Are Investors Undervaluing Anglo American plc (LON:AAL) By 32%?
Oct 30
U.K. (FTSE) Materials Sector Analysis
UpdatedOct 31, 2023
DataAggregated Company Financials
Companies190
- 7D5.2%
- 3M-5.9%
- 1Y-11.4%
- YTD-24.3%
In the last week, the Materials industry is up 5.2%, with Rio Tinto Group up 7.1%. In contrast, the industry has lost 11% in the last 12 months. Earnings are forecast to grow by 2.7% annually.
Sector Valuation and Performance
Has the U.K. Materials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | UK£234.2b | UK£361.2b | UK£30.2b | 9.9x | 7.8x | 0.6x |
| Thu, 28 Sep 2023 | UK£266.4b | UK£389.9b | UK£32.6b | 9.8x | 8.2x | 0.7x |
| Sat, 26 Aug 2023 | UK£257.4b | UK£379.7b | UK£32.3b | 10.1x | 8x | 0.7x |
| Mon, 24 Jul 2023 | UK£279.6b | UK£398.4b | UK£43.2b | 10x | 6.5x | 0.7x |
| Wed, 21 Jun 2023 | UK£273.1b | UK£400.4b | UK£43.3b | 10.2x | 6.3x | 0.7x |
| Fri, 19 May 2023 | UK£268.7b | UK£409.0b | UK£44.3b | 10.1x | 6.1x | 0.7x |
| Sun, 16 Apr 2023 | UK£292.9b | UK£408.0b | UK£44.4b | 10x | 6.6x | 0.7x |
| Tue, 14 Mar 2023 | UK£288.6b | UK£415.0b | UK£45.7b | 9.2x | 6.3x | 0.7x |
| Thu, 09 Feb 2023 | UK£322.1b | UK£415.2b | UK£51.0b | 10.1x | 6.3x | 0.8x |
| Sat, 07 Jan 2023 | UK£317.8b | UK£415.2b | UK£51.0b | 9.7x | 6.2x | 0.8x |
| Mon, 05 Dec 2022 | UK£305.8b | UK£409.0b | UK£50.3b | 9.2x | 6.1x | 0.7x |
| Wed, 02 Nov 2022 | UK£272.8b | UK£432.2b | UK£52.7b | 8x | 5.2x | 0.6x |
| Fri, 30 Sep 2022 | UK£265.1b | UK£445.9b | UK£54.4b | 7.8x | 4.9x | 0.6x |
| Sun, 28 Aug 2022 | UK£280.2b | UK£422.3b | UK£52.4b | 9.8x | 5.3x | 0.7x |
| Tue, 26 Jul 2022 | UK£262.0b | UK£385.0b | UK£46.7b | 10.7x | 5.6x | 0.7x |
| Thu, 23 Jun 2022 | UK£272.9b | UK£378.2b | UK£46.0b | 10.8x | 5.9x | 0.7x |
| Sat, 21 May 2022 | UK£274.3b | UK£349.7b | UK£43.4b | 11.2x | 6.3x | 0.8x |
| Mon, 18 Apr 2022 | UK£310.5b | UK£336.7b | UK£42.0b | 11.6x | 7.4x | 0.9x |
| Wed, 16 Mar 2022 | UK£271.4b | UK£364.0b | UK£52.4b | 10.5x | 5.2x | 0.7x |
| Fri, 11 Feb 2022 | UK£371.7b | UK£315.7b | UK£44.5b | 11.6x | 8.3x | 1.2x |
| Sun, 09 Jan 2022 | UK£360.8b | UK£314.4b | UK£43.9b | 13.3x | 8.2x | 1.1x |
| Tue, 07 Dec 2021 | UK£337.2b | UK£319.4b | UK£44.5b | 12.6x | 7.6x | 1.1x |
| Thu, 04 Nov 2021 | UK£342.7b | UK£310.6b | UK£43.7b | 13x | 7.8x | 1.1x |
| Sat, 02 Oct 2021 | UK£338.1b | UK£308.9b | UK£41.5b | 12.5x | 8.1x | 1.1x |
| Mon, 30 Aug 2021 | UK£365.8b | UK£304.6b | UK£40.8b | 16.7x | 9x | 1.2x |
| Tue, 06 Jul 2021 | UK£368.7b | UK£304.6b | UK£40.8b | 15.3x | 9x | 1.2x |
| Fri, 09 Apr 2021 | UK£350.9b | UK£280.0b | UK£28.7b | 18.1x | 12.2x | 1.3x |
| Thu, 31 Dec 2020 | UK£330.8b | UK£258.9b | UK£17.4b | 18.1x | 19x | 1.3x |
Price to Earnings Ratio
17.1x
Current Industry PE
- Investors are pessimistic on the British Materials industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 7.8x which is lower than its 3-year average PE of 9.2x.
- The industry is trading close to its 3-year average PS ratio of 0.97x.
Past Earnings Growth
- The earnings for companies in the Materials industry have grown 26% per year over the last three years.
- Revenues for these companies have grown 9.2% 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 U.K. Materials sector?
| GB Market | -0.43% | |
| Materials | 5.20% | |
| Packaging | 6.03% | |
| Metals and Mining | 5.53% | |
| Paper and Forestry Products | 5.10% | |
| Chemicals | 2.38% | |
| Basic Materials | -0.77% | |
Industry PE
- Investors are most optimistic about the Chemicals industry which is trading above its 3-year average PE ratio of 31.7x.
- Analysts are expecting annual earnings growth of 20.6%, which is higher than its past year's earnings growth of 13.7% per year.
- Investors are most pessimistic about the Metals and Mining industry, which is trading close to its 3-year average of 8.4x.
Forecasted Growth
- Analysts are most optimistic on the Chemicals industry, expecting annual earnings growth of 21% over the next 5 years.
- This is better than its past earnings growth rate of 14% per year.
- In contrast, the Packaging industry is expected to see its earnings decline by 7.2% 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 | |
|---|---|---|---|---|---|
| RIO Rio Tinto Group | UK£52.39 | 7.1% +UK£5.6b | 15.5% | PE12x | |
| ENPL En+ Group International | US$9.30 | n/a US$4.7b | -8.8% | PE2.2x | |
| GLEN Glencore | UK£4.51 | 5.2% +UK£2.7b | -9.7% | PE6.9x | |
| EVR EVRAZ | UK£0.81 | n/a UK£1.2b | -86.2% | PE0.4x | |
| AAL Anglo American | UK£20.98 | 3.3% +UK£806.6m | -19.6% | PE14.8x |
