Bullish: Analysts Just Made A Significant Upgrade To Their Evolution Mining Limited (ASX:EVN) Forecasts
Evolution Mining Limited ( ASX:EVN ) shareholders will have a reason to smile today, with the analysts making...
Australian (ASX) Materials Sector Analysis
UpdatedDec 02, 2021
DataAggregated Company Financials
Companies698
- 7D1.1%
- 3M-3.8%
- 1Y6.1%
- YTD0.6%
Over the last 7 days, the Materials industry has risen 1.1%, driven by gains from BHP Group of 5.8%. Meanwhile, Newcrest Mining actually underperformed within the industry, shrinking 6.2% in the last week. This takes the industry's 12 month performance to a gain of 6.1%.
Sector Valuation and Performance
Has the Australian Materials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sat, 04 Dec 2021 | AU$564.9b | AU$242.5b | AU$39.2b | 16.3x |
| Mon, 01 Nov 2021 | AU$530.8b | AU$230.7b | AU$36.7b | 16.4x |
| Wed, 29 Sep 2021 | AU$517.9b | AU$235.1b | AU$38.0b | 14.8x |
| Fri, 27 Aug 2021 | AU$568.1b | AU$230.5b | AU$39.4b | 14.8x |
| Sat, 03 Jul 2021 | AU$565.2b | AU$229.9b | AU$39.3b | 14.8x |
| Tue, 06 Apr 2021 | AU$521.6b | AU$209.1b | AU$30.4b | 14.1x |
| Fri, 08 Jan 2021 | AU$503.4b | AU$192.3b | AU$21.7b | 15.7x |
| Thu, 01 Oct 2020 | AU$426.8b | AU$195.9b | AU$21.5b | 14.6x |
| Sun, 05 Jul 2020 | AU$403.8b | AU$194.6b | AU$21.5b | 14.1x |
| Wed, 08 Apr 2020 | AU$315.2b | AU$213.6b | AU$27.1b | 12.8x |
| Tue, 31 Dec 2019 | AU$416.3b | AU$198.0b | AU$25.7b | 14.2x |
| Fri, 04 Oct 2019 | AU$397.4b | AU$197.8b | AU$25.6b | 15.8x |
| Mon, 08 Jul 2019 | AU$420.3b | AU$188.4b | AU$23.6b | 15.6x |
| Sun, 31 Mar 2019 | AU$384.8b | AU$182.9b | AU$23.4b | 15.4x |
| Wed, 02 Jan 2019 | AU$339.2b | AU$180.2b | AU$22.8b | 12.4x |
PE Ratio
12.4x
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 14.9x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Materials industry have grown 20% per year over the last three years, and revenues for these companies have grown 10% 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?
| Metals and Mining | 1.31% | |
| Basic Materials | 0.73% | |
| Packaging | -0.49% | |
| Paper and Forestry Products | -1.74% | |
| Chemicals | -2.12% | |
Industry PE: Investors are most optimistic about the Paper and Forestry Products industry even though it's trading below its 3-year average PE ratio of 486x. This is likely because analysts are expecting annual earnings growth of 49%, which is higher than its past year's earnings decline of 59% per year. Meanwhile, investors are most pessimistic about the Metals and Mining industry. Although, investor sentiment seems to have improved given its trading above its 3-year average of 12.8x.
Forecasted Growth: Analysts are most optimistic on the Paper and Forestry Products industry, expecting annual earnings growth of 49% over the next 5 years. This is better than its past earnings decline of 59% per year. Meanwhile, the Metals and Mining industry is expected to see its earnings growth to stay flat over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| BHP BHP Group | 5.8%+AU$11.1b | -3.1% | PE12.6x | |
| S32 South32 | 5.3%+AU$872.2m | 43.7% | PE86.1x | |
| LYC Lynas Rare Earths | 9.3%+AU$712.9m | 129.9% | PE53.4x | |
| JHX James Hardie Industries | 1.6%+AU$391.7m | 47.3% | PE39.6x | |
| OZL OZ Minerals | 2.8%+AU$236.9m | 40.9% | PE22x |
