Is Now The Time To Put Nufarm (ASX:NUF) On Your Watchlist?
Oct 25
Australian (ASX) Materials Sector Analysis
UpdatedOct 31, 2023
DataAggregated Company Financials
Companies807
- 7D2.9%
- 3M-7.3%
- 1Y9.0%
- YTD-2.7%
The Materials industry is up 1.0% in the last week, with BHP Group up 4.0%. This means that the industry has gained 9.5% over the past year. Looking forward, earnings are forecast to grow by 4.6% annually.
Sector Valuation and Performance
Has the Australian Materials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | AU$572.0b | AU$269.9b | AU$36.9b | 11.6x | 15.5x | 2.1x |
| Thu, 28 Sep 2023 | AU$562.9b | AU$269.8b | AU$37.3b | 12.1x | 15.1x | 2.1x |
| Sat, 26 Aug 2023 | AU$574.6b | AU$268.6b | AU$40.7b | 11.8x | 14.1x | 2.1x |
| Mon, 24 Jul 2023 | AU$601.0b | AU$273.3b | AU$51.3b | 10.4x | 11.7x | 2.2x |
| Wed, 21 Jun 2023 | AU$611.4b | AU$271.7b | AU$50.9b | 11.5x | 12x | 2.2x |
| Fri, 19 May 2023 | AU$594.6b | AU$275.3b | AU$51.8b | 10.3x | 11.5x | 2.2x |
| Sun, 16 Apr 2023 | AU$615.9b | AU$272.7b | AU$51.6b | 10.9x | 11.9x | 2.3x |
| Tue, 14 Mar 2023 | AU$587.2b | AU$269.9b | AU$52.0b | 10.5x | 11.3x | 2.2x |
| Thu, 09 Feb 2023 | AU$623.4b | AU$263.2b | AU$55.0b | 12.6x | 11.3x | 2.4x |
| Sat, 07 Jan 2023 | AU$602.8b | AU$265.2b | AU$55.2b | 11.9x | 10.9x | 2.3x |
| Mon, 05 Dec 2022 | AU$596.0b | AU$267.2b | AU$55.8b | 12.4x | 10.7x | 2.2x |
| Wed, 02 Nov 2022 | AU$520.2b | AU$273.6b | AU$57.7b | 10.4x | 9x | 1.9x |
| Fri, 30 Sep 2022 | AU$506.1b | AU$271.1b | AU$57.4b | 9x | 8.8x | 1.9x |
| Sun, 28 Aug 2022 | AU$560.4b | AU$262.1b | AU$59.9b | 10.8x | 9.4x | 2.1x |
| Tue, 26 Jul 2022 | AU$494.0b | AU$252.5b | AU$48.7b | 10.7x | 10.1x | 2x |
| Thu, 23 Jun 2022 | AU$547.4b | AU$271.8b | AU$49.9b | 10.4x | 11x | 2x |
| Sat, 21 May 2022 | AU$630.2b | AU$269.3b | AU$49.2b | 12.8x | 12.8x | 2.3x |
| Mon, 18 Apr 2022 | AU$695.3b | AU$257.9b | AU$46.9b | 14.2x | 14.8x | 2.7x |
| Wed, 16 Mar 2022 | AU$617.8b | AU$260.0b | AU$47.3b | 14.2x | 13.1x | 2.4x |
| Fri, 11 Feb 2022 | AU$638.6b | AU$241.1b | AU$40.5b | 17.7x | 15.8x | 2.6x |
| Sun, 09 Jan 2022 | AU$614.8b | AU$240.8b | AU$40.9b | 16.9x | 15x | 2.6x |
| Tue, 07 Dec 2021 | AU$555.2b | AU$244.2b | AU$41.7b | 15.8x | 13.3x | 2.3x |
| Thu, 04 Nov 2021 | AU$528.6b | AU$232.7b | AU$39.1b | 16.4x | 13.5x | 2.3x |
| Sat, 02 Oct 2021 | AU$514.7b | AU$236.1b | AU$40.0b | 15.3x | 12.9x | 2.2x |
| Mon, 30 Aug 2021 | AU$581.6b | AU$230.5b | AU$39.4b | 15.4x | 14.8x | 2.5x |
| Tue, 06 Jul 2021 | AU$565.2b | AU$229.9b | AU$39.3b | 14.8x | 14.4x | 2.5x |
| Fri, 09 Apr 2021 | AU$521.6b | AU$209.1b | AU$30.4b | 14.1x | 17.2x | 2.5x |
| Thu, 31 Dec 2020 | AU$503.4b | AU$192.3b | AU$21.7b | 15.7x | 23.2x | 2.6x |
Price to Earnings Ratio
19.6x
Current Industry PE
- Investors are relatively neutral on the Australian Materials industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 14.2x.
- The industry is trading close to its 3-year average PS ratio of 2.3x.
Past Earnings Growth
- The earnings for companies in the Materials industry have grown 20% per year over the last three years.
- Revenues for these companies have grown 11% 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 Australian Materials sector?
| AU Market | -0.99% | |
| Materials | 2.87% | |
| Metals and Mining | 3.36% | |
| Packaging | -1.25% | |
| Basic Materials | -1.65% | |
| Paper and Forestry Products | -1.68% | |
| Chemicals | -2.93% | |
Industry PE
- Investors are most optimistic about the Paper and Forestry Products industry which is trading above its 3-year average PE ratio of 16.4x.
- Analysts expect its future annual earnings growth (4.0%) to be largely in line with prior year's earnings growth.
- Investors are most pessimistic about the Metals and Mining industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 13.1x.
Forecasted Growth
- Analysts are most optimistic on the Chemicals industry, expecting annual earnings growth of 9.9% over the next 5 years.
- This is better than its past earnings decline of 13% per year.
- In contrast, the Paper and Forestry Products industry is expected to see its earnings grow by 4.0% 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 | |
|---|---|---|---|---|---|
| BHP BHP Group | AU$45.11 | 4.0% +AU$8.9b | 20.7% | PE11.3x | |
| FMG Fortescue Metals Group | AU$22.28 | 7.1% +AU$4.5b | 51.6% | PE9.1x | |
| LYC Lynas Rare Earths | AU$7.07 | 16.5% +AU$933.8m | -15.1% | PE21.3x | |
| MIN Mineral Resources | AU$60.20 | 6.7% +AU$728.3m | -17.7% | PE47.9x | |
| PLS Pilbara Minerals | AU$3.82 | 6.7% +AU$722.3m | -25.0% | PE4.8x |
