Analysis Article • Jun 04
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- 7D-17.6%
- 3M-10.4%
- 1Y63.0%
- YTD62.2%
Over the last 7 days, the Chemicals industry has dropped 13%, driven by a pullback from Sasol of 21%. In contrast, Bowler Metcalf has gained 7.7%. In the past year, the industry has gained 75%. As for the next few years, earnings are expected to grow by 40% per annum.
Industry Valuation and Performance
Has the South African Chemicals Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 18 Jun 2026 | R146.6b | R306.7b | R4.2b | 25x | 34.6x | 0.5x |
| Sat, 16 May 2026 | R172.6b | R305.7b | R4.0b | 24.1x | 42.8x | 0.6x |
| Mon, 13 Apr 2026 | R160.2b | R305.7b | R4.1b | 22x | 39.4x | 0.5x |
| Wed, 11 Mar 2026 | R126.2b | R305.7b | R4.1b | 21.4x | 31.1x | 0.4x |
| Fri, 06 Feb 2026 | R95.6b | R306.4b | R8.4b | 11.2x | 11.3x | 0.3x |
| Sun, 04 Jan 2026 | R90.4b | R306.4b | R8.4b | 10.4x | 10.7x | 0.3x |
| Tue, 02 Dec 2025 | R94.2b | R306.4b | R8.4b | 10.6x | 11.2x | 0.3x |
| Thu, 30 Oct 2025 | R91.7b | R306.1b | R8.4b | 10.7x | 10.9x | 0.3x |
| Sat, 27 Sep 2025 | R93.1b | R306.1b | R8.4b | 10.5x | 11.1x | 0.3x |
| Mon, 25 Aug 2025 | R94.1b | R317.9b | -R47,629,875,000.00 | 10.6x | -2x | 0.3x |
| Wed, 23 Jul 2025 | R81.3b | R318.2b | -R47,763,875,000.00 | 11.3x | -1.7x | 0.3x |
| Fri, 20 Jun 2025 | R89.1b | R318.2b | -R47,763,875,000.00 | 11.2x | -1.9x | 0.3x |
| Sun, 18 May 2025 | R66.7b | R318.1b | -R47,723,875,000.00 | 9.9x | -1.4x | 0.2x |
| Tue, 15 Apr 2025 | R64.0b | R318.1b | -R47,723,875,000.00 | 9.6x | -1.3x | 0.2x |
| Thu, 13 Mar 2025 | R72.8b | R318.1b | -R47,723,875,000.00 | 9.2x | -1.5x | 0.2x |
| Sat, 08 Feb 2025 | R70.0b | R335.4b | -R42,229,875,000.00 | 9.2x | -1.7x | 0.2x |
| Mon, 06 Jan 2025 | R76.8b | R335.4b | -R42,238,675,000.00 | 10.5x | -1.8x | 0.2x |
| Wed, 04 Dec 2024 | R79.1b | R335.4b | -R42,238,675,000.00 | 10.2x | -1.9x | 0.2x |
| Fri, 01 Nov 2024 | R85.0b | R334.9b | -R42,240,675,000.00 | 9.3x | -2x | 0.3x |
| Sun, 29 Sep 2024 | R95.1b | R334.9b | -R42,240,675,000.00 | 9.3x | -2.3x | 0.3x |
| Tue, 27 Aug 2024 | R116.4b | R334.8b | -R42,262,702,000.00 | 10.6x | -2.8x | 0.3x |
| Thu, 25 Jul 2024 | R113.0b | R336.7b | R6.2b | 9.2x | 18.2x | 0.3x |
| Sat, 22 Jun 2024 | R107.8b | R336.7b | R6.2b | 9.1x | 17.4x | 0.3x |
| Mon, 20 May 2024 | R104.5b | R339.3b | R6.2b | 8.7x | 17x | 0.3x |
| Wed, 17 Apr 2024 | R125.5b | R339.3b | R6.2b | 8.6x | 20.4x | 0.4x |
| Fri, 15 Mar 2024 | R107.8b | R339.3b | R6.2b | 8.7x | 17.5x | 0.3x |
| Sun, 11 Feb 2024 | R114.2b | R353.8b | R10.9b | 10x | 10.5x | 0.3x |
| Tue, 09 Jan 2024 | R136.6b | R353.8b | R10.9b | 10.9x | 12.5x | 0.4x |
| Thu, 07 Dec 2023 | R141.1b | R353.8b | R10.9b | 10.7x | 12.9x | 0.4x |
| Sat, 04 Nov 2023 | R169.2b | R355.5b | R10.9b | 11.3x | 15.5x | 0.5x |
| Mon, 02 Oct 2023 | R187.3b | R355.5b | R10.9b | 11.2x | 17.1x | 0.5x |
| Wed, 30 Aug 2023 | R177.0b | R355.5b | R11.0b | 9.7x | 16.2x | 0.5x |
| Fri, 28 Jul 2023 | R178.8b | R373.3b | R40.7b | 8.2x | 4.4x | 0.5x |
| Sun, 25 Jun 2023 | R167.6b | R370.4b | R40.7b | 8.3x | 4.1x | 0.5x |
Price to Earnings Ratio
4.1x
Current Industry PE
- Investors are optimistic on the South African Chemicals industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 35.8x which is higher than its 3-year average PE of 10.9x.
- The industry is trading close to its 3-year average PS ratio of 0.34x.
Past Earnings Growth
- The earnings for companies in the Chemicals industry have declined 53% per year over the last three years,
- Revenues have also declined 6.1% 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 South African Materials industry?
| ZA Market | 4.66% | |
| Materials | 11.59% | |
| Chemicals | -17.57% | |
| Commodity Chemicals | 7.69% | |
| Specialty Chemicals | 0.11% | |
| Diversified Chemicals | -19.09% | |
Industry PE
- Investors are most optimistic about the Specialty Chemicals industry which is trading above its 3-year average PE ratio of 19.8x.
- Analysts are expecting annual earnings growth of 43.8%, which is higher than its past year's earnings growth of 24.5% per year.
- Investors are most pessimistic about the Commodity Chemicals industry, which is trading below its 3-year average of 8.4x.
Forecasted Growth
- Analysts are most optimistic on the Specialty Chemicals industry, expecting annual earnings growth of 44% over the next 5 years.
- This is better than its past earnings growth rate of 25% per year.
- In contrast, the Diversified Chemicals industry is expected to see its earnings grow by 40% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| BCF Bowler Metcalf | R14.00 | 7.7% +R68.4m | 7.8% | PE7.3x | |
| AFE AECI | R122.10 | 0.1% +R13.7m | 17.4% | PE37.3x |