The Returns On Capital At Fortescue (ASX:FMG) Don't Inspire Confidence
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Australian (ASX) Materials Sector Analysis
UpdatedJun 08, 2025
DataAggregated Company Financials
Companies713
- 7D1.3%
- 3M3.2%
- 1Y-9.3%
- YTD2.2%
Over the last 7 days, the Materials industry has risen 1.3%, driven by gains from James Hardie Industries of 13%. In the same time, West African Resources was down 15%. In the past year, the industry is down 9.3%. Earnings are forecast to grow by 13% annually.
Sector Valuation and Performance
Has the Australian Materials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 09 Jun 2025 | AU$493.3b | AU$237.5b | AU$21.9b | 13.1x | 22.5x | 2.1x |
| Wed, 07 May 2025 | AU$469.9b | AU$238.2b | AU$22.4b | 12.7x | 21x | 2x |
| Fri, 04 Apr 2025 | AU$450.5b | AU$241.0b | AU$22.9b | 13.4x | 19.7x | 1.9x |
| Sun, 02 Mar 2025 | AU$477.3b | AU$243.6b | AU$23.3b | 13.6x | 20.4x | 2x |
| Tue, 28 Jan 2025 | AU$495.3b | AU$244.8b | AU$22.0b | 13.5x | 22.5x | 2x |
| Thu, 26 Dec 2024 | AU$482.8b | AU$246.2b | AU$22.2b | 13.5x | 21.7x | 2x |
| Sat, 23 Nov 2024 | AU$500.8b | AU$239.8b | AU$21.3b | 13.3x | 23.5x | 2.1x |
| Mon, 21 Oct 2024 | AU$521.0b | AU$235.4b | AU$21.2b | 15.8x | 24.5x | 2.2x |
| Wed, 18 Sep 2024 | AU$479.2b | AU$234.9b | AU$20.9b | 16.4x | 22.9x | 2x |
| Fri, 16 Aug 2024 | AU$466.9b | AU$241.5b | AU$22.4b | 14.3x | 20.8x | 1.9x |
| Sun, 14 Jul 2024 | AU$523.6b | AU$237.0b | AU$21.4b | 15.6x | 24.5x | 2.2x |
| Tue, 11 Jun 2024 | AU$556.1b | AU$250.3b | AU$22.6b | 16.1x | 24.6x | 2.2x |
| Thu, 09 May 2024 | AU$564.8b | AU$251.8b | AU$23.1b | 16x | 24.4x | 2.2x |
| Sat, 06 Apr 2024 | AU$557.9b | AU$253.3b | AU$23.3b | 15.7x | 24x | 2.2x |
| Mon, 04 Mar 2024 | AU$560.1b | AU$253.1b | AU$24.6b | 15.1x | 22.8x | 2.2x |
| Wed, 31 Jan 2024 | AU$616.2b | AU$263.0b | AU$35.0b | 14.2x | 17.6x | 2.3x |
| Fri, 29 Dec 2023 | AU$654.4b | AU$257.9b | AU$33.9b | 14.5x | 19.3x | 2.5x |
| Sun, 26 Nov 2023 | AU$594.5b | AU$263.2b | AU$35.0b | 12.5x | 17x | 2.3x |
| Tue, 24 Oct 2023 | AU$555.5b | AU$271.7b | AU$37.2b | 11.6x | 14.9x | 2x |
| Thu, 21 Sep 2023 | AU$578.8b | AU$267.3b | AU$36.9b | 12.1x | 15.7x | 2.2x |
| Sat, 19 Aug 2023 | AU$574.9b | AU$281.0b | AU$52.7b | 11.2x | 10.9x | 2x |
| Mon, 17 Jul 2023 | AU$614.3b | AU$270.8b | AU$50.6b | 11.1x | 12.1x | 2.3x |
| Wed, 14 Jun 2023 | AU$587.6b | AU$272.1b | AU$51.0b | 11.4x | 11.5x | 2.2x |
| Fri, 12 May 2023 | AU$594.7b | AU$273.1b | AU$51.5b | 11x | 11.5x | 2.2x |
| Sun, 09 Apr 2023 | AU$591.0b | AU$273.7b | AU$51.8b | 10.2x | 11.4x | 2.2x |
| Tue, 07 Mar 2023 | AU$612.9b | AU$267.8b | AU$51.5b | 11.1x | 11.9x | 2.3x |
| Thu, 02 Feb 2023 | AU$631.0b | AU$260.5b | AU$54.2b | 12.4x | 11.6x | 2.4x |
| Sat, 31 Dec 2022 | AU$574.3b | AU$266.8b | AU$55.6b | 11.5x | 10.3x | 2.2x |
| Mon, 28 Nov 2022 | AU$573.9b | AU$268.1b | AU$56.1b | 11.8x | 10.2x | 2.1x |
| Wed, 26 Oct 2022 | AU$518.9b | AU$276.2b | AU$58.5b | 10.4x | 8.9x | 1.9x |
| Fri, 23 Sep 2022 | AU$518.1b | AU$266.3b | AU$56.5b | 9.5x | 9.2x | 1.9x |
| Sun, 21 Aug 2022 | AU$550.2b | AU$256.7b | AU$56.7b | 11.5x | 9.7x | 2.1x |
| Tue, 19 Jul 2022 | AU$467.9b | AU$256.1b | AU$49.6b | 10.2x | 9.4x | 1.8x |
| Thu, 16 Jun 2022 | AU$571.0b | AU$274.3b | AU$50.4b | 10.8x | 11.3x | 2.1x |
Price to Earnings Ratio
11.3x
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 22.5x which is higher than its 3-year average PE of 16.9x.
- The industry is trading close to its 3-year average PS ratio of 2.1x.
Past Earnings Growth
- The earnings for companies in the Materials industry have declined 24% per year over the last three years,
- Revenues have also declined 4.5% 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 | 1.02% | |
| Materials | 1.34% | |
| Basic Materials | 13.59% | |
| Metals and Mining | 0.91% | |
| Packaging | -0.11% | |
| Chemicals | -1.30% | |
| Paper and Forestry Products | -2.97% | |
Industry PE
- Investors are most optimistic about the Basic Materials industry which is trading above its 3-year average PE ratio of 24.9x.
- Analysts are expecting annual earnings growth of 23.0%, which is lower than the prior year's growth of 89.3% per year.
Forecasted Growth
- Analysts are most optimistic on the Paper and Forestry Products industry, expecting annual earnings growth of 103% over the next 5 years.
- In contrast, the Packaging industry is expected to see its earnings decline by 20% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| JHX James Hardie Industries | AU$40.06 | 13.0% +AU$2.0b | -13.7% | PE26.4x | |
| LYC Lynas Rare Earths | AU$9.15 | 16.0% +AU$1.2b | 37.4% | PE168.4x | |
| FMG Fortescue | AU$15.65 | 1.7% +AU$799.4m | -35.8% | PE8x | |
| BKW Brickworks | AU$32.42 | 17.8% +AU$748.4m | 21.3% | PS4.7x | |
| BSL BlueScope Steel | AU$23.77 | 4.5% +AU$447.3m | 12.4% | PE19.2x |
