Here's Why We Think Woolworths Holdings (JSE:WHL) Might Deserve Your Attention Today
Oct 01
South African (JSE) Consumer Discretionary Sector Analysis
UpdatedOct 30, 2023
DataAggregated Company Financials
Companies31
- 7D0.8%
- 3M-13.3%
- 1Y17.9%
- YTD-5.9%
The Consumer Discretionary industry has been flat over the last week, but Stadio Holdings has lost 13%. As for the the longer term, the industry is up 21% over the past 12 months. Looking forward, earnings are forecast to decline by 6.7% per year.
Sector Valuation and Performance
Has the South African Consumer Discretionary Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | R870.4b | R698.7b | R104.0b | 8.9x | 8.4x | 1.2x |
| Thu, 28 Sep 2023 | R817.9b | R700.8b | R105.5b | 9.5x | 7.8x | 1.2x |
| Sat, 26 Aug 2023 | R933.9b | R689.0b | R103.9b | 8.9x | 9x | 1.4x |
| Mon, 24 Jul 2023 | R952.2b | R659.8b | R101.4b | 9x | 9.4x | 1.4x |
| Wed, 21 Jun 2023 | R944.5b | R688.5b | R73.1b | 9.9x | 12.9x | 1.4x |
| Fri, 19 May 2023 | R976.5b | R689.1b | R75.5b | 9.7x | 12.9x | 1.4x |
| Sun, 16 Apr 2023 | R993.9b | R677.9b | R72.8b | 10.1x | 13.7x | 1.5x |
| Tue, 14 Mar 2023 | R964.9b | R670.7b | R72.7b | 10.2x | 13.3x | 1.4x |
| Thu, 09 Feb 2023 | R1.1t | R650.9b | R71.4b | 10.8x | 15x | 1.6x |
| Sat, 07 Jan 2023 | R910.2b | R646.8b | R70.1b | 11.2x | 13x | 1.4x |
| Mon, 05 Dec 2022 | R821.5b | R649.1b | R70.8b | 10.7x | 11.6x | 1.3x |
| Wed, 02 Nov 2022 | R783.3b | R635.6b | R254.3b | 9.3x | 3.1x | 1.2x |
| Fri, 30 Sep 2022 | R818.3b | R633.9b | R251.0b | 9.6x | 3.3x | 1.3x |
| Sun, 28 Aug 2022 | R903.0b | R610.7b | R234.1b | 9x | 3.9x | 1.5x |
| Tue, 26 Jul 2022 | R887.4b | R609.3b | R233.7b | 8.9x | 3.8x | 1.5x |
| Thu, 23 Jun 2022 | R1.1t | R586.9b | R254.8b | 9x | 4.2x | 1.8x |
| Sat, 21 May 2022 | R982.7b | R577.5b | R248.4b | 8.9x | 4x | 1.7x |
| Mon, 18 Apr 2022 | R978.5b | R567.9b | R230.6b | 8.7x | 4.2x | 1.7x |
| Wed, 16 Mar 2022 | R940.5b | R567.1b | R238.1b | 10.8x | 3.9x | 1.7x |
| Fri, 11 Feb 2022 | R1.3t | R564.1b | R234.9b | 11.7x | 5.7x | 2.4x |
| Sun, 09 Jan 2022 | R1.3t | R568.3b | R243.3b | 11.8x | 5.4x | 2.3x |
| Tue, 07 Dec 2021 | R1.3t | R568.0b | R246.3b | 11.8x | 5.5x | 2.4x |
| Thu, 04 Nov 2021 | R1.5t | R526.4b | R94.6b | 12.1x | 15.7x | 2.8x |
| Sat, 02 Oct 2021 | R1.4t | R519.8b | R89.8b | 12.7x | 15.4x | 2.7x |
| Mon, 30 Aug 2021 | R1.4t | R514.7b | R86.3b | 12.3x | 15.7x | 2.6x |
| Tue, 06 Jul 2021 | R1.6t | R514.7b | R86.3b | 12.1x | 18.6x | 3.1x |
| Fri, 09 Apr 2021 | R1.8t | R502.6b | R82.2b | 13.8x | 21.9x | 3.6x |
| Thu, 31 Dec 2020 | R1.6t | R480.6b | R60.0b | 14.7x | 25.9x | 3.2x |
Price to Earnings Ratio
31x
Current Industry PE
- Investors are pessimistic on the South African Consumer Discretionary 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 8.4x which is lower than its 3-year average PE of 13.0x.
- The 3-year average PS ratio of 2.2x is higher than the industry's current PS ratio of 1.2x.
Past Earnings Growth
- The earnings for companies in the Consumer Discretionary industry have grown 27% per year over the last three years.
- Revenues for these companies have grown 14% 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 Consumer Discretionary sector?
| ZA Market | -0.87% | |
| Consumer Discretionary | 0.85% | |
| Specialty Stores | 1.42% | |
| General Merchandise and Department Stores | 1.01% | |
| Retail Distributors | 0.64% | |
| Consumer Durables | 0.092% | |
| Auto | 0% | |
| Leisure | 0% | |
| Luxury | 0% | |
| Online Retail and Ecommerce | 0% | |
| Consumer Services | -1.51% | |
| Auto Components | -1.67% | |
| Hospitality | -2.77% | |
Industry PE
- Investors are most optimistic about the Consumer Services industry even though it's trading below its 3-year average PE ratio of 25.7x.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
Forecasted Growth
- Analysts are most optimistic on the Specialty Stores industry, expecting annual earnings growth of 4.1% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the General Merchandise and Department Stores industry is expected to see its earnings decline by 10% 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 | |
|---|---|---|---|---|---|
| NPN Naspers | R2.93k | 0.8% +R3.7b | 54.1% | PE7.6x | |
| PPH Pepkor Holdings | R17.02 | 4.2% +R2.5b | -24.9% | PE10.8x | |
| WHL Woolworths Holdings | R68.03 | 2.7% +R1.6b | 7.8% | PE15.9x | |
| TRU Truworths International | R73.15 | 2.3% +R609.3m | 40.0% | PE8.2x | |
| TFG Foschini Group | R98.19 | 1.9% +R590.0m | -14.6% | PE10.5x |