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Australian (ASX) Financials Sector Analysis
UpdatedNov 28, 2022
DataAggregated Company Financials
Companies145
- 7D1.7%
- 3M7.3%
- 1Y2.5%
- YTD-2.4%
Over the last 7 days, the Financials industry has risen 1.7%, driven by gains from Commonwealth Bank of Australia of 3.2%. Despite this gain, the industry's performance has been flat over the past year. As for the next few years, earnings are expected to grow by 5.6% per annum.
Sector Valuation and Performance
Has the Australian Financials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 28 Nov 2022 | AU$670.3b | AU$178.3b | AU$40.3b | 14.8x | 16.7x | 3.8x |
| Wed, 26 Oct 2022 | AU$649.7b | AU$179.0b | AU$39.1b | 15.6x | 16.6x | 3.6x |
| Fri, 23 Sep 2022 | AU$620.9b | AU$177.8b | AU$38.9b | 16.3x | 15.9x | 3.5x |
| Sun, 21 Aug 2022 | AU$646.7b | AU$177.2b | AU$39.7b | 15x | 16.3x | 3.6x |
| Tue, 19 Jul 2022 | AU$601.3b | AU$180.4b | AU$40.8b | 14.2x | 14.7x | 3.3x |
| Thu, 16 Jun 2022 | AU$582.6b | AU$180.1b | AU$40.8b | 13.9x | 14.3x | 3.2x |
| Sat, 14 May 2022 | AU$661.0b | AU$180.3b | AU$40.9b | 15x | 16.2x | 3.7x |
| Mon, 11 Apr 2022 | AU$687.9b | AU$175.3b | AU$39.3b | 15.2x | 17.5x | 3.9x |
| Wed, 09 Mar 2022 | AU$622.5b | AU$175.6b | AU$39.3b | 14.9x | 15.8x | 3.5x |
| Fri, 04 Feb 2022 | AU$644.6b | AU$172.6b | AU$36.3b | 14.4x | 17.8x | 3.7x |
| Sun, 02 Jan 2022 | AU$677.1b | AU$171.7b | AU$36.2b | 15.6x | 18.7x | 3.9x |
| Tue, 30 Nov 2021 | AU$648.3b | AU$172.1b | AU$36.2b | 16x | 17.9x | 3.8x |
| Thu, 28 Oct 2021 | AU$712.7b | AU$163.7b | AU$31.4b | 17.2x | 22.7x | 4.4x |
| Sat, 25 Sep 2021 | AU$685.8b | AU$163.9b | AU$31.2b | 17.6x | 22x | 4.2x |
| Mon, 23 Aug 2021 | AU$690.3b | AU$163.8b | AU$31.5b | 17x | 21.9x | 4.2x |
| Sat, 10 Jul 2021 | AU$670.0b | AU$163.0b | AU$31.1b | 16x | 21.5x | 4.1x |
| Fri, 02 Apr 2021 | AU$619.4b | AU$157.9b | AU$28.2b | 16.3x | 22x | 3.9x |
| Mon, 04 Jan 2021 | AU$557.9b | AU$150.4b | AU$22.3b | 18.4x | 25.1x | 3.7x |
| Thu, 08 Oct 2020 | AU$459.8b | AU$147.8b | AU$21.0b | 16.9x | 21.9x | 3.1x |
| Wed, 01 Jul 2020 | AU$482.9b | AU$149.4b | AU$24.4b | 18.3x | 19.8x | 3.2x |
| Sat, 04 Apr 2020 | AU$420.1b | AU$158.3b | AU$28.8b | 13.3x | 14.6x | 2.7x |
| Tue, 07 Jan 2020 | AU$586.7b | AU$161.0b | AU$32.5b | 18x | 18x | 3.6x |
Price to Earnings Ratio
16.6x
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 16.7x which is lower than its 3-year average PE of 19.5x.
- The industry is trading close to its 3-year average PS ratio of 3.6x.
Past Earnings Growth
- The earnings for companies in the Financials industry have grown 4.3% per year over the last three years.
- Revenues for these companies have grown 3.0% 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 Market | 1.17% | |
| Financials | 1.75% | |
| Banks | 2.47% | |
| Insurance | 1.90% | |
| Mortgage REITs | 1.26% | |
| Diversified Financial | 0.96% | |
| Capital Markets | -0.56% | |
| Consumer Finance | -0.75% | |
| Mortgage Finance | -2.65% | |
Industry PE
- Investors are most optimistic about the Insurance industry even though it's trading below its 3-year average PE ratio of 12kx.
- Analysts are expecting annual earnings growth of 13.5%, which is higher than its past year's earnings decline of 20.4% per year.
Forecasted Growth
- Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 22% over the next 5 years.
- This is better than its past earnings growth rate of 1.1% per year.
- In contrast, the Mortgage Finance industry is expected to see its earnings decline by 2.3% 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 | |
|---|---|---|---|---|---|
| CBA Commonwealth Bank of Australia | AU$109.20 | 3.2% +AU$5.6b | 15.2% | PB2.5x | |
| NAB National Australia Bank | AU$31.49 | 2.7% +AU$2.6b | 13.9% | PB1.7x | |
| WBC Westpac Banking | AU$23.99 | 1.6% +AU$1.3b | 13.8% | PB1.2x | |
| ANZ Australia and New Zealand Banking Group | AU$24.82 | 1.3% +AU$987.9m | -8.3% | PB1.1x | |
| QBE QBE Insurance Group | AU$13.02 | 5.0% +AU$920.6m | 9.2% | PE31.8x |