A Look At The Fair Value Of Fresnillo plc (LON:FRES)
Nov 14
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U.K. (FTSE) Materials Sector Analysis
UpdatedNov 17, 2024
DataAggregated Company Financials
Companies168
- 7D-3.1%
- 3M-3.0%
- 1Y-6.8%
- YTD-10.6%
Over the last 7 days, the Materials industry has dropped 3.1%, driven by declines from every company within the industry. Overall the industry is down 6.8% in 12 months. Looking forward, earnings are forecast to grow by 22% annually.
Sector Valuation and Performance
Has the U.K. Materials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 17 Nov 2024 | UK£216.7b | UK£298.4b | UK£8.9b | 16.9x | 24.2x | 0.7x |
| Tue, 15 Oct 2024 | UK£231.0b | UK£289.3b | UK£8.7b | 18.4x | 26.6x | 0.8x |
| Thu, 12 Sep 2024 | UK£206.7b | UK£289.8b | UK£8.7b | 15.4x | 23.8x | 0.7x |
| Sat, 10 Aug 2024 | UK£222.0b | UK£295.3b | UK£8.8b | 15x | 25.1x | 0.8x |
| Mon, 08 Jul 2024 | UK£245.6b | UK£287.3b | UK£13.7b | 15.5x | 18x | 0.9x |
| Wed, 05 Jun 2024 | UK£244.1b | UK£289.1b | UK£13.6b | 16.8x | 17.9x | 0.8x |
| Fri, 03 May 2024 | UK£247.3b | UK£295.2b | UK£14.0b | 15.8x | 17.7x | 0.8x |
| Sun, 31 Mar 2024 | UK£226.7b | UK£293.6b | UK£14.1b | 14.2x | 16.1x | 0.8x |
| Tue, 27 Feb 2024 | UK£211.6b | UK£292.7b | UK£14.0b | 11.1x | 15.2x | 0.7x |
| Thu, 25 Jan 2024 | UK£237.3b | UK£347.8b | UK£29.3b | 10.4x | 8.1x | 0.7x |
| Sat, 23 Dec 2023 | UK£253.3b | UK£347.6b | UK£29.3b | 10.5x | 8.7x | 0.7x |
| Mon, 20 Nov 2023 | UK£243.9b | UK£355.0b | UK£29.8b | 10.2x | 8.2x | 0.7x |
| Wed, 18 Oct 2023 | UK£271.7b | UK£388.4b | UK£32.5b | 10.3x | 8.4x | 0.7x |
| Fri, 15 Sep 2023 | UK£271.4b | UK£383.3b | UK£32.2b | 10.2x | 8.4x | 0.7x |
| Sun, 13 Aug 2023 | UK£264.4b | UK£375.6b | UK£31.8b | 10x | 8.3x | 0.7x |
| Tue, 11 Jul 2023 | UK£261.6b | UK£398.8b | UK£43.2b | 9.7x | 6.1x | 0.7x |
| Thu, 08 Jun 2023 | UK£271.5b | UK£408.3b | UK£44.2b | 10.2x | 6.1x | 0.7x |
| Sat, 06 May 2023 | UK£273.1b | UK£401.9b | UK£43.7b | 10.2x | 6.2x | 0.7x |
| Mon, 03 Apr 2023 | UK£288.9b | UK£410.0b | UK£44.6b | 10.1x | 6.5x | 0.7x |
| Wed, 01 Mar 2023 | UK£299.1b | UK£417.6b | UK£46.1b | 10.1x | 6.5x | 0.7x |
| Fri, 27 Jan 2023 | UK£329.4b | UK£407.1b | UK£50.0b | 9.8x | 6.6x | 0.8x |
| Sun, 25 Dec 2022 | UK£308.5b | UK£415.7b | UK£51.0b | 9.5x | 6x | 0.7x |
| Tue, 22 Nov 2022 | UK£290.8b | UK£422.6b | UK£51.6b | 8.4x | 5.6x | 0.7x |
| Thu, 20 Oct 2022 | UK£261.6b | UK£438.7b | UK£53.5b | 8.1x | 4.9x | 0.6x |
| Sat, 17 Sep 2022 | UK£269.3b | UK£433.5b | UK£53.6b | 8.8x | 5x | 0.6x |
| Mon, 15 Aug 2022 | UK£283.9b | UK£411.1b | UK£51.1b | 10.4x | 5.6x | 0.7x |
| Wed, 13 Jul 2022 | UK£252.1b | UK£373.8b | UK£44.9b | 10.3x | 5.6x | 0.7x |
| Fri, 10 Jun 2022 | UK£315.6b | UK£371.9b | UK£45.3b | 11.4x | 7x | 0.8x |
| Sun, 08 May 2022 | UK£275.1b | UK£352.0b | UK£43.8b | 11.5x | 6.3x | 0.8x |
| Tue, 05 Apr 2022 | UK£314.8b | UK£362.9b | UK£52.3b | 11.6x | 6x | 0.9x |
| Thu, 03 Mar 2022 | UK£290.2b | UK£357.0b | UK£51.8b | 10.8x | 5.6x | 0.8x |
| Sat, 29 Jan 2022 | UK£348.1b | UK£316.8b | UK£44.2b | 11.2x | 7.9x | 1.1x |
| Mon, 27 Dec 2021 | UK£348.2b | UK£317.2b | UK£44.2b | 10.8x | 7.9x | 1.1x |
| Wed, 24 Nov 2021 | UK£347.3b | UK£315.4b | UK£44.2b | 13x | 7.8x | 1.1x |
Price to Earnings Ratio
7.8x
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 24.2x which is higher than its 3-year average PE of 10.5x.
- The industry is trading close to its 3-year average PS ratio of 0.81x.
Past Earnings Growth
- The earnings for companies in the Materials industry have declined 41% per year over the last three years.
- Meanwhile revenues have remained mostly flat.
- This means that although sales have remained flat, 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 U.K. Materials sector?
| GB Market | -0.14% | |
| Materials | -3.06% | |
| Basic Materials | 0.078% | |
| Packaging | -0.27% | |
| Chemicals | -1.55% | |
| Paper and Forestry Products | -2.95% | |
| Metals and Mining | -3.36% | |
Industry PE
- Investors are most optimistic about the Chemicals industry which is trading above its 3-year average PE ratio of 42.2x.
- Analysts are expecting annual earnings growth of 28.4%, which is higher than its past year's earnings decline of 36.8% per year.
- Investors are most pessimistic about the Paper and Forestry Products industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 13.4x.
Forecasted Growth
- Analysts are most optimistic on the Chemicals industry, expecting annual earnings growth of 28% over the next 5 years.
- This is better than its past earnings decline of 37% per year.
- In contrast, the Packaging industry is expected to see its earnings grow by 8.1% 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 | |
|---|---|---|---|---|---|
| ENPL En+ Group International | US$9.30 | n/a US$4.7b | -8.8% | PE2.2x | |
| EVR EVRAZ | UK£0.81 | n/a UK£1.2b | -86.2% | PE0.4x | |
| FXPO Ferrexpo | UK£0.83 | 8.7% +UK£38.8m | 2.9% | PS0.7x | |
| HILS Hill & Smith | UK£21.60 | 2.1% +UK£36.1m | 15.5% | PE22.6x | |
| MSLH Marshalls | UK£3.35 | 4.0% +UK£32.8m | 44.1% | PE39.1x |
