MIN share price in focus
Mineral Resources Limited (MIN) is a diversified Australian mining company primarily focused on the extraction of lithium and iron ore in Western Australia.
In addition to its mining operations, MIN offers mining and engineering services to external clients through its wholly-owned subsidiary, CSI Mining Services (CSI). CSI provides capital infrastructure and operational expertise across Western Australia, Queensland, and the Northern Territory.
What sets Mineral Resources apart from its competitors is its in-house engineering and construction capabilities, which provide full control and flexibility throughout the product development process.
RMD shares
Founded in 1989 by Peter Farrell in Australia, ResMed is now headquartered in San Diego, California. The company specializes in medical equipment, offering cloud-connectable continuous positive airway pressure (CPAP) machines to treat obstructive sleep apnea (OSA). Although ResMed is based in the US, its shares are listed on both the NYSE and the ASX.
With over 10,000 employees and operations in more than 140 countries, ResMed has two main business units: Sleep and Respiratory Care, and Software as a Service (SaaS). In the Sleep and Respiratory Care unit, ResMed provides top-of-the-line CPAP machines for sleep apnea, along with non-invasive and invasive ventilation solutions for life-support patients. In the SaaS unit, the company offers software that supports durable medical equipment (DME/HME), which plays a key role in out-of-hospital care.
ResMed’s extensive digital health network, powered by its cloud-connected devices, enables the company to use its industry-leading hardware (such as masks and humidifiers) and SaaS data to generate valuable insights, enhance patient outcomes, and lower overall healthcare costs.
MIN & RMD share price valuation
We would consider MIN 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, Mineral Resources Ltd reported a debt/equity ratio of 148.9%, meaning the company is leveraged (it has more debt than equity). This can increase risk so it’s important that a leveraged company is generating stable returns and has sufficient cash flow to pay interest on its debts.
Over the last 5 years, MIN has delivered an average dividend yield of 2.4% per year. This is important to note if you’re looking for income from your investments.
Finally, in FY24, MIN reported an ROE of 3.2%. For a mature business you generally want to see an ROE of more than 10%, so MIN’s returns are a bit less than what we’d expect.
As more of a growth company, some of the trends we might consider for RMD 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, RMD has increased revenue at a rate of 13.6% per year to hit $4,685m in FY24. Meanwhile, net profit has increased from $475m to $1,021m. As for ROE, RMD’s last reported figure was 22.7%.
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 MIN or RMD shares. To learn more about valuation, check out one of our free online investing courses.
