Industrials Sector Report
Market Cap: $13.7T
Stocks: 798
Median P/E: 17.7x
Median ROIC: 8.9%
Data sourced from SEC EDGAR filings. Report refreshed weekly.
The Industrials sector includes capital goods manufacturers, aerospace and defense contractors, transportation companies, and commercial services firms. The sector is a bellwether for economic activity, with order backlogs and capacity utilization serving as leading indicators. Long product cycles, government contracts, and infrastructure investment drive secular themes.
Performance Dashboard
| Period | Sector (MCW) | Sector (Median) |
|---|---|---|
| 1 Day | +0.4% | 0.0% |
| 1 Week | -1.5% | -0.6% |
| 1 Month | — | — |
| 3 Months | — | — |
| 6 Months | — | — |
| YTD | +1.5% | +0.5% |
| 1 Year | +51.7% | +8.8% |
| 3 Years | +140.1% | +19.8% |
| 5 Years | +133.9% | +3.3% |
Today's Breadth: 314 advancing · 302 declining · 67 flat
Valuation Summary
| Metric | Median | P25 | P75 | vs 5Y Avg |
|---|---|---|---|---|
| P/E | 17.7x | 7.3x | 30.9x | -7% |
| P/B | 1.9x | 0.8x | 4.4x | -16% |
| P/S | 0.9x | 0.3x | 2.3x | — |
| P/FCF | 14.2x | 6.5x | 24.8x | — |
| EV/EBITDA | 11.9x | 7.8x | 18.3x | — |
| EV/EBIT | 17.0x | 11.6x | 25.5x | — |
Earnings Yield
4.3%
FCF Yield
4.4%
Below Fair Value
37% of stocks
Profitability Profile
Margins
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| Gross Margin | 36.3% | 35.3% | 23.7% | 49.3% |
| Operating Margin | 8.0% | — | 1.8% | 15.9% |
| Net Margin | 4.6% | 4.5% | -0.1% | 10.8% |
| FCF Margin | 7.1% | — | 2.0% | 13.7% |
Returns on Capital
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| ROE | 9.8% | — | -0.6% | 17.9% |
| ROA | 3.3% | — | -0.9% | 7.5% |
| ROIC | 8.9% | 8.8% | 2.0% | 16.0% |
Growth Metrics
| Metric | 1Y | 3Y CAGR | 5Y CAGR |
|---|---|---|---|
| Revenue | +5.0% | +5.1% | +7.5% |
| EPS | +13.2% | +5.5% | +13.0% |
| Free Cash Flow | +8.9% | +12.2% | +6.5% |
All values represent sector median growth rates.
Balance Sheet Health
Debt / Equity
0.6x
Net Debt / EBITDA
1.3x
Interest Coverage
3.9x
Current Ratio
1.4x
Altman Z-Score
Safe (>3): 272 (37%)
Gray (1.8–3): 167 (23%)
Distress (<1.8): 287 (40%)
Piotroski F-Score
Strong (7–9): 165 (21%)
Moderate (4–6): 461 (58%)
Weak (0–3): 167 (21%)
Top Companies
| Symbol | #▲ | Mkt Cap | P/E | EV/EBITDA | ROIC | Net Mgn | Rev Gr. | Div Yld | YTD | Qual. |
|---|---|---|---|---|---|---|---|---|---|---|
| ASML | 1 | $578.2B | 38.0x | 29.0x | 78.2% | 29.4% | +21.1% | 0.7% | +2.8% | 8/9 |
| ASMLF | 2 | $576.0B | — | — | 78.2% | 29.4% | +21.1% | — | +2.7% | 5/9 |
| V | 3 | $523.6B | 34.9x | 22.4x | 56.6% | 50.1% | +11.3% | 0.8% | +0.3% | 7/9 |
| MA | 4 | $460.8B | 35.0x | 26.1x | — | 45.6% | +16.4% | 0.6% | -0.6% | 6/9 |
| CAT | 5 | $373.9B | 30.9x | 21.4x | 24.4% | 13.1% | +4.3% | 1.0% | +0.2% | 6/9 |
| LRCX | 6 | $345.1B | 23.3x | 18.7x | — | 29.1% | +23.7% | 0.9% | +19.5% | 6/9 |
| GE | 7 | $333.5B | 38.7x | 29.2x | 34.7% | 19.0% | +18.5% | 0.5% | -1.5% | 5/9 |
| BABA | 8 | $305.8B | 20.1x | 13.5x | 17.7% | 13.0% | +6.2% | 1.1% | -5.7% | 4/9 |
| GEV | 9 | $273.6B | 37.5x | 77.8x | 46.0% | 12.8% | +9.0% | 0.2% | +1.4% | 4/9 |
| RTX | 10 | $273.4B | 37.2x | 20.0x | 8.4% | 7.6% | +9.7% | 1.4% | +0.1% | 3/9 |
| ABBNY | 11 | $170.8B | — | — | 21.2% | 11.6% | +9.5% | — | -1.3% | 3/9 |
| BA | 12 | $169.3B | 87.3x | 31.8x | 13.3% | 2.1% | +34.5% | 0.2% | +3.0% | 1/9 |
| ABLZF | 13 | $169.3B | — | — | 21.2% | 11.6% | +9.5% | — | -4.3% | 3/9 |
| DE | 14 | $163.9B | 25.0x | 16.0x | 8.8% | 11.0% | -11.7% | 1.4% | -2.0% | 4/9 |
| ETN | 15 | $157.8B | 30.8x | 21.9x | 15.9% | 14.9% | +10.3% | 1.3% | +4.4% | 4/9 |
| UBER | 16 | $153.7B | 17.2x | 27.8x | 20.4% | 19.3% | +18.3% | — | +6.6% | 4/9 |
| HON | 17 | $150.1B | 26.7x | 17.1x | 17.7% | 12.6% | +7.8% | 2.3% | -0.8% | 3/9 |
| UNP | 18 | $149.8B | 19.4x | 13.8x | 15.4% | 29.1% | +1.1% | 2.3% | -0.7% | 5/9 |
| QCOM | 19 | $145.1B | 33.6x | 13.7x | 27.0% | 12.5% | +13.7% | 2.1% | +0.3% | 6/9 |
| LMT | 20 | $144.7B | 22.5x | 13.5x | 30.0% | 6.7% | +5.6% | 2.8% | -2.5% | 4/9 |
Industry Composition
| Industry | Stocks | Market Cap | % | |
|---|---|---|---|---|
| Services-Business Services, Nec | 91 | $2.4T | 17.6% | |
| Special Industry Machinery, Nec | 15 | $1.5T | 11.1% | |
| Electronic & Other Electrical Equipment (No Computer Equip) | 4 | $721.5B | 5.3% | |
| Pipe Lines (No Natural Gas) | 17 | $646.9B | 4.7% | |
| Aircraft Engines & Engine Parts | 5 | $474.3B | 3.5% | |
| Construction Machinery & Equip | 7 | $392.0B | 2.9% | |
| Heavy Construction Other Than Bldg Const - Contractors | 14 | $381.5B | 2.8% | |
| Railroads, Line-Haul Operating | 5 | $370.0B | 2.7% | |
| Radio & Tv Broadcasting & Communications Equipment | 22 | $365.8B | 2.7% | |
| Switchgear & Switchboard Apparatus | 4 | $352.5B | 2.6% | |
| Water Transportation | 18 | $313.1B | 2.3% | |
| Services-Consumer Credit Reporting, Collection Agencies | 5 | $247.5B | 1.8% | |
| Transportation Services | 12 | $224.2B | 1.6% | |
| Aircraft | 7 | $197.6B | 1.4% | |
| Misc Industrial & Commercial Machinery & Equipment | 6 | $197.5B | 1.4% |
Showing top 15 of 114 industries.
Quality Distribution
0
1
2
3
4
5
6
7
8
9
Quality Score (0-9)
High Quality (7+)
3%
Median Piotroski F
5/9
Profitable Years
6 of 10
Dividends & Shareholder Returns
Paying Dividends
46%
Median Div Yield
1.6%
Median Buyback Yield
1.3%
Shareholder Yield
2.6%
Payout Ratio
32.8%
Div Growth (3Y)
6.3%
Div Growth (5Y)
7.4%
Strengths & Weaknesses
Strengths
No notable strengths identified.
Weaknesses
- −[Financial Health]39.5% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
- −[Leverage]Tight interest coverage at 3.9x, leaving limited cushion for debt servicing if earnings decline.
- −[Quality]Only 2.6% of companies score 7+ on the quality checklist, reflecting structural challenges in achieving consistent returns across the sector.