Earnings Working Against Rio Tinto Group's (LON:RIO) Share Price
May 09
U.K. (FTSE) Materials Sector Analysis
UpdatedMay 10, 2024
DataAggregated Company Financials
Companies175
- 7D2.5%
- 3M16.9%
- 1Y10.1%
- YTD4.5%
In the last week, the Materials industry is up 2.5%, with En+ Group International up . In the same time, Metals Exploration was down 14%. This takes the industry's 12 month performance to a gain of 10%. Looking forward, earnings are forecast to grow by 12% annually.
Sector Valuation and Performance
Has the U.K. Materials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 10 May 2024 | UK£253.3b | UK£295.6b | UK£14.0b | 16.5x | 18.1x | 0.9x |
| Sun, 07 Apr 2024 | UK£232.4b | UK£293.4b | UK£14.1b | 14.5x | 16.5x | 0.8x |
| Tue, 05 Mar 2024 | UK£213.8b | UK£292.6b | UK£13.9b | 11.4x | 15.3x | 0.7x |
| Thu, 01 Feb 2024 | UK£239.3b | UK£348.7b | UK£29.3b | 10.4x | 8.2x | 0.7x |
| Sat, 30 Dec 2023 | UK£255.0b | UK£347.4b | UK£29.3b | 10.4x | 8.7x | 0.7x |
| Mon, 27 Nov 2023 | UK£241.9b | UK£351.1b | UK£29.5b | 10.4x | 8.2x | 0.7x |
| Wed, 25 Oct 2023 | UK£254.9b | UK£389.1b | UK£32.6b | 10x | 7.8x | 0.7x |
| Fri, 22 Sep 2023 | UK£269.4b | UK£386.0b | UK£32.4b | 9.9x | 8.3x | 0.7x |
| Sun, 20 Aug 2023 | UK£251.8b | UK£374.7b | UK£31.7b | 10x | 7.9x | 0.7x |
| Tue, 18 Jul 2023 | UK£272.6b | UK£393.2b | UK£42.7b | 9.9x | 6.4x | 0.7x |
| Thu, 15 Jun 2023 | UK£282.0b | UK£402.1b | UK£43.5b | 10.4x | 6.5x | 0.7x |
| Sat, 13 May 2023 | UK£267.3b | UK£406.6b | UK£44.2b | 10x | 6.1x | 0.7x |
| Mon, 10 Apr 2023 | UK£280.9b | UK£407.8b | UK£44.4b | 10x | 6.3x | 0.7x |
| Wed, 08 Mar 2023 | UK£303.7b | UK£424.3b | UK£46.6b | 9.8x | 6.5x | 0.7x |
| Fri, 03 Feb 2023 | UK£325.5b | UK£410.1b | UK£50.4b | 9.8x | 6.5x | 0.8x |
| Sun, 01 Jan 2023 | UK£308.8b | UK£414.6b | UK£50.9b | 9.6x | 6.1x | 0.7x |
| Tue, 29 Nov 2022 | UK£299.1b | UK£414.9b | UK£51.0b | 8.7x | 5.9x | 0.7x |
| Thu, 27 Oct 2022 | UK£274.1b | UK£427.8b | UK£52.2b | 8.3x | 5.3x | 0.6x |
| Sat, 24 Sep 2022 | UK£260.2b | UK£449.1b | UK£55.4b | 7.9x | 4.7x | 0.6x |
| Mon, 22 Aug 2022 | UK£279.8b | UK£419.8b | UK£52.0b | 10.2x | 5.4x | 0.7x |
| Wed, 20 Jul 2022 | UK£244.0b | UK£374.8b | UK£45.0b | 10.2x | 5.4x | 0.7x |
| Fri, 17 Jun 2022 | UK£286.7b | UK£376.8b | UK£45.9b | 10.5x | 6.3x | 0.8x |
| Sun, 15 May 2022 | UK£263.9b | UK£354.9b | UK£44.1b | 8.3x | 6x | 0.7x |
| Tue, 12 Apr 2022 | UK£298.8b | UK£337.2b | UK£42.1b | 11.7x | 7.1x | 0.9x |
| Thu, 10 Mar 2022 | UK£284.1b | UK£361.3b | UK£52.0b | 10.8x | 5.5x | 0.8x |
| Sat, 05 Feb 2022 | UK£349.3b | UK£317.1b | UK£44.7b | 11.7x | 7.8x | 1.1x |
| Mon, 03 Jan 2022 | UK£352.2b | UK£315.0b | UK£44.0b | 13.3x | 8x | 1.1x |
| Wed, 01 Dec 2021 | UK£338.3b | UK£319.4b | UK£44.5b | 12.6x | 7.6x | 1.1x |
| Fri, 29 Oct 2021 | UK£349.5b | UK£308.4b | UK£43.4b | 12.9x | 8x | 1.1x |
| Sun, 26 Sep 2021 | UK£342.3b | UK£307.0b | UK£41.3b | 12.6x | 8.3x | 1.1x |
| Tue, 24 Aug 2021 | UK£361.9b | UK£304.6b | UK£40.8b | 16.5x | 8.9x | 1.2x |
| Wed, 30 Jun 2021 | UK£368.7b | UK£304.6b | UK£40.8b | 15.3x | 9x | 1.2x |
Price to Earnings Ratio
13.5x
Current Industry PE
- Investors are optimistic on the British Materials industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 18.1x which is higher than its 3-year average PE of 8.3x.
- The industry is trading close to its 3-year average PS ratio of 0.87x.
Past Earnings Growth
- The earnings for companies in the Materials industry have declined 21% 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 U.K. Materials sector?
| GB Market | 2.26% | |
| Materials | 2.50% | |
| Chemicals | 3.84% | |
| Basic Materials | 3.37% | |
| Metals and Mining | 2.44% | |
| Paper and Forestry Products | 2.15% | |
| Packaging | 1.22% | |
Industry PE
- Investors are most optimistic about the Chemicals industry which is trading above its 3-year average PE ratio of 36.1x.
- Analysts are expecting annual earnings growth of 21.7%, which is higher than its past year's earnings decline of 18.4% per year.
- Investors are most pessimistic about the Packaging industry, which is trading below its 3-year average of 17.4x.
Forecasted Growth
- Analysts are most optimistic on the Chemicals industry, expecting annual earnings growth of 22% over the next 5 years.
- This is better than its past earnings decline of 18% per year.
- In contrast, the Packaging industry is expected to see its earnings grow by 4.2% 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 | |
|---|---|---|---|---|---|
| ENPL En+ Group International | US$9.30 | n/a US$4.7b | -8.8% | PE2.2x | |
| RIO Rio Tinto Group | UK£55.84 | 2.6% +UK£2.3b | 14.4% | PE11.3x | |
| EVR EVRAZ | UK£0.81 | n/a UK£1.2b | -86.2% | PE0.4x | |
| ANTO Antofagasta | UK£22.30 | 4.6% +UK£966.1m | 61.4% | PE33x | |
| AAL Anglo American | UK£27.36 | 2.8% +UK£903.7m | 16.5% | PE146.9x |
