Are These Two ASX Giants Undervalued Right Now? A Look at GMG and SHL

April 14, 2025 03:16 PM AEST | By Team Kalkine Media

Are These Two ASX Giants Undervalued Right Now? A Look at GMG and SHL — Image source: Shutterstock

Goodman Group (ASX:GMG): Share Price Movement and Business Overview

The share price of Goodman Group (ASX:GMG) has declined approximately 22.3% since the start of 2025, bringing it under the spotlight. Founded in 1989, Goodman is a global real estate group that owns, develops, and manages commercial and industrial properties. Its core markets span Australia, New Zealand, the UK, Japan, the US, and Brazil.

As of 2025, Goodman holds the title of the largest ASX-listed property group. Its portfolio focuses on logistics facilities, warehouses, and business parks. The company aims to establish long-term partnerships by delivering high-quality, functional spaces for its customers.

One way to get a read on the current valuation is by examining its dividend yield. Currently, the yield sits at around 1.07%, which is below its five-year average of 1.28%. This gap suggests a few possibilities: either the company’s share price has been rising faster than its dividends, or the dividend payouts themselves have decreased. A closer look shows that recent dividends are indeed lower than the three-year average, pointing to a decline in yield, not just a price surge.

Sonic Healthcare (ASX:SHL): Market Position and Current Trading Level

Sonic Healthcare (ASX:SHL) is one of the world’s largest medical diagnostics providers, listed since 1987. It operates across Australia, New Zealand, Europe, and North America, offering pathology, diagnostic imaging, and other medical services.

Currently, the SHL share price is hovering about 5.9% above its 52-week low, suggesting that it may be near a key valuation floor. The company is known for prioritising quality care, with a focus on medical excellence and building a strong internal culture for healthcare professionals.

Valuation Through Dividend Yield: A Snapshot

Using dividend yield as a quick valuation measure can reveal trends in a company’s payout consistency and share price movement. In the case of Goodman Group, the lower yield compared to its historical average could point to changing dynamics in profitability or market sentiment. Sonic Healthcare, while not detailed in terms of yield in the current data, presents another opportunity to evaluate long-term stability through operational resilience.

In both cases, a closer look at fundamental trends, rather than short-term price moves alone, helps bring more clarity on potential value opportunities.

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