Return Trends At South Ocean Holdings (JSE:SOH) Aren't Appealing
Oct 28
South African (JSE) Industrials Sector Analysis
UpdatedOct 31, 2023
DataAggregated Company Financials
Companies33
- 7D-0.4%
- 3M-12.8%
- 1Y-2.5%
- YTD-3.1%
The Industrials industry has been flat over the last week, but Barloworld has lost 8.1%. Unfortunately though, the industry is down 3.2% over the past 12 months. As for the next few years, earnings are expected to grow by 9.1% per annum.
Sector Valuation and Performance
Has the South African Industrials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | R179.6b | R408.8b | R25.4b | 5.6x | 7.1x | 0.4x |
| Thu, 28 Sep 2023 | R188.8b | R409.0b | R25.5b | 5.4x | 7.4x | 0.5x |
| Sat, 26 Aug 2023 | R191.6b | R412.8b | R26.2b | 5.6x | 7.3x | 0.5x |
| Mon, 24 Jul 2023 | R187.0b | R410.7b | R27.5b | 5.7x | 6.8x | 0.5x |
| Wed, 21 Jun 2023 | R188.3b | R410.3b | R27.6b | 5.7x | 6.8x | 0.5x |
| Fri, 19 May 2023 | R172.7b | R404.1b | R25.6b | 5.9x | 6.7x | 0.4x |
| Sun, 16 Apr 2023 | R182.6b | R401.0b | R25.5b | 5.7x | 7.2x | 0.5x |
| Tue, 14 Mar 2023 | R189.0b | R398.7b | R25.4b | 5.4x | 7.5x | 0.5x |
| Thu, 09 Feb 2023 | R180.9b | R389.7b | R25.3b | 5.5x | 7.1x | 0.5x |
| Sat, 07 Jan 2023 | R170.6b | R389.1b | R25.2b | 6x | 6.8x | 0.4x |
| Mon, 05 Dec 2022 | R173.7b | R379.8b | R24.8b | 6.1x | 7x | 0.5x |
| Wed, 02 Nov 2022 | R172.0b | R372.3b | R24.8b | 6.5x | 6.9x | 0.5x |
| Fri, 30 Sep 2022 | R159.9b | R372.2b | R24.8b | 6.1x | 6.4x | 0.4x |
| Sun, 28 Aug 2022 | R191.7b | R376.4b | R21.8b | 6.9x | 8.8x | 0.5x |
| Tue, 26 Jul 2022 | R181.7b | R368.1b | R20.5b | 7.4x | 8.9x | 0.5x |
| Thu, 23 Jun 2022 | R182.2b | R366.2b | R20.4b | 7.8x | 8.9x | 0.5x |
| Sat, 21 May 2022 | R182.6b | R363.9b | R20.9b | 8.4x | 8.7x | 0.5x |
| Mon, 18 Apr 2022 | R200.2b | R415.9b | R20.8b | 8.7x | 9.6x | 0.5x |
| Wed, 16 Mar 2022 | R198.7b | R433.9b | R21.5b | 8.4x | 9.2x | 0.5x |
| Fri, 11 Feb 2022 | R270.6b | R428.5b | R21.8b | 9.4x | 12.4x | 0.6x |
| Sun, 09 Jan 2022 | R267.1b | R428.0b | R21.8b | 8.9x | 12.2x | 0.6x |
| Tue, 07 Dec 2021 | R197.7b | R427.0b | R21.6b | 8.5x | 9.2x | 0.5x |
| Thu, 04 Nov 2021 | R200.1b | R438.0b | R16.6b | 8.3x | 12.1x | 0.5x |
| Sat, 02 Oct 2021 | R194.7b | R429.8b | R17.4b | 8.2x | 11.2x | 0.5x |
| Mon, 30 Aug 2021 | R189.4b | R426.8b | R16.3b | 7.8x | 11.6x | 0.4x |
| Tue, 06 Jul 2021 | R179.4b | R426.8b | R16.3b | 8.1x | 11x | 0.4x |
| Fri, 09 Apr 2021 | R162.6b | R418.7b | R11.2b | 8.4x | 14.5x | 0.4x |
| Thu, 31 Dec 2020 | R141.5b | R414.7b | R61.3m | 7.9x | 2309.2x | 0.3x |
Price to Earnings Ratio
-18.1x
Current Industry PE
- Investors are pessimistic on the South African Industrials 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 7.0x which is lower than its 3-year average PE of 136x.
- The industry is trading close to its 3-year average PS ratio of 0.45x.
Past Earnings Growth
- Total earnings for the Industrials industry have gone up over the last three years, and the industry is now profitable.
- Revenues have remained mostly flat. This means that the industry has become more efficient since profits are increasing while sales have been flat.
Industry Trends
Which industries have driven the changes within the South African Industrials sector?
| ZA Market | -0.87% | |
| Industrials | -0.37% | |
| Electrical | 10.89% | |
| Machinery | 6.32% | |
| Commercial Services | 5.13% | |
| Industrials | 0.54% | |
| Infrastructure | 0.38% | |
| Aerospace & Defense | 0% | |
| Logistics | 0% | |
| Airlines | 0% | |
| Marine and Shipping | 0% | |
| Professional Services | -0.09% | |
| Transportation | -0.82% | |
| Construction | -1.54% | |
| Building | -2.00% | |
| Trade Distributors | -4.82% | |
Industry PE
- Investors are most optimistic about the Construction 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 Electrical industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 0.74x.
Forecasted Growth
- Analysts are most optimistic on the Industrials industry, expecting annual earnings growth of 11% over the next 5 years.
- However this is lower than its past earnings growth rate of 18% per year.
- In contrast, the Trade Distributors industry is expected to see its earnings decline by 2.3% 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 | |
|---|---|---|---|---|---|
| BVT Bidvest Group | R262.33 | 1.3% +R1.2b | 23.5% | PE14.9x | |
| KAP KAP | R2.15 | 2.9% +R148.6m | -53.5% | PE12.9x | |
| BEL Bell Equipment | R19.00 | 6.3% +R108.1m | 30.6% | PE3.1x | |
| NVS Novus Holdings | R4.15 | 6.4% +R80.2m | 17.9% | PE22x | |
| FTH Frontier Transport Holdings | R5.48 | 3.4% +R52.4m | 12.8% | PE5.8x |
