Estimating The Intrinsic Value Of BHP Group Limited (ASX:BHP)
Jun 21
Australian (ASX) Metals and Mining Industry Analysis
UpdatedJul 03, 2024
DataAggregated Company Financials
Companies701
- 7D-0.6%
- 3M-5.8%
- 1Y-9.7%
- YTD-14.5%
Over the last 7 days, the Metals and Mining industry has remained flat, although notably Pilbara Minerals declined by 7.1%. As for the longer term, the industry has declined 9.7% in the last year. As for the next few years, earnings are expected to grow by 14% per annum.
Industry Valuation and Performance
Has the Australian Metals and Mining Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 03 Jul 2024 | AU$465.4b | AU$208.5b | AU$20.7b | 13.2x | 22.4x | 2.2x |
| Fri, 31 May 2024 | AU$496.2b | AU$209.9b | AU$21.0b | 14.4x | 23.6x | 2.4x |
| Sun, 28 Apr 2024 | AU$492.3b | AU$212.4b | AU$21.5b | 13.6x | 22.9x | 2.3x |
| Tue, 26 Mar 2024 | AU$481.7b | AU$214.1b | AU$21.7b | 12.7x | 22.2x | 2.3x |
| Thu, 22 Feb 2024 | AU$486.9b | AU$210.6b | AU$22.2b | 11.1x | 21.9x | 2.3x |
| Sat, 20 Jan 2024 | AU$536.1b | AU$222.8b | AU$32.7b | 11.7x | 16.4x | 2.4x |
| Mon, 18 Dec 2023 | AU$567.9b | AU$220.7b | AU$32.3b | 11.1x | 17.6x | 2.6x |
| Wed, 15 Nov 2023 | AU$529.4b | AU$227.9b | AU$33.8b | 10.3x | 15.7x | 2.3x |
| Fri, 13 Oct 2023 | AU$525.0b | AU$227.3b | AU$33.9b | 10.4x | 15.5x | 2.3x |
| Sun, 10 Sep 2023 | AU$516.7b | AU$228.2b | AU$34.3b | 11.2x | 15x | 2.3x |
| Tue, 08 Aug 2023 | AU$544.0b | AU$236.2b | AU$49.4b | 9.5x | 11x | 2.3x |
| Thu, 06 Jul 2023 | AU$552.2b | AU$233.7b | AU$48.8b | 10.1x | 11.3x | 2.4x |
| Sat, 03 Jun 2023 | AU$530.0b | AU$234.6b | AU$49.0b | 9.9x | 10.8x | 2.3x |
| Mon, 01 May 2023 | AU$544.0b | AU$234.9b | AU$49.3b | 9.6x | 11x | 2.3x |
| Wed, 29 Mar 2023 | AU$528.5b | AU$229.1b | AU$47.9b | 9.1x | 11x | 2.3x |
| Fri, 24 Feb 2023 | AU$553.5b | AU$220.1b | AU$46.2b | 10.5x | 12x | 2.5x |
| Sun, 22 Jan 2023 | AU$584.5b | AU$223.7b | AU$51.3b | 11.4x | 11.4x | 2.6x |
| Tue, 20 Dec 2022 | AU$535.0b | AU$229.9b | AU$53.1b | 10.3x | 10.1x | 2.3x |
| Thu, 17 Nov 2022 | AU$532.0b | AU$227.7b | AU$52.5b | 11.1x | 10.1x | 2.3x |
| Sat, 15 Oct 2022 | AU$478.5b | AU$240.7b | AU$56.5b | 9.4x | 8.5x | 2x |
| Mon, 12 Sep 2022 | AU$483.0b | AU$225.7b | AU$53.0b | 9x | 9.1x | 2.1x |
| Wed, 10 Aug 2022 | AU$483.1b | AU$216.9b | AU$46.5b | 10.4x | 10.4x | 2.2x |
| Fri, 08 Jul 2022 | AU$442.7b | AU$221.5b | AU$47.5b | 8.8x | 9.3x | 2x |
| Sun, 05 Jun 2022 | AU$550.7b | AU$211.7b | AU$45.1b | 10.6x | 12.2x | 2.6x |
| Tue, 03 May 2022 | AU$570.6b | AU$214.5b | AU$45.7b | 11.7x | 12.5x | 2.7x |
| Thu, 31 Mar 2022 | AU$584.8b | AU$204.7b | AU$43.3b | 12.3x | 13.5x | 2.9x |
| Sat, 26 Feb 2022 | AU$518.4b | AU$206.0b | AU$44.6b | 15.6x | 11.6x | 2.5x |
| Mon, 24 Jan 2022 | AU$546.4b | AU$189.8b | AU$38.0b | 16.4x | 14.4x | 2.9x |
| Wed, 22 Dec 2021 | AU$496.8b | AU$191.5b | AU$38.4b | 15.4x | 12.9x | 2.6x |
| Fri, 19 Nov 2021 | AU$454.9b | AU$188.6b | AU$37.8b | 14.6x | 12x | 2.4x |
| Sun, 17 Oct 2021 | AU$459.3b | AU$185.4b | AU$37.1b | 15x | 12.4x | 2.5x |
| Tue, 14 Sep 2021 | AU$475.2b | AU$183.9b | AU$37.2b | 12.2x | 12.8x | 2.6x |
| Thu, 12 Aug 2021 | AU$520.8b | AU$183.9b | AU$37.2b | 13.3x | 14x | 2.8x |
Price to Earnings Ratio
13x
Current Industry PE
- Investors are optimistic on the Australian Metals and Mining industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 22.4x which is higher than its 3-year average PE of 13.6x.
- The industry is trading close to its 3-year average PS ratio of 2.4x.
Past Earnings Growth
- The earnings for companies in the Metals and Mining industry have declined 18% per year over the last three years.
- Meanwhile revenues for these companies have grown 4.4% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Australian Materials industry?
| AU Market | -1.43% | |
| Materials | -0.79% | |
| Metals and Mining | -0.58% | |
| Precious Metals and Minerals | 4.42% | |
| Steel | 0.19% | |
| Diversified Metals and Mining | -0.66% | |
| Gold | -1.12% | |
| Copper | -2.61% | |
| Aluminum | -3.64% | |
| Silver | -4.36% | |
Industry PE
- Investors are most optimistic about the Gold industry even though it's trading below its 3-year average PE ratio of 59.9x.
- Analysts are expecting annual earnings growth of 25.7%, which is higher than its past year's earnings growth of 9.5% per year.
Forecasted Growth
- Analysts are most optimistic on the Copper industry, expecting annual earnings growth of 54% over the next 5 years.
- In contrast, the Steel industry is expected to see its earnings decline by 13% 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 | |
|---|---|---|---|---|---|
| BHP BHP Group | AU$43.65 | 0.7% +AU$1.6b | -3.0% | PE20x | |
| FMG Fortescue | AU$21.92 | 1.3% +AU$892.0m | -0.9% | PE7.8x | |
| S32 South32 | AU$3.78 | 2.7% +AU$451.2m | -1.8% | PS1.6x | |
| SMR Stanmore Resources | AU$3.90 | 11.7% +AU$369.6m | 54.8% | PE5x | |
| CRN Coronado Global Resources | AU$1.39 | 18.9% +AU$368.8m | -11.5% | PE80.7x |
