Is Matrix Composites & Engineering (ASX:MCE) Using Debt Sensibly?
Oct 31
Australian (ASX) Energy Services Industry Analysis
UpdatedOct 30, 2023
DataAggregated Company Financials
Companies5
- 7D1.2%
- 3M-2.5%
- 1Y68.4%
- YTD23.5%
In the last week, the Energy Services industry is up 2.2%, with MMA Offshore up 2.0%. Meanwhile, Matrix Composites & Engineering actually underperformed within the industry, shrinking 10% in the last week. This takes the industry's 12 month performance to a gain of 70%. Looking forward, earnings are forecast to decline by 76% per year.
Industry Valuation and Performance
Has the Australian Energy Services Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | AU$566.0m | AU$408.4m | AU$132.3m | 5.6x | 4.3x | 1.4x |
| Thu, 28 Sep 2023 | AU$583.3m | AU$412.5m | AU$134.7m | 3.9x | 4.3x | 1.4x |
| Sat, 26 Aug 2023 | AU$606.2m | AU$389.8m | AU$125.1m | 4.3x | 4.8x | 1.6x |
| Mon, 24 Jul 2023 | AU$545.0m | AU$389.8m | AU$125.3m | 3.9x | 4.3x | 1.4x |
| Wed, 21 Jun 2023 | AU$513.1m | AU$389.7m | AU$125.4m | 3.5x | 4.1x | 1.3x |
| Fri, 19 May 2023 | AU$502.0m | AU$389.7m | AU$125.4m | 3.4x | 4x | 1.3x |
| Sun, 16 Apr 2023 | AU$521.2m | AU$389.7m | AU$125.5m | 4.1x | 4.2x | 1.3x |
| Tue, 14 Mar 2023 | AU$8.4b | AU$10.8b | AU$120.0m | 3.5x | 69.8x | 0.8x |
| Thu, 09 Feb 2023 | AU$8.4b | AU$10.0b | AU$195.2m | 11.2x | 42.9x | 0.8x |
| Sat, 07 Jan 2023 | AU$8.2b | AU$10.0b | AU$195.1m | 10.4x | 42.1x | 0.8x |
| Mon, 05 Dec 2022 | AU$8.0b | AU$10.0b | AU$203.0m | 8.8x | 39.2x | 0.8x |
| Wed, 02 Nov 2022 | AU$8.0b | AU$10.0b | AU$203.0m | 7.6x | 39.5x | 0.8x |
| Fri, 30 Sep 2022 | AU$6.9b | AU$10.0b | AU$200.7m | 9x | 34.5x | 0.7x |
| Sun, 28 Aug 2022 | AU$8.4b | AU$10.0b | AU$180.6m | 9.5x | 46.4x | 0.8x |
| Tue, 26 Jul 2022 | AU$7.5b | AU$9.6b | AU$99.8m | 30.9x | 75.3x | 0.8x |
| Thu, 23 Jun 2022 | AU$7.4b | AU$9.6b | AU$99.8m | 29.8x | 74.1x | 0.8x |
| Sat, 21 May 2022 | AU$8.0b | AU$9.6b | AU$99.8m | 32.9x | 80.2x | 0.8x |
| Mon, 18 Apr 2022 | AU$7.6b | AU$9.6b | AU$99.8m | 29.8x | 75.9x | 0.8x |
| Wed, 16 Mar 2022 | AU$6.8b | AU$9.6b | AU$91.2m | 27.2x | 75x | 0.7x |
| Fri, 11 Feb 2022 | AU$6.5b | AU$9.8b | AU$51.7m | 72.9x | 125.7x | 0.7x |
| Sun, 09 Jan 2022 | AU$6.0b | AU$9.8b | AU$52.4m | 62.7x | 114x | 0.6x |
| Tue, 07 Dec 2021 | AU$5.5b | AU$9.8b | AU$52.5m | 56.2x | 105.5x | 0.6x |
| Thu, 04 Nov 2021 | AU$5.9b | AU$9.9b | AU$61.5m | 64.5x | 96.3x | 0.6x |
| Sat, 02 Oct 2021 | AU$5.4b | AU$9.9b | AU$61.3m | 57.9x | 87.4x | 0.5x |
| Mon, 30 Aug 2021 | AU$5.9b | AU$9.9b | AU$89.4m | 54.8x | 66.3x | 0.6x |
| Tue, 06 Jul 2021 | AU$6.5b | AU$9.9b | AU$89.4m | 63x | 72.6x | 0.7x |
| Fri, 09 Apr 2021 | AU$5.7b | AU$10.6b | AU$45.9m | 37.2x | 124.2x | 0.5x |
| Thu, 31 Dec 2020 | AU$6.2b | AU$11.4b | -AU$64,833,139.27 | 53.9x | -96.1x | 0.5x |
Price to Earnings Ratio
-174.1x
Current Industry PE
- Investors are pessimistic on the Australian Energy Services 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 4.3x which is lower than its 3-year average PE of 41.0x.
- The 3-year average PS ratio of 0.81x is lower than the industry's current PS ratio of 1.4x.
Past Earnings Growth
- Total earnings for the Energy Services industry have gone up over the last three years and the industry is now profitable.
- Revenues have declined 68% per year.
- This means that less sales are being generated overall, but since the cost of doing business is lower, profits have been increasing.
Industry Trends
Which industries have driven the changes within the Australian Energy industry?
| AU Market | -0.99% | |
| Energy | -1.54% | |
| Energy Services | 1.24% | |
| Oil and Gas Services | 1.39% | |
| Oil and Gas Drilling | -6.25% | |
Industry PE
- Investors are most optimistic about the Oil and Gas Drilling 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 Oil and Gas Services industry, which is trading below its 3-year average of 40.7x.
Forecasted Growth
- Despite it being negative, analysts are least pessimistic on the Oil and Gas Services industry since they expect its earnings to decline by only 76% 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 283% per year.
- In contrast, the Oil and Gas Services industry is expected to see its earnings decline by 76% 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 | |
|---|---|---|---|---|---|
| MRM MMA Offshore | AU$1.29 | 2.0% +AU$9.4m | 88.3% | PE3.8x | |
| SRJ SRJ Technologies Group | AU$0.10 | 26.5% +AU$3.7m | n/a | PS7.8x |