GMG share price in focus
Founded in 1989, Goodman Group is a leading global property group that owns, develops, and manages real estate assets across multiple continents.
As the largest ASX-listed property group, Goodman operates in key markets including Australia, New Zealand, the UK, Japan, the US, and Brazil.
The company focuses primarily on large-scale logistics facilities, warehouses, and business and office parks. Goodman’s mission is to foster long-term, mutually beneficial relationships with its customers while delivering high-quality, sustainable assets.
SOL shares
Washington H. Soul Pattinson (WHSP) is a diversified investment company with a portfolio of assets across a range of industries and asset classes.
Some of SOL’s largest holdings include stakes in other well-known publicly listed companies such as TPG Telecom (ASX: TPG), New Hope Group (ASX: NHC) and a cross-shareholding in Brickworks (ASX: BKW).
SOL’s aim is to deliver superior returns to its shareholders by creating capital growth and steadily increasing dividends as a holding company. As the second-oldest publicly listed company on the ASX it has developed a strong track record of doing just that. In fact, SOL has never missed a dividend payment since listing in 1903! It could best be thought of as a family-run LIC with directors that are financially aligned with shareholders.
GMG & SOL share price valuation
We would consider GMG 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, Goodman Group reported a debt/equity ratio of 21.2%, meaning the company has more equity than debt.
Over the last 5 years, GMG has delivered an average dividend yield of 1.3% per year. This is important to note if you’re looking for income from your investments.
Finally, in FY24, GMG reported an ROE of 0.1%. For a mature business you generally want to see an ROE of more than 10%, so GMG’s returns are a bit less than what we’d expect.
As for Washington H Soul Pattinson & Company Ltd, they reported a debt/equity ratio of 8.5% in FY24, meaning the company has more equity than debt.
Since 2019 SOL has achieved an average dividend yield of 2.4% per year, and in FY24 reported an ROE of 5.6%
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.
