We’re almost halfway through February 2025 reporting season. We cover almost 180 stocks set to report this month, and 73 results are out as of Wednesday 19th. There’s still a way to go, but we’re beginning to get a handle on how Australia’s biggest companies—and by extension, the broader economy—fared in the latter part of 2024.

We’ve upgraded our fair value estimate for 29 companies, or 40% of those that have reported thus far. The average upgrade has been 5%. We’ve left our fair value estimate unchanged for 41 companies and made only three fair value downgrades.

I’d call this a positive start, but with the caveat that half our coverage is yet to report. Our take is at odds with the market reaction – the benchmark ASX 200 is off around 2% since the start of Feb – but perhaps this reflects extended market valuations and the danger of high expectations.

This week, we offer our big takeaways from the first leg of reporting season. We’ll touch on a range of sectors, including retail, the big banks, and an unloved – and in our view, undervalued – corner of the real estate market.

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