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Australian (ASX) Materials Sector Analysis

UpdatedJan 11, 2026
DataAggregated Company Financials
Companies710
  • 7D4.4%
  • 3M14.1%
  • 1Y40.2%
  • YTD4.4%

Over the last 7 days, the Materials industry has risen 4.4%, driven by gains from BHP Group of 4.3%. This takes the industry's 12 month performance to a gain of 40%. As for the next few years, earnings are expected to grow by 18% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 11 Jan 2026AU$697.7bAU$222.0bAU$19.3b26.5x36.1x3.1x
Tue, 09 Dec 2025AU$634.4bAU$224.2bAU$19.3b24.3x32.9x2.8x
Thu, 06 Nov 2025AU$586.5bAU$228.5bAU$19.5b22.4x30.1x2.6x
Sat, 04 Oct 2025AU$596.6bAU$226.4bAU$19.0b22.5x31.4x2.6x
Mon, 01 Sep 2025AU$561.1bAU$229.1bAU$19.4b17.6x29x2.4x
Wed, 30 Jul 2025AU$520.8bAU$235.4bAU$21.9b15x23.8x2.2x
Fri, 27 Jun 2025AU$472.8bAU$236.7bAU$21.8b13.5x21.7x2x
Sun, 25 May 2025AU$485.5bAU$237.6bAU$21.9b13.5x22.2x2x
Tue, 22 Apr 2025AU$459.2bAU$239.1bAU$22.6b13.3x20.3x1.9x
Thu, 20 Mar 2025AU$481.4bAU$241.1bAU$22.7b12.7x21.2x2x
Sat, 15 Feb 2025AU$508.4bAU$246.2bAU$22.9b14.4x22.2x2.1x
Mon, 13 Jan 2025AU$488.7bAU$248.4bAU$22.5b13.4x21.7x2x
Wed, 11 Dec 2024AU$517.4bAU$242.2bAU$21.6b13.6x23.9x2.1x
Fri, 08 Nov 2024AU$518.5bAU$236.9bAU$21.4b14x24.2x2.2x
Sun, 06 Oct 2024AU$529.0bAU$233.4bAU$21.0b15.2x25.2x2.3x
Tue, 03 Sep 2024AU$485.2bAU$234.4bAU$20.7b16.7x23.4x2.1x
Thu, 01 Aug 2024AU$502.8bAU$243.4bAU$22.3b15.1x22.6x2.1x
Sat, 29 Jun 2024AU$520.5bAU$247.9bAU$22.3b16x23.3x2.1x
Mon, 27 May 2024AU$567.8bAU$249.8bAU$22.7b15.8x25x2.3x
Wed, 24 Apr 2024AU$562.5bAU$254.7bAU$23.7b15.7x23.7x2.2x
Fri, 22 Mar 2024AU$553.2bAU$252.8bAU$23.9b14.7x23.2x2.2x
Sun, 18 Feb 2024AU$561.2bAU$249.4bAU$33.0b15.6x17x2.3x
Tue, 16 Jan 2024AU$613.8bAU$261.5bAU$34.7b14.4x17.7x2.3x
Thu, 14 Dec 2023AU$602.1bAU$263.9bAU$35.2b12.5x17.1x2.3x
Sat, 11 Nov 2023AU$578.4bAU$270.2bAU$36.8b11.5x15.7x2.1x
Mon, 09 Oct 2023AU$563.4bAU$269.6bAU$36.8b11.3x15.3x2.1x
Wed, 06 Sep 2023AU$594.7bAU$270.1bAU$37.6b13.1x15.8x2.2x
Fri, 04 Aug 2023AU$595.9bAU$278.4bAU$52.7b10.7x11.3x2.1x
Sun, 02 Jul 2023AU$595.4bAU$275.0bAU$51.8b11.3x11.5x2.2x
Tue, 30 May 2023AU$578.5bAU$277.8bAU$52.7b11x11x2.1x
Thu, 27 Apr 2023AU$589.7bAU$275.0bAU$52.2b10.4x11.3x2.1x
Sat, 25 Mar 2023AU$562.3bAU$270.1bAU$51.1b9.7x11x2.1x
Mon, 20 Feb 2023AU$612.8bAU$265.1bAU$54.3b11.5x11.3x2.3x
Wed, 18 Jan 2023AU$622.4bAU$263.2bAU$54.6b12.5x11.4x2.4x
Price to Earnings Ratio

11.4x


Total Market Cap: AU$622.4bTotal Earnings: AU$54.6bTotal Revenue: AU$263.2bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Materials Sector Price to Earnings3Y Average 20.6x202420252026
Current Industry PE
  • Investors are optimistic on the Australian Materials industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 36.1x which is higher than its 3-year average PE of 20.6x.
  • The 3-year average PS ratio of 2.2x is lower than the industry's current PS ratio of 3.1x.
Past Earnings Growth
  • The earnings for companies in the Materials industry have declined 29% per year over the last three years,
  • Revenues have also declined 5.5% per year.
  • This means overall sales from these companies are declining and profits are subsequently falling as well.

Industry Trends

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

AU Market0.16%
Materials4.41%
Chemicals5.62%
Basic Materials5.38%
Metals and Mining4.36%
Paper and Forestry Products1.86%
Packaging0%0
Industry PE
  • Investors are most optimistic about the Basic Materials industry which is trading above its 3-year average PE ratio of 31.3x.
    • Analysts expect its future annual earnings growth (35.3%) to be largely in line with prior year's earnings growth.
Forecasted Growth
  • Analysts are most optimistic on the Paper and Forestry Products industry, expecting annual earnings growth of 86% over the next 5 years.
  • In contrast, the Metals and Mining industry is expected to see its earnings grow by 17% per year over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
BHP BHP GroupAU$47.724.3%
+AU$10.0b		20.3%PE18x
BSL BlueScope SteelAU$30.0024.3%
+AU$2.6b		54.9%PE177.1x
LYC Lynas Rare EarthsAU$14.1015.4%
+AU$1.9b		101.7%PE1776.2x
FMG FortescueAU$22.712.6%
+AU$1.8b		26.7%PE13.8x
S32 South32AU$3.858.5%
+AU$1.3b		13.2%PE36.3x

Latest News

FMG
AU$22.71
Fortescue
7D
2.6%
1Y
26.7%

FMG: Dividend Payout Will Continue To Worsen Emerging Earnings Risk Profile

Analysts have nudged their price target for Fortescue slightly higher to A$19.33 from A$19.18, reflecting small adjustments to assumptions on discount rate, revenue growth, profit margin and future P/E expectations. Valuation Changes Fair Value: updated slightly from A$19.18 to A$19.33 per share.
S32
AU$3.85
South32
7D
8.5%
1Y
13.2%
FFM
AU$1.92
FireFly Metals
7D
-6.8%
1Y
97.9%
JHX
AU$32.42
James Hardie Industries
7D
5.3%
1Y
-35.6%

JHX: Index Removals And New CFO Will Set Up Future Upside

Analysts have made a small trim to their fair value estimate for James Hardie Industries, with the target moving from about A$34.81 to around A$34.66. This reflects updated views on risk and valuation following new Street coverage that came with a Hold rating and a US$23.55 price target.
RMS
AU$4.13
Ramelius Resources
7D
-2.4%
1Y
89.4%

RMS: Share Buyback Will Contrast With Higher Risk And Pressured Earnings Profile

Analysts have raised their price target on Ramelius Resources from A$2.60 to A$3.50, citing updated assumptions around discount rates, revenue growth, profit margins and future P/E, which they view as better reflecting the company’s current risk and earnings profile. What's in the News The Board of Directors authorized a share buyback plan on December 10, 2025, indicating a decision to return capital to shareholders through repurchases over time (Key Developments).
WGX
AU$6.32
Westgold Resources
7D
-2.0%
1Y
140.3%

WGX: Great Fingall Ramp Up Will Support Stronger Future Margins

Analysts have nudged their price target on Westgold Resources higher to A$7.98, reflecting slightly adjusted assumptions around discount rates, revenue growth, profit margins and future P/E multiples. What's in the News Westgold has begun mining the first virgin stopes at the Great Fingall underground mine near Cue, with initial stope grades reported at over 3 g/t Au. This marks a shift from development to production at this asset.
BSL
AU$30.00
BlueScope Steel
7D
24.3%
1Y
54.9%
BHP
AU$47.72
BHP Group
7D
4.3%
1Y
20.3%

BHP: Commodity Cycles Legal Liabilities And Copper Projects Will Shape Future Performance

Analysts have trimmed their price target on BHP Group to £21.00 from £22.00, reflecting slightly updated assumptions on fair value, discount rate, revenue growth, profit margin, and future P/E, while maintaining a neutral overall stance. Analyst Commentary Recent research on BHP Group has focused on fine tuning valuation assumptions rather than shifting the overall stance, with the latest move being a trim in the price target while keeping a neutral rating.
LYC
AU$14.10
Lynas Rare Earths
7D
15.4%
1Y
101.7%

LYC: Execution Risks On Project Pipeline Will Pressure Overextended Earnings Expectations

Narrative Update Analysts have lifted their price target for Lynas Rare Earths to A$17.80 from A$16.60, citing what they view as an attractive entry point after the recent share pullback and potential exploration upside from recent drilling results. Analyst Commentary Recent research has highlighted two key angles on Lynas Rare Earths.
RRL
AU$7.55
Regis Resources
7D
-1.0%
1Y
173.6%
PLS
AU$4.65
PLS Group
7D
7.9%
1Y
112.3%

PLS: Elevated Future P/E Will Constrain Returns Despite Firmer Margins

The analyst price target for PLS Group remains at US$2.10, with analysts citing slightly adjusted assumptions for revenue growth, profit margins and future P/E as the basis for maintaining this level. What's in the News On November 25, 2025, Pilbara Minerals Limited changed its name to PLS Group Limited, reflecting the new corporate identity of the company (Key Developments).
CMM
AU$13.82
Capricorn Metals
7D
-4.3%
1Y
104.7%

Calculating The Fair Value Of Capricorn Metals Ltd (ASX:CMM)

Dec 30
Calculating The Fair Value Of Capricorn Metals Ltd (ASX:CMM)
LTR
AU$2.05
Liontown
7D
26.5%
1Y
269.4%

LTR: Higher Earnings Multiple Will Likely Prove Unsustainable Amid Moderating Outlook

Liontown's analyst price target has been lifted from A0.35 to A0.50 per share, as analysts factor in improved long term profit margins and a higher justified earnings multiple, despite moderating revenue growth expectations and a slightly higher discount rate. Valuation Changes Fair Value: raised from A$0.35 to A$0.50 per share, representing a substantial upward revision.
BGL
AU$1.66
Bellevue Gold
7D
-2.4%
1Y
55.1%
PNR
AU$4.99
Pantoro Gold
7D
-3.3%
1Y
179.6%
MTM
AU$0.91
Metallium
7D
-15.0%
1Y
223.2%