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South African (JSE) Materials Sector Analysis
UpdatedNov 28, 2021
DataAggregated Company Financials
Companies34
- 7D-1.8%
- 3M0.8%
- 1Y21.1%
- YTD0.4%
Over the last 7 days, the Materials industry has dropped 1.8%, driven by declines in Sibanye Stillwater and Anglo American Platinum of 5.5% and 1.8%, respectively. Meanwhile, Royal Bafokeng Platinum actually outperformed within the industry, gaining 16% in the last week. This takes the industry's 12 month performance to a gain of 21%.
Sector Valuation and Performance
Has the South African Materials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Tue, 30 Nov 2021 | R1.6t | R1.3t | R282.7b | 8x |
| Thu, 28 Oct 2021 | R1.7t | R1.3t | R281.9b | 7.9x |
| Sat, 25 Sep 2021 | R1.5t | R1.3t | R274.0b | 7.1x |
| Mon, 23 Aug 2021 | R1.6t | R1.2t | R268.5b | 6.9x |
| Sat, 10 Jul 2021 | R1.6t | R1.2t | R268.5b | 6.6x |
| Fri, 02 Apr 2021 | R1.8t | R1.1t | R173.3b | 8.4x |
| Mon, 04 Jan 2021 | R1.5t | R1.0t | R74.3b | 8.8x |
| Thu, 08 Oct 2020 | R1.4t | R992.9b | R22.1b | 8.7x |
| Wed, 01 Jul 2020 | R1.3t | R947.6b | -R26,661,223,345.41 | 8.8x |
| Sat, 04 Apr 2020 | R756.4b | R937.9b | R5.6b | 7.7x |
| Tue, 07 Jan 2020 | R1.3t | R874.2b | R38.2b | 10.2x |
| Mon, 30 Sep 2019 | R991.8b | R854.2b | R46.9b | 10.8x |
| Thu, 04 Jul 2019 | R1.0t | R815.5b | R52.1b | 10.8x |
| Sun, 07 Apr 2019 | R985.6b | R804.4b | R37.1b | 10.4x |
| Wed, 09 Jan 2019 | R828.0b | R784.6b | R28.2b | 9.3x |
PE Ratio
9.9x
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 9.3x. However, future earnings are expected to decline by 6.0% 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 139% per year over the last three years, and revenues for these companies have grown 19% 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 African Materials sector?
| Paper and Forestry Products | 0.97% | |
| Packaging | -0.40% | |
| Basic Materials | -1.43% | |
| Metals and Mining | -1.80% | |
| Chemicals | -2.21% | |
Industry PE: Investors are most optimistic about the Paper and Forestry Products industry which is trading above its 3-year average PE ratio of 41.8x. This is likely because analysts are expecting annual earnings growth of 27% and investors are willing to pay a premium for that growth. Meanwhile, investors are most pessimistic about the Metals and Mining industry, which is trading below its 3-year average of 12.9x.
Forecasted Growth: Analysts are most optimistic on the Paper and Forestry Products industry, expecting annual earnings growth of 27% over the next 5 years. Meanwhile, the Metals and Mining industry is expected to see its earnings decline by 11% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| RBP Royal Bafokeng Platinum | 16.4%+R5.7b | 115.7% | PE5.4x | |
| SAP Sappi | 1.4%+R336.9m | 46.5% | PE114.5x | |
| HAR Harmony Gold Mining | 0.5%+R215.8m | -5.1% | PE7.7x | |
| AFE AECI | 1.5%+R179.2m | 32.9% | PE27.8x | |
| OMN Omnia Holdings | 1.3%+R134.2m | 43.4% | PE15.9x |
