Returns On Capital Signal Tricky Times Ahead For African Rainbow Minerals (JSE:ARI)
Jun 03
South African (JSE) Metals and Mining Industry Analysis
UpdatedJun 03, 2024
DataAggregated Company Financials
Companies17
- 7D-6.4%
- 3M8.7%
- 1Y-16.9%
- YTD-5.9%
Over the last 7 days, the Metals and Mining industry has dropped 6.4%, driven by Anglo American Platinum declining 15%. Meanwhile, Gemfields Group actually outperformed within the industry, gaining 7.8% in the last week. However, the industry is down 17% over the past year. As for the next few years, earnings are expected to grow by 31% per annum.
Industry Valuation and Performance
Has the South African Metals and Mining Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 03 Jun 2024 | R954.1b | R691.9b | R14.3b | 6.9x | 66.9x | 1.4x |
| Wed, 01 May 2024 | R947.4b | R691.5b | R14.5b | 6.5x | 65.2x | 1.4x |
| Fri, 29 Mar 2024 | R946.1b | R692.2b | R13.6b | 6.5x | 69.4x | 1.4x |
| Sun, 25 Feb 2024 | R865.9b | R724.6b | R83.3b | 7.5x | 10.4x | 1.2x |
| Tue, 23 Jan 2024 | R929.8b | R734.2b | R93.4b | 7.3x | 10x | 1.3x |
| Thu, 21 Dec 2023 | R1.1t | R728.9b | R92.6b | 8.1x | 11.4x | 1.4x |
| Sat, 18 Nov 2023 | R916.3b | R730.3b | R93.4b | 7.2x | 9.8x | 1.3x |
| Mon, 16 Oct 2023 | R947.5b | R733.8b | R93.9b | 7.6x | 10.1x | 1.3x |
| Wed, 13 Sep 2023 | R987.9b | R819.8b | R96.1b | 5.5x | 10.3x | 1.2x |
| Fri, 11 Aug 2023 | R1.1t | R842.5b | R140.5b | 4.4x | 7.9x | 1.3x |
| Sun, 09 Jul 2023 | R1.1t | R869.6b | R167.6b | 4.3x | 6.7x | 1.3x |
| Tue, 06 Jun 2023 | R1.4t | R881.8b | R176.8b | 5x | 7.8x | 1.6x |
| Thu, 04 May 2023 | R1.4t | R883.5b | R181.9b | 5.1x | 7.8x | 1.6x |
| Sat, 01 Apr 2023 | R1.2t | R859.4b | R169.0b | 4.5x | 7.4x | 1.4x |
| Mon, 27 Feb 2023 | R1.2t | R867.5b | R169.6b | 4.7x | 7x | 1.4x |
| Wed, 25 Jan 2023 | R1.4t | R891.7b | R197.4b | 5.7x | 7.1x | 1.6x |
| Fri, 23 Dec 2022 | R1.4t | R890.6b | R197.0b | 5.5x | 7x | 1.5x |
| Sun, 20 Nov 2022 | R1.4t | R890.2b | R196.8b | 5.5x | 7.2x | 1.6x |
| Tue, 18 Oct 2022 | R1.2t | R900.3b | R198.5b | 4.6x | 5.9x | 1.3x |
| Thu, 15 Sep 2022 | R1.2t | R888.4b | R197.0b | 5.2x | 5.9x | 1.3x |
| Sat, 13 Aug 2022 | R1.2t | R901.4b | R212.6b | 5.1x | 5.8x | 1.4x |
| Mon, 11 Jul 2022 | R1.3t | R943.9b | R248.0b | 4.8x | 5.3x | 1.4x |
| Wed, 08 Jun 2022 | R1.4t | R929.9b | R245.1b | 5.2x | 5.7x | 1.5x |
| Fri, 06 May 2022 | R1.5t | R935.8b | R246.0b | 5.2x | 6x | 1.6x |
| Sun, 03 Apr 2022 | R1.7t | R911.9b | R239.3b | 6.7x | 7.2x | 1.9x |
| Tue, 01 Mar 2022 | R1.9t | R909.0b | R266.4b | 7.1x | 7.1x | 2.1x |
| Thu, 27 Jan 2022 | R1.6t | R910.8b | R268.7b | 6.1x | 5.8x | 1.7x |
| Sat, 25 Dec 2021 | R1.4t | R914.8b | R269.6b | 5.6x | 5.3x | 1.6x |
| Mon, 22 Nov 2021 | R1.5t | R937.4b | R272.5b | 5.3x | 5.4x | 1.6x |
| Wed, 20 Oct 2021 | R1.4t | R926.5b | R270.7b | 5.2x | 5.3x | 1.5x |
| Fri, 17 Sep 2021 | R1.2t | R893.0b | R259.1b | 5x | 4.6x | 1.3x |
| Sun, 15 Aug 2021 | R1.5t | R890.5b | R258.5b | 5.8x | 5.7x | 1.7x |
| Thu, 10 Jun 2021 | R1.6t | R800.2b | R210.1b | 9.5x | 7.6x | 2x |
Price to Earnings Ratio
7.6x
Current Industry PE
- Investors are optimistic on the South African Metals and Mining industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 66.9x which is higher than its 3-year average PE of 12.2x.
- The industry is trading close to its 3-year average PS ratio of 1.5x.
Past Earnings Growth
- The earnings for companies in the Metals and Mining industry have declined 59% per year over the last three years,
- Revenues have also declined 4.7% 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 | -3.99% | |
| Materials | -6.02% | |
| Metals and Mining | -6.44% | |
| Copper | 3.33% | |
| Silver | 0% | |
| Aluminum | -0.51% | |
| Gold | -1.72% | |
| Diversified Metals and Mining | -2.09% | |
| Steel | -6.82% | |
| Precious Metals and Minerals | -11.04% | |
Industry PE
- Investors are most optimistic about the Gold industry, which is trading close to its 3-year average PE ratio of 15.7x.
- Analysts are expecting annual earnings growth of 25.7%, which is higher than its past year's earnings growth of 3.5% per year.
Forecasted Growth
- Analysts are most optimistic on the Precious Metals and Minerals industry, expecting annual earnings growth of 57% over the next 5 years.
- This is better than its past earnings decline of 57% per year.
- In contrast, the Steel 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 | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| GML Gemfields Group | R3.05 | 8.5% +R280.0m | -19.7% | PS0.7x | |
| WEZ Wesizwe Platinum | R0.64 | 25.5% +R211.6m | -41.8% | PB0.3x | |
| MRF Merafe Resources | R1.27 | 3.3% +R100.0m | 12.4% | PE1.8x | |
| CPR Copper 360 | R4.34 | 3.3% +R88.2m | 23.3% | PS51.9x | |
| MDI Master Drilling Group | R12.05 | 3.0% +R53.0m | -10.9% | PE4.7x |
