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Summary
- Brambles (ASX:BXB) share price hit a 52-year high on Thursday.
- The company has announced the cancellation of buy-back shares.
- Brambles shares are trading at a price-to-earnings ratio of 26.4 per cent.
Investors’ curiosity around Brambles’ (ASX:BXB) share price spiked after it hit a 52-year high on Thursday. The Australian supply chain and logistics company’s share has seen an extended green run in the last couple of months.
The share was down 1.5 per cent on the Australian Securities Exchange (ASX) on 9 July at 3.31 PM AEST, after the company announced the cancellation of buy-back shares.
Brambles’s (ASX:BXB) share price movements
Brambles shares set a new 52-week high record on July 8, extending the gains. The company’s shares recorded 7.65 per cent returns over a period of six months. The shares advanced over 2.5 per cent in the last one month.
The share’s 52-week trading range of AUD$9.54 to AUD $11.60. It is trading 1.8 per cent below its 52-week high and 19 per cent above the 51-week low on 2 November 2020.
At its current price, the company has a market capitalisation of AUD$16.62 billion, trading at a price-to-earnings ratio of 26.4 per cent. The earnings per share is AUD$0.436.
The shares started gaining momentum after the company announced implementing sustainability measures. In October last year, it announced a five-year sustainability plan aimed towards regenerative supply chains, which can significantly decarbonise its business activities.
In June this year, the company said it reduced to zero net carbon dioxide emissions and announced that all its operations are now carbon neutral. Since then, its shares jumped 4.16 per cent.
The company’s keg rental segment, Kegstar, was merged with the US beer keg producer MicroStar in February this year.
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Brambles’s (BXB) financials
For the first half of 2021, the company reported robust earnings and revenue growth in all its segments. Revenue grew six per cent, mainly driven by high volumes as well as price realisation seen in the global pallet business.
The company’s underlying profits also saw a five per cent growth due to higher levels of sale, cost control measures, supply chain efficiencies, and also due to a two-percentage point gain made from a compensation payout.
Free cash flow post dividend pay was AUD$163.8 million, driven by managing working capital effectively, increase in earnings and disciplined capital expenditure. It recorded a ROCI (return on capital invested) of 19 per cent, an increase of 0.8 percentage points because of strong underlying profit.
Brambles’s (BXB) dividend history
The shares offer an annual dividend yield of 2.22 per cent. It announced semi-annual dividend of 10 cents per share for 2021 in March, which was paid in April.
From interim dividend in FY20, the company moved on to a dividend policy based on payout ratio. It is aiming dividend payout ratio of about 45-60 per cent of underlying profit post deduction of tax and finance costs and tax.
