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Australian (ASX) Materials Sector Analysis

UpdatedJan 04, 2026
DataAggregated Company Financials
Companies708
  • 7D-0.6%
  • 3M10.8%
  • 1Y34.9%
  • YTD0%

In the last week, the Materials industry is flat overall, with Northern Star Resources standing out by going down 9.6%. The past year has been better, since the industry has gained 35% in that time. As for the next few years, earnings are expected to grow by 17% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 05 Jan 2026AU$667.7bAU$222.0bAU$19.3b25.8x34.6x3x
Wed, 03 Dec 2025AU$628.5bAU$225.9bAU$19.5b23.5x32.2x2.8x
Fri, 31 Oct 2025AU$611.2bAU$227.4bAU$19.2b23.8x31.9x2.7x
Sun, 28 Sep 2025AU$578.2bAU$227.5bAU$19.1b20.5x30.3x2.5x
Tue, 26 Aug 2025AU$560.4bAU$230.8bAU$18.9b15.5x29.6x2.4x
Thu, 24 Jul 2025AU$531.5bAU$233.5bAU$21.5b15.1x24.7x2.3x
Sat, 21 Jun 2025AU$471.2bAU$237.7bAU$22.0b13.8x21.5x2x
Mon, 19 May 2025AU$490.2bAU$239.6bAU$22.3b12.7x22x2x
Wed, 16 Apr 2025AU$455.0bAU$240.4bAU$22.8b13.1x19.9x1.9x
Fri, 14 Mar 2025AU$465.1bAU$241.7bAU$23.0b12.8x20.2x1.9x
Sun, 09 Feb 2025AU$509.5bAU$245.1bAU$22.0b14.3x23.2x2.1x
Tue, 07 Jan 2025AU$480.2bAU$244.9bAU$22.0b13.7x21.8x2x
Thu, 05 Dec 2024AU$508.3bAU$241.9bAU$21.6b13.5x23.6x2.1x
Sat, 02 Nov 2024AU$523.0bAU$238.3bAU$21.6b14.7x24.2x2.2x
Mon, 30 Sep 2024AU$535.3bAU$231.5bAU$20.9b15.7x25.6x2.3x
Wed, 28 Aug 2024AU$494.9bAU$237.6bAU$21.0b15.3x23.5x2.1x
Fri, 26 Jul 2024AU$492.5bAU$242.4bAU$22.4b15.8x22x2x
Sun, 23 Jun 2024AU$524.5bAU$248.3bAU$22.4b15.6x23.4x2.1x
Tue, 21 May 2024AU$585.1bAU$248.6bAU$22.6b16.1x25.8x2.4x
Thu, 18 Apr 2024AU$561.0bAU$255.6bAU$23.8b15.4x23.5x2.2x
Sat, 16 Mar 2024AU$538.6bAU$253.6bAU$24.2b15.6x22.2x2.1x
Mon, 12 Feb 2024AU$563.5bAU$250.1bAU$34.0b15.3x16.6x2.3x
Wed, 10 Jan 2024AU$627.1bAU$260.9bAU$34.6b14.7x18.1x2.4x
Fri, 08 Dec 2023AU$599.7bAU$263.7bAU$35.1b12.7x17.1x2.3x
Sun, 05 Nov 2023AU$579.6bAU$266.7bAU$36.2b11.6x16x2.2x
Tue, 03 Oct 2023AU$574.6bAU$269.4bAU$36.9b12x15.6x2.1x
Thu, 31 Aug 2023AU$589.2bAU$267.3bAU$37.7b12.6x15.6x2.2x
Sat, 29 Jul 2023AU$602.9bAU$275.1bAU$51.8b10.9x11.6x2.2x
Mon, 26 Jun 2023AU$588.3bAU$274.5bAU$51.7b11.2x11.4x2.1x
Wed, 24 May 2023AU$587.4bAU$275.9bAU$52.0b10.3x11.3x2.1x
Fri, 21 Apr 2023AU$611.3bAU$272.0bAU$51.4b10.6x11.9x2.2x
Sun, 19 Mar 2023AU$562.9bAU$268.8bAU$51.1b9.7x11x2.1x
Tue, 14 Feb 2023AU$616.8bAU$264.1bAU$55.3b12.1x11.2x2.3x
Thu, 12 Jan 2023AU$617.7bAU$264.5bAU$55.0b12.7x11.2x2.3x
Price to Earnings Ratio

11.2x


Total Market Cap: AU$617.7bTotal Earnings: AU$55.0bTotal Revenue: AU$264.5bTotal 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 34.6x 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 3.0x.
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 5.7% 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-0.25%
Materials-0.55%
Basic Materials0.83%
Chemicals0.017%
Packaging0%0
Paper and Forestry Products-0.54%
Metals and Mining-0.61%
Industry PE
  • Investors are most optimistic about the Basic Materials industry which is trading above its 3-year average PE ratio of 30.9x.
    • 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$45.760.3%
+AU$710.9m		15.1%PE17.2x
NIC Nickel IndustriesAU$0.9011.1%
+AU$390.7m		9.8%PS1.5x
S32 South32AU$3.551.1%
+AU$179.2m		2.6%PE33.5x
JHX James Hardie IndustriesAU$30.790.8%
+AU$139.2m		-38.1%PE62.2x
ALK Alkane ResourcesAU$1.386.2%
+AU$109.3m		160.4%PE98.6x

Latest News

GMD
AU$7.30
Genesis Minerals
7D
-2.1%
1Y
188.5%

We Ran A Stock Scan For Earnings Growth And Genesis Minerals (ASX:GMD) Passed With Ease

Jan 04
We Ran A Stock Scan For Earnings Growth And Genesis Minerals (ASX:GMD) Passed With Ease
NST
AU$24.43
Northern Star Resources
7D
-9.6%
1Y
55.0%
WWI
AU$0.087
West Wits Mining
7D
38.1%
1Y
521.4%
IVR
AU$0.15
Investigator Silver
7D
40.9%
1Y
638.1%
FMG
AU$22.14
Fortescue
7D
-0.7%
1Y
20.3%

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$0.90
Nickel Industries
7D
11.1%
1Y
9.8%

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$30.79
James Hardie Industries
7D
0.8%
1Y
-38.1%

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$12.68
Evolution Mining
7D
-2.0%
1Y
158.8%

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.
LTR
AU$1.62
Liontown
7D
-3.0%
1Y
184.2%

LTR: Higher Earnings Multiple Will Likely Prove Unsustainable Amid Moderating Outlook

Liontown's analyst price target has been lifted from A0.35 to A0.50 per share, as analysts factor in improved long term profit margins and a higher justified earnings multiple, despite moderating revenue growth expectations and a slightly higher discount rate. Valuation Changes Fair Value: raised from A$0.35 to A$0.50 per share, representing a substantial upward revision.
LYC
AU$12.22
Lynas Rare Earths
7D
-2.8%
1Y
84.9%

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$4.31
PLS Group
7D
-1.6%
1Y
97.7%
CXL
AU$1.13
Calix
7D
54.8%
1Y
50.7%
BHP
AU$45.76
BHP Group
7D
0.3%
1Y
15.1%
PRU
AU$5.64
Perseus Mining
7D
-1.6%
1Y
114.4%

PRU Will Benefit From Stronger Gold Prices And Share Buyback Program

Analysts have lifted their price target on Perseus Mining to approximately A$4.40 from A$3.70, reflecting higher forecast fair value driven by expectations for stronger revenue growth and profit margins, despite a slightly higher discount rate and a modestly lower future P/E multiple. Analyst Commentary Bullish Takeaways Bullish analysts point to the higher A$4.40 price target as evidence that Perseus Mining’s valuation better reflects improving gold price assumptions and stronger long term earnings power.
S32
AU$3.55
South32
7D
1.1%
1Y
2.6%

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.
ALK
AU$1.38
Alkane Resources
7D
6.2%
1Y
160.4%

We Believe That Alkane Resources' (ASX:ALK) Weak Earnings Are A Good Indicator Of Underlying Profitability

Nov 25
We Believe That Alkane Resources' (ASX:ALK) Weak Earnings Are A Good Indicator Of Underlying Profitability