Is Lynas Rare Earths (ASX:LYC) A Risky Investment?
Jun 19
Australian (ASX) Market Analysis & Valuation
UpdatedJun 19, 2024
DataAggregated Company Financials
Companies1677
- 7D0.1%
- 3M0.6%
- 1Y6.2%
- YTD1.9%
Over the last 7 days, the market has remained flat, although notably the Materials sector declined by 3.3%. Meanwhile, the market is actually up 6.2% over the past year. As for the next few years, earnings are expected to grow by 14% per annum.
Market Valuation and Performance
Has the Australian Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 19 Jun 2024 | AU$2.6t | AU$1.2t | AU$92.3b | 18.6x | 28x | 2.2x |
| Fri, 17 May 2024 | AU$2.6t | AU$1.2t | AU$92.4b | 19.6x | 28.4x | 2.3x |
| Sun, 14 Apr 2024 | AU$2.6t | AU$1.2t | AU$95.3b | 20.3x | 27.2x | 2.2x |
| Tue, 12 Mar 2024 | AU$2.6t | AU$1.2t | AU$96.6b | 19.6x | 26.7x | 2.2x |
| Thu, 08 Feb 2024 | AU$2.5t | AU$1.2t | AU$118.1b | 19x | 21.5x | 2.2x |
| Sat, 06 Jan 2024 | AU$2.5t | AU$1.2t | AU$115.5b | 18.7x | 21.8x | 2.1x |
| Mon, 04 Dec 2023 | AU$2.4t | AU$1.2t | AU$115.5b | 18x | 20.5x | 2x |
| Wed, 01 Nov 2023 | AU$2.3t | AU$1.2t | AU$119.6b | 17.3x | 19.1x | 1.9x |
| Fri, 29 Sep 2023 | AU$2.4t | AU$1.2t | AU$119.6b | 17.8x | 19.8x | 2x |
| Sun, 27 Aug 2023 | AU$2.4t | AU$1.2t | AU$125.3b | 17.2x | 19.2x | 2x |
| Tue, 25 Jul 2023 | AU$2.5t | AU$1.2t | AU$144.7b | 16.6x | 17x | 2.1x |
| Thu, 22 Jun 2023 | AU$2.4t | AU$1.2t | AU$144.6b | 16.1x | 16.9x | 2.1x |
| Sat, 20 May 2023 | AU$2.4t | AU$1.2t | AU$145.5b | 16.2x | 16.7x | 2.1x |
| Mon, 17 Apr 2023 | AU$2.5t | AU$1.2t | AU$144.3b | 16.2x | 17.1x | 2.1x |
| Wed, 15 Mar 2023 | AU$2.4t | AU$1.2t | AU$144.2b | 15.8x | 16.3x | 2x |
| Fri, 10 Feb 2023 | AU$2.5t | AU$1.1t | AU$146.5b | 16.4x | 17.2x | 2.3x |
| Sun, 08 Jan 2023 | AU$2.4t | AU$1.1t | AU$147.6b | 15.3x | 16.2x | 2.2x |
| Tue, 06 Dec 2022 | AU$2.5t | AU$1.1t | AU$148.8b | 14.8x | 16.5x | 2.3x |
| Thu, 03 Nov 2022 | AU$2.4t | AU$1.1t | AU$151.1b | 14.9x | 15.6x | 2.1x |
| Sat, 01 Oct 2022 | AU$2.2t | AU$1.1t | AU$149.9b | 14.1x | 14.6x | 2x |
| Mon, 29 Aug 2022 | AU$2.4t | AU$1.1t | AU$148.8b | 15.3x | 16.2x | 2.3x |
| Wed, 27 Jul 2022 | AU$2.3t | AU$1.0t | AU$132.5b | 14.8x | 17.4x | 2.3x |
| Fri, 24 Jun 2022 | AU$2.2t | AU$1.0t | AU$133.8b | 14.6x | 16.5x | 2.1x |
| Sun, 22 May 2022 | AU$2.5t | AU$1.0t | AU$133.5b | 16.2x | 18.4x | 2.3x |
| Tue, 19 Apr 2022 | AU$2.6t | AU$1.0t | AU$128.8b | 17.5x | 20.2x | 2.5x |
| Thu, 17 Mar 2022 | AU$2.6t | AU$1.0t | AU$131.2b | 17.5x | 19.5x | 2.4x |
| Sat, 12 Feb 2022 | AU$2.6t | AU$982.6b | AU$111.5b | 18.6x | 23x | 2.6x |
| Mon, 10 Jan 2022 | AU$2.6t | AU$976.9b | AU$104.3b | 19.4x | 25.4x | 2.7x |
| Wed, 08 Dec 2021 | AU$2.5t | AU$981.2b | AU$103.1b | 18.4x | 24.6x | 2.6x |
| Fri, 05 Nov 2021 | AU$2.6t | AU$962.7b | AU$97.9b | 19.6x | 26.7x | 2.7x |
| Sun, 03 Oct 2021 | AU$2.5t | AU$961.0b | AU$95.7b | 18.8x | 26.2x | 2.6x |
| Tue, 31 Aug 2021 | AU$2.6t | AU$949.7b | AU$96.9b | 18.4x | 26.9x | 2.7x |
| Wed, 07 Jul 2021 | AU$2.5t | AU$945.8b | AU$96.5b | 17.7x | 25.9x | 2.6x |
Price to Earnings Ratio
25.9x
Current Market PE
- Investors are optimistic on the Australian market, and appear confident in strong long term growth rates.
- The market is trading at a PE ratio of 28.0x which is higher than its 3-year average PE of 20.7x.
Past Earnings Growth
- The earnings for Australian listed companies have remained mostly flat over the last three years.
- Meanwhile revenues have grown 7.1% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Sector Trends
Which sectors have driven the changes within the Australian Market?
| AU Market | 0.14% | |
| Healthcare | 2.83% | |
| Financials | 1.64% | |
| Utilities | 1.53% | |
| Telecom | 1.45% | |
| Consumer Discretionary | 1.33% | |
| Consumer Staples | 1.25% | |
| Real Estate | 0.47% | |
| Industrials | -0.48% | |
| Tech | -1.37% | |
| Energy | -1.63% | |
| Materials | -3.28% | |
Sector PE
- Investors favour the Healthcare sector the most for future growth, which is trading above its 3-year average PE ratio of 61.9x.
- Analysts are expecting annual earnings growth of 17.6%, which is lower than the prior year's growth of 20.9% per year.
Forecasted Growth
- Analysts are most optimistic on the Real Estate sector, expecting annual earnings growth of 32% over the next 5 years.
- This is better than its past earnings decline of 36% per year.
- In contrast, the Utilities sector is expected to see its earnings decline by 12% 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 | Sector | |
|---|---|---|---|---|---|---|
| CBA Commonwealth Bank of Australia | AU$127.98 | 2.4% +AU$5.1b | 25.9% | PB2.9x | Financials | |
| CSL CSL | AU$293.87 | 2.6% +AU$3.7b | 3.7% | PE38x | Healthcare | |
| NAB National Australia Bank | AU$36.00 | 3.2% +AU$3.5b | 35.8% | PB1.8x | Financials | |
| WBC Westpac Banking | AU$27.22 | 2.0% +AU$1.8b | 27.0% | PB1.3x | Financials | |
| GMG Goodman Group | AU$35.67 | 2.7% +AU$1.8b | 72.1% | PB3.9x | Real Estate |
