Coles Group and Pilbara Minerals: Two ASX Shares Worth Exploring

September 02, 2024 03:39 PM AEST | By Team Kalkine Media

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Coles Group and Pilbara Minerals: Two ASX Shares Worth Exploring — Image source: shutterstock

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The Australian stock market has seen notable movements this year, with companies like Coles Group Ltd (ASX:COL) and Pilbara Minerals Ltd (ASX:PLS) capturing significant attention. Coles Group, a stalwart in Australian retail, has seen its share price rise by 16.3% since the beginning of 2024, while Pilbara Minerals, a major player in the lithium industry, has seen its share price climb 11.7% above its 52-week lows. Both companies offer intriguing investment propositions, though their valuations suggest different opportunities. Here's a closer look at their recent performances and what their current valuations might imply.

Coles Group Ltd (ASX:COL)

The Coles Group share price has increased 16.3% since the beginning of 2024. Coles, an established Australian retailer, offers a range of products including groceries, fresh food, liquor, fuel, and financial services. Founded in 1914 and originally part of Wesfarmers until its spin-off in 2018, Coles maintains a strong presence in the Australian grocery market, commanding around 28% of market share. In addition to supermarkets, Coles operates other businesses like flybuys, Liquorland, First Choice, and Coles Express. As a listed entity, Coles has also built a reputation for reliable dividend payments.

Pilbara Minerals Ltd (ASX:PLS)

Pilbara Minerals, known for owning the world’s largest independent hard-rock lithium operation, Pilgangoora, has seen its share price track 11.7% above its 52-week lows. The company focuses on extracting and selling spodumene concentrate, which contains lithium, through agreements and spot sales on platforms like the Battery Material Exchange. Pilbara’s key partners include Great Wall Motors and POSCO.

COL Share Price Valuation

A look at the dividend yield for Coles Group shows a current yield of around 3.51%, which is below its 5-year average of 3.88%. This suggests that the shares are trading below their historical average dividend yield.

PLS Share Price Valuation

For Pilbara Minerals, a price-sales ratio provides insight into its valuation. The current ratio of 2.20x is below its 5-year average of 3.49x, indicating that the shares are trading below their historical average. However, this metric is just one aspect of valuation, and further research is recommended to get a comprehensive understanding of the company’s value.

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