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Australian (ASX) Materials Sector Analysis
UpdatedFeb 21, 2025
DataAggregated Company Financials
Companies723
- 7D-2.0%
- 3M0.2%
- 1Y-7.1%
- YTD3.0%
Over the last 7 days, the Materials industry has dropped 2.0%, driven by Fortescue declining 4.5%. Overall the industry is down 7.1% in 12 months. Earnings are forecast to grow by 11% 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 |
|---|---|---|---|---|---|---|
| Fri, 21 Feb 2025 | AU$498.3b | AU$240.5b | AU$25.3b | 14.2x | 19.7x | 2.1x |
| Sun, 19 Jan 2025 | AU$502.5b | AU$247.1b | AU$22.3b | 13.4x | 22.5x | 2x |
| Tue, 17 Dec 2024 | AU$493.5b | AU$243.3b | AU$21.8b | 13.7x | 22.6x | 2x |
| Thu, 14 Nov 2024 | AU$498.7b | AU$239.1b | AU$21.2b | 13.7x | 23.5x | 2.1x |
| Sat, 12 Oct 2024 | AU$522.5b | AU$234.7b | AU$21.2b | 16.2x | 24.7x | 2.2x |
| Mon, 09 Sep 2024 | AU$459.9b | AU$236.7b | AU$21.1b | 16.4x | 21.8x | 1.9x |
| Wed, 07 Aug 2024 | AU$481.9b | AU$244.0b | AU$22.7b | 14.2x | 21.2x | 2x |
| Fri, 05 Jul 2024 | AU$532.6b | AU$240.8b | AU$21.8b | 15x | 24.4x | 2.2x |
| Sun, 02 Jun 2024 | AU$559.2b | AU$249.3b | AU$22.6b | 15.8x | 24.7x | 2.2x |
| Tue, 30 Apr 2024 | AU$558.0b | AU$252.1b | AU$23.4b | 16.1x | 23.9x | 2.2x |
| Thu, 28 Mar 2024 | AU$549.0b | AU$254.5b | AU$24.0b | 14.8x | 22.9x | 2.2x |
| Sat, 24 Feb 2024 | AU$554.1b | AU$252.3b | AU$25.3b | 14.1x | 21.9x | 2.2x |
| Mon, 22 Jan 2024 | AU$597.6b | AU$263.0b | AU$35.0b | 14.3x | 17.1x | 2.3x |
| Wed, 20 Dec 2023 | AU$631.4b | AU$260.1b | AU$34.4b | 13.7x | 18.4x | 2.4x |
| Fri, 17 Nov 2023 | AU$597.3b | AU$265.1b | AU$35.4b | 12.6x | 16.9x | 2.3x |
| Sun, 15 Oct 2023 | AU$577.6b | AU$271.8b | AU$37.3b | 11.8x | 15.5x | 2.1x |
| Tue, 12 Sep 2023 | AU$574.4b | AU$268.6b | AU$37.2b | 12.5x | 15.4x | 2.1x |
| Thu, 10 Aug 2023 | AU$597.0b | AU$277.5b | AU$52.2b | 11.3x | 11.4x | 2.2x |
| Sat, 08 Jul 2023 | AU$582.6b | AU$274.4b | AU$51.6b | 11.2x | 11.3x | 2.1x |
| Mon, 05 Jun 2023 | AU$581.1b | AU$276.2b | AU$52.2b | 10.9x | 11.1x | 2.1x |
| Wed, 03 May 2023 | AU$591.1b | AU$274.7b | AU$52.1b | 10.6x | 11.3x | 2.2x |
| Fri, 31 Mar 2023 | AU$591.7b | AU$268.8b | AU$50.7b | 10.2x | 11.7x | 2.2x |
| Sun, 26 Feb 2023 | AU$596.3b | AU$265.8b | AU$51.7b | 11.1x | 11.5x | 2.2x |
| Tue, 24 Jan 2023 | AU$632.2b | AU$262.3b | AU$54.3b | 12.5x | 11.6x | 2.4x |
| Thu, 22 Dec 2022 | AU$582.9b | AU$269.6b | AU$56.5b | 11.5x | 10.3x | 2.2x |
| Sat, 19 Nov 2022 | AU$572.7b | AU$270.3b | AU$56.7b | 11.6x | 10.1x | 2.1x |
| Mon, 17 Oct 2022 | AU$525.1b | AU$278.4b | AU$59.1b | 10.1x | 8.9x | 1.9x |
| Wed, 14 Sep 2022 | AU$542.4b | AU$261.8b | AU$55.3b | 10.2x | 9.8x | 2.1x |
| Fri, 12 Aug 2022 | AU$539.5b | AU$249.9b | AU$48.2b | 12.1x | 11.2x | 2.2x |
| Sun, 10 Jul 2022 | AU$523.9b | AU$275.1b | AU$50.6b | 10.6x | 10.4x | 1.9x |
| Tue, 07 Jun 2022 | AU$622.5b | AU$266.2b | AU$48.6b | 12.1x | 12.8x | 2.3x |
| Thu, 05 May 2022 | AU$636.8b | AU$265.7b | AU$48.6b | 13.2x | 13.1x | 2.4x |
| Sat, 02 Apr 2022 | AU$685.3b | AU$255.6b | AU$46.4b | 14.2x | 14.8x | 2.7x |
| Mon, 28 Feb 2022 | AU$598.5b | AU$259.4b | AU$47.5b | 16.7x | 12.6x | 2.3x |
Price to Earnings Ratio
12.6x
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 19.7x which is higher than its 3-year average PE of 16.2x.
- The industry is trading close to its 3-year average PS ratio of 2.2x.
Past Earnings Growth
- The earnings for companies in the Materials industry have declined 19% per year over the last three years,
- Revenues have also declined 2.5% 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 Market | -2.48% | |
| Materials | -1.97% | |
| Basic Materials | 0.70% | |
| Packaging | 0.37% | |
| Paper and Forestry Products | -0.73% | |
| Chemicals | -1.67% | |
| Metals and Mining | -2.15% | |
Industry PE
- Investors are most optimistic about the Basic Materials industry which is trading above its 3-year average PE ratio of 23.3x.
- Analysts are expecting annual earnings growth of 21.8%, which is lower than the prior year's growth of 105.3% per year.
Forecasted Growth
- Analysts are most optimistic on the Paper and Forestry Products industry, expecting annual earnings growth of 104% over the next 5 years.
- In contrast, the Packaging industry is expected to see its earnings decline by 21% per year 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$41.26 | 0.8% +AU$1.7b | -7.4% | PE11.8x | |
| BSL BlueScope Steel | AU$24.29 | 8.7% +AU$871.4m | 3.6% | PE19.7x | |
| S32 South32 | AU$3.74 | 2.5% +AU$405.2m | 29.4% | PS1.7x | |
| LYC Lynas Rare Earths | AU$6.95 | 1.8% +AU$112.2m | 19.0% | PE76.9x | |
| IPX IperionX | AU$4.45 | 7.7% +AU$101.1m | 100.5% | PB17.5x |