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Australian (ASX) Materials Sector Analysis

UpdatedDec 02, 2021
DataAggregated Company Financials
Companies698
  • 7D1.1%
  • 3M-3.8%
  • 1Y6.1%
  • YTD0.6%

Over the last 7 days, the Materials industry has risen 1.1%, driven by gains from BHP Group of 5.8%. Meanwhile, Newcrest Mining actually underperformed within the industry, shrinking 6.2% in the last week. This takes the industry's 12 month performance to a gain of 6.1%.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPE
Sat, 04 Dec 2021AU$564.9bAU$242.5bAU$39.2b16.3x
Mon, 01 Nov 2021AU$530.8bAU$230.7bAU$36.7b16.4x
Wed, 29 Sep 2021AU$517.9bAU$235.1bAU$38.0b14.8x
Fri, 27 Aug 2021AU$568.1bAU$230.5bAU$39.4b14.8x
Sat, 03 Jul 2021AU$565.2bAU$229.9bAU$39.3b14.8x
Tue, 06 Apr 2021AU$521.6bAU$209.1bAU$30.4b14.1x
Fri, 08 Jan 2021AU$503.4bAU$192.3bAU$21.7b15.7x
Thu, 01 Oct 2020AU$426.8bAU$195.9bAU$21.5b14.6x
Sun, 05 Jul 2020AU$403.8bAU$194.6bAU$21.5b14.1x
Wed, 08 Apr 2020AU$315.2bAU$213.6bAU$27.1b12.8x
Tue, 31 Dec 2019AU$416.3bAU$198.0bAU$25.7b14.2x
Fri, 04 Oct 2019AU$397.4bAU$197.8bAU$25.6b15.8x
Mon, 08 Jul 2019AU$420.3bAU$188.4bAU$23.6b15.6x
Sun, 31 Mar 2019AU$384.8bAU$182.9bAU$23.4b15.4x
Wed, 02 Jan 2019AU$339.2bAU$180.2bAU$22.8b12.4x
PE Ratio

12.4x

Total Market Cap: AU$339.2bTotal Earnings: AU$22.8bTotal Revenue: AU$180.2b0%0%0%3 Year10 Year
20202021

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 14.9x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Materials industry have grown 20% per year over the last three years, and 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?

Metals and Mining1.31%
Basic Materials0.73%
Packaging-0.49%
Paper and Forestry Products-1.74%
Chemicals-2.12%

Industry PE: Investors are most optimistic about the Paper and Forestry Products industry even though it's trading below its 3-year average PE ratio of 486x. This is likely because analysts are expecting annual earnings growth of 49%, which is higher than its past year's earnings decline of 59% per year. Meanwhile, investors are most pessimistic about the Metals and Mining industry. Although, investor sentiment seems to have improved given its trading above its 3-year average of 12.8x.

Forecasted Growth: Analysts are most optimistic on the Paper and Forestry Products industry, expecting annual earnings growth of 49% over the next 5 years. This is better than its past earnings decline of 59% per year. Meanwhile, the Metals and Mining 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?

Company7D1YValuation
BHP BHP Group5.8%+AU$11.1b-3.1%PE12.6x
S32 South325.3%+AU$872.2m43.7%PE86.1x
LYC Lynas Rare Earths9.3%+AU$712.9m129.9%PE53.4x
JHX James Hardie Industries1.6%+AU$391.7m47.3%PE39.6x
OZL OZ Minerals2.8%+AU$236.9m40.9%PE22x
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