The Return Trends At South Ocean Holdings (JSE:SOH) Look Promising
Nov 17
South African (JSE) Industrials Sector Analysis
UpdatedDec 04, 2022
DataAggregated Company Financials
Companies34
- 7D-2.3%
- 3M-7.2%
- 1Y-2.6%
- YTD-6.7%
Over the last 7 days, the Industrials industry has dropped 2.3%, driven by Bidvest Group declining 1.9%. As for the longer term, the industry's performance has been flat for the past year. Earnings are forecast to grow by 12% annually.
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 |
|---|---|---|---|---|---|---|
| Sun, 04 Dec 2022 | R173.7b | R379.8b | R24.8b | 6.1x | 7x | 0.5x |
| Tue, 01 Nov 2022 | R170.7b | R372.3b | R24.8b | 6.5x | 6.9x | 0.5x |
| Thu, 29 Sep 2022 | R164.7b | R372.2b | R24.8b | 6.3x | 6.6x | 0.4x |
| Sat, 27 Aug 2022 | R191.7b | R376.4b | R21.8b | 6.9x | 8.8x | 0.5x |
| Mon, 25 Jul 2022 | R184.8b | R368.1b | R20.5b | 7.3x | 9x | 0.5x |
| Wed, 22 Jun 2022 | R184.8b | R366.1b | R20.3b | 7.8x | 9.1x | 0.5x |
| Fri, 20 May 2022 | R182.6b | R363.9b | R20.1b | 8.3x | 9.1x | 0.5x |
| Sun, 17 Apr 2022 | R200.2b | R415.9b | R20.8b | 8.7x | 9.6x | 0.5x |
| Tue, 15 Mar 2022 | R200.6b | R433.9b | R21.5b | 8.4x | 9.3x | 0.5x |
| Thu, 10 Feb 2022 | R268.1b | R428.5b | R21.8b | 9.3x | 12.3x | 0.6x |
| Sat, 08 Jan 2022 | R267.1b | R428.0b | R21.8b | 8.9x | 12.2x | 0.6x |
| Mon, 06 Dec 2021 | R198.6b | R427.0b | R21.6b | 8.7x | 9.2x | 0.5x |
| Wed, 03 Nov 2021 | R197.8b | R438.0b | R16.6b | 8x | 11.9x | 0.5x |
| Fri, 01 Oct 2021 | R194.6b | R429.8b | R17.4b | 8.2x | 11.2x | 0.5x |
| Sun, 29 Aug 2021 | R189.1b | R426.8b | R16.3b | 7.9x | 11.6x | 0.4x |
| Mon, 05 Jul 2021 | R179.4b | R426.8b | R16.3b | 8.1x | 11x | 0.4x |
| Thu, 08 Apr 2021 | R162.6b | R418.7b | R11.2b | 8.4x | 14.5x | 0.4x |
| Sun, 10 Jan 2021 | R141.5b | R414.7b | R61.3m | 7.9x | 2309.2x | 0.3x |
| Sat, 03 Oct 2020 | R118.3b | R425.3b | -R6,458,152,624.06 | 7.4x | -18.3x | 0.3x |
| Tue, 07 Jul 2020 | R146.0b | R433.7b | -R6,767,699,659.76 | 9.7x | -21.6x | 0.3x |
| Fri, 10 Apr 2020 | R134.5b | R444.6b | -R4,012,023,137.65 | 9.9x | -33.5x | 0.3x |
| Thu, 02 Jan 2020 | R225.9b | R456.7b | R337.0m | 9.3x | 670.2x | 0.5x |
Price to Earnings Ratio
670.2x
Current Industry PE
- Investors are pessimistic on the South African Industrials 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 7.0x which is lower than its 3-year average PE of 172x.
- The industry is trading close to its 3-year average PS ratio of 0.42x.
Past Earnings Growth
- The earnings for companies in the Industrials industry have grown 319% per year over the last three years.
- Meanwhile revenues for these companies have declined 6.0% per year.
- This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.
Industry Trends
Which industries have driven the changes within the South African Industrials sector?
| ZA Market | -1.86% | |
| Industrials | -2.34% | |
| Electrical | 2.98% | |
| Professional Services | 1.00% | |
| Aerospace & Defense | 0% | |
| Airlines | 0% | |
| Marine and Shipping | 0% | |
| Logistics | -0.29% | |
| Trade Distributors | -0.90% | |
| Building | -1.23% | |
| Industrials | -1.89% | |
| Commercial Services | -1.90% | |
| Transportation | -3.81% | |
| Infrastructure | -5.45% | |
| Machinery | -6.73% | |
| Construction | -7.88% | |
Industry PE
- Investors are most optimistic about the Commercial Services industry which is trading above its 3-year average PE ratio of 1.1x.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
- Investors are most pessimistic about the Electrical industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.
Forecasted Growth
- Analysts are most optimistic on the Construction industry, expecting annual earnings growth of 66% over the next 5 years.
- This is better than its past earnings growth rate of 25% per year.
- In contrast, the Logistics industry is expected to see its earnings decline by 8.5% 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 | |
|---|---|---|---|---|---|
| RLO Reunert | R46.86 | 4.6% +R326.8m | -5.9% | PE9.6x | |
| MUR Murray & Roberts Holdings | R4.75 | 10.2% +R176.8m | -66.9% | PE7.7x | |
| ENX enX Group | R6.59 | 9.3% +R101.6m | -14.4% | PE4.4x | |
| MMP Marshall Monteagle | R26.50 | 4.9% +R44.5m | 19.3% | PE13.9x | |
| SOH South Ocean Holdings | R1.15 | 9.5% +R20.3m | -10.9% | PE3.3x |
