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Australian (ASX) Materials Sector Analysis

UpdatedJan 06, 2026
DataAggregated Company Financials
Companies708
  • 7D1.3%
  • 3M11.5%
  • 1Y39.0%
  • YTD1.7%

In the last week, the Materials industry is up 1.3%, with BHP Group up 2.3%. In the same time, Northern Star Resources was down 6.9%. In the last 12 months, the industry was up 39%. Earnings are forecast to grow by 17% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 06 Jan 2026AU$679.1bAU$222.2bAU$19.3b26.5x35.1x3.1x
Thu, 04 Dec 2025AU$631.6bAU$225.0bAU$19.4b23.6x32.6x2.8x
Sat, 01 Nov 2025AU$614.4bAU$227.7bAU$19.2b23.7x32x2.7x
Mon, 29 Sep 2025AU$578.3bAU$227.5bAU$19.1b19.9x30.3x2.5x
Wed, 27 Aug 2025AU$553.6bAU$229.6bAU$18.2b15.2x30.4x2.4x
Fri, 25 Jul 2025AU$532.6bAU$233.1bAU$21.5b15.2x24.8x2.3x
Sun, 22 Jun 2025AU$471.2bAU$237.7bAU$22.0b13.8x21.5x2x
Tue, 20 May 2025AU$481.4bAU$238.7bAU$22.1b13.1x21.7x2x
Thu, 17 Apr 2025AU$452.6bAU$240.1bAU$22.8b12.8x19.9x1.9x
Sat, 15 Mar 2025AU$472.8bAU$241.4bAU$23.1b13.2x20.5x2x
Mon, 10 Feb 2025AU$510.0bAU$245.1bAU$22.0b14.3x23.2x2.1x
Wed, 08 Jan 2025AU$476.7bAU$245.1bAU$22.1b13.4x21.6x1.9x
Fri, 06 Dec 2024AU$507.5bAU$241.3bAU$21.5b13.7x23.6x2.1x
Sun, 03 Nov 2024AU$522.6bAU$238.6bAU$21.7b14.7x24.1x2.2x
Tue, 01 Oct 2024AU$545.2bAU$231.3bAU$20.8b15.4x26.2x2.4x
Thu, 29 Aug 2024AU$490.3bAU$235.5bAU$20.8b15.6x23.6x2.1x
Sat, 27 Jul 2024AU$498.4bAU$241.9bAU$22.4b15.6x22.3x2.1x
Mon, 24 Jun 2024AU$524.5bAU$248.3bAU$22.4b15.6x23.4x2.1x
Wed, 22 May 2024AU$582.1bAU$249.1bAU$22.7b16.6x25.7x2.3x
Fri, 19 Apr 2024AU$564.3bAU$255.4bAU$23.8b15.3x23.7x2.2x
Sun, 17 Mar 2024AU$535.3bAU$253.9bAU$24.3b15x22x2.1x
Tue, 13 Feb 2024AU$560.8bAU$250.1bAU$34.0b15.2x16.5x2.2x
Thu, 11 Jan 2024AU$616.8bAU$260.6bAU$34.5b14.5x17.9x2.4x
Sat, 09 Dec 2023AU$603.8bAU$262.9bAU$35.0b12.8x17.3x2.3x
Mon, 06 Nov 2023AU$579.7bAU$266.7bAU$36.2b11.6x16x2.2x
Wed, 04 Oct 2023AU$574.6bAU$270.2bAU$37.0b11.8x15.5x2.1x
Fri, 01 Sep 2023AU$592.2bAU$267.7bAU$37.1b12.9x16x2.2x
Sun, 30 Jul 2023AU$602.9bAU$275.2bAU$51.8b10.9x11.6x2.2x
Tue, 27 Jun 2023AU$586.3bAU$274.7bAU$51.7b11.2x11.3x2.1x
Thu, 25 May 2023AU$577.8bAU$277.3bAU$52.4b10.3x11x2.1x
Sat, 22 Apr 2023AU$602.9bAU$273.1bAU$51.7b10.6x11.7x2.2x
Mon, 20 Mar 2023AU$563.0bAU$268.8bAU$51.1b9.7x11x2.1x
Wed, 15 Feb 2023AU$615.7bAU$263.4bAU$55.0b12.1x11.2x2.3x
Fri, 13 Jan 2023AU$626.3bAU$264.3bAU$54.9b12.4x11.4x2.4x
Price to Earnings Ratio

11.4x


Total Market Cap: AU$626.3bTotal Earnings: AU$54.9bTotal Revenue: AU$264.3bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Materials Sector Price to Earnings3Y Average 20.5x202420252026
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 35.1x which is higher than its 3-year average PE of 20.5x.
  • The 3-year average PS ratio of 2.2x is lower than the industry's current PS ratio of 3.1x.
Past Earnings Growth
  • The earnings for companies in the Materials industry have declined 29% per year over the last three years,
  • Revenues have also declined 5.6% 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 Market0.047%
Materials1.33%
Chemicals1.65%
Metals and Mining1.37%
Packaging0.45%
Paper and Forestry Products-0.20%
Basic Materials-0.33%
Industry PE
  • Investors are most optimistic about the Basic Materials industry which is trading above its 3-year average PE ratio of 31.0x.
    • Analysts expect its future annual earnings growth (35.3%) to be largely in line with prior year's earnings growth.
Forecasted Growth
  • Analysts are most optimistic on the Paper and Forestry Products industry, expecting annual earnings growth of 86% over the next 5 years.
  • In contrast, the Metals and Mining industry is expected to see its earnings grow by 16% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
BHP BHP GroupAU$46.482.3%
+AU$5.2b		19.2%PE17.5x
FMG FortescueAU$22.492.2%
+AU$1.5b		24.6%PE13.7x
NIC Nickel IndustriesAU$0.9518.0%
+AU$629.4m		17.3%PS1.6x
LYC Lynas Rare EarthsAU$12.973.8%
+AU$483.1m		89.9%PE1633.8x
PLS PLS GroupAU$4.422.6%
+AU$354.3m		97.3%PS18.5x

Latest News

CHN
AU$2.15
Chalice Mining
7D
-5.3%
1Y
92.0%
NST
AU$24.95
Northern Star Resources
7D
-6.9%
1Y
59.2%
CYL
AU$7.36
Catalyst Metals
7D
-3.2%
1Y
176.7%

Investors Holding Back On Catalyst Metals Limited (ASX:CYL)

Dec 31
Investors Holding Back On Catalyst Metals Limited (ASX:CYL)
FMG
AU$22.49
Fortescue
7D
2.2%
1Y
24.6%

There's No Escaping Fortescue Ltd's (ASX:FMG) Muted Earnings

Dec 27
There's No Escaping Fortescue Ltd's (ASX:FMG) Muted Earnings
NIC
AU$0.95
Nickel Industries
7D
18.0%
1Y
17.3%

NIC: Lower Risk Profile Will Support Stronger Future Earnings Multiple

Analysts have raised their price target for Nickel Industries, citing improved long term revenue growth expectations and a slightly lower discount rate that more than offset trimmed margin forecasts, lifting the valuation modestly from A$1.03 to A$1.03 per share on a higher future earnings multiple. Analyst Commentary Analyst discussions around Nickel Industries remain relatively aligned, leading to a broadly constructive outlook rather than a sharply divided bull and bear debate.
JHX
AU$30.77
James Hardie Industries
7D
-0.6%
1Y
-38.0%

JHX: Fiber Cement Share Gains And Azek Acquisition Will Drive Structural Upside

Analysts have nudged their price target on James Hardie Industries slightly lower to about $44 from roughly $45, reflecting more conservative assumptions for revenue growth and discount rates. This is partly offset by expectations for higher margins and a premium future earnings multiple as fiber cement demand and the Azek acquisition support the long term structural growth story.
EVN
AU$12.79
Evolution Mining
7D
-1.6%
1Y
161.0%

EVN: Premium Gold Price Assumptions Will Likely Expose Downside Risk

Analysts have raised their price target on Evolution Mining by A$2.00 to A$10.50, reflecting upgraded fair value assumptions driven by higher gold price expectations and improved forecasts for revenue growth and profit margins. Analyst Commentary The latest price target revision to A$10.50 from A$8.50 by JPMorgan underscores a constructive view on Evolution Mining, supported by a stronger gold price outlook and expectations for margin expansion.
ZIM
AU$23.10
Zimplats Holdings
7D
-4.4%
1Y
84.4%
LYC
AU$12.97
Lynas Rare Earths
7D
3.8%
1Y
89.9%

LYC: Rare Earth Price Normalization Will Pressure Overextended Earnings Expectations

Analysts have raised their price target on Lynas Rare Earths by about A$2 to the mid-A$17 range, citing recent upgrades to Buy, an attractive entry point after a 25% pullback in the share price, and significant exploration upside from new drilling results. Analyst Commentary Recent research updates have highlighted a more constructive stance on Lynas Rare Earths, with price targets in the mid A$17 range framed against a backdrop of heightened volatility in rare earth prices.
PLS
AU$4.42
PLS Group
7D
2.6%
1Y
97.3%
BHP
AU$46.48
BHP Group
7D
2.3%
1Y
19.2%
MI6
AU$0.41
Minerals 260
7D
-4.6%
1Y
219.2%
RMS
AU$4.32
Ramelius Resources
7D
3.6%
1Y
98.2%
S32
AU$3.66
South32
7D
1.9%
1Y
7.6%

S32: Cannington Sale Prospects Will Shape Outlook Amid Steady Earnings Expectations

Narrative Update on South32 The analyst price target for South32 has been raised from $3.38 to $3.48 as analysts factor in slightly stronger long term revenue growth and higher future valuation multiples. This is partially offset by modestly lower profit margin expectations and a marginally higher discount rate.
SFR
AU$18.45
Sandfire Resources
7D
3.2%
1Y
98.8%

SFR: Future Profitability Assumptions Will Likely Expose Downside Risk

Analysts have raised their price target for Sandfire Resources by approximately A$0.64 to A$15.30, citing slightly higher long term revenue growth and profit margin assumptions. Valuation Changes The fair value estimate has risen slightly from A$14.66 to A$15.30 per share, reflecting a modest uplift in intrinsic valuation.
WA1
AU$18.88
WA1 Resources
7D
-3.8%
1Y
35.3%