Subdued Growth No Barrier To Northam Platinum Holdings Limited (JSE:NPH) With Shares Advancing 29%
Apr 05
South African (JSE) Metals and Mining Industry Analysis
UpdatedMay 08, 2024
DataAggregated Company Financials
Companies17
- 7D1.8%
- 3M5.0%
- 1Y-19.5%
- YTD-5.0%
In the last week, the Metals and Mining industry is up 1.8%, with Kumba Iron Ore leading the way, up 6.8%. During this same period, the Gold Fields underperformed, falling 5.7%. However, the industry is down 19% 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 |
|---|---|---|---|---|---|---|
| Wed, 08 May 2024 | R964.1b | R689.7b | R14.3b | 7x | 67.5x | 1.4x |
| Fri, 05 Apr 2024 | R994.3b | R691.0b | R14.5b | 6.5x | 68.7x | 1.4x |
| Sun, 03 Mar 2024 | R863.7b | R712.2b | R69.1b | 4.5x | 12.5x | 1.2x |
| Tue, 30 Jan 2024 | R981.5b | R731.9b | R93.1b | 7.6x | 10.5x | 1.3x |
| Thu, 28 Dec 2023 | R1.1t | R729.5b | R92.7b | 8.5x | 12x | 1.5x |
| Sat, 25 Nov 2023 | R951.3b | R732.9b | R93.8b | 7.2x | 10.1x | 1.3x |
| Mon, 23 Oct 2023 | R916.0b | R733.7b | R93.9b | 7.1x | 9.8x | 1.2x |
| Wed, 20 Sep 2023 | R1.0t | R820.0b | R96.1b | 6.5x | 10.9x | 1.3x |
| Fri, 18 Aug 2023 | R985.6b | R846.3b | R141.1b | 4.3x | 7x | 1.2x |
| Sun, 16 Jul 2023 | R1.2t | R861.9b | R166.8b | 4.4x | 7.4x | 1.4x |
| Tue, 13 Jun 2023 | R1.3t | R874.6b | R175.9b | 4.6x | 7.5x | 1.5x |
| Thu, 11 May 2023 | R1.4t | R889.7b | R182.7b | 5x | 7.9x | 1.6x |
| Sat, 08 Apr 2023 | R1.3t | R863.5b | R169.5b | 4.7x | 7.6x | 1.5x |
| Mon, 06 Mar 2023 | R1.2t | R851.6b | R167.9b | 4.8x | 7x | 1.4x |
| Wed, 01 Feb 2023 | R1.4t | R894.0b | R197.8b | 5.3x | 6.9x | 1.5x |
| Fri, 30 Dec 2022 | R1.4t | R888.4b | R196.6b | 5.7x | 7.1x | 1.6x |
| Sun, 27 Nov 2022 | R1.4t | R889.1b | R196.6b | 5.3x | 7.2x | 1.6x |
| Tue, 25 Oct 2022 | R1.2t | R899.6b | R198.4b | 4.6x | 6.1x | 1.3x |
| Thu, 22 Sep 2022 | R1.1t | R893.3b | R197.5b | 5x | 5.7x | 1.3x |
| Sat, 20 Aug 2022 | R1.1t | R908.4b | R213.8b | 5.1x | 5.4x | 1.3x |
| Mon, 18 Jul 2022 | R1.1t | R945.9b | R248.3b | 4.1x | 4.5x | 1.2x |
| Wed, 15 Jun 2022 | R1.3t | R936.7b | R246.7b | 4.9x | 5.1x | 1.3x |
| Fri, 13 May 2022 | R1.4t | R935.9b | R246.0b | 4.9x | 5.6x | 1.5x |
| Sun, 10 Apr 2022 | R1.7t | R914.5b | R239.8b | 6.4x | 7.1x | 1.9x |
| Tue, 08 Mar 2022 | R1.9t | R913.5b | R239.1b | 7x | 8x | 2.1x |
| Thu, 03 Feb 2022 | R1.5t | R912.0b | R269.0b | 6.1x | 5.6x | 1.6x |
| Sat, 01 Jan 2022 | R1.5t | R917.5b | R270.1b | 5.8x | 5.5x | 1.6x |
| Mon, 29 Nov 2021 | R1.3t | R920.7b | R270.5b | 4.7x | 4.9x | 1.4x |
| Wed, 27 Oct 2021 | R1.4t | R929.2b | R271.3b | 5.3x | 5.3x | 1.5x |
| Fri, 24 Sep 2021 | R1.3t | R916.1b | R262.5b | 5.1x | 4.8x | 1.4x |
| Sun, 22 Aug 2021 | R1.3t | R890.5b | R258.5b | 5.2x | 5.2x | 1.5x |
| Fri, 09 Jul 2021 | R1.4t | R890.5b | R258.5b | 5.4x | 5.5x | 1.6x |
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 67.5x which is higher than its 3-year average PE of 10.6x.
- 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 4.8% 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 | 1.41% | |
| Materials | 1.73% | |
| Metals and Mining | 1.76% | |
| Aluminum | 13.71% | |
| Steel | 6.55% | |
| Precious Metals and Minerals | 5.89% | |
| Diversified Metals and Mining | 4.27% | |
| Silver | 0% | |
| Gold | -4.36% | |
| Copper | -11.05% | |
Industry PE
- Investors are most optimistic about the Gold industry, which is trading close to its 3-year average PE ratio of 15.5x.
- Analysts are expecting annual earnings growth of 25.4%, 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 54% over the next 5 years.
- This is better than its past earnings decline of 60% per year.
- In contrast, the Steel industry is expected to see its earnings decline by 10% 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 | |
|---|---|---|---|---|---|
| KIO Kumba Iron Ore | R499.72 | 7.8% +R11.6b | 6.2% | PE7.1x | |
| AMS Anglo American Platinum | R695.00 | 5.0% +R8.7b | -38.9% | PE14x | |
| IMP Impala Platinum Holdings | R90.11 | 6.3% +R4.8b | -49.5% | PS0.9x | |
| NPH Northam Platinum Holdings | R134.15 | 7.2% +R3.5b | -21.6% | PS1.5x | |
| ARI African Rainbow Minerals | R206.60 | 5.3% +R2.0b | -12.1% | PE8.3x |