MIN share price in focus
Mineral Resources Limited is a diversified Australian mining company focused on lithium and iron ore extraction across Western Australia.
MIN also provides mining and engineering services for external clients through its wholly-owned subsidiary, CSI Mining Services (CSI). Through CSI, Mineral Resources can provide capital infrastructure and operational expertise to clients across WA, Queensland, and the Northern Territory.
MIN aims to set itself apart from its competitors by maintaining in-house engineering and construction capability that grants full control and flexibility during product development.
SHL shares
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.
MIN & SHL share price valuation
One way to have a ‘quick read’ of where the MIN share price is could be to study something like dividend yield over time. This can give us a sense of the stability of the company and whether they can consistently pay out a percentage of profits.
Remember, the dividend yield is basically the ‘cash flow’ to a shareholder, but it can fluctuate year-to-year or between payments. Currently, Mineral Resources Ltd shares have a dividend yield of around 0.95%, compared to its 5-year average of 2.40%. In other words, MIN shares are trading lower than their historical average dividend yield. Be careful how you interpret this information though – it could mean that dividends have fallen, or that the share price is increasing, or both. In the case of MIN, we can see that last year’s dividend was less than the 3-year average, so the dividend has been falling.
Since SHL is more of a ‘growth’ company than an established blue chip, a price-sales ratio might be a more appropriate assessment. This ratio gives us an idea of how the company has historically been valued relative to its earnings, which can indicate if the company is over or undervalued today. The SHL share price currently trades at a price-sales ratio of 1.44x, which compares to its 5-year long-term average of 1.94x. So, SHL shares are trading lower than their historical average. Don’t forget, a simple multiple like this should only be the start of your research. The Rask websites offer free online investing courses, created by analysts explaining things like Discounted Cash Flow (DCF) and Dividend Discount Models (DDM). They even include free valuation spreadsheets! It’s a good idea to use multiple valuation methods to value a share like Sonic Healthcare Ltd.
