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Australian (ASX) Financials Sector Analysis

UpdatedDec 08, 2023
DataAggregated Company Financials
Companies155
  • 7D1.2%
  • 3M1.5%
  • 1Y0.05%
  • YTD2.5%

The Financials industry is up 1.2% in the last week, with Commonwealth Bank of Australia up 2.2%. During this same period, the QBE Insurance Group underperformed, falling 5.3%. Despite this gain, the industry's performance has been flat over the past year. Looking forward, earnings are forecast to grow by 3.6% annually.

Sector Valuation and Performance

Has the Australian Financials Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 08 Dec 2023AU$662.4bAU$198.8bAU$45.6b16.8x14.5x3.3x
Sun, 05 Nov 2023AU$646.9bAU$196.5bAU$44.5b16.3x14.5x3.3x
Tue, 03 Oct 2023AU$649.8bAU$197.7bAU$45.5b16.2x14.3x3.3x
Thu, 31 Aug 2023AU$658.7bAU$197.9bAU$45.8b16.5x14.4x3.3x
Sat, 29 Jul 2023AU$672.4bAU$186.9bAU$44.4b19.9x15.1x3.6x
Mon, 26 Jun 2023AU$629.3bAU$187.0bAU$44.6b17x14.1x3.4x
Wed, 24 May 2023AU$629.6bAU$185.2bAU$43.5b17.8x14.5x3.4x
Fri, 21 Apr 2023AU$647.1bAU$182.0bAU$42.3b17.8x15.3x3.6x
Sun, 19 Mar 2023AU$618.8bAU$181.4bAU$42.6b16.7x14.5x3.4x
Tue, 14 Feb 2023AU$679.8bAU$179.0bAU$40.6b16.5x16.8x3.8x
Thu, 12 Jan 2023AU$648.2bAU$177.8bAU$40.2b14.7x16.1x3.6x
Sat, 10 Dec 2022AU$646.9bAU$178.2bAU$40.2b14.1x16.1x3.6x
Mon, 07 Nov 2022AU$656.2bAU$179.9bAU$39.7b15.9x16.5x3.6x
Wed, 05 Oct 2022AU$614.3bAU$178.2bAU$39.0b15.1x15.8x3.4x
Fri, 02 Sep 2022AU$626.8bAU$177.0bAU$39.0b15.6x16.1x3.5x
Sun, 31 Jul 2022AU$645.0bAU$179.9bAU$40.9b14.2x15.8x3.6x
Tue, 28 Jun 2022AU$601.0bAU$179.9bAU$40.8b13.3x14.7x3.3x
Thu, 26 May 2022AU$666.7bAU$179.7bAU$40.8b14.9x16.3x3.7x
Sat, 23 Apr 2022AU$694.0bAU$175.8bAU$39.3b15.6x17.6x3.9x
Mon, 21 Mar 2022AU$681.3bAU$175.4bAU$39.3b15.5x17.4x3.9x
Wed, 16 Feb 2022AU$671.2bAU$173.7bAU$37.6b15.2x17.9x3.9x
Fri, 14 Jan 2022AU$688.2bAU$172.2bAU$36.2b15.5x19x4x
Sun, 12 Dec 2021AU$667.6bAU$171.9bAU$36.2b16.2x18.4x3.9x
Tue, 09 Nov 2021AU$706.0bAU$169.3bAU$34.5b16.1x20.5x4.2x
Thu, 07 Oct 2021AU$680.0bAU$163.9bAU$31.2b16.5x21.8x4.1x
Sat, 04 Sep 2021AU$699.8bAU$163.8bAU$31.5b16.8x22.2x4.3x
Mon, 02 Aug 2021AU$676.9bAU$163.8bAU$31.5b16.1x21.5x4.1x
Thu, 06 May 2021AU$641.4bAU$158.6bAU$28.2b16.5x22.7x4x
Sun, 07 Feb 2021AU$570.6bAU$150.4bAU$22.3b17.9x25.6x3.8x
Price to Earnings Ratio

25.1x


Total Market Cap: AU$557.9bTotal Earnings: AU$22.3bTotal Revenue: AU$150.4bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Financials Sector Price to Earnings3Y Average 18x20222023
Current Industry PE
  • Investors are pessimistic on the Australian Financials 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 14.5x which is lower than its 3-year average PE of 18.0x.
  • The 3-year average PS ratio of 3.7x is higher than the industry's current PS ratio of 3.3x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 27% per year over the last three years.
  • Revenues for these companies have grown 9.7% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the Australian Financials sector?

AU Market1.05%
Financials1.17%
Consumer Finance1.94%
Banks1.85%
Capital Markets0.82%
Mortgage Finance0%
Mortgage REITs0%
Diversified Financial-0.51%
Insurance-1.51%
Industry PE
  • Investors are most optimistic about the Diversified Financial industry which is trading above its 3-year average PE ratio.
    • Analysts expect its future annual earnings growth (11.5%) to be largely in line with prior year's earnings growth.
Forecasted Growth
  • Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 38% over the next 5 years.
  • This is better than its past earnings decline of 15% per year.
  • In contrast, the Banks industry is expected to see its earnings growth to stay flat over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
CBA Commonwealth Bank of AustraliaAU$106.442.2%
+AU$3.8b
1.4%PB2.5x
NAB National Australia BankAU$29.202.7%
+AU$2.4b
-3.3%PB1.5x
WBC Westpac BankingAU$21.923.1%
+AU$2.3b
-6.5%PB1.1x
ANZ ANZ Group HoldingsAU$24.610.7%
+AU$540.2m
4.1%PB1.1x
MQG Macquarie GroupAU$169.350.9%
+AU$496.6m
0.8%PE15x
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AUB

AU$26.82

AUB Group

7D

-6.0%

1Y

16.5%

PPT

AU$25.70

Perpetual

7D

14.0%

1Y

6.4%

MQG

AU$169.35

Macquarie Group

7D

0.9%

1Y

0.8%

QBE

AU$14.52

QBE Insurance Group

7D

-5.3%

1Y

12.1%

WBC

AU$21.92

Westpac Banking

7D

3.1%

1Y

-6.5%

NHF

AU$7.46

nib holdings

7D

-3.2%

1Y

3.6%

SUN

AU$13.90

Suncorp Group

7D

-0.7%

1Y

17.9%

IAG

AU$5.94

Insurance Australia Group

7D

0%

1Y

24.0%

PSI

AU$4.34

PSC Insurance Group

7D

-3.6%

1Y

-9.0%

PNI

AU$9.78

Pinnacle Investment Management Group

7D

9.6%

1Y

16.0%

ASX

AU$59.21

ASX

7D

2.2%

1Y

-12.9%