Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

Australian (ASX) Materials Sector Analysis

UpdatedFeb 25, 2026
DataAggregated Company Financials
Companies709
  • 7D3.6%
  • 3M20.4%
  • 1Y47.9%
  • YTD12.2%

In the last week, the Materials industry is up 3.6%, with BHP Group up 8.1%. During this same period, the Orica underperformed, falling 7.2%. This means that the industry has gained 48% over the past year. Earnings are forecast to grow by 15% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 25 Feb 2026AU$757.5bAU$224.3bAU$23.5b23.7x32.3x3.4x
Fri, 23 Jan 2026AU$724.7bAU$219.8bAU$19.0b27.9x38.1x3.3x
Sun, 21 Dec 2025AU$646.8bAU$224.7bAU$19.3b23.8x33.5x2.9x
Tue, 18 Nov 2025AU$614.5bAU$226.2bAU$19.9b23.8x30.9x2.7x
Thu, 16 Oct 2025AU$631.0bAU$228.0bAU$19.2b24.1x32.8x2.8x
Sat, 13 Sep 2025AU$557.4bAU$226.9bAU$19.1b18.9x29.1x2.5x
Mon, 11 Aug 2025AU$535.3bAU$235.1bAU$21.9b16.1x24.5x2.3x
Wed, 09 Jul 2025AU$493.2bAU$236.6bAU$21.8b14.4x22.6x2.1x
Fri, 06 Jun 2025AU$493.7bAU$237.2bAU$21.8b13.3x22.6x2.1x
Sun, 04 May 2025AU$469.0bAU$238.4bAU$22.5b12.5x20.9x2x
Tue, 01 Apr 2025AU$463.4bAU$242.8bAU$23.2b12.6x20x1.9x
Thu, 27 Feb 2025AU$486.0bAU$239.8bAU$22.5b13.4x21.6x2x
Sat, 25 Jan 2025AU$495.3bAU$244.2bAU$21.9b13.5x22.6x2x
Mon, 23 Dec 2024AU$479.4bAU$245.7bAU$22.1b13.4x21.6x2x
Wed, 20 Nov 2024AU$499.2bAU$240.0bAU$21.3b13.3x23.4x2.1x
Fri, 18 Oct 2024AU$530.8bAU$235.7bAU$21.3b15.8x24.9x2.3x
Sun, 15 Sep 2024AU$480.8bAU$236.0bAU$21.1b17x22.8x2x
Tue, 13 Aug 2024AU$479.7bAU$241.2bAU$22.2b13.7x21.6x2x
Thu, 11 Jul 2024AU$513.9bAU$238.0bAU$21.5b15.5x23.9x2.2x
Sat, 08 Jun 2024AU$556.8bAU$249.0bAU$22.4b16.2x24.8x2.2x
Mon, 06 May 2024AU$552.0bAU$251.0bAU$23.3b15.4x23.7x2.2x
Wed, 03 Apr 2024AU$564.9bAU$255.2bAU$23.5b15.5x24x2.2x
Fri, 01 Mar 2024AU$550.4bAU$253.7bAU$24.5b14.7x22.5x2.2x
Sun, 28 Jan 2024AU$613.2bAU$263.3bAU$35.0b14.6x17.5x2.3x
Tue, 26 Dec 2023AU$640.2bAU$258.8bAU$34.1b13.5x18.8x2.5x
Thu, 23 Nov 2023AU$602.2bAU$263.8bAU$35.1b12.8x17.1x2.3x
Sat, 21 Oct 2023AU$567.9bAU$271.4bAU$37.2b11.8x15.3x2.1x
Mon, 18 Sep 2023AU$592.1bAU$268.5bAU$37.1b12.3x15.9x2.2x
Wed, 16 Aug 2023AU$588.3bAU$279.4bAU$52.6b11.5x11.2x2.1x
Fri, 14 Jul 2023AU$606.5bAU$270.2bAU$50.5b11.1x12x2.2x
Sun, 11 Jun 2023AU$591.4bAU$273.0bAU$51.3b11.9x11.5x2.2x
Tue, 09 May 2023AU$599.6bAU$270.6bAU$51.0b10.6x11.7x2.2x
Thu, 06 Apr 2023AU$596.9bAU$271.6bAU$51.3b10.2x11.6x2.2x
Sat, 04 Mar 2023AU$614.8bAU$267.0bAU$51.2b11.3x12x2.3x
Price to Earnings Ratio

12x


Total Market Cap: AU$614.8bTotal Earnings: AU$51.2bTotal Revenue: AU$267.0bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Materials Sector Price to Earnings3Y Average 21.7x202420252026
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 32.3x which is higher than its 3-year average PE of 21.7x.
  • The 3-year average PS ratio of 2.3x is lower than the industry's current PS ratio of 3.4x.
Past Earnings Growth
  • The earnings for companies in the Materials industry have declined 23% 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 Market0.71%
Materials3.58%
Packaging6.45%
Metals and Mining4.03%
Paper and Forestry Products1.99%
Basic Materials-2.58%
Chemicals-4.94%
Industry PE
  • Investors are most optimistic about the Basic Materials industry which is trading above its 3-year average PE ratio of 34.1x.
    • Analysts are expecting annual earnings growth of 38.4%, which is higher than its past year's earnings growth of 24.1% per year.
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 Packaging industry is expected to see its earnings grow by 11% 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$56.518.1%
+AU$21.4b		42.3%PE19.8x
NST Northern Star ResourcesAU$30.398.5%
+AU$3.4b		75.4%PE28.1x
EVN Evolution MiningAU$16.2211.2%
+AU$3.3b		161.2%PE24.8x
FMG FortescueAU$21.144.7%
+AU$2.9b		25.4%PE13.6x
LYC Lynas Rare EarthsAU$17.039.8%
+AU$1.5b		148.6%PE2145.3x

Latest News

S32
AU$4.58
South32
7D
4.3%
1Y
26.9%
PRN
AU$2.46
Perenti
7D
-9.2%
1Y
98.4%
FMG
AU$21.14
Fortescue
7D
4.7%
1Y
25.4%
MIN
AU$58.13
Mineral Resources
7D
8.1%
1Y
135.1%
MTM
AU$0.75
Metallium
7D
-11.8%
1Y
233.3%
EVN
AU$16.22
Evolution Mining
7D
11.2%
1Y
161.2%

EVN: Higher Commodity Assumptions Will Likely Fail To Justify Elevated Pricing

Narrative Update Overview The updated analyst work on Evolution Mining lifts the fair value estimate from A$12.63 to A$13.17, reflecting higher commodity price assumptions and refreshed models that have also seen Street price targets move higher into the A$11.50 to A$13.75 range. Analyst Commentary Recent updates from covering analysts show a mixed but constructive setup for Evolution Mining, with higher price targets on the back of refreshed commodity price decks and valuation work.
CXL
AU$1.08
Calix
7D
-32.1%
1Y
132.3%

CXL: Rio Tinto Partnership Will Drive Future Low Emissions Steel Upside

Analysts have trimmed their price targets on Calix by A$4.70 to A$4.50, reflecting slightly updated assumptions for discount rates, profit margins and future P/E. Valuation Changes Fair Value: Modelled fair value is unchanged at A$1.93.
ORI
AU$24.19
Orica
7D
-7.2%
1Y
47.4%
PLS
AU$4.85
PLS Group
7D
9.7%
1Y
141.3%
BHP
AU$56.51
BHP Group
7D
8.1%
1Y
42.3%

BHP: Commodity Cycles And Mega Deals Will Shape Future Returns

Analysts have lifted their BHP Group price target by A$3.54. The change is supported by model updates that incorporate a higher fair value estimate, a small adjustment to the discount rate, a slightly lower revenue growth assumption, a modestly higher profit margin, and a marginally higher future P/E multiple.
NST
AU$30.39
Northern Star Resources
7D
8.5%
1Y
75.4%

NST: Higher Commodity Assumptions Will Likely Sustain Overvaluation Risk For Shares

Narrative update on Northern Star Resources Analysts have lifted their price target on Northern Star Resources to A$35 from A$30, citing updated long term commodity price assumptions for gold and other metals, a slightly higher discount rate, modestly lower revenue growth and margin forecasts, and a lower assumed future P/E multiple that together support a refreshed fair value estimate of about A$18.33. Analyst Commentary The latest target price revision to A$35 follows changes to long term assumptions for several commodities, including gold.
BSL
AU$28.37
BlueScope Steel
7D
-1.3%
1Y
16.5%
LYC
AU$17.03
Lynas Rare Earths
7D
9.8%
1Y
148.6%

LYC: Full Operations And Offtake Agreements Are Expected To Support Fairly Valued Outlook

Analysts have nudged their fair value estimate for Lynas Rare Earths slightly higher from A$15.77 to A$15.87, citing expectations that full operations, a production ramp up and new offtake agreements can support earnings and cash flow over time. Analyst Commentary Bullish Takeaways Bullish analysts highlight that full operations are now underway, which they see as an important step for Lynas to translate its asset base into more consistent production and earnings.
SRL
AU$7.98
Sunrise Energy Metals
7D
-29.5%
1Y
2,855.6%
OBM
AU$1.24
Ora Banda Mining
7D
-2.8%
1Y
36.5%
TVN
AU$0.43
Tivan
7D
-7.4%
1Y
400.0%