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 24 of the 25 largest global freight forwarders and 46 of the top 50 third-party logistics providers, cementing its reputation as an industry leader.
CSL shares
Previously a government body, CSL is today a publicly-listed global biotechnology company that develops and delivers innovative medicines that save lives, protect public health, and help people with life-threatening medical conditions live full lives.
The company is divided into three core business units: CSL Behring, CSL Seqirus and CSL Vifor. Behring, acquired in 2004, manufactures and distributes blood plasma products. Seqirus is responsible for making flu-related products and performs pandemic-related services for governments. Finally, Vifor makes products for iron deficiency and nephrology (renal/kidney care).
CSL has developed a strong reputation with Australian investors over many decades as being a reliable company and a consistent dividend payer. With the continual rise in healthcare costs and the consistent historical performance, interest in CSL shares remains high today.
WTC & CSL 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. As for ROE, WTC last reported a ROE of 12.8%.
Since CSL 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, CSL Ltd reported a debt/equity ratio of 62.8%, meaning the company has more equity than debt.
As for dividends, since 2020 CSL has paid an average dividend yield of 1.5% per year.
Finally, in FY24, CSL reported an ROE of 14.6%. For a mature business you’re generally looking for an ROE of more than 10%, so CSL 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.
