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Australian (ASX) Financials Sector Analysis
UpdatedFeb 21, 2025
DataAggregated Company Financials
Companies135
- 7D-6.4%
- 3M-4.5%
- 1Y19.6%
- YTD-0.1%
Over the last 7 days, the Financials industry has dropped 1.9%, driven by pullbacks in National Australia Bank and Commonwealth Bank of Australia of 15% and 6.6%, respectively. In the past year, the industry has gained 23%. Looking forward, earnings are forecast to grow by 4.5% annually.
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 |
|---|---|---|---|---|---|---|
| Fri, 21 Feb 2025 | AU$877.4b | AU$217.7b | AU$46.3b | 16.1x | 18.9x | 4x |
| Sun, 19 Jan 2025 | AU$889.0b | AU$216.3b | AU$44.0b | 18.1x | 20.2x | 4.1x |
| Tue, 17 Dec 2024 | AU$895.4b | AU$215.5b | AU$43.9b | 18.5x | 20.4x | 4.2x |
| Thu, 14 Nov 2024 | AU$882.6b | AU$214.1b | AU$43.8b | 18x | 20.1x | 4.1x |
| Sat, 12 Oct 2024 | AU$842.2b | AU$212.0b | AU$43.7b | 18.1x | 19.3x | 4x |
| Mon, 09 Sep 2024 | AU$859.8b | AU$212.6b | AU$43.7b | 16.8x | 19.7x | 4x |
| Wed, 07 Aug 2024 | AU$777.6b | AU$211.2b | AU$44.1b | 17.5x | 17.6x | 3.7x |
| Fri, 05 Jul 2024 | AU$786.6b | AU$209.9b | AU$44.0b | 17.2x | 17.9x | 3.7x |
| Sun, 02 Jun 2024 | AU$750.0b | AU$210.2b | AU$44.2b | 17.4x | 17x | 3.6x |
| Tue, 30 Apr 2024 | AU$737.1b | AU$202.1b | AU$41.9b | 17.8x | 17.6x | 3.6x |
| Thu, 28 Mar 2024 | AU$762.7b | AU$219.4b | AU$46.1b | 17.6x | 16.5x | 3.5x |
| Sat, 24 Feb 2024 | AU$740.4b | AU$216.2b | AU$45.9b | 17.9x | 16.1x | 3.4x |
| Mon, 22 Jan 2024 | AU$704.0b | AU$198.7b | AU$45.6b | 16.6x | 15.5x | 3.5x |
| Wed, 20 Dec 2023 | AU$686.5b | AU$198.1b | AU$45.5b | 16.7x | 15.1x | 3.5x |
| Fri, 17 Nov 2023 | AU$649.0b | AU$198.9b | AU$45.6b | 16.4x | 14.2x | 3.3x |
| Sun, 15 Oct 2023 | AU$655.6b | AU$198.1b | AU$45.5b | 16.4x | 14.4x | 3.3x |
| Tue, 12 Sep 2023 | AU$659.7b | AU$198.4b | AU$45.9b | 16.8x | 14.4x | 3.3x |
| Thu, 10 Aug 2023 | AU$667.0b | AU$189.3b | AU$44.8b | 17.7x | 14.9x | 3.5x |
| Sat, 08 Jul 2023 | AU$613.5b | AU$170.7b | AU$43.7b | 17x | 14.1x | 3.6x |
| Mon, 05 Jun 2023 | AU$623.3b | AU$187.2b | AU$44.6b | 17x | 14x | 3.3x |
| Wed, 03 May 2023 | AU$647.7b | AU$182.4b | AU$42.1b | 17.8x | 15.4x | 3.6x |
| Fri, 31 Mar 2023 | AU$620.1b | AU$182.1b | AU$42.3b | 16.9x | 14.7x | 3.4x |
| Sun, 26 Feb 2023 | AU$656.5b | AU$181.3b | AU$42.7b | 17.5x | 15.4x | 3.6x |
| Tue, 24 Jan 2023 | AU$674.5b | AU$177.5b | AU$40.2b | 16.5x | 16.8x | 3.8x |
| Thu, 22 Dec 2022 | AU$647.6b | AU$178.4b | AU$40.3b | 14.4x | 16.1x | 3.6x |
| Sat, 19 Nov 2022 | AU$658.8b | AU$178.5b | AU$40.3b | 14.8x | 16.4x | 3.7x |
| Mon, 17 Oct 2022 | AU$638.4b | AU$179.3b | AU$39.1b | 15.3x | 16.3x | 3.6x |
| Wed, 14 Sep 2022 | AU$631.6b | AU$177.2b | AU$39.0b | 16.2x | 16.2x | 3.6x |
| Fri, 12 Aug 2022 | AU$653.6b | AU$180.9b | AU$40.4b | 14.2x | 16.2x | 3.6x |
| Sun, 10 Jul 2022 | AU$603.4b | AU$180.2b | AU$40.8b | 13.9x | 14.8x | 3.3x |
| Tue, 07 Jun 2022 | AU$663.6b | AU$179.2b | AU$40.8b | 14.9x | 16.3x | 3.7x |
| Thu, 05 May 2022 | AU$685.3b | AU$176.6b | AU$39.4b | 15.4x | 17.4x | 3.9x |
| Sat, 02 Apr 2022 | AU$684.5b | AU$175.2b | AU$39.2b | 15.2x | 17.4x | 3.9x |
| Mon, 28 Feb 2022 | AU$641.5b | AU$175.7b | AU$39.4b | 15.2x | 16.3x | 3.7x |
Price to Earnings Ratio
16.3x
Current Industry PE
- Investors are optimistic on the Australian Financials industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 20.1x which is higher than its 3-year average PE of 16.5x.
- The 3-year average PS ratio of 3.6x is lower than the industry's current PS ratio of 4.3x.
Past Earnings Growth
- The earnings for companies in the Financials industry have grown 5.5% per year over the last three years.
- Revenues for these companies have grown 7.7% 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 Market | -2.48% | |
| Financials | -6.41% | |
| Consumer Finance | 5.38% | |
| Mortgage Finance | 0% | 0 |
| Mortgage REITs | 0% | 0 |
| Capital Markets | -0.57% | |
| Diversified Financial | -1.99% | |
| Insurance | -3.13% | |
| Banks | -8.82% | |
Industry PE
- Investors are most optimistic about the Consumer Finance industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 41.4%, which is higher than its past year's earnings decline of 3.9% per year.
- Investors are most pessimistic about the Insurance industry, which is trading below its 3-year average of 20.5x.
Forecasted Growth
- Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 41% over the next 5 years.
- This is better than its past earnings decline of 3.9% per year.
- In contrast, the Insurance 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?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| SOL Washington H. Soul Pattinson | AU$34.76 | 3.5% +AU$437.3m | 1.3% | PE25.6x | |
| ASX ASX | AU$68.30 | 2.9% +AU$378.0m | 6.3% | PE27.2x | |
| ZIP Zip Co | AU$2.52 | 12.0% +AU$352.5m | 189.7% | PE581.5x | |
| QBE QBE Insurance Group | AU$20.07 | 1.1% +AU$331.2m | 20.1% | PE11.3x | |
| BFL BSP Financial Group | AU$7.60 | 7.5% +AU$247.6m | 8.6% | PB2x |
