Do Wesfarmers' (ASX:WES) Earnings Warrant Your Attention?
Oct 26
Australian (ASX) Consumer Discretionary Sector Analysis
UpdatedOct 30, 2023
DataAggregated Company Financials
Companies124
- 7D-0.9%
- 3M-4.9%
- 1Y1.5%
- YTD3.2%
Last week, the Consumer Discretionary industry hasn't moved much but Super Retail Group is up 5.7% in that time. In line with that, the industry has also been flat over the past 12 months. As for the next few years, earnings are expected to grow by 14% per annum.
Sector Valuation and Performance
Has the Australian Consumer Discretionary Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | AU$174.2b | AU$125.7b | AU$4.0b | 18.6x | 43.7x | 1.4x |
| Thu, 28 Sep 2023 | AU$183.0b | AU$125.7b | AU$4.0b | 21.1x | 45.7x | 1.5x |
| Sat, 26 Aug 2023 | AU$184.4b | AU$125.6b | AU$4.9b | 14.9x | 37.9x | 1.5x |
| Mon, 24 Jul 2023 | AU$178.3b | AU$122.0b | AU$5.0b | 12.6x | 35.9x | 1.5x |
| Wed, 21 Jun 2023 | AU$176.3b | AU$121.9b | AU$5.0b | 11.9x | 35.2x | 1.4x |
| Fri, 19 May 2023 | AU$182.4b | AU$121.8b | AU$5.0b | 13.6x | 36.6x | 1.5x |
| Sun, 16 Apr 2023 | AU$183.8b | AU$121.4b | AU$4.8b | 14.5x | 38x | 1.5x |
| Tue, 14 Mar 2023 | AU$178.2b | AU$121.2b | AU$4.9b | 14.8x | 36.2x | 1.5x |
| Thu, 09 Feb 2023 | AU$182.4b | AU$111.8b | AU$5.6b | 16.9x | 32.6x | 1.6x |
| Sat, 07 Jan 2023 | AU$171.2b | AU$111.7b | AU$5.5b | 14.4x | 30.9x | 1.5x |
| Mon, 05 Dec 2022 | AU$176.6b | AU$111.7b | AU$5.5b | 14.2x | 31.9x | 1.6x |
| Wed, 02 Nov 2022 | AU$175.4b | AU$111.2b | AU$5.5b | 15.1x | 31.6x | 1.6x |
| Fri, 30 Sep 2022 | AU$163.8b | AU$111.1b | AU$5.6b | 13.3x | 29.5x | 1.5x |
| Sun, 28 Aug 2022 | AU$177.1b | AU$110.9b | AU$5.6b | 16.5x | 31.9x | 1.6x |
| Tue, 26 Jul 2022 | AU$163.7b | AU$106.7b | AU$5.4b | 16.4x | 30.2x | 1.5x |
| Thu, 23 Jun 2022 | AU$149.4b | AU$106.6b | AU$5.4b | 15.2x | 27.6x | 1.4x |
| Sat, 21 May 2022 | AU$175.4b | AU$106.7b | AU$5.4b | 16x | 32.3x | 1.6x |
| Mon, 18 Apr 2022 | AU$186.5b | AU$106.1b | AU$5.2b | 17.6x | 36.2x | 1.8x |
| Wed, 16 Mar 2022 | AU$188.1b | AU$106.1b | AU$5.2b | 18.2x | 36.3x | 1.8x |
| Fri, 11 Feb 2022 | AU$207.6b | AU$105.3b | AU$6.0b | 16.7x | 34.5x | 2x |
| Sun, 09 Jan 2022 | AU$216.2b | AU$105.0b | AU$6.0b | 17.2x | 35.8x | 2.1x |
| Tue, 07 Dec 2021 | AU$215.7b | AU$105.0b | AU$6.0b | 16.3x | 35.7x | 2.1x |
| Thu, 04 Nov 2021 | AU$227.5b | AU$104.9b | AU$5.7b | 16.9x | 40.2x | 2.2x |
| Sat, 02 Oct 2021 | AU$217.5b | AU$106.0b | AU$5.7b | 15.6x | 38.1x | 2.1x |
| Mon, 30 Aug 2021 | AU$222.3b | AU$105.7b | AU$5.5b | 16x | 40.8x | 2.1x |
| Tue, 06 Jul 2021 | AU$215.6b | AU$105.0b | AU$5.4b | 17x | 40.3x | 2.1x |
| Fri, 09 Apr 2021 | AU$193.0b | AU$100.7b | AU$3.6b | 16.3x | 54.2x | 1.9x |
| Thu, 31 Dec 2020 | AU$178.3b | AU$98.6b | AU$1.8b | 21.1x | 96.8x | 1.8x |
Price to Earnings Ratio
87.9x
Current Industry PE
- Investors are relatively neutral on the Australian Consumer Discretionary 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 45.5x.
- The 3-year average PS ratio of 1.7x is higher than the industry's current PS ratio of 1.4x.
Past Earnings Growth
- The earnings for companies in the Consumer Discretionary industry have grown 30% per year over the last three years.
- Revenues for these companies have grown 9.4% 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 Australian Consumer Discretionary sector?
| AU Market | -1.02% | |
| Consumer Discretionary | -0.91% | |
| Luxury | 5.70% | |
| Auto | 0.59% | |
| Online Retail and Ecommerce | 0% | |
| Leisure | -0.24% | |
| Specialty Stores | -0.47% | |
| Consumer Services | -0.48% | |
| Consumer Durables | -0.66% | |
| Hospitality | -0.67% | |
| Auto Components | -0.90% | |
| General Merchandise and Department Stores | -1.40% | |
| Retail Distributors | -2.10% | |
Industry PE
- Investors are most optimistic about the Consumer Services industry even though it's trading below its 3-year average PE ratio of 99x.
- Analysts are expecting annual earnings growth of 22.5%, which is higher than its past year's earnings growth of 2.4% per year.
Forecasted Growth
- Analysts are most optimistic on the Auto industry, expecting annual earnings growth of 59% over the next 5 years.
- This is better than its past earnings decline of 27% per year.
- In contrast, the Specialty Stores industry is expected to see its earnings grow by 4.2% 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 | |
|---|---|---|---|---|---|
| SUL Super Retail Group | AU$12.76 | 5.7% +AU$156.0m | 24.1% | PE11x | |
| HVN Harvey Norman Holdings | AU$3.67 | 3.4% +AU$149.5m | -11.8% | PE8.5x | |
| IEL IDP Education | AU$21.54 | 2.4% +AU$139.0m | -27.2% | PE40.3x | |
| FLT Flight Centre Travel Group | AU$18.30 | 3.0% +AU$116.3m | 9.9% | PE84.6x | |
| CTT Cettire | AU$2.48 | 3.3% +AU$30.4m | 52.6% | PE59.1x |
