Australian (ASX) Materials Sector Analysis

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, 12 Jul 2026	AU$708.9b	AU$233.2b	AU$26.3b	12.1x	26.9x	3x
Tue, 09 Jun 2026	AU$752.1b	AU$231.4b	AU$26.0b	12.5x	28.9x	3.2x
Thu, 07 May 2026	AU$730.8b	AU$226.2b	AU$25.3b	13.6x	28.9x	3.2x
Sat, 04 Apr 2026	AU$685.1b	AU$232.9b	AU$26.5b	13.6x	25.9x	2.9x
Mon, 02 Mar 2026	AU$790.8b	AU$227.1b	AU$24.5b	23.7x	32.2x	3.5x
Wed, 28 Jan 2026	AU$745.4b	AU$217.5b	AU$18.7b	28.2x	39.9x	3.4x
Fri, 26 Dec 2025	AU$670.5b	AU$222.3b	AU$19.3b	24.8x	34.8x	3x
Sun, 23 Nov 2025	AU$589.9b	AU$228.1b	AU$19.7b	22x	30x	2.6x
Tue, 21 Oct 2025	AU$630.4b	AU$228.6b	AU$19.3b	24.1x	32.7x	2.8x
Thu, 18 Sep 2025	AU$555.4b	AU$226.5b	AU$19.0b	18.1x	29.2x	2.5x
Sat, 16 Aug 2025	AU$558.0b	AU$232.4b	AU$21.9b	16.2x	25.5x	2.4x
Mon, 14 Jul 2025	AU$502.1b	AU$235.7b	AU$21.6b	14.1x	23.2x	2.1x
Wed, 11 Jun 2025	AU$494.6b	AU$237.2b	AU$21.9b	13.7x	22.6x	2.1x
Fri, 09 May 2025	AU$474.9b	AU$239.1b	AU$22.6b	13.2x	21x	2x
Sun, 06 Apr 2025	AU$442.7b	AU$248.2b	AU$24.1b	12x	18.4x	1.8x
Tue, 04 Mar 2025	AU$483.5b	AU$243.2b	AU$23.3b	13.6x	20.8x	2x
Thu, 30 Jan 2025	AU$494.2b	AU$246.3b	AU$22.2b	13.6x	22.2x	2x
Sat, 28 Dec 2024	AU$485.5b	AU$246.5b	AU$22.3b	13.6x	21.8x	2x
Mon, 25 Nov 2024	AU$500.8b	AU$239.9b	AU$21.3b	13.3x	23.5x	2.1x
Wed, 23 Oct 2024	AU$521.9b	AU$235.8b	AU$21.3b	15.8x	24.5x	2.2x
Fri, 20 Sep 2024	AU$487.2b	AU$233.3b	AU$20.6b	16.7x	23.7x	2.1x
Sun, 18 Aug 2024	AU$477.5b	AU$240.9b	AU$22.4b	14.7x	21.3x	2x
Tue, 16 Jul 2024	AU$526.6b	AU$237.1b	AU$21.4b	15.4x	24.6x	2.2x
Thu, 13 Jun 2024	AU$541.7b	AU$249.7b	AU$22.6b	15.4x	24x	2.2x
Sat, 11 May 2024	AU$561.5b	AU$250.6b	AU$23.2b	16x	24.2x	2.2x
Mon, 08 Apr 2024	AU$557.9b	AU$253.3b	AU$23.3b	15.7x	23.9x	2.2x
Wed, 06 Mar 2024	AU$558.7b	AU$254.6b	AU$24.6b	15.2x	22.7x	2.2x
Fri, 02 Feb 2024	AU$612.5b	AU$264.9b	AU$35.4b	13.9x	17.3x	2.3x
Sun, 31 Dec 2023	AU$652.0b	AU$258.3b	AU$34.0b	15.3x	19.2x	2.5x
Tue, 28 Nov 2023	AU$587.9b	AU$262.9b	AU$34.9b	12.5x	16.8x	2.2x
Thu, 26 Oct 2023	AU$569.3b	AU$270.8b	AU$37.1b	11.7x	15.4x	2.1x
Sat, 23 Sep 2023	AU$575.7b	AU$268.0b	AU$37.0b	12.1x	15.5x	2.1x
Mon, 21 Aug 2023	AU$574.9b	AU$280.8b	AU$52.7b	11.4x	10.9x	2x
Wed, 19 Jul 2023	AU$606.5b	AU$271.2b	AU$50.7b	10.6x	12x	2.2x

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 26.9x which is higher than its 3-year average PE of 23.8x.

The 3-year average PS ratio of 2.4x is lower than the industry's current PS ratio of 3.0x.

Past Earnings Growth

The earnings for companies in the Materials industry have declined 20% per year over the last three years,
Revenues have also declined 4.9% 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	-0.42%
Materials	-4.26%
Paper and Forestry Products	2.90%
Packaging	0.36%
Chemicals	-2.79%
Metals and Mining	-4.29%
Basic Materials	-5.32%

Industry PE

Investors are most optimistic about the Chemicals industry which is trading above its 3-year average PE ratio of 59.0x.

Analysts are expecting annual earnings growth of 30.2%, which is lower than the prior year's growth of 125.9% per year.

Investors are most pessimistic about the Packaging industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 8.7x.

Forecasted Growth

Analysts are most optimistic on the Paper and Forestry Products industry, expecting annual earnings growth of 50% over the next 5 years.

In contrast, the Packaging industry is expected to see its earnings grow by 9.3% 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
FMG Fortescue	AU$18.47	0.6% +AU$338.6m	8.8%	PE10.6x
VAU Vault Minerals	AU$4.87	6.8% +AU$320.7m	92.1%	PE61.1x
BSL BlueScope Steel	AU$32.00	2.2% +AU$297.8m	30.3%	PE48.8x
ARU Arafura Rare Earths	AU$0.23	-6.0% AU$77.4m	20.5%	PB2x
WIA WIA Gold	AU$0.54	9.2% +AU$76.4m	109.8%	PB10x

Genesis Minerals Limited (ASX:GMD) proposed to acquire Vault Minerals Limited (ASX:VAU) for AUD 5.5 billion.

Genesis Minerals Limited (ASX:GMD) proposed to acquire Vault Minerals Limited (ASX:VAU) for AUD 5.5 billion on July 6, 2026. Under the terms of the acquisition, Genesis Minerals Limited has offered AUD 0.475 in cash per share and 0.7629 new ordinary shares in Genesis Minerals Limited for every share held in Vault Minerals Limited. Genesis would provide a mix and match facility which would enable Vault shareholders to elect to receive more or less cash or scrip, subject to maximum aggregate cash and scrip consideration of AUD 500 million and 803.4 million Genesis ordinary shares respectively. The consideration offered under the Genesis Proposal values Vault at AUD 5.6 billion or AUD 5.2743 per Vault ordinary share. Upon completion, Genesis shareholders would own 59.8% of the enlarged Genesis Group and Vault shareholders would own the remaining 40.2% on a fully diluted basis. The cash consideration would be funded from a combination of Genesis’ existing cash and new corporate revolver facilities. Upon completion, the Genesis Board be reconstituted to comprise 4 nominees of Genesis and 3 nominees of Vault. Raleigh Finlayson to be appointed Managing Director and Matt Nixon and Morgan Ball continuing as Chief Executive Officer and Chief Financial Officer, respectively. If the Proposed Scheme is implemented, Genesis intends to invite Russell Clark to be appointed as Chair of the enlarged Genesis Group, as one of the Vault representatives, with Tony Kiernan to take the role of Deputy Chair. Genesis also intends to invite Kelvin Flynn and Rebecca Prain to the enlarged Genesis Group Board as the other nominees of Vault, while remaining nominees of Genesis would be Gerry Kaczmarek and Jacqueline Murray. Genesis has been informed that Vault’s Board of Directors has unanimously determined that the Proposed Scheme constitutes a “Vault Superior Proposal” for the purposes of the Scheme Implementation Deed dated 5 May 2026 between Vault and Regis Resources Limited. During this matching right period, Regis has the right (but not the obligation) to announce or provide a matching or superior proposal to the Genesis Proposal. The matching right period will expire at 11:59pm (AWST) on July 10, 2026. The transaction is subject to court approval, approval by regulatory board / committee and approval by the shareholders of Vault Minerals Limited. The transaction is not subject to due diligence, or financing conditions. Sternship Advisers Pty Ltd. acted as financial advisor to Genesis Minerals Limited. Macquarie Capital Limited acted as financial advisor to Genesis Minerals Limited. Gilbert and Tobin acted as legal advisor to Genesis Minerals Limited. RBC Capital Markets, Australia acted as financial advisor to Vault Minerals Limited. Corrs Chambers Westgarth acted as legal advisor to Vault Minerals Limited,

Australian (ASX) Materials Sector Analysis

Sector Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

Latest News

Price target decreased by 11% to AU$0.72

BHP Group Awards Nerin Engineering Smelter Contract for South Australia Expansion

MIN: Cost Pressures And Lithium Uncertainty Will Curb Rich P/E Outlook

GMD: Vault Minerals Bid And Synergy Upside Will Reshape Future Scale

Northern Star Resources Ltd Announces Appointment of Jeff Quartermaine as Independent Non-Executive Director, Effective July 9, 2026

Lynas Rare Earths Limited to Report Q4, 2026 Results on Jul 22, 2026

Arafura Rare Earths Limited has completed a Follow-on Equity Offering in the amount of AUD 350.000001 million.

MAH: Higher Assumed P/E Will Sustain Overvaluation Risk

JHX: Pricing Power And Synergies Will Support Future Multiple Rerating

Genesis Minerals Limited (ASX:GMD) proposed to acquire Vault Minerals Limited (ASX:VAU) for AUD 5.5 billion.

FMG: Rising Decarbonisation Capex Will Pressure Future Cash Flows And Returns

EVN: Copper Exposure Will Support Margin Resilience Through Gold Price Volatility

High number of new directors

PLS: Lithium Expansion And Ore Sorting Investments Will Support Stronger Future Pricing

Forecast to breakeven in 2028

Price target increased by 20% to AU$1.78