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Australian (ASX) Materials Sector Analysis

UpdatedOct 16, 2025
DataAggregated Company Financials
Companies706
  • 7D4.1%
  • 3M25.7%
  • 1Y16.6%
  • YTD28.1%

In the last week, the Materials industry is up 4.1%, with BHP Group up 1.5%. This takes the industry's 12 month performance to a gain of 17%. Looking forward, earnings are forecast to grow by 16% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 17 Oct 2025AU$631.0bAU$228.0bAU$19.2b24.1x32.8x2.8x
Sun, 14 Sep 2025AU$557.0bAU$226.9bAU$19.0b17.9x29.3x2.5x
Tue, 12 Aug 2025AU$544.5bAU$235.1bAU$21.9b16.1x24.9x2.3x
Thu, 10 Jul 2025AU$486.9bAU$237.0bAU$21.9b14.4x22.3x2.1x
Sat, 07 Jun 2025AU$493.3bAU$237.6bAU$21.9b13.1x22.5x2.1x
Mon, 05 May 2025AU$469.0bAU$238.4bAU$22.5b12.5x20.9x2x
Wed, 02 Apr 2025AU$467.7bAU$242.9bAU$23.2b12.9x20.2x1.9x
Fri, 28 Feb 2025AU$490.4bAU$240.7bAU$22.8b13.9x21.6x2x
Sun, 26 Jan 2025AU$495.3bAU$244.2bAU$21.9b13.5x22.6x2x
Tue, 24 Dec 2024AU$484.2bAU$245.9bAU$22.2b13.5x21.8x2x
Thu, 21 Nov 2024AU$497.0bAU$239.8bAU$21.3b13.3x23.3x2.1x
Sat, 19 Oct 2024AU$521.0bAU$235.2bAU$21.2b15.8x24.6x2.2x
Mon, 16 Sep 2024AU$480.8bAU$236.0bAU$21.1b17x22.8x2x
Wed, 14 Aug 2024AU$480.6bAU$241.4bAU$22.3b14.7x21.6x2x
Fri, 12 Jul 2024AU$519.8bAU$237.6bAU$21.5b15.6x24.2x2.2x
Sun, 09 Jun 2024AU$556.0bAU$250.5bAU$22.7b16.1x24.5x2.2x
Tue, 07 May 2024AU$557.6bAU$250.7bAU$23.2b15.3x24x2.2x
Thu, 04 Apr 2024AU$559.5bAU$255.0bAU$23.5b15.6x23.8x2.2x
Sat, 02 Mar 2024AU$559.9bAU$253.3bAU$24.7b15.8x22.7x2.2x
Mon, 29 Jan 2024AU$613.2bAU$263.3bAU$35.0b14.6x17.5x2.3x
Wed, 27 Dec 2023AU$640.2bAU$258.8bAU$34.1b13.5x18.8x2.5x
Fri, 24 Nov 2023AU$595.6bAU$263.8bAU$35.2b12.7x16.9x2.3x
Sun, 22 Oct 2023AU$567.9bAU$271.5bAU$37.2b11.8x15.3x2.1x
Tue, 19 Sep 2023AU$589.4bAU$268.3bAU$37.0b12.1x15.9x2.2x
Thu, 17 Aug 2023AU$574.5bAU$280.2bAU$52.7b11.5x10.9x2.1x
Sat, 15 Jul 2023AU$614.3bAU$269.9bAU$50.4b11.1x12.2x2.3x
Mon, 12 Jun 2023AU$591.4bAU$273.0bAU$51.3b11.9x11.5x2.2x
Wed, 10 May 2023AU$597.5bAU$271.3bAU$51.2b10.8x11.7x2.2x
Fri, 07 Apr 2023AU$590.9bAU$273.0bAU$51.7b10.1x11.4x2.2x
Sun, 05 Mar 2023AU$614.7bAU$266.6bAU$51.2b11.3x12x2.3x
Tue, 31 Jan 2023AU$633.7bAU$260.4bAU$53.7b12.5x11.8x2.4x
Thu, 29 Dec 2022AU$578.9bAU$267.1bAU$55.7b11.5x10.4x2.2x
Sat, 26 Nov 2022AU$573.8bAU$267.7bAU$55.9b11.8x10.3x2.1x
Mon, 24 Oct 2022AU$512.0bAU$275.5bAU$58.3b10.1x8.8x1.9x
Price to Earnings Ratio

8.8x


Total Market Cap: AU$512.0bTotal Earnings: AU$58.3bTotal Revenue: AU$275.5bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Materials Sector Price to Earnings3Y Average 18.8x202320242025
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 32.8x which is higher than its 3-year average PE of 18.8x.
  • The 3-year average PS ratio of 2.2x is lower than the industry's current PS ratio of 2.8x.
Past Earnings Growth
  • The earnings for companies in the Materials industry have declined 31% per year over the last three years,
  • Revenues have also declined 6.1% 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 Market0.70%
Materials4.13%
Metals and Mining4.27%
Basic Materials3.23%
Chemicals1.62%
Packaging-0.49%
Paper and Forestry Products-0.67%
Industry PE
  • Investors are most optimistic about the Basic Materials industry which is trading above its 3-year average PE ratio of 28.3x.
    • Analysts are expecting annual earnings growth of 26.2%, which is lower than the prior year's growth of 43.1% per year.
Forecasted Growth
  • Analysts are most optimistic on the Paper and Forestry Products industry, expecting annual earnings growth of 85% over the next 5 years.
  • In contrast, the Metals and Mining industry is expected to see its earnings grow by 15% 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$43.771.5%
+AU$3.4b		1.8%PE16x
NST Northern Star ResourcesAU$25.463.6%
+AU$1.3b		49.5%PE27.2x
JHX James Hardie IndustriesAU$34.666.2%
+AU$1.2b		-36.4%PE39.4x
FMG FortescueAU$19.811.8%
+AU$1.1b		-0.5%PE11.8x
GMD Genesis MineralsAU$7.0213.2%
+AU$936.3m		202.6%PE36.2x

Latest News

BHP
AU$43.77
BHP Group
7D
1.5%
1Y
1.8%

It's Unlikely That BHP Group Limited's (ASX:BHP) CEO Will See A Huge Pay Rise This Year

Oct 16
It's Unlikely That BHP Group Limited's (ASX:BHP) CEO Will See A Huge Pay Rise This Year
SFR
AU$15.77
Sandfire Resources
7D
-5.2%
1Y
44.0%
GMD
AU$7.02
Genesis Minerals
7D
13.2%
1Y
202.6%
JHX
AU$34.66
James Hardie Industries
7D
6.2%
1Y
-36.4%
EUR
AU$0.47
European Lithium
7D
138.5%
1Y
n/a
ARU
AU$0.44
Arafura Rare Earths
7D
41.9%
1Y
166.7%
BOC
AU$2.31
Bougainville Copper
7D
136.9%
1Y
381.3%

Is Bougainville Copper (ASX:BOC) In A Good Position To Invest In Growth?

Oct 13
Is Bougainville Copper (ASX:BOC) In A Good Position To Invest In Growth?
PNR
AU$6.23
Pantoro Gold
7D
-4.9%
1Y
193.2%
LYC
AU$20.40
Lynas Rare Earths
7D
-0.9%
1Y
162.5%

Overvaluation Will Persist As Western Government Spurs Rare Earth Demand

Analysts have raised their price target for Lynas Rare Earths from $13.12 to $14.23. They cited improved revenue growth forecasts and a slight adjustment in discount rates.
MIN
AU$42.49
Mineral Resources
7D
-4.9%
1Y
-10.1%
FMG
AU$19.81
Fortescue
7D
1.8%
1Y
-0.5%

Rising Extraction Costs And China Risks Will Erode Margins

Analysts have modestly raised their price target for Fortescue from A$17.59 to A$18.14. They cite improved profit margins and a slight upward adjustment to financial assumptions, despite ongoing valuation concerns.
NST
AU$25.46
Northern Star Resources
7D
3.6%
1Y
49.5%
BSL
AU$20.91
BlueScope Steel
7D
-3.4%
1Y
-6.5%
CHN
AU$2.37
Chalice Mining
7D
-11.6%
1Y
42.8%
NIC
AU$0.74
Nickel Industries
7D
-8.6%
1Y
-22.8%

We Think Nickel Industries (ASX:NIC) Is Taking Some Risk With Its Debt

Sep 28
We Think Nickel Industries (ASX:NIC) Is Taking Some Risk With Its Debt
DTR
AU$0.42
Dateline Resources
7D
-15.2%
1Y
8,300.0%