PLS share price in focus
Pilbara Minerals is a leading ASX-listed lithium company, known for owning 100% of the world’s largest independent hard-rock lithium operation, Pilgangoora, which it acquired in 2014.
The company’s main business is the extraction and sale of spodumene concentrate (lithium-bearing rocks), which it sells through long-term offtake agreements and spot sales on the Battery Material Exchange (BMX) platform. Notable offtake partners include companies like Great Wall, the Chinese automaker, and POSCO, a South Korean steel producer.
With the growing demand for lithium driven by the rise of electric vehicles and renewable energy technologies, Pilbara Minerals is often seen by bullish investors as a “pure play” on the green tech boom. However, as a commodities producer, the company’s revenue is still subject to significant fluctuations in the global price of spodumene.
ALL shares
Aristocrat Leisure is an Australian gambling machine operator headquartered in Sydney. It was founded by Len Ainsworth in 1953
Today, Aristocrat is the largest gambling machine manufacturer in Australia and one of the largest manufacturers of slot machines in the world. However, the business has diversified over the years and now also makes online mobile games. This segment has grown steadily to now make up nearly half of the company’s revenue.
The gaming machines Aristocrat make can be sold outright to a venue or gaming operator. Alternatively, a machine can be installed with a proportion of the revenue generated being paid on a recurring basis back to Aristocrat.
PLS & ALL share price valuation
As a growth company, some of the trends we might investigate from PLS 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, PLS has grown revenue at a rate of 92.5% per year to reach $1,254m in FY24. Over the same stretch of time, net profit has increased from -$51m to $257m. PLS last reported a ROE of 7.7%.
Over the last 3 years, ALL has increased revenue at a rate of 11.7% per year to hit $6,604m in FY24. Meanwhile, net profit has increased from $820m to $1,303m. ALL’s last reported ROE was 20.0%.
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 PLS or ALL shares. To learn more about valuation, check out one of our free online investing courses.