Last week, the Real Estate industry hasn't moved much but Tradehold is up 20% in that time. Furthermore, the industry has been flat for the past year as well. Looking forward, earnings are forecast to decline by 6.2% per year.
Industry Valuation and Performance
Has the South African Real Estate Industry valuation changed over the past few years?
Investors are pessimistic on the South African Real Estate 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 9.6x which is higher than its 3-year average PE of -8.6x.
The 3-year average PS ratio of 4.6x is lower than the industry's current PS ratio of 5.7x.
Past Earnings Growth
The earnings for companies in the Real Estate industry have remained mostly flat over the last three years.
Meanwhile revenues for these companies have declined 6.0% per year.
This means that the cost of doing business could be reducing since sales have declined but profits have remained steady.
Which industries have driven the changes within the South African Real Estate industry?
Real Estate Operating Companies
Diversified Real Estate
Real Estate Services
Real Estate Development
Investors are most optimistic about the Real Estate Operating Companies industry which is trading above its 3-year average PE ratio.
It looks like they are confident that earnings will grow faster in the future than they have historically.
Investors are most pessimistic about the Real Estate Development industry, which is trading below its 3-year average of 5.1x.
Despite it being negative, analysts are least pessimistic on the Real Estate Development industry since they expect its earnings to decline by only 6.2% per year over the next 5 years, which isn't as bad as the other industries.
This is a reversal from its past annual earnings growth rate of 44% per year.
In contrast, the Real Estate Development industry is expected to see its earnings decline by 6.2% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?