Subdued Growth No Barrier To Northam Platinum Holdings Limited (JSE:NPH) With Shares Advancing 29%
Apr 05
South African (JSE) Materials Sector Analysis
UpdatedMay 04, 2024
DataAggregated Company Financials
Companies30
- 7D-2.0%
- 3M-2.1%
- 1Y-22.6%
- YTD-8.9%
Over the last 7 days, the Materials industry has dropped 1.9%, driven by Gold Fields declining 8.0%. In contrast, Anglo American Platinum has gained 5.4%. However, the industry is down 23% over the past year. As for the next few years, earnings are expected to grow by 32% per annum.
Sector Valuation and Performance
Has the South African Materials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 04 May 2024 | R1.1t | R1.2t | R16.6b | 8.3x | 65.9x | 0.9x |
| Mon, 01 Apr 2024 | R1.1t | R1.2t | R16.9b | 8.7x | 65.7x | 0.9x |
| Wed, 28 Feb 2024 | R1.0t | R1.2t | R85.4b | 9.3x | 12x | 0.8x |
| Fri, 26 Jan 2024 | R1.2t | R1.2t | R106.4b | 9.7x | 10.9x | 0.9x |
| Sun, 24 Dec 2023 | R1.3t | R1.2t | R106.1b | 9.5x | 11.9x | 1x |
| Tue, 21 Nov 2023 | R1.1t | R1.2t | R107.3b | 8.8x | 10.5x | 0.9x |
| Thu, 19 Oct 2023 | R1.2t | R1.3t | R109.3b | 9x | 10.7x | 0.9x |
| Sat, 16 Sep 2023 | R1.2t | R1.3t | R111.8b | 9x | 11.1x | 0.9x |
| Mon, 14 Aug 2023 | R1.3t | R1.4t | R186.1b | 5.3x | 7.2x | 1x |
| Wed, 12 Jul 2023 | R1.3t | R1.4t | R215.4b | 4.6x | 6.2x | 1x |
| Fri, 09 Jun 2023 | R1.6t | R1.4t | R223.8b | 5.2x | 7.1x | 1.1x |
| Sun, 07 May 2023 | R1.7t | R1.4t | R234.5b | 5.4x | 7.1x | 1.2x |
| Tue, 04 Apr 2023 | R1.5t | R1.4t | R221.0b | 5.6x | 6.7x | 1.1x |
| Thu, 02 Mar 2023 | R1.4t | R1.4t | R221.6b | 5.3x | 6.4x | 1x |
| Sat, 28 Jan 2023 | R1.7t | R1.4t | R248.5b | 5.8x | 6.7x | 1.2x |
| Mon, 26 Dec 2022 | R1.6t | R1.4t | R247.7b | 6.4x | 6.6x | 1.2x |
| Wed, 23 Nov 2022 | R1.6t | R1.4t | R249.3b | 6.1x | 6.6x | 1.2x |
| Fri, 21 Oct 2022 | R1.4t | R1.4t | R251.5b | 5.9x | 5.7x | 1x |
| Sun, 18 Sep 2022 | R1.4t | R1.4t | R250.3b | 5.6x | 5.6x | 1x |
| Tue, 16 Aug 2022 | R1.5t | R1.3t | R235.6b | 6.5x | 6.4x | 1.1x |
| Thu, 14 Jul 2022 | R1.5t | R1.4t | R268.0b | 5.6x | 5.6x | 1.1x |
| Sat, 11 Jun 2022 | R1.7t | R1.4t | R267.7b | 5.4x | 6.2x | 1.2x |
| Mon, 09 May 2022 | R1.7t | R1.3t | R263.6b | 6.2x | 6.6x | 1.3x |
| Wed, 06 Apr 2022 | R2.0t | R1.3t | R257.4b | 7.1x | 7.8x | 1.5x |
| Fri, 04 Mar 2022 | R2.2t | R1.3t | R269.4b | 8.7x | 8.3x | 1.7x |
| Sun, 30 Jan 2022 | R1.7t | R1.3t | R283.9b | 7.3x | 6.2x | 1.4x |
| Tue, 28 Dec 2021 | R1.7t | R1.3t | R283.4b | 8.1x | 5.9x | 1.3x |
| Thu, 25 Nov 2021 | R1.6t | R1.3t | R282.0b | 7.9x | 5.8x | 1.3x |
| Sat, 23 Oct 2021 | R1.7t | R1.3t | R281.4b | 8x | 5.9x | 1.3x |
| Mon, 20 Sep 2021 | R1.4t | R1.3t | R269.4b | 6.6x | 5.4x | 1.2x |
| Wed, 18 Aug 2021 | R1.7t | R1.2t | R268.5b | 6.9x | 6.2x | 1.3x |
| Wed, 02 Jun 2021 | R1.8t | R1.1t | R173.3b | 9.5x | 10.4x | 1.6x |
Price to Earnings Ratio
10.4x
Current Industry PE
- Investors are optimistic on the South African Materials industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 65.0x which is higher than its 3-year average PE of 10.6x.
- The 3-year average PS ratio of 1.1x is higher than the industry's current PS ratio of 0.92x.
Past Earnings Growth
- The earnings for companies in the Materials industry have declined 54% 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 South African Materials sector?
| ZA Market | 1.90% | |
| Materials | -2.00% | |
| Paper and Forestry Products | 4.22% | |
| Basic Materials | 1.38% | |
| Packaging | 1.05% | |
| Chemicals | -0.35% | |
| Metals and Mining | -2.44% | |
Industry PE
- Investors are most optimistic about the Metals and Mining industry which is trading above its 3-year average PE ratio of 10.3x.
- Analysts are expecting annual earnings growth of 31.5%, which is higher than its past year's earnings decline of 6.6% per year.
Forecasted Growth
- Analysts are most optimistic on the Paper and Forestry Products industry, expecting annual earnings growth of 60% over the next 5 years.
- In contrast, the Packaging industry is expected to see its earnings grow by 16% 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 | |
|---|---|---|---|---|---|
| AMS Anglo American Platinum | R668.37 | 5.4% +R9.0b | -41.7% | PE13.5x | |
| SAP Sappi | R53.20 | 4.2% +R1.2b | 29.5% | PS0.3x | |
| KIO Kumba Iron Ore | R479.00 | 0.7% +R1.1b | 5.0% | PE6.8x | |
| NPH Northam Platinum Holdings | R126.95 | 2.0% +R955.2m | -28.4% | PS1.4x | |
| CPR Copper 360 | R4.52 | 11.6% +R296.0m | -24.7% | PS54x |
