SHL share price in focus
Sonic Healthcare, listed in April 1987, has grown into one of the world’s largest pathology businesses, with operations spanning Australia, New Zealand, Europe, and North America.
The company provides a wide range of services, including laboratory medicine, pathology, diagnostic imaging, radiology, general practice medicine, and corporate medical services.
Sonic Healthcare is committed to prioritizing the needs of doctors and their patients, striving for medical excellence while fostering a supportive and desirable workplace.
BXB shares
Brambles manages the world’s largest pool of reusable pallets, crates, and containers, providing a service central to most supply chains globally.
The company is better known by its main brand CHEP, which has operations across the Asia-Pacific, Americas, and Europe Middle East and Africa (EMEA) regions.
Brambles makes money through a hiring model. For example, a manufacturer will make a product, then transfer the product to a retailer on CHEP pallets. Those pallets are then transferred back to CHEP or to another manufacturer or retailer in the supply chain. At each step, Brambles collects daily hire fees on its pallets and crates.
SHL share price valuation
As a growth company, some of the trends we might investigate from SHL 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, SHL has grown revenue at a rate of 0.8% per year to reach $8,967m in FY24. Over the same stretch of time, net profit has fallen from $1,315m to $511m. SHL last reported a ROE of 6.8%.
Since BXB 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, Brambles Ltd reported a debt/equity ratio of 81.8%, meaning the company has more equity than debt.
As for dividends, since 2019 BXB has achieved an average dividend yield of 2.7% per year.
Finally, in FY24, BXB reported an ROE of 25.6%. For a mature business you’re generally looking for an ROE of more than 10%, so BXB clears this hurdle.
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.
