South Korean (KOSPI) Materials Sector Analysis

Sector Valuation and Performance

Has the South Korean 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 14.5x. 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 grown 23% per year over the last three years, and revenues for these companies have grown 7.3% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the South Korean Materials sector?

Industry PE: Investors are most optimistic about the Basic Materials industry even though it's trading below its 3-year average PE ratio of 22.1x. However analysts are expecting annual earnings growth of 15%, which is lower than the prior year's growth of 81% 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 13.7x.

Forecasted Growth: Analysts are most optimistic on the Paper and Forestry Products industry, expecting annual earnings growth of 22% over the next 5 years. However this is lower than its past earnings growth rate of 106% per year. Meanwhile, the Metals and Mining industry is expected to see its earnings decline by 8.6% per year over the next few years.

Top Stock Gainers and Losers

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