Materials Sector Report
Market Cap: $5.2T
Stocks: 319
Median P/E: 12.4x
Median ROIC: 5.1%
Data sourced from SEC EDGAR filings. Report refreshed weekly.
The Materials sector includes mining companies, chemical producers, construction materials firms, and paper and packaging manufacturers. The sector is highly cyclical, with earnings driven by commodity prices, industrial production levels, and infrastructure spending. Companies with low-cost production, resource longevity, and downstream integration tend to navigate cycles most effectively.
Performance Dashboard
| Period | Sector (MCW) | Sector (Median) |
|---|---|---|
| 1 Day | -0.5% | -0.1% |
| 1 Week | -0.3% | -1.3% |
| 1 Month | — | — |
| 3 Months | — | — |
| 6 Months | — | — |
| YTD | +0.0% | -0.2% |
| 1 Year | +67.0% | +13.2% |
| 3 Years | +134.6% | +16.5% |
| 5 Years | +153.6% | +7.2% |
Today's Breadth: 101 advancing · 139 declining · 32 flat
Valuation Summary
| Metric | Median | P25 | P75 | vs 5Y Avg |
|---|---|---|---|---|
| P/E | 12.4x | 0.0x | 22.2x | -5% |
| P/B | 1.3x | 0.3x | 3.1x | -28% |
| P/S | 0.8x | 0.0x | 1.9x | — |
| P/FCF | 13.7x | 5.4x | 26.7x | — |
| EV/EBITDA | 10.9x | 7.3x | 17.1x | — |
| EV/EBIT | 16.7x | 10.8x | 24.4x | — |
Earnings Yield
5.2%
FCF Yield
2.8%
Below Fair Value
36% of stocks
Profitability Profile
Margins
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| Gross Margin | 25.3% | 24.0% | 14.3% | 35.9% |
| Operating Margin | 6.7% | — | -1.3% | 14.4% |
| Net Margin | 4.1% | 5.5% | -3.5% | 10.4% |
| FCF Margin | 5.6% | — | 0.6% | 11.4% |
Returns on Capital
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| ROE | 4.3% | — | -11.0% | 14.5% |
| ROA | 1.7% | — | -6.5% | 7.1% |
| ROIC | 5.1% | 7.9% | -5.9% | 13.7% |
Growth Metrics
| Metric | 1Y | 3Y CAGR | 5Y CAGR |
|---|---|---|---|
| Revenue | +1.0% | -0.8% | +6.6% |
| EPS | +14.2% | -2.8% | +12.5% |
| Free Cash Flow | +5.6% | +2.3% | +3.8% |
All values represent sector median growth rates.
Balance Sheet Health
Debt / Equity
0.5x
Net Debt / EBITDA
1.4x
Interest Coverage
2.9x
Current Ratio
1.8x
Altman Z-Score
Safe (>3): 82 (30%)
Gray (1.8–3): 70 (26%)
Distress (<1.8): 121 (44%)
Piotroski F-Score
Strong (7–9): 54 (17%)
Moderate (4–6): 172 (54%)
Weak (0–3): 92 (29%)
Top Companies
| Symbol | #▲ | Mkt Cap | P/E | EV/EBITDA | ROIC | Net Mgn | Rev Gr. | Div Yld | YTD | Qual. |
|---|---|---|---|---|---|---|---|---|---|---|
| CX | 1 | $535.9B | — | — | 9.7% | 5.9% | -2.1% | — | +1.7% | 2/9 |
| BHP | 2 | $490.6B | — | — | 33.7% | 21.7% | -7.9% | — | -0.4% | 2/9 |
| BHPLF | 3 | $243.5B | — | — | 33.7% | 21.7% | -7.9% | — | -0.3% | 2/9 |
| LIN | 4 | $240.3B | 29.1x | 17.1x | 13.2% | 20.3% | +3.0% | 1.4% | +0.7% | 4/9 |
| NHY-OL | 5 | $217.2B | 20.4x | 5.2x | 11.0% | 2.8% | +3.7% | 4.3% | — | 4/9 |
| RIO | 6 | $167.1B | 13.2x | 9.9x | 21.0% | 17.8% | +7.4% | 4.6% | +4.5% | 5/9 |
| SCCO | 7 | $162.5B | 28.2x | 15.8x | 54.3% | 32.3% | +17.4% | 2.0% | -4.4% | 8/9 |
| GLW | 8 | $152.8B | 48.9x | 23.2x | 11.8% | 10.2% | +19.1% | 1.3% | +0.1% | 2/9 |
| BOL-ST | 9 | $148.7B | 8.2x | 4.2x | 16.4% | 11.2% | +13.3% | 249.4% | — | 4/9 |
| BHP-L | 10 | $145.9B | 12.8x | 5.1x | 25.8% | 17.6% | -7.9% | 5.6% | — | 4/9 |
| NEM | 11 | $129.2B | 16.6x | 7.9x | 21.5% | 31.3% | +21.3% | 0.9% | -3.0% | 5/9 |
| NEMCL | 12 | $122.7B | 13.3x | 6.3x | 21.3% | 31.3% | +21.3% | 1.2% | 0.0% | 5/9 |
| RIO-L | 13 | $118.8B | 9.6x | 5.1x | 15.3% | 17.3% | +7.4% | 6.5% | — | 3/9 |
| HWM | 14 | $104.0B | 56.9x | 37.5x | 24.2% | 18.3% | +11.1% | 0.2% | -1.5% | 4/9 |
| FCX | 15 | $98.6B | 34.8x | 9.0x | 20.8% | 8.5% | +1.8% | 1.1% | -1.9% | 5/9 |
| CRH | 16 | $79.9B | 23.3x | 13.1x | 12.7% | 10.0% | +5.3% | 1.1% | +10.9% | 4/9 |
| VALE | 17 | $79.2B | 6.0x | — | 17.3% | 15.7% | -8.9% | 10.9% | +2.5% | 3/9 |
| GLEN-L | 18 | $68.3B | 131.4x | 8.2x | 3.7% | 0.1% | +7.2% | 2.5% | — | 3/9 |
| APD | 19 | $66.6B | — | 84.8x | -1.6% | -3.3% | -0.5% | 2.7% | 0.0% | 2/9 |
| NKE | 20 | $63.9B | 27.9x | 17.4x | 67.0% | 7.0% | -9.8% | 2.6% | -1.3% | 5/9 |
Industry Composition
| Industry | Stocks | Market Cap | % | |
|---|---|---|---|---|
| Metal Mining | 32 | $1.3T | 24.4% | |
| Cement, Hydraulic | 5 | $674.0B | 13.0% | |
| Industrial Materials | 14 | $585.5B | 11.3% | |
| Gold And Silver Ores | 36 | $481.0B | 9.3% | |
| Industrial Inorganic Chemicals | 10 | $313.7B | 6.0% | |
| Aluminum | 1 | $217.2B | 4.2% | |
| Steel Works, Blast Furnaces & Rolling Mills (Coke Ovens) | 11 | $210.5B | 4.0% | |
| Drawing & Insulating Of Nonferrous Wire | 4 | $158.2B | 3.0% | |
| Mining & Quarrying Of Nonmetallic Minerals (No Fuels) | 14 | $126.1B | 2.4% | |
| Rolling Drawing & Extruding Of Nonferrous Metals | 5 | $121.3B | 2.3% | |
| Rubber & Plastics Footwear | 4 | $96.0B | 1.8% | |
| Plastic Materials, Synth Resins & Nonvulcan Elastomers | 11 | $92.5B | 1.8% | |
| Primary Production Of Aluminum | 4 | $84.5B | 1.6% | |
| Steel | 6 | $75.3B | 1.4% | |
| Industrial Organic Chemicals | 18 | $73.2B | 1.4% |
Showing top 15 of 59 industries.
Quality Distribution
0
1
2
3
4
5
6
7
8
9
Quality Score (0-9)
High Quality (7+)
2%
Median Piotroski F
5/9
Profitable Years
6 of 10
Dividends & Shareholder Returns
Paying Dividends
45%
Median Div Yield
2.3%
Median Buyback Yield
0.1%
Shareholder Yield
2.0%
Payout Ratio
34.9%
Div Growth (3Y)
0.8%
Div Growth (5Y)
5.1%
Strengths & Weaknesses
Strengths
No notable strengths identified.
Weaknesses
- −[Financial Health]44.3% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
- −[Leverage]Tight interest coverage at 2.9x, leaving limited cushion for debt servicing if earnings decline.
- −[Profitability]Below-average capital returns with a median ROIC of 5.1%, suggesting limited pricing power or capital-intensive operations.
- −[Quality]Only 1.9% of companies score 7+ on the quality checklist, reflecting structural challenges in achieving consistent returns across the sector.