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Australian (ASX) Financials Sector Analysis

UpdatedNov 27, 2021
DataAggregated Company Financials
  • 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?

DateMarket CapRevenueEarningsPE
Sun, 28 Nov 2021AU$654.8bAU$171.9bAU$36.2b15.7x
Tue, 26 Oct 2021AU$702.8bAU$163.7bAU$31.4b16.4x
Thu, 23 Sep 2021AU$673.5bAU$164.1bAU$31.2b17.6x
Sat, 21 Aug 2021AU$688.7bAU$163.8bAU$31.5b16.6x
Sat, 05 Jun 2021AU$667.5bAU$158.6bAU$28.2b17.1x
Tue, 09 Mar 2021AU$594.7bAU$150.4bAU$22.3b19.7x
Mon, 30 Nov 2020AU$560.1bAU$147.8bAU$21.0b21.9x
Thu, 03 Sep 2020AU$486.1bAU$149.4bAU$24.3b18.7x
Sun, 07 Jun 2020AU$461.9bAU$158.3bAU$28.8b15.5x
Sat, 29 Feb 2020AU$577.7bAU$161.0bAU$32.5b17x
Tue, 03 Dec 2019AU$589.7bAU$163.1bAU$35.5b17.8x
Fri, 06 Sep 2019AU$598.3bAU$163.1bAU$35.8b17x
Mon, 10 Jun 2019AU$582.5bAU$163.3bAU$37.1b17.5x
Sun, 03 Mar 2019AU$566.5bAU$165.1bAU$38.8b18.8x
Wed, 05 Dec 2018AU$543.0bAU$169.9bAU$37.6b17.7x
PE Ratio


Total Market Cap: AU$543.0bTotal Earnings: AU$37.6bTotal Revenue: AU$169.9b0%0%0%3 Year10 Year

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 Finance0.67%
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?

LFG Liberty Financial Group2.7%+AU$48.6mn/aPB1.7x
GMA Genworth Mortgage Insurance Australia5.0%+AU$45.4m-10.5%PB0.7x
AFG Australian Finance Group6.2%+AU$40.4m6.2%PB3.4x
CVC CVC8.3%+AU$23.4m50.3%PE15.6x
OFX OFX Group3.6%+AU$17.3m65.3%PE23.8x
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