Are Investors Undervaluing Anglo American plc (LON:AAL) By 32%?
Oct 30
U.K. (FTSE) Metals and Mining Industry Analysis
UpdatedOct 30, 2023
DataAggregated Company Financials
Companies144
- 7D3.4%
- 3M-5.3%
- 1Y-9.5%
- YTD-24.2%
In the last week, the Metals and Mining industry is up 3.4%, with Rio Tinto Group up 7.1%. In the same time, Sylvania Platinum was down 14%. In contrast, the industry has lost 9.5% in the last 12 months. As for the next few years, earnings are expected to grow by 1.8% per annum.
Industry Valuation and Performance
Has the U.K. Metals and Mining Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | UK£204.9b | UK£316.8b | UK£28.4b | 10x | 7.2x | 0.6x |
| Thu, 28 Sep 2023 | UK£205.5b | UK£316.5b | UK£28.4b | 7.3x | 7.2x | 0.6x |
| Sat, 26 Aug 2023 | UK£195.2b | UK£307.3b | UK£28.0b | 6.9x | 7x | 0.6x |
| Mon, 24 Jul 2023 | UK£214.8b | UK£326.8b | UK£38.3b | 6.9x | 5.6x | 0.7x |
| Wed, 21 Jun 2023 | UK£212.7b | UK£328.8b | UK£38.5b | 7.6x | 5.5x | 0.6x |
| Fri, 19 May 2023 | UK£206.3b | UK£336.6b | UK£39.3b | 7.9x | 5.2x | 0.6x |
| Sun, 16 Apr 2023 | UK£230.6b | UK£336.8b | UK£39.4b | 8.9x | 5.9x | 0.7x |
| Tue, 14 Mar 2023 | UK£226.1b | UK£342.8b | UK£40.5b | 7.4x | 5.6x | 0.7x |
| Thu, 09 Feb 2023 | UK£256.9b | UK£342.9b | UK£45.5b | 6.7x | 5.6x | 0.7x |
| Sat, 07 Jan 2023 | UK£256.4b | UK£343.0b | UK£45.5b | 7.2x | 5.6x | 0.7x |
| Mon, 05 Dec 2022 | UK£246.3b | UK£338.4b | UK£45.0b | 6.7x | 5.5x | 0.7x |
| Wed, 02 Nov 2022 | UK£216.4b | UK£358.6b | UK£47.4b | 5.2x | 4.6x | 0.6x |
| Fri, 30 Sep 2022 | UK£213.2b | UK£370.9b | UK£48.9b | 5.2x | 4.4x | 0.6x |
| Sun, 28 Aug 2022 | UK£222.1b | UK£349.9b | UK£47.2b | 5.8x | 4.7x | 0.6x |
| Tue, 26 Jul 2022 | UK£203.9b | UK£316.8b | UK£42.4b | 5.8x | 4.8x | 0.6x |
| Thu, 23 Jun 2022 | UK£217.9b | UK£310.6b | UK£41.7b | 5.7x | 5.2x | 0.7x |
| Sat, 21 May 2022 | UK£237.3b | UK£307.0b | UK£41.2b | 6.1x | 5.8x | 0.8x |
| Mon, 18 Apr 2022 | UK£272.6b | UK£294.2b | UK£39.9b | 7.7x | 6.8x | 0.9x |
| Wed, 16 Mar 2022 | UK£234.4b | UK£321.6b | UK£50.3b | 6.9x | 4.7x | 0.7x |
| Fri, 11 Feb 2022 | UK£329.0b | UK£274.9b | UK£42.8b | 7.7x | 7.7x | 1.2x |
| Sun, 09 Jan 2022 | UK£313.8b | UK£273.7b | UK£42.2b | 7.9x | 7.4x | 1.1x |
| Tue, 07 Dec 2021 | UK£290.8b | UK£278.9b | UK£42.8b | 9.4x | 6.8x | 1x |
| Thu, 04 Nov 2021 | UK£294.7b | UK£272.0b | UK£42.0b | 8.5x | 7x | 1.1x |
| Sat, 02 Oct 2021 | UK£291.9b | UK£270.3b | UK£39.8b | 7.9x | 7.3x | 1.1x |
| Mon, 30 Aug 2021 | UK£315.5b | UK£265.9b | UK£39.1b | 8.7x | 8.1x | 1.2x |
| Tue, 06 Jul 2021 | UK£321.9b | UK£265.9b | UK£39.1b | 9.3x | 8.2x | 1.2x |
| Fri, 09 Apr 2021 | UK£307.1b | UK£242.3b | UK£27.2b | 9.8x | 11.3x | 1.3x |
| Thu, 31 Dec 2020 | UK£289.7b | UK£222.2b | UK£16.3b | 12.7x | 17.8x | 1.3x |
Price to Earnings Ratio
16.2x
Current Industry PE
- Investors are pessimistic on the British Metals and Mining 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 7.2x which is lower than its 3-year average PE of 8.6x.
- The industry is trading close to its 3-year average PS ratio of 0.96x.
Past Earnings Growth
- The earnings for companies in the Metals and Mining industry have grown 27% per year over the last three years.
- Revenues for these companies have grown 9.5% 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 industry?
| GB Market | -1.27% | |
| Materials | 3.27% | |
| Metals and Mining | 3.43% | |
| Diversified Metals and Mining | 3.72% | |
| Copper | 3.61% | |
| Gold | 0.32% | |
| Steel | 0.15% | |
| Aluminum | 0% | |
| Silver | 0% | |
| Precious Metals and Minerals | -1.16% | |
Industry PE
- Investors are most optimistic about the Precious Metals and Minerals industry which is trading above its 3-year average PE ratio of 24.0x.
- Analysts are expecting annual earnings growth of 32.7%, which is higher than its past year's earnings decline of 23.8% per year.
Forecasted Growth
- Analysts are most optimistic on the Gold industry, expecting annual earnings growth of 40% over the next 5 years.
- This is better than its past earnings decline of 28% per year.
- In contrast, the Diversified Metals and Mining industry is expected to see its earnings growth to stay flat 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% | PE6.8x | |
| 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% | PE14.7x |
