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U.K. (FTSE) Materials Sector Analysis

UpdatedMay 20, 2026
DataAggregated Company Financials
Companies157
  • 7D-5.3%
  • 3M-1.6%
  • 1Y69.3%
  • YTD19.3%

Over the last 7 days, the Materials industry has dropped 3.5%, driven by a pullback from Rio Tinto Group of 5.2%. Meanwhile, Guardian Metal Resources actually outperformed within the industry, gaining 21% in the last week. This takes the industry's 12 month performance to a gain of 76%. Looking forward, earnings are forecast to grow by 18% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 20 May 2026UK£328.0bUK£287.4bUK£8.9b17.4x36.9x1.1x
Fri, 17 Apr 2026UK£329.7bUK£285.1bUK£8.9b19.1x37.1x1.2x
Sun, 15 Mar 2026UK£302.7bUK£290.8bUK£9.4b19.5x32.3x1x
Tue, 10 Feb 2026UK£321.6bUK£272.2bUK£6.2b23.6x51.7x1.2x
Thu, 08 Jan 2026UK£286.8bUK£275.6bUK£6.3b21.2x45.5x1x
Sat, 06 Dec 2025UK£254.4bUK£278.6bUK£6.4b19.8x39.7x0.9x
Mon, 03 Nov 2025UK£242.9bUK£282.1bUK£6.9b15.6x35x0.9x
Wed, 01 Oct 2025UK£230.8bUK£276.3bUK£6.8b16.6x34x0.8x
Fri, 29 Aug 2025UK£202.9bUK£274.8bUK£6.7b18.1x30.1x0.7x
Sun, 27 Jul 2025UK£204.0bUK£275.3bUK£6.8b15.6x29.9x0.7x
Tue, 24 Jun 2025UK£185.2bUK£273.4bUK£6.8b15x27.1x0.7x
Thu, 22 May 2025UK£194.7bUK£275.5bUK£7.1b16.6x27.5x0.7x
Sat, 19 Apr 2025UK£182.7bUK£278.0bUK£7.1b15.4x25.7x0.7x
Mon, 17 Mar 2025UK£204.7bUK£284.2bUK£7.2b14.8x28.2x0.7x
Wed, 12 Feb 2025UK£210.9bUK£293.0bUK£9.0b15.3x23.4x0.7x
Fri, 10 Jan 2025UK£215.5bUK£302.3bUK£9.3b15x23.2x0.7x
Sun, 08 Dec 2024UK£220.6bUK£293.1bUK£9.0b16.4x24.4x0.8x
Tue, 05 Nov 2024UK£228.0bUK£291.5bUK£8.7b16.6x26.1x0.8x
Thu, 03 Oct 2024UK£237.2bUK£285.2bUK£8.5b18.7x27.8x0.8x
Sat, 31 Aug 2024UK£220.2bUK£287.9bUK£8.6b16.8x25.5x0.8x
Mon, 29 Jul 2024UK£232.4bUK£285.2bUK£12.1b15.9x19.2x0.8x
Wed, 26 Jun 2024UK£239.6bUK£289.9bUK£13.7b13.6x17.5x0.8x
Fri, 24 May 2024UK£256.5bUK£291.9bUK£13.7b16.4x18.7x0.9x
Sun, 21 Apr 2024UK£243.5bUK£298.7bUK£14.1b15.2x17.2x0.8x
Tue, 19 Mar 2024UK£217.9bUK£291.7bUK£14.0b12.3x15.6x0.7x
Thu, 15 Feb 2024UK£217.6bUK£305.1bUK£19.6b11.4x11.1x0.7x
Sat, 13 Jan 2024UK£241.1bUK£347.3bUK£29.2b10.5x8.2x0.7x
Mon, 11 Dec 2023UK£242.2bUK£351.4bUK£29.5b10.4x8.2x0.7x
Wed, 08 Nov 2023UK£233.3bUK£358.5bUK£30.0b9.9x7.8x0.7x
Fri, 06 Oct 2023UK£260.9bUK£389.4bUK£32.6b10.2x8x0.7x
Sun, 03 Sep 2023UK£265.4bUK£379.3bUK£32.2b10.4x8.2x0.7x
Tue, 01 Aug 2023UK£282.6bUK£394.0bUK£37.8b10.1x7.5x0.7x
Thu, 29 Jun 2023UK£267.4bUK£403.8bUK£43.7b9.9x6.1x0.7x
Sat, 27 May 2023UK£264.2bUK£411.3bUK£44.5b10.2x5.9x0.6x
Price to Earnings Ratio

5.9x


Total Market Cap: UK£264.2bTotal Earnings: UK£44.5bTotal Revenue: UK£411.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Materials Sector Price to Earnings3Y Average 23.1x202420252026
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 38.0x which is higher than its 3-year average PE of 23.1x.
  • The 3-year average PS ratio of 0.79x 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 42% per year over the last three years,
  • Revenues have also declined 11% 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 Market0.16%
Materials-5.29%
Packaging0%0
Chemicals-0.21%
Basic Materials-1.19%
Paper and Forestry Products-2.89%
Metals and Mining-5.53%
Industry PE
  • Investors are most optimistic about the Metals and Mining industry which is trading above its 3-year average PE ratio of 23.0x.
    • Analysts are expecting annual earnings growth of 17.2%, which is lower than the prior year's growth of 108.1% per year.
Forecasted Growth
  • Analysts are most optimistic on the Chemicals industry, expecting annual earnings growth of 39% over the next 5 years.
  • This is better than its past earnings decline of 60% per year.
  • In contrast, the Packaging industry is expected to see its earnings grow by 4.0% 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
GMET Guardian Metal ResourcesUK£2.4521.3%
+UK£83.6m		504.9%PB18.4x
HILS Hill & SmithUK£25.802.6%
+UK£51.1m		33.0%PE24.6x
ACG ACG MetalsUK£16.507.8%
+UK£27.8m		279.3%PS3.8x
VCT VictrexUK£5.983.3%
+UK£16.5m		-25.9%PS1.8x
ZNWD Zinnwald LithiumUK£0.08741.0%
+UK£13.8m		44.5%PB1.3x

Latest News

VCT
UK£5.98
Victrex
7D
3.3%
1Y
-25.9%
RIO
UK£75.09
Rio Tinto Group
7D
-5.2%
1Y
60.7%
AAL
UK£36.57
Anglo American
7D
-6.2%
1Y
53.5%
HOC
UK£5.77
Hochschild Mining
7D
-14.1%
1Y
113.0%
Narrative Update • May 19

HOC: Structurally Bullish Gold View Will Support Repricing Potential

Analysts have trimmed the fair value estimate for Hochschild Mining slightly, with the updated price target now implying a value of about £8.04 per share compared with £8.07 previously. This reflects recent cuts to Street targets in £40 to £110 increments, alongside only marginal tweaks to growth, margin and P/E assumptions.
FRES
UK£31.93
Fresnillo
7D
-12.3%
1Y
206.7%
Narrative Update • May 18

FRES: Production Slippage And Diverging Street Views Will Pressure Future Returns

Fresnillo’s updated analyst price target has shifted to reflect mixed recent moves, including a £4.00 increase at Citi and several reductions of £1.00 to £4.00 at other firms, as analysts factor in revised assumptions for discount rate, revenue growth, profit margin, and future P/E. Analyst Commentary Recent Street research on Fresnillo shows a split view, with some higher price targets sitting alongside a series of reductions.
ZNWD
UK£0.087
Zinnwald Lithium
7D
41.0%
1Y
44.5%
ELM
UK£1.45
Elementis
7D
1.4%
1Y
12.3%
Narrative Update • May 17

ELM: Refined Assumptions Will Still Support Future Upside Potential

Analysts have trimmed their price target on Elementis to £2.00 from £2.05, citing updated assumptions around fair value, discount rate, revenue growth, profit margins and future P/E multiples. Analyst Commentary Bullish analysts continue to see upside in Elementis even after the price target revision to £2.00, pointing to what they view as an attractive entry point relative to their fair value work.
PAF
UK£1.36
Pan African Resources
7D
-11.7%
1Y
198.1%
ANTO
UK£36.49
Antofagasta
7D
-7.7%
1Y
103.9%
Narrative Update • May 15

ANTO: Geopolitical And Sector Risks Will Likely Pressure Copper Upside Potential

Analysts have nudged the fair value estimate for Antofagasta slightly lower to £23.50 from about £23.72, reflecting a modestly higher discount rate and mixed price target revisions, with several recent moves in the £100 to £600 range across the broker community. Analyst Commentary Recent Street research on Antofagasta shows a wide spread of views, with some firms lifting price targets while others turn more cautious.
GMET
UK£2.45
Guardian Metal Resources
7D
21.3%
1Y
504.9%
GLEN
UK£5.63
Glencore
7D
-1.9%
1Y
107.6%
ATYM
UK£7.76
Atalaya Mining Copper
7D
-8.4%
1Y
95.0%
MSLH
UK£1.31
Marshalls
7D
3.7%
1Y
-55.2%
Narrative Update • May 03

MSLH: Stronger Margins And Covered Dividend Will Support Future Upside Potential

Analysts have lowered their price target on Marshalls to reflect a revised fair value estimate of £3.60, based on updated assumptions that include a higher discount rate, slightly softer revenue growth expectations, a stronger profit margin and a reduced future P/E multiple. What's in the News The Board has proposed a final dividend of 4.5 pence per share, in line with Marshalls' policy of distributions being covered twice by adjusted earnings (Key Developments).
HILS
UK£25.80
Hill & Smith
7D
2.6%
1Y
33.0%
Narrative Update • Apr 27

HILS: Updated Price Objective And Capital Deployment Will Shape Future Fair Value

Analysts have raised their price target on Hill & Smith to £29.30 from £26.25, citing updated assumptions on fair value, discount rate, revenue growth, profit margin and future P/E, which support a higher valuation range. Analyst Commentary Bullish Takeaways Bullish analysts point to the higher price target of 2,930 GBp as support for a wider valuation range that still aligns with their updated fair value work.
MTL
UK£0.13
Metals Exploration
7D
3.1%
1Y
71.2%
ACG
UK£16.50
ACG Metals
7D
7.8%
1Y
279.3%