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Highlights
- Brambles (BXB) stock up over 18% YTD
- Solid return on equity and rising profitability
- Debt well managed with strong global logistics presence
Brambles Ltd (ASX:BXB), a globally integrated logistics company known for its CHEP-branded pallets and containers, has seen its share price rise by an impressive 18.49% since January 2025. This growth reflects the company's robust financial performance and strategic relevance in global supply chains, placing it as a notable name in the ASX200 index.
Global Operations and Scalable Business Model
Brambles operates the largest pool of reusable pallets, crates, and containers worldwide. With operations spanning the Asia-Pacific, Americas, and EMEA regions, it serves a wide array of manufacturers and retailers. The company’s unique hire model allows businesses to transport goods using CHEP pallets, which are continuously reused across the supply chain, generating consistent daily hire revenue for Brambles.
Solid Financial Metrics
Brambles reported an annual revenue of $6,744 million, with a healthy compound annual growth rate (CAGR) of 7.6% over the past three years. Its gross margin stood at 34.5%, reflecting strong profitability in its core services even before accounting for overhead costs.
Moreover, Brambles recorded a profit of $780 million in the last financial year, up from $523 million three years ago — representing a 14.3% CAGR. These figures underscore the company's effective cost management and sustainable profit growth, characteristics that make it stand out among ASX dividend stocks.
Financial Health and Capital Efficiency
Brambles maintains a net debt of $2,528 million. While this figure may appear significant, it is balanced by the company’s scale and recurring revenue streams. More importantly, its debt-to-equity ratio sits at 81.8%, indicating a prudent balance between debt and shareholder equity.
The company also boasts a return on equity (ROE) of 25.6%, highlighting its ability to efficiently convert equity investments into profits. A high ROE such as this suggests strong capital management and an ongoing capacity to deliver value to shareholders.
With a solid performance record, global reach, and scalable business model, Brambles (BXB) continues to hold its ground as a key logistics player in the ASX200. Its strong ROE, stable profit growth, and smart debt management reinforce its position as a stock worth tracking closely for insights into the logistics and industrials segment of the Australian market.
