BXB and REH shares: why you should take notice

The Brambles Ltd (ASX:BXB) share price is up 4.7% since the start of 2025. It's probably worth asking, 'is the BXB share price good value?'
The Brambles Ltd (ASX:BXB) share price is up 4.7% since the start of 2025. Meanwhile, the Reece Ltd (ASX:REH) share price is 45.8% away from its 52-week high.

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.

REH shares

Reece Limited has been operating in Australia for more than 100 years, and is today the country’s largest plumbing and bathroom supplies business.

While best known as a plumbing store, the brand has diversified to offer services and products across irrigation and pools, civil constriction projects, and HVAC systems for heating, ventilation, and refrigeration.

Reece has grown revenue at a steady clip the past few years and, while the dividend yield has typically been low, the payments have been quite consistent.

BXB & REH 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.

As for Reece Ltd, they reported a debt/equity ratio of 47.2% in FY24, meaning the company has more equity than debt.

Since 2019 REH has achieved an average dividend yield of 1.1% per year, and in FY24 reported an ROE of 11.2%

Keep in mind that these are only a small selection of metrics. We don’t have 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.

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