U.K. (FTSE) Basic Materials Industry Analysis

Industry Valuation and Performance

Has the U.K. Basic Materials Industry 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 20.3x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Basic Materials industry have declined 4.6% per year over the last three years, while 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. Basic Materials industry?

Industry PE: Investors are most optimistic about the Construction Materials industry which is trading above its 3-year average PE ratio of 20.3x. However analysts are expecting annual earnings growth of 18%, which is lower than the prior year's growth of 24% per year. So the market might believe that analysts are underestimating future growth.

Forecasted Growth: Analysts are most optimistic on the Construction Materials industry, expecting annual earnings growth of 18% over the next 5 years. However this is lower than its past earnings growth rate of 24% per year.

Top Stock Gainers and Losers

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