Estimating The Fair Value Of Evolution Mining Limited (ASX:EVN)
Nov 28
Australian (ASX) Materials Sector Analysis
UpdatedDec 04, 2023
DataAggregated Company Financials
Companies808
- 7D-0.1%
- 3M-1.5%
- 1Y-2.9%
- YTD0.9%
In the last week, the Materials industry is flat overall, with Mineral Resources standing out by going down 3.9%. In line with that, the industry has also been flat over the past 12 months. Looking forward, earnings are forecast to grow by 4.8% annually.
Sector Valuation and Performance
Has the Australian Materials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 04 Dec 2023 | AU$593.8b | AU$261.4b | AU$34.6b | 12.5x | 17.1x | 2.3x |
| Wed, 01 Nov 2023 | AU$566.4b | AU$270.2b | AU$37.0b | 11.4x | 15.3x | 2.1x |
| Fri, 29 Sep 2023 | AU$564.1b | AU$269.3b | AU$36.9b | 12x | 15.3x | 2.1x |
| Sun, 27 Aug 2023 | AU$574.6b | AU$268.9b | AU$40.7b | 11.8x | 14.1x | 2.1x |
| Tue, 25 Jul 2023 | AU$592.4b | AU$272.8b | AU$51.2b | 10.4x | 11.6x | 2.2x |
| Thu, 22 Jun 2023 | AU$606.0b | AU$272.4b | AU$51.1b | 11.6x | 11.9x | 2.2x |
| Sat, 20 May 2023 | AU$594.0b | AU$274.9b | AU$51.7b | 10.3x | 11.5x | 2.2x |
| Mon, 17 Apr 2023 | AU$615.9b | AU$272.7b | AU$51.6b | 10.9x | 11.9x | 2.3x |
| Wed, 15 Mar 2023 | AU$576.7b | AU$269.2b | AU$51.8b | 10.2x | 11.1x | 2.1x |
| Fri, 10 Feb 2023 | AU$626.0b | AU$263.0b | AU$55.0b | 13.1x | 11.4x | 2.4x |
| Sun, 08 Jan 2023 | AU$602.8b | AU$264.8b | AU$55.1b | 11.9x | 10.9x | 2.3x |
| Tue, 06 Dec 2022 | AU$603.5b | AU$267.2b | AU$55.8b | 12.6x | 10.8x | 2.3x |
| Thu, 03 Nov 2022 | AU$525.9b | AU$273.9b | AU$57.7b | 10.4x | 9.1x | 1.9x |
| Sat, 01 Oct 2022 | AU$508.4b | AU$271.3b | AU$57.4b | 8.9x | 8.9x | 1.9x |
| Mon, 29 Aug 2022 | AU$560.4b | AU$262.1b | AU$59.9b | 10.8x | 9.4x | 2.1x |
| Wed, 27 Jul 2022 | AU$501.6b | AU$252.5b | AU$48.7b | 10.8x | 10.3x | 2x |
| Fri, 24 Jun 2022 | AU$530.9b | AU$273.1b | AU$50.2b | 10.2x | 10.6x | 1.9x |
| Sun, 22 May 2022 | AU$630.4b | AU$270.1b | AU$49.4b | 12.8x | 12.8x | 2.3x |
| Tue, 19 Apr 2022 | AU$695.2b | AU$257.9b | AU$46.9b | 14.2x | 14.8x | 2.7x |
| Thu, 17 Mar 2022 | AU$619.0b | AU$261.3b | AU$47.8b | 13.6x | 13x | 2.4x |
| Sat, 12 Feb 2022 | AU$638.7b | AU$242.0b | AU$40.6b | 18x | 15.7x | 2.6x |
| Mon, 10 Jan 2022 | AU$614.8b | AU$240.8b | AU$40.9b | 16.9x | 15x | 2.6x |
| Wed, 08 Dec 2021 | AU$555.2b | AU$244.2b | AU$41.7b | 15.8x | 13.3x | 2.3x |
| Fri, 05 Nov 2021 | AU$530.9b | AU$232.8b | AU$39.2b | 16.2x | 13.5x | 2.3x |
| Sun, 03 Oct 2021 | AU$513.1b | AU$235.8b | AU$40.0b | 15.3x | 12.8x | 2.2x |
| Tue, 31 Aug 2021 | AU$581.4b | AU$230.5b | AU$39.4b | 14.9x | 14.8x | 2.5x |
| Wed, 07 Jul 2021 | AU$565.2b | AU$229.9b | AU$39.3b | 14.8x | 14.4x | 2.5x |
| Sat, 10 Apr 2021 | AU$521.6b | AU$209.1b | AU$30.4b | 14.1x | 17.2x | 2.5x |
| Fri, 01 Jan 2021 | AU$503.4b | AU$192.3b | AU$21.7b | 15.7x | 23.2x | 2.6x |
Price to Earnings Ratio
21.2x
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 17.1x which is higher than its 3-year average PE of 14.0x.
- The industry is trading close to its 3-year average PS ratio of 2.3x.
Past Earnings Growth
- The earnings for companies in the Materials industry have grown 17% per year over the last three years.
- Revenues for these companies have grown 10% 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 Materials sector?
| AU Market | 0.46% | |
| Materials | -0.15% | |
| Basic Materials | 2.40% | |
| Packaging | 2.34% | |
| Chemicals | 1.22% | |
| Paper and Forestry Products | -0.23% | |
| Metals and Mining | -0.37% | |
Industry PE
- Investors are most optimistic about the Paper and Forestry Products industry which is trading above its 3-year average PE ratio of 18.0x.
- Analysts are expecting annual earnings growth of 1.1%, which is lower than the prior year's growth of 4.3% per year.
- Investors are most pessimistic about the Metals and Mining industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 13.0x.
Forecasted Growth
- Analysts are most optimistic on the Chemicals industry, expecting annual earnings growth of 19% over the next 5 years.
- This is better than its past earnings decline of 19% per year.
- In contrast, the Paper and Forestry Products 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 | |
|---|---|---|---|---|---|
| BHP BHP Group | AU$47.14 | 1.3% +AU$3.1b | 0.7% | PE12.3x | |
| FMG Fortescue | AU$25.29 | 3.2% +AU$2.4b | 20.3% | PE10.8x | |
| NST Northern Star Resources | AU$12.90 | 10.0% +AU$1.3b | 18.1% | PE25.3x | |
| JHX James Hardie Industries | AU$49.72 | 6.2% +AU$1.3b | 62.3% | PE29.4x | |
| EVN Evolution Mining | AU$4.14 | 10.4% +AU$716.6m | 44.8% | PE46.5x |
