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Nov 26
Australian (ASX) Materials Sector Analysis
UpdatedNov 27, 2022
DataAggregated Company Financials
Companies775
- 7D0.1%
- 3M3.2%
- 1Y4.8%
- YTD-5.1%
In the last week, the Materials industry is flat overall, with Fortescue Metals Group standing out by going down 5.1%. The past year has been better, since the industry has gained 4.8% in that time. As for the next few years, earnings are forecast to decline by 4.2% per annum.
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 |
|---|---|---|---|---|---|---|
| Sun, 27 Nov 2022 | AU$573.9b | AU$268.1b | AU$56.1b | 11.8x | 10.2x | 2.1x |
| Tue, 25 Oct 2022 | AU$512.0b | AU$275.5b | AU$58.3b | 10.1x | 8.8x | 1.9x |
| Thu, 22 Sep 2022 | AU$523.7b | AU$265.4b | AU$56.1b | 9.5x | 9.3x | 2x |
| Sat, 20 Aug 2022 | AU$550.2b | AU$258.2b | AU$49.6b | 11.5x | 11.1x | 2.1x |
| Mon, 18 Jul 2022 | AU$467.9b | AU$256.1b | AU$49.6b | 10.2x | 9.4x | 1.8x |
| Wed, 15 Jun 2022 | AU$578.5b | AU$273.0b | AU$50.1b | 10.9x | 11.6x | 2.1x |
| Fri, 13 May 2022 | AU$608.1b | AU$271.1b | AU$50.1b | 12.8x | 12.1x | 2.2x |
| Sun, 10 Apr 2022 | AU$682.8b | AU$256.7b | AU$46.6b | 14x | 14.6x | 2.7x |
| Tue, 08 Mar 2022 | AU$659.1b | AU$257.5b | AU$46.8b | 17.3x | 14.1x | 2.6x |
| Thu, 03 Feb 2022 | AU$614.7b | AU$242.6b | AU$41.2b | 16.4x | 14.9x | 2.5x |
| Sat, 01 Jan 2022 | AU$598.3b | AU$238.8b | AU$40.5b | 17.2x | 14.8x | 2.5x |
| Mon, 29 Nov 2021 | AU$553.5b | AU$242.0b | AU$41.2b | 16.1x | 13.4x | 2.3x |
| Wed, 27 Oct 2021 | AU$546.5b | AU$230.7b | AU$38.8b | 16.7x | 14.1x | 2.4x |
| Fri, 24 Sep 2021 | AU$531.9b | AU$235.6b | AU$40.3b | 14.4x | 13.2x | 2.3x |
| Sun, 22 Aug 2021 | AU$559.0b | AU$230.5b | AU$39.4b | 14.5x | 14.2x | 2.4x |
| Fri, 09 Jul 2021 | AU$565.2b | AU$229.9b | AU$39.3b | 14.8x | 14.4x | 2.5x |
| Thu, 01 Apr 2021 | AU$521.6b | AU$209.1b | AU$30.4b | 14.1x | 17.2x | 2.5x |
| Sun, 03 Jan 2021 | AU$503.4b | AU$192.3b | AU$21.7b | 15.7x | 23.2x | 2.6x |
| Wed, 07 Oct 2020 | AU$426.8b | AU$195.9b | AU$21.5b | 14.6x | 19.9x | 2.2x |
| Tue, 30 Jun 2020 | AU$403.8b | AU$194.6b | AU$21.5b | 14.1x | 18.8x | 2.1x |
| Fri, 03 Apr 2020 | AU$315.2b | AU$213.6b | AU$27.1b | 12.8x | 11.6x | 1.5x |
| Mon, 06 Jan 2020 | AU$416.3b | AU$198.0b | AU$25.7b | 14.2x | 16.2x | 2.1x |
Price to Earnings Ratio
16x
Current Industry PE
- Investors are pessimistic on the Australian Materials industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 10.2x which is lower than its 3-year average PE of 15.7x.
- 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 30% per year over the last three years.
- Revenues for these companies have grown 11% 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 | 1.17% | |
| Materials | 0.12% | |
| Chemicals | 2.78% | |
| Basic Materials | 2.46% | |
| Paper and Forestry Products | 1.56% | |
| Metals and Mining | -0.084% | |
| Packaging | -0.33% | |
Industry PE
- Investors are most optimistic about the Paper and Forestry Products industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 3.4%, which is lower than the prior year's growth of 1,070.4% per year.
- Investors are most pessimistic about the Metals and Mining industry, which is trading below its 3-year average of 14.0x.
Forecasted Growth
- Analysts are most optimistic on the Packaging industry, expecting annual earnings growth of 8.6% over the next 5 years.
- This is better than its past earnings decline of 21% per year.
- In contrast, the Metals and Mining industry is expected to see its earnings decline by 5.2% 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$44.20 | 0.6% +AU$1.3b | 16.2% | PE7.5x | |
| NCM Newcrest Mining | AU$20.00 | 4.9% +AU$837.6m | -17.6% | PE13.8x | |
| NST Northern Star Resources | AU$10.61 | 6.1% +AU$701.0m | 8.5% | PE28.4x | |
| S32 South32 | AU$4.02 | 2.8% +AU$490.4m | 12.9% | PE4.6x | |
| IPL Incitec Pivot | AU$4.08 | 4.3% +AU$330.2m | 32.0% | PE7.8x |
