It Looks Like The CEO Of QBE Insurance Group Limited (ASX:QBE) May Be Underpaid Compared To Peers
May 03
Australian (ASX) Financials Sector Analysis
UpdatedMay 08, 2024
DataAggregated Company Financials
Companies140
- 7D2.6%
- 3M5.2%
- 1Y18.4%
- YTD9.0%
Over the last 7 days, the Financials industry has risen 2.6%, driven by gains from Commonwealth Bank of Australia of 5.1%. This takes the industry's 12 month performance to a gain of 18%. Earnings are forecast to grow by 4.6% annually.
Sector Valuation and Performance
Has the Australian Financials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 08 May 2024 | AU$759.0b | AU$210.5b | AU$44.2b | 18.1x | 17.2x | 3.6x |
| Fri, 05 Apr 2024 | AU$758.0b | AU$218.8b | AU$45.9b | 17.6x | 16.5x | 3.5x |
| Sun, 03 Mar 2024 | AU$750.7b | AU$219.4b | AU$46.1b | 17.5x | 16.3x | 3.4x |
| Tue, 30 Jan 2024 | AU$721.0b | AU$198.9b | AU$45.7b | 17.2x | 15.8x | 3.6x |
| Thu, 28 Dec 2023 | AU$690.7b | AU$197.7b | AU$45.4b | 16.7x | 15.2x | 3.5x |
| Sat, 25 Nov 2023 | AU$649.2b | AU$198.7b | AU$45.5b | 16.7x | 14.3x | 3.3x |
| Mon, 23 Oct 2023 | AU$639.9b | AU$198.0b | AU$45.5b | 16.3x | 14.1x | 3.2x |
| Wed, 20 Sep 2023 | AU$661.8b | AU$198.2b | AU$45.9b | 16.5x | 14.4x | 3.3x |
| Fri, 18 Aug 2023 | AU$646.5b | AU$195.4b | AU$45.6b | 17.3x | 14.2x | 3.3x |
| Sun, 16 Jul 2023 | AU$650.2b | AU$186.4b | AU$44.5b | 17.5x | 14.6x | 3.5x |
| Tue, 13 Jun 2023 | AU$618.3b | AU$186.7b | AU$44.5b | 17x | 13.9x | 3.3x |
| Thu, 11 May 2023 | AU$626.9b | AU$184.7b | AU$43.4b | 17.4x | 14.4x | 3.4x |
| Sat, 08 Apr 2023 | AU$629.3b | AU$182.2b | AU$42.3b | 17.3x | 14.9x | 3.5x |
| Mon, 06 Mar 2023 | AU$638.9b | AU$181.1b | AU$42.7b | 16.9x | 15x | 3.5x |
| Wed, 01 Feb 2023 | AU$679.7b | AU$177.5b | AU$40.2b | 16.4x | 16.9x | 3.8x |
| Fri, 30 Dec 2022 | AU$640.8b | AU$178.3b | AU$40.2b | 14.1x | 15.9x | 3.6x |
| Sun, 27 Nov 2022 | AU$670.3b | AU$178.3b | AU$40.3b | 14.8x | 16.7x | 3.8x |
| Tue, 25 Oct 2022 | AU$637.8b | AU$178.9b | AU$39.1b | 15.2x | 16.3x | 3.6x |
| Thu, 22 Sep 2022 | AU$620.9b | AU$177.6b | AU$38.9b | 16.3x | 15.9x | 3.5x |
| Sat, 20 Aug 2022 | AU$647.4b | AU$177.0b | AU$39.8b | 14.9x | 16.3x | 3.7x |
| Mon, 18 Jul 2022 | AU$601.3b | AU$180.4b | AU$40.8b | 14.2x | 14.7x | 3.3x |
| Wed, 15 Jun 2022 | AU$587.9b | AU$180.0b | AU$40.8b | 13.9x | 14.4x | 3.3x |
| Fri, 13 May 2022 | AU$657.2b | AU$180.1b | AU$40.8b | 14.9x | 16.1x | 3.6x |
| Sun, 10 Apr 2022 | AU$687.9b | AU$175.3b | AU$39.3b | 15.2x | 17.5x | 3.9x |
| Tue, 08 Mar 2022 | AU$622.4b | AU$175.6b | AU$39.3b | 15x | 15.8x | 3.5x |
| Thu, 03 Feb 2022 | AU$646.1b | AU$172.6b | AU$36.3b | 14.4x | 17.8x | 3.7x |
| Sat, 01 Jan 2022 | AU$677.1b | AU$171.8b | AU$36.2b | 15.6x | 18.7x | 3.9x |
| Mon, 29 Nov 2021 | AU$654.8b | AU$172.1b | AU$36.2b | 15.7x | 18.1x | 3.8x |
| Wed, 27 Oct 2021 | AU$703.4b | AU$163.7b | AU$31.4b | 17.2x | 22.4x | 4.3x |
| Fri, 24 Sep 2021 | AU$681.9b | AU$164.0b | AU$31.2b | 17.5x | 21.9x | 4.2x |
| Sun, 22 Aug 2021 | AU$688.6b | AU$163.8b | AU$31.5b | 16.6x | 21.9x | 4.2x |
| Fri, 09 Jul 2021 | AU$670.0b | AU$163.0b | AU$31.1b | 16x | 21.5x | 4.1x |
Price to Earnings Ratio
23.7x
Current Industry PE
- Investors are relatively neutral on the Australian Financials 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 16.8x.
- The industry is trading close to its 3-year average PS ratio of 3.7x.
Past Earnings Growth
- The earnings for companies in the Financials industry have grown 16% per year over the last three years.
- Revenues for these companies have grown 9.9% 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 Financials sector?
| AU Market | 1.62% | |
| Financials | 2.56% | |
| Banks | 3.50% | |
| Capital Markets | 1.93% | |
| Consumer Finance | 1.66% | |
| Mortgage Finance | 0% | |
| Mortgage REITs | 0% | |
| Insurance | -0.47% | |
| Diversified Financial | -1.61% | |
Industry PE
- Investors are most optimistic about the Diversified Financial industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 11.8%, which is lower than the prior year's growth of 33.2% per year.
Forecasted Growth
- Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 43% over the next 5 years.
- This is better than its past earnings decline of 37% per year.
- In contrast, the Banks industry is expected to see its earnings grow by 2.2% 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 | |
|---|---|---|---|---|---|
| CBA Commonwealth Bank of Australia | AU$119.74 | 5.1% +AU$9.7b | 22.4% | PB2.7x | |
| WBC Westpac Banking | AU$27.89 | 8.1% +AU$7.3b | 28.5% | PB1.3x | |
| ANZ ANZ Group Holdings | AU$29.12 | 3.7% +AU$3.1b | 20.8% | PB1.3x | |
| MQG Macquarie Group | AU$190.70 | 2.6% +AU$1.9b | 7.4% | PE20.6x | |
| MPL Medibank Private | AU$3.65 | 5.8% +AU$550.8m | 2.2% | PE14.7x |
