WTC share price in focus
Founded in 1994 by Richard White and Maree Isaacs, WiseTech Global develops cloud-based software solutions for the international and domestic logistics industries.
WiseTech offers a comprehensive suite of products that support various logistics functions, including forwarding and customs, landside transport, rates and contracts, warehousing, and transport management systems.
Its flagship software, CargoWise, is a market-leading platform widely adopted by the logistics industry. It is used by all 25 of the largest global freight forwarders and 46 of the top 50 third-party logistics providers, cementing its reputation as an industry leader.
REH shares
Reece Limited has been serving Australia for over a century and is now the nation’s largest supplier of plumbing and bathroom products.
While widely recognized as a plumbing retailer, Reece has expanded its offerings to include products and services for irrigation, pools, civil construction projects, and HVAC systems for heating, ventilation, and refrigeration.
The company has achieved steady revenue growth in recent years, and although its dividend yield is typically low, its payouts have remained consistent.
WTC & REH share price valuation
As a growth company, some of the trends we might investigate from WTC 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, WTC has grown revenue at a rate of 27.1% per year to reach $1,042m in FY24. Over the same stretch of time, net profit has increased from $108m to $263m. WTC last reported a ROE of 12.8%.
Since REH is more of a ‘mature’ or ‘blue-chip’ business, some of the metrics that could be considered important include the debt/equity ratio, average yield, and return on equity, or ROE. These are useful as they give us an idea of debt levels and the company’s ability to generate a return on assets and pay out profits (which is what we want from a blue chip). In FY24, Reece Ltd reported a debt/equity ratio of 47.2%, meaning the company has more equity than debt.
As for dividends, since 2019 REH has achieved an average dividend yield of 1.1% per year.
Finally, in FY24, REH reported an ROE of 11.2%. For a mature business you’re generally looking for an ROE of more than 10%, so REH clears this hurdle.
Keep in mind that these are only a small selection of metrics. We don’t have enough information to value the business or make an investment decision. To learn more about valuation, check out one of our free online investing courses.
