Taiwanese (TAIEX) Materials Sector Analysis

Sector Valuation and Performance

Has the Taiwanese 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 17.3x. However, future earnings are expected to decline by 7.5% which could potentially cause the PE ratio to fall below its historical average.

Past Earnings Growth: The earnings for companies in the Materials industry have grown 8.9% per year over the last three years, while revenues have remained mostly flat. This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.

Industry Trends

Which industries have driven the changes within the Taiwanese Materials sector?

Industry PE: Investors are most optimistic about the Paper and Forestry Products industry, which is trading close to its 3-year average PE ratio of 18.5x. However analysts are expecting annual earnings decline of 18%, which is lower than the prior year's growth of 101% per year. So the market might believe that analysts are underestimating future growth or they expect the Paper and Forestry Products industry's earnings to deteriorate the least compared to other industries. Meanwhile, investors are most pessimistic about the Packaging industry, which is trading below its 3-year average of 13.3x.

Forecasted Growth: Analysts are most optimistic on the Packaging industry, expecting annual earnings growth of 8.0% over the next 5 years. However this is lower than its past earnings growth rate of 22% per year. Meanwhile, the Paper and Forestry Products industry is expected to see its earnings decline by 18% per year over the next few years.

Top Stock Gainers and Losers

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