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As of 2024, Coles Group Ltd and BHP Group Ltd have shown notable movements in their share prices, reflecting distinct trends within the Australian stock market. Coles' performance may indicate shifts in consumer behavior or retail dynamics, while BHP's price changes could be tied to commodity fluctuations and global economic conditions. These variations highlight broader market trends and the differing impacts on major companies in Australia.
Coles Group Ltd (ASX:COL)
Coles Group, a leading Australian retailer founded in 1914, has seen its share price increase by 10.5% since the beginning of 2024. The company, headquartered in Victoria, provides a wide range of products including fresh food, groceries, general merchandise, liquor, fuel, and financial services. After being spun off from Wesfarmers in 2018, Coles has operated as an independent entity on the ASX.
Coles Group’s operations extend beyond supermarkets, encompassing businesses such as flybuys, Liquorland, First Choice, Vintage Cellars, and Coles Express. Despite being the smaller of the two major Australian supermarket chains, Coles holds a substantial market share of approximately 28%, trailing behind Woolworths' 40%.
Coles is considered a blue-chip stock, indicative of its mature business status. Key performance metrics include a return on invested capital (ROIC) of 13.80% for FY23, and a compounded revenue growth rate of 2.8% in recent years. An ROIC above 10% is considered strong for a mature company, suggesting Coles maintains solid operational efficiency.
BHP Group Ltd (ASX:BHP)
BHP Group, established in 1885 and formerly known as BHP Billiton, operates as a diversified natural resources company. Its principal business areas include mineral exploration and production, with significant interests in copper, iron ore, and coal.
BHP is well-regarded for its reliable dividend payments and is a staple in many ASX share portfolios. However, BHP’s share price remains 18% below its 52-week high, reflecting a different trend compared to Coles Group. The company’s shares are often included in ETFs and LICs, indicating its widespread appeal among investors.
For Coles Group, one method to assess share price performance is by examining the dividend yield. Currently, the dividend yield for Coles Group shares stands at approximately 3.70%, slightly below its 5-year average of 3.82%. This indicates that the shares are trading below their historical average dividend yield, which may reflect changes in the company’s valuation or market conditions.
While Coles Group has demonstrated a notable increase in share price and maintains strong financial metrics, BHP Group's shares are currently trading below recent highs. Both companies offer distinct investment characteristics, with Coles showing robust performance in a mature market and BHP reflecting the dynamics of the natural resources sector.
