QAN share price in focus
Founded in 1921, Qantas is Australia’s largest airline operator, with the biggest fleet, the most international flights, and the widest range of destinations.
The airline operates both domestic and international flights, offers freight services, and manages the popular frequent flyer loyalty program.
Additionally, Qantas owns Jetstar, giving it considerable pricing and market influence within the highly concentrated Australian airline industry.
HUB shares
HUB24 is a leading player in the wealth management software industry, offering diversified solutions across financial advice, superannuation, and investment management.
HUB24’s three main products are its platforms HUB24, Class, and myprosperity. The HuB24 platform is designed for financial advisers and their clients, providing access to a range of managed funds and investment products. Class is a leading software for self-managed super funds to manage portfolios, legal documentation, and compliance. myprosperity is focused on accountants and advisers, enabling them to provide an enhanced service and customer experience.
HUB24’s competitive advantage is in the quality of its service. In 2024 they’ve been awarded Overall Best Platform in the Adviser Ratings Financial Advice Landscape Report, and ranked first for Overall Satisfaction and Brand Image and Reputation in the 2024 Wealth Insights Platform Service Level Report.
QAN share price valuation
We would consider QAN 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, Qantas Airways Ltd reported a debt/equity ratio of 2241.8%, 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, QAN has delivered an average dividend yield of 1.2% per year. This is important to note if you’re looking for income from your investments.
Finally, in FY24, QAN reported an ROE of 823.0%. For a mature business you generally want to see an ROE of more than 10%, so QAN clears this hurdle.
As a growth company, some of the trends we might consider from HUB 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 much more valuable info than a single measure at one point in time.
Over the last 3 years, HUB has increased revenue at a rate of 44.4% per year to hit $328m in FY24. Meanwhile, net profit has increased from $10m to $47m. HUB’s last reported ROE was 9.2%.
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 QAN or HUB shares. To learn more about valuation, check out one of our free online investing courses.
