GMG share price in focus
Founded in 1989, Goodman Group is a leading global property group that owns, develops, and manages real estate assets across multiple continents.
As the largest ASX-listed property group, Goodman operates in key markets including Australia, New Zealand, the UK, Japan, the US, and Brazil.
The company focuses primarily on large-scale logistics facilities, warehouses, and business and office parks. Goodman’s mission is to foster long-term, mutually beneficial relationships with its customers while delivering high-quality, sustainable assets.
NWL shares
Founded in 1999, Netwealth is a wealth management firm that offers a platform for financial planners to manage their clients’ investments.
As of 2024, Netwealth has over 140,000 account holders on its platform and over $88 billion of funds under administration (FUA).
Netwealth’s key advantage lies in its scale and user-friendly online platform. With a simple dashboard, users can easily buy and sell investments, track performance, and access charts, reports, and tax statements all in one place.
GMG share price valuation
We would consider GMG to be a ‘mature’ or ‘blue-chip’ business, so some of the metrics that could be worth considering include the debt/equity ratio, average yield, and return on equity, or ROE. These measures give us a sense of the company’s debt levels, their ability to generate returns from their assets, and their ability to consistently return profits to shareholders.
For FY24, Goodman Group reported a debt/equity ratio of 21.2%, meaning the company has more equity than debt.
Over the last 5 years, GMG has delivered an average dividend yield of 1.3% per year. This is important to note if you’re looking for income from your investments.
Finally, in FY24, GMG reported an ROE of 0.1%. For a mature business you generally want to see an ROE of more than 10%, so GMG’s returns are a bit less than what we’d expect.
As a growth company, some of the trends we might consider from NWL shares include revenue growth, profit growth, and return on equity (ROE). I say ‘trends’ because it’s always important to look at these figures over a few years. The trend is much more valuable info than a single measure at one point in time.
Over the last 3 years, NWL has increased revenue at a rate of 20.8% per year to hit $255m in FY24. Meanwhile, net profit has increased from $54m to $83m. NWL’s last reported ROE was 62.3%.
Please keep in mind that context is important – these metrics give us some indication of company performance, but it’s just the start of valuing GMG or NWL shares. To learn more about valuation, check out one of our free online investing courses.
