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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?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 27 Nov 2022AU$573.9bAU$268.1bAU$56.1b11.8x10.2x2.1x
Tue, 25 Oct 2022AU$512.0bAU$275.5bAU$58.3b10.1x8.8x1.9x
Thu, 22 Sep 2022AU$523.7bAU$265.4bAU$56.1b9.5x9.3x2x
Sat, 20 Aug 2022AU$550.2bAU$258.2bAU$49.6b11.5x11.1x2.1x
Mon, 18 Jul 2022AU$467.9bAU$256.1bAU$49.6b10.2x9.4x1.8x
Wed, 15 Jun 2022AU$578.5bAU$273.0bAU$50.1b10.9x11.6x2.1x
Fri, 13 May 2022AU$608.1bAU$271.1bAU$50.1b12.8x12.1x2.2x
Sun, 10 Apr 2022AU$682.8bAU$256.7bAU$46.6b14x14.6x2.7x
Tue, 08 Mar 2022AU$659.1bAU$257.5bAU$46.8b17.3x14.1x2.6x
Thu, 03 Feb 2022AU$614.7bAU$242.6bAU$41.2b16.4x14.9x2.5x
Sat, 01 Jan 2022AU$598.3bAU$238.8bAU$40.5b17.2x14.8x2.5x
Mon, 29 Nov 2021AU$553.5bAU$242.0bAU$41.2b16.1x13.4x2.3x
Wed, 27 Oct 2021AU$546.5bAU$230.7bAU$38.8b16.7x14.1x2.4x
Fri, 24 Sep 2021AU$531.9bAU$235.6bAU$40.3b14.4x13.2x2.3x
Sun, 22 Aug 2021AU$559.0bAU$230.5bAU$39.4b14.5x14.2x2.4x
Fri, 09 Jul 2021AU$565.2bAU$229.9bAU$39.3b14.8x14.4x2.5x
Thu, 01 Apr 2021AU$521.6bAU$209.1bAU$30.4b14.1x17.2x2.5x
Sun, 03 Jan 2021AU$503.4bAU$192.3bAU$21.7b15.7x23.2x2.6x
Wed, 07 Oct 2020AU$426.8bAU$195.9bAU$21.5b14.6x19.9x2.2x
Tue, 30 Jun 2020AU$403.8bAU$194.6bAU$21.5b14.1x18.8x2.1x
Fri, 03 Apr 2020AU$315.2bAU$213.6bAU$27.1b12.8x11.6x1.5x
Mon, 06 Jan 2020AU$416.3bAU$198.0bAU$25.7b14.2x16.2x2.1x
Price to Earnings Ratio

16x


Total Market Cap: AU$406.7bTotal Earnings: AU$25.5bTotal Revenue: AU$197.7bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Materials Sector Price to Earnings3Y Average 15.7x202020212022
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 Market1.17%
Materials0.12%
Chemicals2.78%
Basic Materials2.46%
Paper and Forestry Products1.56%
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?

CompanyLast Price7D1YValuation
BHP BHP GroupAU$44.200.6%
+AU$1.3b
16.2%PE7.5x
NCM Newcrest MiningAU$20.004.9%
+AU$837.6m
-17.6%PE13.8x
NST Northern Star ResourcesAU$10.616.1%
+AU$701.0m
8.5%PE28.4x
S32 South32AU$4.022.8%
+AU$490.4m
12.9%PE4.6x
IPL Incitec PivotAU$4.084.3%
+AU$330.2m
32.0%PE7.8x
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BHP

AU$44.20

BHP Group

7D

0.6%

1Y

16.2%

FMG

AU$18.94

Fortescue Metals Group

7D

-5.1%

1Y

10.2%

EVN

AU$2.73

Evolution Mining

7D

6.6%

1Y

-33.6%

CHN

AU$5.30

Chalice Mining

7D

14.7%

1Y

-44.2%

PLS

AU$4.46

Pilbara Minerals

7D

-6.3%

1Y

79.8%

LKE

AU$0.98

Lake Resources

7D

-6.2%

1Y

17.3%

CXO

AU$1.34

Core Lithium

7D

-4.6%

1Y

147.2%

NCM

AU$20.00

Newcrest Mining

7D

4.9%

1Y

-17.6%

IGO

AU$15.05

IGO

7D

-3.0%

1Y

48.1%

BSL

AU$17.20

BlueScope Steel

7D

3.5%

1Y

-15.1%

S32

AU$4.02

South32

7D

2.8%

1Y

12.9%

NST

AU$10.61

Northern Star Resources

7D

6.1%

1Y

8.5%

AGY

AU$0.59

Argosy Minerals

7D

-8.5%

1Y

120.4%