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.
NWL shares
Netwealth is a wealth management software business that provides a platform for financial planners to manage client money.
As of 2024, Netwealth has over 140,000 account holders on its platform and over $88 billion of funds under administration (FUA), making it a major industry player.
Netwealth’s big advantage is its scale and the user-friendly interface offered through the online platform. Through one central dashboard, users can buy and sell investments, track performance, and view account summaries, reports and tax statements.
PLS & NWL 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. As for ROE, PLS last reported a ROE of 7.7%.
Over the last 3 years, NWL has increased revenue at a rate of 20.8% per year to hit $255m in FY24. Meanwhile, net profit has increased from $54m to $83m. As for ROE, NWL’s last reported figure was 62.3%.
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 NWL shares. To learn more about valuation, check out one of our free online investing courses.
