WTC share price in focus
Founded in 1994 by Richard White and Maree Isaacs, WiseTech Global develops cloud-based software solutions for the international and domestic logistics industries.
WiseTech offers a comprehensive suite of products that support various logistics functions, including forwarding and customs, landside transport, rates and contracts, warehousing, and transport management systems.
Its flagship software, CargoWise, is a market-leading platform widely adopted by the logistics industry. It is used by all 25 of the largest global freight forwarders and 46 of the top 50 third-party logistics providers, cementing its reputation as an industry leader.
WOW shares
Founded in 1924, Woolworths is a leading retail operator in Australia and New Zealand, with over 3,000 stores and more than 100,000 employees. As one of Australia’s largest companies by revenue and market share, Woolworths plays a significant role in the region’s retail sector.
The company’s core operations include supermarkets (operating under the Woolworths brand in Australia and Countdown in New Zealand), discount department stores under the Big W brand, and business-to-business (B2B) services through brands like PFD. However, Woolworths’ dominant 35%+ market share in the Australian grocery sector remains its key strength.
Woolworths is also a popular choice among ASX investors looking for dividend income. It has a strong track record of paying fully franked dividends, typically offering yields over 3%, and its revenue base, largely derived from consumer staples, provides a stable and defensive earnings stream. The company’s competitive edge lies in its scale, enabling efficient distribution and cost control, as well as its proximity to consumers, as many shoppers continue to choose supermarkets based on convenience and location.
WTC share price valuation
As a growth company, some of the trends we might investigate from WTC include revenue growth, profit growth, and return on equity (ROE). These measures can indicate the growth rates and prospects of the company, as well as their ability to generate returns from their assets.
Since 2021, WTC has grown revenue at a rate of 27.1% per year to reach $1,042m in FY24. Over the same stretch of time, net profit has increased from $108m to $263m. WTC last reported a ROE of 12.8%.
Since WOW is more of a ‘mature’ or ‘blue-chip’ business, some of the metrics that could be considered important include the debt/equity ratio, average yield, and return on equity, or ROE. These are useful as they give us an idea of debt levels and the company’s ability to generate a return on assets and pay out profits (which is what we want from a blue chip). In FY24, Woolworths Group Ltd reported a debt/equity ratio of 300.2%, meaning the company is leveraged (it has more debt than equity). Higher debt levels comes with increased risk so it’s important that a leveraged company has stable returns and the capacity to pay interest on its debts.
As for dividends, since 2019 WOW has achieved an average dividend yield of 2.9% per year.
Finally, in FY24, WOW reported an ROE of 1.9%. For a mature business you’re generally looking for an ROE of more than 10%, so WOW’s returns are a bit less than what we’d expect.
It’s important to keep in mind that these are only a small selection of metrics and don’t give us enough information to value the business or make an investment decision. To learn more about valuation, check out one of our free online investing courses.
