BXB share price in focus
Brambles operates the world’s largest pool of reusable pallets, crates, and containers, providing essential support to global supply chains.
The company is best known for its CHEP brand, which operates across the Asia-Pacific, Americas, and Europe, Middle East, and Africa (EMEA) regions.
Brambles generates revenue through a hiring model: manufacturers use CHEP pallets to transport products to retailers, who then return the pallets to CHEP or pass them on to others within the supply chain. At each stage, Brambles earns daily hire fees for its pallets and crates.
BHP shares
BHP Group (formerly known as BHP Billiton) is a diversified natural resources company founded in 1885 that produces commodities for energy use and manufacturing.
BHP’s core business lines are mineral exploration and production. BHP’s assets, operations and interests are separated into three focus areas: copper and related minerals (e.g. gold, uranium, silver, zinc, etc.); iron ore; and coal (i.e. metallurgical and energy). While these categories make up the bulk of revenue and profit, the company is also diversifying into other areas such as fertiliser.
BHP shares have long been viewed as a reliable dividend-paying investment and are a common member of Australian share portfolios. It’s also one of the largest companies in Australia so if you own an ASX 200 ETF or LIC, or even have money in superannuation, chances are you already have some exposure to BHP shares.
BXB share price valuation
We would consider BXB 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, Brambles Ltd reported a debt/equity ratio of 81.8%, meaning the company has more equity than debt.
Over the last 5 years, BXB has delivered an average dividend yield of 2.7% per year. This is important to note if you’re looking for income from your investments.
Finally, in FY24, BXB reported an ROE of 25.6%. For a mature business you generally want to see an ROE of more than 10%, so BXB clears this hurdle.
In FY24, BHP Group Ltd reported a debt/equity ratio of 45.3%, meaning the company has more equity than debt.
As for dividends, since 2019 BHP has achieved an average dividend yield of 6.9% per year, and in FY24 reported an ROE of 19.7%
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.
