Are Investors Undervaluing Treasury Wine Estates Limited (ASX:TWE) By 44%?
May 06
Australian (ASX) Beverage Industry Analysis
UpdatedMay 07, 2024
DataAggregated Company Financials
Companies6
- 7D-4.7%
- 3M3.8%
- 1Y-16.1%
- YTD5.9%
Over the last 7 days, the Beverage industry has dropped 4.7%, driven by a pullback from Treasury Wine Estates of 5.1%. The industry has fallen 16% in the last year. Looking forward, earnings are forecast to grow by 23% annually.
Industry Valuation and Performance
Has the Australian Beverage Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 08 May 2024 | AU$9.5b | AU$2.9b | AU$181.3m | 39.8x | 52.5x | 3.3x |
| Fri, 05 Apr 2024 | AU$10.8b | AU$2.9b | AU$181.3m | 45.3x | 59.7x | 3.7x |
| Sun, 03 Mar 2024 | AU$10.3b | AU$2.9b | AU$181.3m | 43x | 56.8x | 3.5x |
| Tue, 30 Jan 2024 | AU$8.8b | AU$2.9b | AU$205.3m | 30.7x | 42.9x | 3x |
| Thu, 28 Dec 2023 | AU$9.0b | AU$2.9b | AU$205.3m | 34.3x | 44x | 3.1x |
| Sat, 25 Nov 2023 | AU$8.5b | AU$2.9b | AU$205.3m | 32.4x | 41.6x | 2.9x |
| Mon, 23 Oct 2023 | AU$8.8b | AU$2.9b | AU$205.3m | 33.4x | 42.9x | 3x |
| Wed, 20 Sep 2023 | AU$8.6b | AU$2.9b | AU$205.3m | 32.7x | 42x | 3x |
| Fri, 18 Aug 2023 | AU$8.8b | AU$2.9b | AU$247.1m | 33.5x | 35.8x | 3x |
| Sun, 16 Jul 2023 | AU$8.2b | AU$3.0b | AU$334.9m | 23.1x | 24.5x | 2.8x |
| Tue, 13 Jun 2023 | AU$8.6b | AU$3.0b | AU$334.9m | 24.2x | 25.8x | 2.9x |
| Thu, 11 May 2023 | AU$9.9b | AU$3.0b | AU$334.9m | 27.8x | 29.5x | 3.3x |
| Sat, 08 Apr 2023 | AU$9.9b | AU$2.9b | AU$255.8m | 36x | 38.7x | 3.4x |
| Mon, 06 Mar 2023 | AU$10.2b | AU$2.8b | AU$255.8m | 37.2x | 40x | 3.6x |
| Wed, 01 Feb 2023 | AU$11.0b | AU$2.9b | AU$265.4m | 39.8x | 41.3x | 3.8x |
| Fri, 30 Dec 2022 | AU$10.3b | AU$2.9b | AU$265.4m | 37.2x | 38.9x | 3.5x |
| Sun, 27 Nov 2022 | AU$10.3b | AU$2.9b | AU$265.4m | 37.2x | 38.9x | 3.5x |
| Tue, 25 Oct 2022 | AU$9.6b | AU$2.9b | AU$265.4m | 34.7x | 36.2x | 3.3x |
| Thu, 22 Sep 2022 | AU$9.9b | AU$2.9b | AU$265.4m | 35.5x | 37.3x | 3.4x |
| Sat, 20 Aug 2022 | AU$10.3b | AU$2.9b | AU$271.5m | 33.3x | 37.9x | 3.5x |
| Mon, 18 Jul 2022 | AU$8.9b | AU$2.9b | AU$249.4m | 31.1x | 35.6x | 3x |
| Wed, 15 Jun 2022 | AU$8.4b | AU$2.9b | AU$249.4m | 30.2x | 33.6x | 2.9x |
| Fri, 13 May 2022 | AU$8.7b | AU$2.9b | AU$249.4m | 31.6x | 34.7x | 3x |
| Sun, 10 Apr 2022 | AU$9.0b | AU$2.9b | AU$249.4m | 32.2x | 35.9x | 3.1x |
| Tue, 08 Mar 2022 | AU$8.8b | AU$2.9b | AU$249.4m | 31.6x | 35.4x | 3x |
| Thu, 03 Feb 2022 | AU$8.6b | AU$3.1b | AU$265.9m | 28.7x | 32.2x | 2.8x |
| Sat, 01 Jan 2022 | AU$9.8b | AU$3.1b | AU$265.9m | 31.3x | 36.8x | 3.2x |
| Mon, 29 Nov 2021 | AU$9.5b | AU$3.1b | AU$265.9m | 30.2x | 35.7x | 3.1x |
| Wed, 27 Oct 2021 | AU$9.3b | AU$3.1b | AU$265.9m | 31x | 35.1x | 3.1x |
| Fri, 24 Sep 2021 | AU$9.5b | AU$3.1b | AU$264.5m | 31x | 35.9x | 3.1x |
| Sun, 22 Aug 2021 | AU$10.3b | AU$3.1b | AU$264.5m | 31.7x | 38.8x | 3.4x |
| Fri, 09 Jul 2021 | AU$9.1b | AU$3.1b | AU$264.5m | 29.4x | 34.3x | 3x |
Price to Earnings Ratio
42.5x
Current Industry PE
- Investors are optimistic on the Australian Beverage industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 52.5x which is higher than its 3-year average PE of 38.3x.
- The industry is trading close to its 3-year average PS ratio of 3.2x.
Past Earnings Growth
- The earnings for companies in the Beverage industry have declined 5.2% per year over the last three years.
- Meanwhile revenues have remained mostly flat.
- This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Australian Consumer Staples industry?
| AU Market | 0.54% | |
| Consumer Staples | -3.04% | |
| Beverage | -4.68% | |
| Brewers | 3.33% | |
| Soft Drinks | 0% | |
| Distillers and Wine Makers | -4.72% | |
Industry PE
- Investors are most optimistic about the Distillers and Wine Makers industry which is trading above its 3-year average PE ratio of 38.1x.
- Analysts are expecting annual earnings growth of 23.0%, which is higher than its past year's earnings decline of 31.9% per year.
Forecasted Growth
- Analysts are most optimistic on the Brewers industry, expecting annual earnings growth of 95% over the next 5 years.
- In contrast, the Distillers and Wine Makers industry is expected to see its earnings grow by 23% 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 | |
|---|---|---|---|---|---|
| GDA Good Drinks Australia | AU$0.31 | 3.3% +AU$1.3m | -43.6% | PS0.4x |
