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A quick way to value the TCL share price
Rask Mediaยท 2025-09-16 06:48
Core Viewpoint - Transurban Group (ASX:TCL) has seen a share price increase of 7.59% since January 2025, indicating potential investment interest due to its strong revenue growth despite a decline in profit [1][2][13] Company Overview - Transurban, established in 1999, specializes in managing and developing urban toll road networks across Australia, Canada, and the United States [2] - The company has interests in 22 urban motorways, including notable ones like CityLink in Melbourne, Hills M2 in Sydney, and Logan Motorway in Brisbane [2] Financial Performance - The latest reported annual revenue for Transurban was $4,119 million, with a compound annual growth rate (CAGR) of 12.6% over the past three years [5] - The gross margin reported was 57.0%, indicating a strong profitability from core services before overhead costs [6] - Transurban reported a profit of $326 million for the last financial year, which represents a significant decline with a CAGR of -53.8% compared to three years ago when the profit was $3,303 million [7] Financial Health - The current net debt for Transurban stands at $18,018 million, indicating a substantial amount of debt [8] - The debt/equity ratio is 175.1%, suggesting that the company has more debt than equity, which can introduce higher risk, especially if revenue stability is not maintained [10] - The return on equity (ROE) for FY24 was 3.0%, reflecting the company's ability to generate profit relative to its total equity [11] Investment Consideration - Given the strong revenue growth over the last three years, Transurban may be a candidate for investment consideration, although the negative profit trend warrants further investigation into its financial health and growth potential [13]