Brambles (ASX:BXB): A Closer Look at a Rising Star in the ASX300

May 09, 2025 02:15 PM AEST | By Team Kalkine Media
 Brambles (ASX:BXB): A Closer Look at a Rising Star in the ASX300
Image source: Shutterstock

Highlights

  • Brambles (BXB) sees steady growth in revenue and profits.
  • Strong return on equity reflects efficient capital use.
  • Healthy financial metrics make it notable within the ASX300.

Brambles Limited (ASX:BXB) has gained solid ground since the start of 2025, with its share price climbing 9.37%. Known globally through its CHEP brand, Brambles plays a pivotal role in supply chains by managing one of the world’s largest pools of reusable pallets, crates, and containers. With operations spanning Asia-Pacific, the Americas, and Europe, the company forms a backbone for fast-moving consumer goods and logistics industries worldwide.

The company operates under a daily hire model, which means it earns consistent revenue from each stage of the product transfer process. Whether a manufacturer ships goods to a retailer or a pallet is returned within the supply network, Brambles earns recurring income—a business structure that contributes to its financial stability.

Key Financial Performance

Brambles reported annual revenue of $6,744 million, reflecting a 3-year compound annual growth rate (CAGR) of 7.6%. Its gross margin stands at a healthy 34.5%, underlining the efficiency of its core operations.

Profits have also shown a strong upward trend. The company recorded a net profit of $780 million in the most recent financial year, up from $523 million three years ago, marking a CAGR of 14.3%. These figures highlight the company’s ability to scale profitably.

Financial Health Metrics

Brambles' net debt is currently $2,528 million. However, its debt-to-equity ratio of 81.8% indicates that shareholder equity outweighs liabilities, offering a reasonable capital structure.

One of the standout figures is the return on equity (ROE), which reached 25.6% in FY24. A high ROE often reflects a company’s effectiveness in generating profit from shareholder investments—something income-focused investors often monitor, particularly when reviewing potential ASX dividend stocks.

Why Brambles is Worth Watching in the ASX300

As part of the broader ASX300 index, Brambles is among Australia’s top-performing companies by market capitalization. Its presence in essential global logistics, coupled with its stable financial metrics, makes it a noteworthy player.

For those exploring income-generating opportunities, Brambles' consistent earnings and solid operational margins might align with the broader themes seen in top ASX dividend stocks.

With a growing bottom line, global presence, and robust capital management, Brambles (BXB) remains a stock worth keeping an eye on as part of the evolving landscape of the ASX300.


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