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.
SHL shares
Sonic Healthcare was listed in April 1987. It is now one of the world’s biggest pathology businesses with operations in Australia, New Zealand, Europe and North America.
It offers a number of different services including laboratory medicine, pathology, diagnostic imaging, radiology, general practice medicine and corporate medical services.
Sonic Healthcare looks to act in the best interests of its doctors and their patients. It aims to provide medical excellence as well as being a highly desirable place to work.
GMG & SHL 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 more of a growth company, some of the trends we might consider for SHL 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, SHL has increased revenue at a rate of 0.8% per year to hit $8,967m in FY24. Meanwhile, net profit has fallen from $1,315m to $511m. As for ROE, SHL’s last reported figure was 6.8%.
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 GMG or SHL shares. To learn more about valuation, check out one of our free online investing courses.
