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Australian (ASX) Financials Sector Analysis
UpdatedNov 27, 2021
DataAggregated Company Financials
Companies137
- 7D-3.5%
- 3M-5.3%
- 1Y14.0%
- YTD14.0%
Over the last 7 days, the Financials industry has dropped 3.5%, and Commonwealth Bank of Australia contributed the most with a 3.1% decline. This takes the industry's 12 month performance to a gain of 14%.
Sector Valuation and Performance
Has the Australian Financials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sun, 28 Nov 2021 | AU$654.8b | AU$171.9b | AU$36.2b | 15.7x |
| Tue, 26 Oct 2021 | AU$702.8b | AU$163.7b | AU$31.4b | 16.4x |
| Thu, 23 Sep 2021 | AU$673.5b | AU$164.1b | AU$31.2b | 17.6x |
| Sat, 21 Aug 2021 | AU$688.7b | AU$163.8b | AU$31.5b | 16.6x |
| Sat, 05 Jun 2021 | AU$667.5b | AU$158.6b | AU$28.2b | 17.1x |
| Tue, 09 Mar 2021 | AU$594.7b | AU$150.4b | AU$22.3b | 19.7x |
| Mon, 30 Nov 2020 | AU$560.1b | AU$147.8b | AU$21.0b | 21.9x |
| Thu, 03 Sep 2020 | AU$486.1b | AU$149.4b | AU$24.3b | 18.7x |
| Sun, 07 Jun 2020 | AU$461.9b | AU$158.3b | AU$28.8b | 15.5x |
| Sat, 29 Feb 2020 | AU$577.7b | AU$161.0b | AU$32.5b | 17x |
| Tue, 03 Dec 2019 | AU$589.7b | AU$163.1b | AU$35.5b | 17.8x |
| Fri, 06 Sep 2019 | AU$598.3b | AU$163.1b | AU$35.8b | 17x |
| Mon, 10 Jun 2019 | AU$582.5b | AU$163.3b | AU$37.1b | 17.5x |
| Sun, 03 Mar 2019 | AU$566.5b | AU$165.1b | AU$38.8b | 18.8x |
| Wed, 05 Dec 2018 | AU$543.0b | AU$169.9b | AU$37.6b | 17.7x |
PE Ratio
17.7x
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 17.4x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: Both revenue and earnings for companies in the Financials industry have remained mostly flat over the last three years. This means that sales and the cost of doing business have remained relatively consistent over this period and subsequently, so have profits.
Industry Trends
Which industries have driven the changes within the Australian Financials sector?
| Mortgage Finance | 0.67% | |
| Insurance | -2.87% | |
| Banks | -3.06% | |
| Capital Markets | -4.67% | |
| Consumer Finance | -5.23% | |
| Diversified Financial | -6.62% | |
Industry PE: Investors are most optimistic about the Insurance industry which is trading above its 3-year average PE ratio of 23.0x. However analysts are expecting annual earnings growth of 15%, which is lower than the prior year's growth of 58% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Consumer Finance industry, which is trading below its 3-year average of 16.0x.
Forecasted Growth: Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 45% over the next 5 years. However this is lower than its past earnings growth rate of 161% per year. Meanwhile, the Banks industry is expected to see its earnings grow by 3.3% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| LFG Liberty Financial Group | 2.7%+AU$48.6m | n/a | PB1.7x | |
| GMA Genworth Mortgage Insurance Australia | 5.0%+AU$45.4m | -10.5% | PB0.7x | |
| AFG Australian Finance Group | 6.2%+AU$40.4m | 6.2% | PB3.4x | |
| CVC CVC | 8.3%+AU$23.4m | 50.3% | PE15.6x | |
| OFX OFX Group | 3.6%+AU$17.3m | 65.3% | PE23.8x |
