Why the Brambles Limited (ASX:BXB) share price climbed 11% in August


The Brambles Limited (ASX: BXB) share price climbed 11% in August, with the company reporting sales revenue grew 6% at constant currency in FY18 to US$5,596.6 million.

Statutory profit after tax rose 293% at constant currency to US$747.1 million, which included a US$127.9 million non-cash tax benefit resulting from the USA tax reform.

The supply-chain logistics company reported cash flow from operations increased by US$300.9 million to US$892.4 million.

The company has declared a final dividend of 14.5 Australian cents per share with franking of 30%, remaining in line with both the 2018 interim and 2017 final dividends.

Brambles shares have had a solid run in 2018, rising 22.74% from $9.97 to as high as $11.75 in mid-September.

Brambles Ltd

In providing guidance, Brambles said it expects to deliver sustainable growth and returns well in excess of the cost of capital in FY19.

Mr Chipchase said: “FY19 Underlying Profit will continue to reflect ongoing input-cost inflation and other cost challenges. We expect the multi-year automation, procurement and pricing initiatives we are currently undertaking to progressively deliver efficiencies and earnings benefits over the medium term.”

Brambles shares have drifted lower this week with the ASX 200 constituent now trading at $11.

Brambles trades on a price to earnings (P/E) ratio of around 19.64 times earnings. Brambles shares trade on a fully franked dividend yield of 2.63%.

Brambles Limited shares don’t look cheap, but these 3 shares do…

Combining countless hours of research with over 30 years of hands-on stock market investing experience, The Capital Club’s founder Bruce Jackson has just published his definitive list of 3 Cheap and Good ASX Stocks for 2018.

Brambles Limited was not one of them, but the list does include one tiny gold mining stock, and the company one top fund manager calls the cheapest stock in the ASX 100.

Find out why these 3 Cheap and Good Stocks could be better buys than Brambles Limited. But you better hurry… these stocks may not stay cheap for long.

See the 3 stocks

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Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
Lauren Surplice is a keen follower of the stock market, investing in individual companies and funds. She follows the daily stock market news, covering the ASX stocks that are moving the markets. You can contact Lauren at laurens@thecapitalclub.com.au