Acsion's (JSE:ACS) Solid Earnings May Rest On Weak Foundations
Jul 19
South African (JSE) Real Estate Industry Analysis
UpdatedJul 26, 2024
DataAggregated Company Financials
Companies10
- 7D1.8%
- 3M7.6%
- 1Y38.4%
- YTD20.0%
In the last week, the Real Estate industry is up 1.8%, with NEPI Rockcastle up 2.5%. In the last 12 months, the industry was up 38%. Looking forward, earnings are expected to remain mostly flat in the next few years.
Industry Valuation and Performance
Has the South African Real Estate Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 26 Jul 2024 | R158.7b | R30.1b | R28.2b | 5.1x | 5.6x | 5.3x |
| Sun, 23 Jun 2024 | R156.4b | R29.3b | R27.7b | 5.3x | 5.6x | 5.3x |
| Tue, 21 May 2024 | R149.6b | R29.8b | R27.5b | 5.4x | 5.4x | 5x |
| Thu, 18 Apr 2024 | R145.6b | R30.6b | R28.1b | 5.2x | 5.2x | 4.8x |
| Sat, 16 Mar 2024 | R149.7b | R30.8b | R28.2b | 5.4x | 5.3x | 4.9x |
| Mon, 12 Feb 2024 | R133.3b | R28.8b | R21.3b | 6.9x | 6.3x | 4.6x |
| Wed, 10 Jan 2024 | R128.1b | R28.7b | R21.2b | 6.6x | 6x | 4.5x |
| Fri, 08 Dec 2023 | R122.6b | R28.6b | R21.1b | 6.5x | 5.8x | 4.3x |
| Sun, 05 Nov 2023 | R109.3b | R27.8b | R20.1b | 6.1x | 5.4x | 3.9x |
| Tue, 03 Oct 2023 | R109.7b | R28.3b | R20.5b | 5.8x | 5.4x | 3.9x |
| Thu, 31 Aug 2023 | R121.2b | R27.3b | R17.7b | 6x | 6.8x | 4.4x |
| Sat, 29 Jul 2023 | R116.8b | R24.9b | R15.2b | 6.7x | 7.7x | 4.7x |
| Mon, 26 Jun 2023 | R116.6b | R25.7b | R15.8b | 6.3x | 7.4x | 4.5x |
| Wed, 24 May 2023 | R118.4b | R26.5b | R16.5b | 4.5x | 7.2x | 4.5x |
| Fri, 21 Apr 2023 | R116.6b | R25.5b | R15.9b | 4.6x | 7.3x | 4.6x |
| Sun, 19 Mar 2023 | R93.1b | R19.5b | R13.8b | 3.9x | 6.7x | 4.8x |
| Tue, 14 Feb 2023 | R99.5b | R18.2b | R10.5b | 4.4x | 9.5x | 5.5x |
| Thu, 12 Jan 2023 | R96.6b | R17.5b | R10.1b | 5x | 9.6x | 5.5x |
| Sat, 10 Dec 2022 | R95.4b | R17.5b | R10.1b | 4.2x | 9.5x | 5.4x |
| Mon, 07 Nov 2022 | R87.5b | R16.9b | R9.7b | 5.8x | 9x | 5.2x |
| Wed, 05 Oct 2022 | R78.2b | R16.6b | R9.5b | 7.3x | 8.2x | 4.7x |
| Fri, 02 Sep 2022 | R75.4b | R15.4b | R8.8b | 7.2x | 8.5x | 4.9x |
| Sun, 31 Jul 2022 | R77.0b | R14.3b | R7.3b | 8.2x | 10.5x | 5.4x |
| Tue, 28 Jun 2022 | R76.6b | R13.9b | R6.7b | 8.3x | 11.5x | 5.5x |
| Thu, 26 May 2022 | R75.3b | R13.6b | R5.7b | 8.3x | 13.1x | 5.5x |
| Sat, 23 Apr 2022 | R80.9b | R13.7b | R5.7b | 9.5x | 14.1x | 5.9x |
| Mon, 21 Mar 2022 | R94.2b | R19.2b | R5.1b | 6.8x | 18.4x | 4.9x |
| Wed, 16 Feb 2022 | R96.8b | R18.8b | R3.4b | 5.6x | 28.6x | 5.2x |
| Fri, 14 Jan 2022 | R98.0b | R19.1b | R3.4b | 6.1x | 28.5x | 5.1x |
| Sun, 12 Dec 2021 | R94.6b | R19.4b | R3.5b | 6.2x | 26.9x | 4.9x |
| Tue, 09 Nov 2021 | R95.8b | R18.7b | R2.6b | 9.7x | 37.3x | 5.1x |
| Thu, 07 Oct 2021 | R93.8b | R18.2b | R2.5b | 13.6x | 38.2x | 5.1x |
| Sat, 04 Sep 2021 | R94.9b | R17.9b | R1.7b | 15.5x | 56.4x | 5.3x |
| Mon, 02 Aug 2021 | R89.0b | R17.9b | R1.7b | 13.4x | 52.9x | 5x |
Price to Earnings Ratio
52.9x
Current Industry PE
- 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 5.6x which is lower than its 3-year average PE of 13.8x.
- The industry is trading close to its 3-year average PS ratio of 5.0x.
Past Earnings Growth
- The earnings for companies in the Real Estate industry have grown 156% per year over the last three years.
- Revenues for these companies have grown 19% 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 Real Estate industry?
| ZA Market | 1.28% | |
| Real Estate | 0.89% | |
| Real Estate | 1.77% | |
| Real Estate Operating Companies | 1.78% | |
| Diversified Real Estate | 0% | |
| Real Estate Services | 0% | |
| Real Estate Development | -1.08% | |
Industry PE
- Investors are most optimistic about the Real Estate Operating Companies industry even though it's trading below its 3-year average PE ratio of 15.2x.
- Analysts are expecting annual earnings decline of 0.3%, which is lower than the prior year's growth of 176.6% per year.
- Investors are most pessimistic about the Real Estate Development industry, which is trading below its 3-year average of 3.1x.
Forecasted Growth
- Analysts are most optimistic on the Real Estate Development industry, expecting annual earnings growth of 13% over the next 5 years.
- This is better than its past earnings growth rate of 5.6% per year.
- In contrast, the Real Estate Operating Companies industry is expected to see its earnings growth to stay flat 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 | |
|---|---|---|---|---|---|
| NRP NEPI Rockcastle | R134.25 | 2.9% +R2.5b | 24.3% | PE9.4x | |
| FFB Fortress Real Estate Investments | R16.89 | 1.4% +R523.4m | 229.9% | PE6.1x | |
| LTE Lighthouse Properties | R8.01 | 1.9% +R273.9m | 26.7% | PE1.8x | |
| ACS Acsion | R6.60 | 3.1% +R77.0m | -2.2% | PE2.4x | |
| TMT Trematon Capital Investments | R2.20 | 10.0% +R44.8m | -21.1% | PE6.4x |
