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.
COH shares
Cochlear is a medical device company founded in 1981 in Sydney. It designs, manufactures and distributes three different hearing implants for different medical situations.
Cochlear is a global leader in hearing devices and has provided over 750,000 implantable devices. It has over 5,000 employees throughout more than 50 countries.
Cochlear’s mission is to improve its customers’ quality of life who suffer from hearing-related conditions.
BXB & COH 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 more of a growth company, some of the trends we might consider for COH shares include revenue growth, profit growth, and return on equity (ROE). I say ‘trends’ because it’s always important to look at these figures over a few years. The trend is a much more valuable figure than a single measure at one point in time.
Over the last 3 years, COH has increased revenue at a rate of 14.3% per year to hit $2,236m in FY24. Meanwhile, net profit has increased from $324m to $357m. As for ROE, COH’s last reported figure was 19.9%.
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 BXB or COH shares. To learn more about valuation, check out one of our free online investing courses.
