to its 3-year average PS ratio of 0.46x.
Past Earnings Growth
- The earnings for companies in the Industrials industry have grown 21% per year over the last three years, while revenues have remained mostly flat.
- This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.
Industry Trends
Which industries have driven the changes within the South African Industrials sector?
| ZA Market | -2.11% | |
| Industrials | -1.14% | |
| Trade Distributors | 4.29% | |
| Construction | 1.19% | |
| Electrical | 1.08% | |
| Building | 0.83% | |
| Aerospace & Defense | 0% | |
| Airlines | 0% | |
| Marine and Shipping | 0% | |
| Logistics | -0.71% | |
| Machinery | -0.82% | |
| Commercial Services | -1.57% | |
| Industrials | -2.30% | |
| Transportation | -2.50% | |
| Infrastructure | -3.36% | |
| Professional Services | -7.03% | |
Industry PE
- Investors are most optimistic about the Construction industry which is trading above its 3-year average PE ratio of 9.1x.
- Analysts are expecting annual earnings growth of 27.2%, which is higher than its past year's earnings growth of 22.9% per year.
Forecasted Growth
- Analysts are most optimistic on the Construction industry, expecting annual earnings growth of 27% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the Transportation industry is expected to see its earnings grow by 6.6% 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 | |
|---|---|---|---|---|---|
| BAW Barloworld | R85.09 | 6.3% +R957.7m | -6.3% | PE8.2x | |
| TCP Transaction Capital | R2.79 | 16.3% +R297.7m | -76.9% | PS0.1x | |
| ENX enX Group | R9.15 | 8.9% +R136.0m | 34.6% | PE10.1x | |
| BEL Bell Equipment | R25.30 | 4.3% +R100.4m | 52.1% | PE3.2x | |
| WBO Wilson Bayly Holmes-Ovcon | R133.70 | 1.3% +R89.6m | 29.2% | PE7.6x |