Spanish (IBEX) Materials Sector Analysis

Sector Valuation and Performance

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

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 13.9x. 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 declined 6.4% per year over the last three years, while revenues for these companies have grown 2.3% 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 Spanish Materials sector?

Industry PE: Investors are most optimistic about the Packaging industry even though it's trading below its 3-year average PE ratio of 16.6x. However analysts are expecting annual earnings growth of 4.8%, which is lower than the prior year's growth of 30% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Metals and Mining industry, which is trading below its 3-year average of 11.0x.

Forecasted Growth: Analysts are most optimistic on the Paper and Forestry Products industry, expecting annual earnings growth of 55% over the next 5 years. However this is lower than its past earnings growth rate of 76% per year. Meanwhile, the Metals and Mining industry is expected to see its earnings decline by 2.1% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?