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U.K. (FTSE) Materials Sector Analysis

UpdatedFeb 16, 2026
DataAggregated Company Financials
Companies156
  • 7D0.4%
  • 3M37.7%
  • 1Y52.3%
  • YTD17.8%

The Materials industry is up 4.3% in the last week, with Rio Tinto Group up 5.0%. Meanwhile, Synthomer actually underperformed within the industry, shrinking 66% in the last week. This takes the industry's 12 month performance to a gain of 52%. Looking forward, earnings are forecast to grow by 25% annually.

Sector Valuation and Performance

Has the U.K. Materials Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 16 Feb 2026UK£323.9bUK£272.4bUK£6.2b23.7x52x1.2x
Wed, 14 Jan 2026UK£295.4bUK£276.3bUK£6.3b21.3x46.7x1.1x
Fri, 12 Dec 2025UK£257.1bUK£276.8bUK£6.4b20.5x40.5x0.9x
Sun, 09 Nov 2025UK£234.9bUK£281.6bUK£6.9b15.7x33.9x0.8x
Tue, 07 Oct 2025UK£233.5bUK£275.7bUK£6.8b17.8x34.4x0.8x
Thu, 04 Sep 2025UK£204.9bUK£276.1bUK£6.7b19.2x30.5x0.7x
Sat, 02 Aug 2025UK£192.9bUK£278.3bUK£7.0b16.8x27.7x0.7x
Mon, 30 Jun 2025UK£189.3bUK£270.2bUK£6.7b14.4x28.1x0.7x
Wed, 28 May 2025UK£194.8bUK£273.6bUK£6.8b16.7x28.6x0.7x
Fri, 25 Apr 2025UK£190.7bUK£277.0bUK£7.1b14.7x26.9x0.7x
Sun, 23 Mar 2025UK£199.8bUK£284.7bUK£7.3b15x27.4x0.7x
Tue, 18 Feb 2025UK£214.3bUK£289.0bUK£8.8b15.4x24.2x0.7x
Thu, 16 Jan 2025UK£218.3bUK£304.3bUK£9.4b15.1x23.3x0.7x
Sat, 14 Dec 2024UK£218.7bUK£295.4bUK£9.1b16.1x24x0.7x
Mon, 11 Nov 2024UK£224.6bUK£292.0bUK£8.8b17.8x25.6x0.8x
Wed, 09 Oct 2024UK£228.0bUK£288.7bUK£8.7b18.3x26.3x0.8x
Fri, 06 Sep 2024UK£209.7bUK£287.2bUK£8.6b14.8x24.3x0.7x
Sun, 04 Aug 2024UK£224.4bUK£286.7bUK£12.6b14.8x17.9x0.8x
Tue, 02 Jul 2024UK£239.9bUK£290.7bUK£13.8b15.7x17.3x0.8x
Thu, 30 May 2024UK£251.0bUK£290.2bUK£13.7b17.3x18.4x0.9x
Sat, 27 Apr 2024UK£249.6bUK£296.0bUK£14.0b15.1x17.8x0.8x
Mon, 25 Mar 2024UK£224.0bUK£294.2bUK£14.1b12.9x15.9x0.8x
Wed, 21 Feb 2024UK£217.6bUK£303.9bUK£19.5b10.9x11.1x0.7x
Fri, 19 Jan 2024UK£233.8bUK£348.2bUK£29.3b10.4x8x0.7x
Sun, 17 Dec 2023UK£248.0bUK£348.7bUK£29.3b10.7x8.5x0.7x
Tue, 14 Nov 2023UK£232.4bUK£359.1bUK£30.0b10x7.7x0.6x
Thu, 12 Oct 2023UK£269.4bUK£385.8bUK£32.3b10.4x8.3x0.7x
Sat, 09 Sep 2023UK£258.9bUK£381.7bUK£32.1b10.3x8.1x0.7x
Mon, 07 Aug 2023UK£275.6bUK£395.8bUK£37.6b10x7.3x0.7x
Wed, 05 Jul 2023UK£272.5bUK£401.7bUK£43.5b9.8x6.3x0.7x
Fri, 02 Jun 2023UK£261.6bUK£406.2bUK£44.0b10.4x5.9x0.6x
Sun, 30 Apr 2023UK£276.4bUK£404.0bUK£43.9b10.3x6.3x0.7x
Tue, 28 Mar 2023UK£281.9bUK£412.2bUK£44.9b10x6.3x0.7x
Thu, 23 Feb 2023UK£308.6bUK£424.3bUK£52.7b10.1x5.9x0.7x
Price to Earnings Ratio

5.9x


Total Market Cap: UK£308.6bTotal Earnings: UK£52.7bTotal Revenue: UK£424.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Materials Sector Price to Earnings3Y Average 20.5x202420252026
Current Industry PE
  • Investors are optimistic on the British Materials industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 52.0x which is higher than its 3-year average PE of 20.4x.
  • The 3-year average PS ratio of 0.76x is lower than the industry's current PS ratio of 1.2x.
Past Earnings Growth
  • The earnings for companies in the Materials industry have declined 51% per year over the last three years,
  • Revenues have also declined 14% 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 U.K. Materials sector?

GB Market0.59%
Materials0.43%
Paper and Forestry Products5.19%
Basic Materials2.15%
Chemicals1.23%
Metals and Mining0.30%
Packaging-1.08%
Industry PE
  • Investors are most optimistic about the Metals and Mining industry which is trading above its 3-year average PE ratio of 20.3x.
    • Analysts are expecting annual earnings growth of 24.8%, which is lower than the prior year's growth of 78.4% per year.
Forecasted Growth
  • Analysts are most optimistic on the Packaging industry, expecting annual earnings growth of 60% over the next 5 years.
  • In contrast, the Paper and Forestry Products industry is expected to see its earnings grow by 22% 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
RIO Rio Tinto GroupUK£71.871.9%
+UK£2.2b		41.3%PE15.5x
AAL Anglo AmericanUK£35.861.1%
+UK£431.7m		27.7%PS2x
MNDI MondiUK£9.555.5%
+UK£217.6m		-27.7%PE25.6x
CRDA Croda InternationalUK£30.564.4%
+UK£181.5m		-4.5%PE30.5x
PAF Pan African ResourcesUK£1.453.0%
+UK£85.1m		328.3%PE28.4x

Latest News

RIO
UK£71.87
Rio Tinto Group
7D
1.9%
1Y
41.3%
GFM
UK£3.29
Griffin Mining
7D
5.8%
1Y
79.8%
SYNT
UK£0.19
Synthomer
7D
-65.8%
1Y
-86.1%
RHIM
UK£31.00
RHI Magnesita
7D
5.3%
1Y
-16.7%

RHIM: Future Returns Will Weaken As Earnings Assumptions Tighten

Analysts have nudged their price target for RHI Magnesita slightly higher to €26.96 from €26.82, citing updated assumptions around the discount rate, modestly stronger revenue growth, a slightly higher profit margin and a lower future P/E multiple. Valuation Changes Fair value estimate nudged slightly higher from €26.82 to €26.96 per share.
GLEN
UK£4.95
Glencore
7D
-1.3%
1Y
41.1%

GLEN: Fair Outlook Weighs Ended Megamerger Talks Against Evolving Earnings Power

Analysts have lifted their Glencore price targets, citing updated assumptions that show fair value at 5.30, slightly higher discount rates at 9.03%, and modest adjustments to revenue growth, profit margin and future P/E expectations. Analyst Commentary Recent research on Glencore shows active debate around where fair value sits, with several price target changes and at least one downgrade shaping a mixed picture.
CRDA
UK£30.56
Croda International
7D
4.4%
1Y
-4.5%
HOC
UK£6.97
Hochschild Mining
7D
-0.9%
1Y
274.9%

HOC: Mixed Broker Views And 2026 Output Plans Will Shape Measured Upside

Narrative Update The analyst price target for Hochschild Mining has moved higher. Recent Street research cites an updated fair value of about £7.59 per share, adjusted revenue growth assumptions of around 18% with slightly higher profit margin expectations, and a modestly lower future P/E of about 14x as key drivers.
PAF
UK£1.45
Pan African Resources
7D
3.0%
1Y
328.3%

If EPS Growth Is Important To You, Pan African Resources (LON:PAF) Presents An Opportunity

Feb 10
If EPS Growth Is Important To You, Pan African Resources (LON:PAF) Presents An Opportunity
SRC
UK£1.45
SigmaRoc
7D
-2.6%
1Y
77.5%

SRC: Small Assumption Shifts Will Support Balanced Future Risk And Reward

Analysts have nudged their price target on SigmaRoc higher, with fair value rising slightly from £1.56 to about £1.58, reflecting small adjustments to the discount rate, revenue growth expectations, profit margin assumptions and future P/E estimates. Valuation Changes Fair Value: revised from £1.56 to about £1.58 per share, reflecting a small upward adjustment.
FRES
UK£38.58
Fresnillo
7D
-0.5%
1Y
391.8%

FRES: Higher Revenue Hopes Will Likely Mask Growing Execution Risk

Analysts have lifted their fair value estimate for Fresnillo from £16.62 to £21.99 per share, reflecting updated assumptions around higher revenue growth, slightly stronger profit margins, a lower future P/E multiple, and recent mixed but generally higher Street price targets. Analyst Commentary Recent Street research on Fresnillo has sent mixed signals, with several firms adjusting price targets in different directions and one downgrade in the mix.
AAL
UK£35.86
Anglo American
7D
1.1%
1Y
27.7%
TUN
UK£0.28
Tungsten West
7D
-20.6%
1Y
799.2%
JMAT
UK£23.14
Johnson Matthey
7D
-1.4%
1Y
57.6%

JMAT: Leaner Leadership And Stable Margins Will Support A Balanced Outlook

Analysts have lifted their price target for Johnson Matthey to £24.00, reflecting updated views on discount rates, expected revenue growth, profit margins and future P/E assumptions, which are now broadly in line with recent Street research. Analyst Commentary Recent research points to a more constructive stance on Johnson Matthey, with bullish analysts aligning their £24.00 target with a 2,400 GBp level highlighted in Street work.
MNDI
UK£9.55
Mondi
7D
5.5%
1Y
-27.7%

MNDI: Weaker Sector Fundamentals Will Pressure Multiples And Heighten Dividend Risk

Analysts have trimmed their price targets for Mondi to a range of about £7.60 to £8.00 per share, reflecting weaker sector fundamentals, more cautious assumptions on revenue growth and profit margins, and concerns that current trading levels sit above the company's long term valuation multiples. Analyst Commentary Bearish analysts have turned more cautious on Mondi, cutting ratings and resetting price targets closer to where they see long term valuation multiples and weaker sector conditions lining up.
ANTO
UK£37.11
Antofagasta
7D
-2.8%
1Y
102.1%

ANTO: Project Execution Risks Likely To Challenge Rich Copper Earnings Expectations

The analyst price target for Antofagasta has been lifted to a new fair value estimate of £21.04 from £18.96 as analysts factor in higher assumed revenue growth, stronger profit margins, and a lower future P/E multiple supported by recent target hikes and rating changes across major banks. Analyst Commentary Recent Street research on Antofagasta points to a mix of optimism on growth projects and caution on how much of that potential is already reflected in the share price.
PRE
UK£1.18
Pensana
7D
19.2%
1Y
389.6%