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- Herausgeber: John Wiley & Sons
- Kategorie: Ratgeber
- Sprache: Englisch
Australia’s best-selling guide for smarter investing in the sharemarket
When it’s time to invest your earnings, you need accurate, trusted guidance that will weather economic highs and lows, outlive trends and stand the test of time. In this 32nd edition of Top Stocks, market expert Martin Roth gives you the essential knowledge you need to grow your portfolio and profits. An invaluable resource for novices and professionals alike, Top Stocks 2026 shares the clear, objective information you need to make the right picks — and get more for your money.
With well-defined criteria and rigorous analysis, you’ll discover which companies offer compelling financial foundations and long-term value. See beyond the hype, the pricing, and the punditry. Top Stocks 2026 will make you an expert at evaluating the best of the Australian sharemarket, using concrete factors like profitability, debt levels and dividends.
- Detailed, unbiased analysis of the latest results from top Australian companies
- Comparative sales and profits data as well as in-depth ratio analysis
- Comprehensive research exploring each company’s overall outlook
- Easy access to essential company data points
- Tables that rank all companies according to financial data
Top Stocks 2026 is the jargon-free, up-to-date, go-to guide you need to make wise decisions for your wealth. This 32nd edition reveals the best the Australian sharemarket has to offer when it comes to ensuring a sound and successful investment plan.
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Seitenzahl: 363
Veröffentlichungsjahr: 2025
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Table of Contents
Cover
Table of Contents
Title Page
Copyright
Preface
Energy transition
Cars and trucks
High-tech companies
Artificial intelligence
Defence
Insurance companies
Small companies
Who is
Top Stocks
written for?
What are the entry criteria?
Changes to this edition
Appearing in every edition of
Top Stocks
Note
Introduction
PART I: THE COMPANIES
Accent Group Limited
Latest business results (June 2025, full year)
Outlook
Adairs Limited
Latest business results (June 2025, full year)
Outlook
AGL Energy Limited
Latest business results (June 2025, full year)
Outlook
Amotiv Limited
Latest business results (June 2025, full year)
Outlook
ARB Corporation Limited
Latest business results (June 2025, full year)
Outlook
Aristocrat Leisure Limited
Latest business results (March 2025, half year)
Outlook
ASX Limited
Latest business results (June 2025, full year)
Outlook
AUB Group Limited
Latest business results (June 2025, full year)
Outlook
Australian Ethical Investment Limited
Latest business results (June 2025, full year)
Outlook
Beach Energy Limited
Latest business results (June 2025, full year)
Outlook
Beacon Lighting Group Limited
Latest business results (June 2025, full year)
Outlook
BHP Group Limited
Latest business results (June 2025, full year)
Outlook
Bisalloy Steel Group Limited
Latest business results (June 2025, full year)
Outlook
Brambles Limited
Latest business results (June 2025, full year)
Outlook
Breville Group Limited
Latest business results (June 2025, full year)
Outlook
Capral Limited
Latest business results (June 2025, half year)
Outlook
CAR Group Limited
Latest business results (June 2025, full year)
Outlook
Cedar Woods Properties Limited
Latest business results (June 2025, full year)
Outlook
Clinuvel Pharmaceuticals Limited
Latest business results (June 2025, full year)
Outlook
Cochlear Limited
Latest business results (June 2025, full year)
Outlook
Codan Limited
Latest business results (June 2025, full year)
Outlook
Coles Group Limited
Latest business results (June 2025, full year)
Outlook
Collins Foods Limited
Latest business results (April 2025, full year)
Outlook
Commonwealth Bank of Australia
Latest business results (June 2025, full year)
Outlook
Computershare Limited
Latest business results (June 2025, full year)
Outlook
Cosol Limited
Latest business results (June 2025, full year)
Outlook
Credit Corp Group Limited
Latest business results (June 2025, full year)
Outlook
CSL Limited
Latest business results (June 2025, full year)
Outlook
Data#3 Limited
Latest business results (June 2025, full year)
Outlook
Downer EDI Limited
Latest business results (June 2025, full year)
Outlook
Duratec Limited
Latest business results (June 2025, full year)
Outlook
Evolution Mining Limited
Latest business results (June 2025, full year)
Outlook
Fiducian Group Limited
Latest business results (June 2025, full year)
Outlook
Fortescue Limited
Latest business results (June 2025, full year)
Outlook
GenusPlus Group Limited
Latest business results (June 2025, full year)
Outlook
GR Engineering Services Limited
Latest business results (June 2025, full year)
Outlook
GWA Group Limited
Latest business results (June 2025, full year)
Outlook
Hansen Technologies Limited
Latest business results (June 2025, full year)
Outlook
Harvey Norman Holdings Limited
Latest business results (June 2025, full year)
Outlook
Helia Group Limited
Latest business results (June 2025, half year)
Outlook
Horizon Oil Limited
Latest business results (June 2025, full year)
Outlook
HUB24 Limited
Latest business results (June 2025, full year)
Outlook
IDP Education Limited
Latest business results (June 2025, full year)
Outlook
Iluka Resources Limited
Latest business results (June 2025, half year)
Outlook
Insurance Australia Group Limited
Latest business results (June 2025, full year)
Outlook
IPH Limited
Latest business results (June 2025, full year)
Outlook
Ive Group Limited
Latest business results (June 2025, full year)
Outlook
JB Hi-Fi Limited
Latest business results (June 2025, full year)
Outlook
Jumbo Interactive Limited
Latest business results (June 2025, full year)
Outlook
Lindsay Australia Limited
Latest business results (June 2025, full year)
Outlook
Lovisa Holdings Limited
Latest business results (June 2025, full year)
Outlook
Lycopodium Limited
Latest business results (June 2025, full year)
Outlook
Macmahon Holdings Limited
Latest business results (June 2025, full year)
Outlook
Macquarie Group Limited
Latest business results (March 2025, full year)
Outlook
Mader Group Limited
Latest business results (June 2025, full year)
Outlook
Magellan Financial Group Limited
Latest business results (June 2025, full year)
Outlook
Medibank Private Limited
Latest business results (June 2025, full year)
Outlook
Metcash Limited
Latest business results (April 2025, full year)
Outlook
Monadelphous Group Limited
Latest business results (June 2025, full year)
Outlook
Monash IVF Group Limited
Latest business results (June 2025, full year)
Outlook
National Australia Bank Limited
Latest business results (March 2025, half year)
Outlook
Netwealth Group Limited
Latest business results (June 2025, full year)
Outlook
New Hope Corporation Limited
Latest business results (January 2025, half year)
Outlook
NIB Holdings Limited
Latest business results (June 2025, full year)
Outlook
Nick Scali Limited
Latest business results (June 2025, full year)
Outlook
Nine Entertainment Company Holdings Limited
Latest business results (June 2025, full year)
Outlook
Northern Star Resources Limited
Latest business results (June 2025, full year)
Outlook
NRW Holdings Limited
Latest business results (June 2025, full year)
Outlook
Objective Corporation Limited
Latest business results (June 2025, full year)
Outlook
Origin Energy Limited
Latest business results (June 2025, full year)
Outlook
Perpetual Limited
Latest business results (June 2025, full year)
Outlook
Pinnacle Investment Management Group Limited
Latest business results (June 2025, full year)
Outlook
Premier Investments Limited
Latest business results (January 2025, half year)
Outlook
Pro Medicus Limited
Latest business results (June 2025, full year)
Outlook
PWR Holdings Limited
Latest business results (June 2025, full year)
Outlook
QBE Insurance Group Limited
Latest business results (June 2025, half year)
Outlook
Ramelius Resources Limited
Latest business results (June 2025, full year)
Outlook
REA Group Limited
Latest business results (June 2025, full year)
Outlook
Reliance Worldwide Corporation Limited
Latest business results (June 2025, full year)
Outlook
Ricegrowers Limited
Latest business results (April 2025, full year)
Outlook
Ridley Corporation Limited
Latest business results (June 2025, full year)
Outlook
Rio Tinto Limited
Latest business results (June 2025, half year)
Outlook
Schaffer Corporation Limited
Latest business results (June 2025, full year)
Outlook
Servcorp Limited
Latest business results (June 2025, full year)
Outlook
Shaver Shop Group Limited
Latest business results (June 2025, full year)
Outlook
Smartgroup Corporation Limited
Latest business results (June 2025, half year)
Outlook
Southern Cross Electrical Engineering Limited
Latest business results (June 2025, full year)
Outlook
Steadfast Group Limited
Latest business results (June 2025, full year)
Outlook
Suncorp Group Limited
Latest business results (June 2025, full year)
Outlook
Super Retail Group Limited
Latest business results (June 2025, full year)
Outlook
Supply Network Limited
Latest business results (June 2025, full year)
Outlook
Technology One Limited
Latest business results (March 2025, half year)
Outlook
Universal Store Holdings Limited
Latest business results (June 2025, full year)
Outlook
Wesfarmers Limited
Latest business results (June 2025, full year)
Outlook
Westpac Banking Corporation
Latest business results (March 2025, half year)
Outlook
WiseTech Global Limited
Latest business results (June 2025, full year)
Outlook
XRF Scientific Limited
Latest business results (June 2025, full year)
Outlook
PART II: THE TABLES
Table A:
Market capitalisation
Table B:
Revenues
Table C:
Year-on-year revenues growth
Table D:
EBIT margin
Table E:
Year-on-year EBIT margin growth
Table F:
After-tax profit
Table G:
Year-on-year earnings per share growth
Table H:
Return on equity
Table I:
Year-on-year return on equity growth
Table J:
Debt-to-equity ratio
Table K:
Current ratio
Table L:
Price/earnings ratio
Table M:
Price-to-NTA-per-share ratio
Table N:
Dividend yield
Table O:
Year-on-year dividend growth
Table P:
Five-year share price return
End User License Agreement
Guide
Cover
Table of Contents
Title Page
Copyright
Preface
Introduction
Begin Reading
End User License Agreement
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This thirty-second edition first published in 2026 by John Wiley & Sons Australia, LtdFirst edition published as Top Stocks by Wrightbooks in 1995New edition published annually
© Martin Roth 2026
All rights reserved, including rights for text and data mining and training of artificial intelligence technologies or similar technologies. Except as permitted under the Australian Copyright Act 1968(for example, a fair dealing for the purposes of study, research, criticism or review) no part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise. Advice on how to obtain permission to reuse material from this title is available at http://www.wiley.com/go/permissions.
The right of Martin Roth to be identified as the author of Top Stocks 2026 has been asserted in accordance with law.
ISBN: 978-1-394-32876-5
Registered OfficeJohn Wiley & Sons Australia, Ltd. Level 4, 600 Bourke Street, Melbourne, VIC 3000, Australia
For details of our global editorial offices, customer services, and more information about Wiley products visit us at www.wiley.com.
Wiley also publishes its books in a variety of electronic formats and by print-on-demand. Some content that appears in standard print versions of this book may not be available in other formats.
Trademarks: Wiley and the Wiley logo are trademarks or registered trademarks of John Wiley & Sons, Inc. and/or its affiliates in the United States and other countries and may not be used without written permission. All other trademarks are the property of their respective owners. John Wiley & Sons, Inc. is not associated with any product or vendor mentioned in this book.
Limit of Liability/Disclaimer of WarrantyWhile the publisher and author have used their best efforts in preparing this work, they make no representations or warranties with respect to the accuracy or completeness of the contents of this work and specifically disclaim all warranties, including without limitation any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives, written sales materials or promotional statements for this work. This work is sold with the understanding that the publisher is not engaged in rendering professional services. The advice and strategies contained herein may not be suitable for your situation. You should consult with a specialist where appropriate. The fact that an organisation, website, or product is referred to in this work as a citation and/or potential source of further information does not mean that the publisher and author endorse the information or services the organisation, website, or product may provide or recommendations it may make. Further, readers should be aware that websites listed in this work may have changed or disappeared between when this work was written and when it is read. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.
Cover and part opener image: © Imsuniyah/Adobe StockCover design by WileyCharts created using MetaStock
The author and publisher would like to thank Alan Hull (author of Active Investing, Revised Edition, Trade My Way and Invest My Way; www.alanhull.com) for generating the five-year share-price charts.
Preface
In the midst of geopolitical turmoil and economic uncertainty, stock markets in many countries have been setting new records. Investors are excited. Many are also nervous. Can the good times continue? Is a crash looming? (Might it already have occurred by the time this book is published?)
As I have noted in earlier editions, Top Stocks is written for times like these, when the future is cloudy (which is most of the time). Because, no matter the direction of the stock market, numerous fine companies continue to emerge in Australia, offering investors great prospects. Top Stocks 2026 showcases many such companies.
They are often smaller to medium-sized corporations. Some will be unfamiliar to investors. But all meet the stringent Top Stocks criteria, including solid profits and moderate debt levels.
Of course, such stocks could not withstand the tidal wave of a substantial market sell-off. They too would be affected. But they should be affected less. And if they are good companies they will continue to thrive and to pay dividends. And they will bounce back faster than many others.
This is the 32nd annual edition of Top Stocks, and guiding investors towards value stocks has been one of the paramount aims of the book from the very first edition. Indeed, one of the rationales for the book has always been to highlight the truth that Australia boasts many excellent companies that enjoy high profits — and growing profits — regardless of the direction of the markets. Despite the title, Top Stocks is actually a book about companies.
Right from the start it has been an attempt to help investors find the best public companies in Australia, using strict criteria. These criteria are explained fully later. But, in essence, all companies in the book must have been publicly listed for at least five years and must have been making a profit and paying a dividend for each of those five years. They must also meet tough benchmarks of profitability and debt levels. It is completely objective. The author’s own personal views count for nothing. In addition, share prices have never been relevant.
Of the 97 companies in Top Stocks 2026 — 13 more than in last year’s edition — fully 66 reported a higher after-tax profit in the latest financial year (June 2025 for most of them), including two that achieved triple-digit profit growth and a further 43 with double-digit growth. In addition, 65 achieved higher earnings per share and 66 paid a higher dividend.
And though, as noted, share prices are not relevant for selection to Top Stocks, 74 of the companies in the book have provided investor returns — share price appreciation plus dividends — of an average of at least 10 per cent per year over a five-year period.
Energy transition
Each year I try to identify trends among the companies of Top Stocks. Certainly one of the biggest recently has been the rush towards decarbonisation and renewable energy. A growing number of companies are trying to align themselves with this movement.
Some examples from Top Stocks:
AGL Energy is investing heavily in renewable energy assets.
Australian Ethical Investment invests in companies involved in green energy.
BHP Group is restructuring its operations in order to gain greater exposure to what it believes are mega-trends of decarbonisation and electrification.
Downer EDI is a provider of infrastructure for the energy and utilities sectors and expects to benefit from moves towards new energy sources.
Fortescue Metals is involved in green energy projects in many countries through its Energy division.
GenusPlus, a supplier of power and communications infrastructure, has been enjoying strong growth from its involvement in a series of renewable energy projects.
Iluka Resources is a global leader in the mining and processing of a range of rare earth minerals that are key components for a growing number of high-tech industries.
Lycopodium is involved in two battery recycling schemes and is also working with government and academic bodies on the development of new energy storage technologies.
Monadelphous Group is involved in large-scale renewable energy projects through its Zenviron joint venture.
Origin Energy manages a series of wind and solar energy developments and is also involved in battery projects for energy storage.
PWR Holdings is working with electric car manufacturers for the supply of sophisticated cooling technology. It is also involved in developments in storage batteries for alternative energy systems.
Rio Tinto is involved in the massive Oyu Tolgoi copper-gold mine development in Mongolia. In Argentina it has acquired the Rincon lithium project and has expressed its interest in acquiring further copper and lithium assets.
Southern Cross Electrical Engineering expects a growing amount of work from renewable energy projects.
Wesfarmers holds half the equity in Covalent Lithium, which realised its initial output in July 2025 and will ramp up production during the July 2026 year, with the goal of producing 50 000 tonnes annually of lithium hydroxide for use in lithium batteries.
Cars and trucks
A surprising number — more than 10 per cent — of the companies in Top Stocks have some kind of involvement with cars and trucks. The shares of some of these companies have been excellent long-term performers.
Amotiv, the new name for GUD Holdings, is an important manufacturer of products for the automotive aftermarket and accessories sector.
ARB is a prominent manufacturer of specialty automotive accessories and an international leader in specialised equipment for four-wheel-drive vehicles.
CAR Group is the market leader in online automotive advertising.
Insurance Australia Group is one of Australia’s leading vehicle insurers, with brands that include NRMA Insurance and RACV Home and Motor Insurance.
Lindsay Australia is a prominent trucking company.
PWR Holdings has a particular specialty in the manufacture of cooling systems for racing car teams and high-performance automobile companies.
Schaffer manufactures leather goods for the automobile industry through its 83 per cent–owned subsidiary Automotive Leather.
Smartgroup has important businesses providing vehicle novated leasing and fleet management services.
Suncorp is another of Australia’s leading vehicle insurers, with brands that include AAMI, GIO, Bingle and Shannons, and in New Zealand AA Insurance.
Super Retail Group manages the Supercheap Auto chain, the largest and most profitable of its four businesses.
Supply Network is a leading supplier of truck and bus parts.
High-tech companies
For some years in Top Stocks I have been talking about the rise and rise of high-tech companies in Australia. They are generally small companies — though large enough to be in the All Ordinaries Index of Australia’s 500 largest stocks — and it can sometimes be difficult for outsiders to understand just how they make their money. Thus, many investors avoid them.
But technology has infiltrated just about every facet of our lives, and the best of these companies are set to continue growing. It is worth taking the time to learn more about them.
Profit growth (and share price acceleration) for many of these companies has been outstanding. They are often on high price-earnings ratios, but that reflects the market’s belief that high levels of growth will continue. Dividend yields can be low. Nevertheless, they should be on the radar of all serious investors. (To the following table I have added HUB24 and Netwealth, both in the financial services sector, but growing rapidly through employing innovative software for their investment platforms.)
High-tech companies
5-year share price return (% p.a.)
Codan
24.9
Computershare
26.5
Cosol
1.0
Data#3
10.9
Hansen Technologies
10.3
HUB24
43.5
Netwealth
18.2
Objective
12.7
Technology One
38.8
WiseTech
27.9
Artificial intelligence
Allied with the high-tech theme is artificial intelligence. This has become a huge theme in the US. Many of the companies in this book are working to incorporate AI technology into their operations. But it is probably too early to judge whether such moves will boost profits sufficiently to move the share price. It is perhaps worth noting the comment of Harvey Norman chairman Gerry Harvey, after announcing the June 2025 financial results, that his company is a big player in AI and could be a big, big beneficiary.
Defence
Rising geopolitical tensions and pressure from the US government are motivating many countries, including Australia, to raise defence spending. Several companies in Top Stocks could be beneficiaries:
Bisalloy Steel Group is the only supplier of armour plate to the Australian army for land vehicles and could be a significant beneficiary of AUKUS-related plans for the construction of Australian nuclear submarines.
Codan has a fast-growing international business providing high-frequency communication equipment for military applications.
Downer EDI is a provider of infrastructure assets in many sectors. It expects to benefit from growing orders for defence-related projects.
Duratec provides remediation services for steel and concrete infrastructure assets to help preserve their lives. It has delivered projects at more than 40 defence bases and envisages great potential in government plans to spend $8 billion to expand and upgrade defence infrastructure in Western Australia.
Insurance companies
This edition of Top Stocks contains, surprisingly, eight insurance companies (including Helia Group, which is in the financial services sector), double the number of Top Stocks 2025.
The others are AUB Group, Insurance Australia Group, Medibank Private, NIB Holdings, QBE Insurance Group, Steadfast Group and Suncorp Group.
In part, this reflects the fact that the insurance sector has been enjoying some good years. Investors must always remember that this is of course a volatile business, and a sudden, sharp rise in claims can wipe out a big chunk of profit.
More protection for investors is offered by the two insurance brokers in the book, AUB and Steadfast, both of whom are making some interesting moves abroad. The two health insurers, NIB and Medibank, are beneficiaries of a growing and ageing population.
Small companies
A particular attraction of Top Stocks is the manner in which the book places the spotlight on smaller, emerging companies, many of which have just ascended into the rankings of the top 500 stocks. Some of these companies continue to rise, offering solid gains to astute investors.
A special example is the medical imaging software company Pro Medicus. It entered Top Stocks 2006 at a share price of $1.15 and a market capitalisation of $108.5 million. It appears in this latest edition of the book at a price of $298.23 and a market capitalisation of $31.2 billion (and a price/earnings ratio of 270.4!).
Another example is Codan, a technology company with a specialty in several niche products. It entered Top Stocks 2016 at a price of $0.89. In this latest edition it is priced at $30.77.
Supply Network is a provider of truck and bus parts for transport companies, with operations throughout Australia and New Zealand. It entered the book only in Top Stocks 2020 at a price of $3.99. It appears in Top Stocks 2026 at a price of $35.48.
Software developer Technology One entered Top Stocks 2005 at a price of $0.63. In this latest edition it is $38.14.
Here are some of the smaller companies that are appearing in Top Stocks for the first time:
Bisalloy Steel Group is Australia’s only manufacturer of the high-performance steel needed for heavy equipment in the mining industry and for defence applications.
Duratec is a leader in the provision of remediation services aimed especially at extending the life of steel and concrete infrastructure.
GenusPlus Group is a prominent nationwide supplier of power and communications infrastructure.
Ive Group is a leading diversified marketing and print communications company serving many of Australia’s blue-chip corporations.
XRF Scientific is a prominent global supplier of precision scientific testing equipment and chemicals for the purpose of preparing samples for analysis.
Who is Top Stocks written for?
Top Stocks is written for all those investors wishing to exercise a degree of control over their portfolios. It is for those just starting out, as well as for those with plenty of experience but who still feel the need for some guidance through the thickets of more than 2000 listed stocks.
It is not a how-to book. It does not give step-by-step instructions to ‘winning’ in the stock market. Rather, it is an independent and objective evaluation of leading companies, based on rigid criteria, with the intention of yielding a large selection of stocks that can become the starting point for investors wishing to do their own research.
A large amount of information is presented on each company, and another key feature of the book is that the data is presented in a common format, to allow readers to make easy comparisons between companies.
It is necessarily a conservative book. All stocks must have been listed for five years even to be considered for inclusion. It is especially suited for those seeking out value stocks for longer-term investment.
Yet, perhaps ironically, the book is also being used by short-term traders seeking a goodly selection of financially sound and reliable companies whose shares they can trade.
In addition, there are many regular readers who buy the book each year, and to them in particular I express my thanks.
What are the entry criteria?
The criteria for inclusion in Top Stocks are strict:
All companies must be included in the All Ordinaries Index, which comprises Australia’s 500 largest stocks (out of more than 2000). The reason for excluding smaller companies is that there is often little investor information available on them and some are so thinly traded as to be almost illiquid. In fact, the 500 All Ordinaries companies comprise, by market capitalisation, more than 95 per cent of the entire market.
It is necessary that all companies be publicly listed since at least the end of 2020, and have a five-year record of profits and dividend payments, each year.
All companies are required to post a return-on-equity ratio of at least 10 per cent in their latest financial year.
No company should have a debt-to-equity ratio of more than 70 per cent.
It must be stressed that share price performance is NOT one of the criteria for inclusion in this book. The purpose is to select companies with good profits and a strong balance sheet. These may not offer the spectacular share-price returns of a high-tech start-up or a promising rare earths miner, but they should also present less risk.
There are several notable exclusions. Listed managed investments are out, as these mainly buy other shares or investments. Examples are Australian Foundation Investment Company and all the real estate investment trusts.
A further exclusion are the foreign-registered stocks listed on the ASX. There is sometimes a lack of information available about such companies. In addition, their stock prices tend to move on events and trends in their home countries, making it difficult at times for local investors to follow them.
It is surely a tribute to the strength and resilience of Australian corporations that, once again, despite the volatility of recent years, so many companies have qualified for the book.
Changes to this edition
A total of 10 companies from Top Stocks 2025 have been omitted from this new edition.
Two were in the process of probably being taken over as this book was published:
Johns Lyng Group
Gold Road Resources
Two more saw their debt-to-equity ratio rise above the 70 per cent limit for this book:
Acrow
Woolworths Group
The remaining six excluded companies had return-on-equity ratios that fell below the required 10 per cent:
ANZ Group Holdings
Elders
Grange Resources
Platinum Asset Management
Reece
Santos
There are 23 new companies in this book (although 10 of them have appeared in earlier editions of the book, but were not in Top Stocks 2025).
The new companies in this book are:
AUB Group
Beach Energy
Bisalloy Steel Group
*
Capral
*
Cedar Woods Properties
Cosol
*
Downer EDI
Duratec
*
GenusPlus Group
*
GR Engineering Services
*
Hansen Technologies
Harvey Norman Holdings
Helia Group
*
Horizon Oil
*
HUB24
*
Ive Group
*
New Hope
Northern Star Resources
QBE Insurance Group
Shaver Shop Group
*
Suncorp Group
Universal Store Holdings
*
XRF Scientific
*
Appearing in every edition of Top Stocks
As I have noted, this is the 32nd edition of Top Stocks. Just one company has appeared in every edition — Commonwealth Bank of Australia.
Commonwealth Bank entered the original edition of the book in 1995 at a share price of $9.17 and a market capitalisation of around $11 billion. It is in the latest edition at a share price of $168.14 — having reached $192 — and a market capitalisation of more than $280 billion.
In fact, such has been its growth that it has now become the largest company in the book (and also on the ASX) by market capitalisation, overtaking BHP, which held that title in most previous editions of the book.
Once again it is my hope that Top Stocks will serve you well.
Martin Roth
Melbourne
September 2025
Note
*
Companies that have not appeared in any previous edition of
Top Stocks
.
Introduction
The 97 companies in this book have been placed as much as possible into a common format for ease of comparison. Please study the following explanations in order to get as much as possible from the large amount of data.
The tables have been made as concise as possible, though they repay careful study, as they contain large amounts of information.
Note that the tables for the banks have been arranged a little differently from the others. Details of these are given later in this Introduction.
Head
At the head of each entry is the company name, with its three-letter ASX code and the website address.
Share-price chart
Under the company name is a long-term share-price chart, to September 2025, provided by Alan Hull (www.alanhull.com), author of Invest My Way, Trade My Way and Active Investing.
Small table
Under the share-price chart is a small table with the following data.
Sector
This is the company’s sector as designated by the ASX. These sectors are based on the Global Industry Classification Standard — developed by S&P Dow Jones Indices and Morgan Stanley Capital International — which aim to standardise global industry sectors. You can learn more about these at the ASX website.
Share price
This is the closing price on 5 September 2025. Also included are the 12-month high and low prices, as of the same date.
Market capitalisation
This is the size of the company, as determined by the stock market. It is the share price multiplied by the number of shares in issue. All companies in this book must be in the All Ordinaries Index, which comprises Australia’s 500 largest stocks, as measured by market capitalisation.
Price/earnings ratio
The price/earnings ratio (PER) is one of the most popular measures of whether a share is cheap or expensive. It is calculated by dividing the share price — in this case the closing price for 5 September 2025 — by the earnings per share figure. Obviously the share price is continually changing, so the PER figures in this book are for guidance only.
Dividend yield
This is the latest full-year dividend expressed as a percentage of the share price. Like the price/earnings ratio, it changes as the share price moves. It is a useful figure, especially for investors who are buying shares for income, as it allows you to compare this income with alternative investments, such as a bank term deposit or a rental property.
Price-to-NTA-per-share ratio
The NTA-per-share figure expresses the worth of a company’s net tangible assets — that is, its assets minus its liabilities and intangible assets — for each share of the company. The price-to-NTA-per-share ratio relates this figure to the share price.
A ratio of one means that the company is valued exactly according to the value of its assets. A ratio below one suggests that the shares are a bargain, though usually there is a good reason for this. Profits are more important than assets.
Some companies in this book have a negative NTA-per-share figure — as a result of having intangible assets valued at more than their net assets — and a price-to-NTA-per-share ratio cannot be calculated.
See Table M, in the second part of this book, for a little more detail on this ratio.
Five-year share price return
The five-year share price return is a single percentage figure that shows how much an investor has earned from a stock over the five years to September 2025. It includes both the change in the share price and all dividends received, and expresses the result as a compounded annual rate of return.
Dividend reinvestment plan
A dividend reinvestment plan (DRP) allows shareholders to receive additional shares in their company in place of the dividend. Usually — though not always — these shares are provided at a small discount to the prevailing price, which can make them quite attractive. And of course no broking fees apply.
Many large companies offer such plans. However, they come and go. When a company needs finance it may introduce a DRP. When its financing requirements become less pressing it may withdraw it. Some companies that have a DRP in place may decide to deactivate it for a time.
The information in this book is based on up-to-date information from the companies. But if you are investing in a particular company in expectations of a DRP be sure to check that it is still on offer. The company’s own website will often provide this information.
Company commentary
Each commentary begins with a brief introduction to the company and its activities. Then follow the highlights of its latest business results. For the majority of the companies these are their June 2025 results, which were issued during July and August 2025. Finally, there is a section on the outlook for the company.
Main table
Here is what you can find in the main table.
Revenues
These are the company’s revenues from its business activities, generally the sale of products or services. However, it does not usually include additional income from such sources as investments, bank interest or the sale of assets. If the information is available, the revenues figure has been broken down into the major product areas.
As much as possible, the figures are for continuing businesses. When a company sells a part of its operations the financial results for the sold activities are separated from the core results and reported as a separate item. This can mean that the previous year’s results are restated — also excluding the sold business — to make year-on-year comparisons more valid.
Earnings before interest and taxation
Earnings before interest and taxation (EBIT) is the firm’s profit from its operations before the payment of interest and tax. This figure is often used by analysts examining a company. The reason is that some companies have borrowed extensively to finance their activities, while others have opted for alternative means. By expressing profits before interest payments it is possible to compare the performance of these companies more precisely.
Note that the EBIT figures in this book are calculated by adding together the company’s pre-tax profit and its interest payments — both figures that are given in company financial reporting. Some analysts prefer a net interest payments amount — that is, interest payments minus interest receipts. This is not done for this book.
You will also find many companies using a measure called EBITDA, which is earnings before interest, taxation, depreciation and amortisation.
EBIT margin
This is the company’s EBIT expressed as a percentage of its revenues. It is a gauge of a company’s efficiency. A high EBIT margin suggests that a company is achieving success in keeping its costs low.
Gross margin
The gross margin is the company’s gross profit as a percentage of its sales. The gross profit is the amount left over after deducting from a company’s sales figure its cost of sales: that is, its manufacturing costs or, for a retailer, the cost of purchasing the goods it sells. The cost of goods sold figure does not usually include marketing or administration costs.
As there are different ways of calculating the cost of goods sold figure, this ratio is better used for year-to-year comparisons of a single company’s efficiency, rather than in comparing one company with another.
Many companies do not present a cost of goods sold figure, so a gross margin ratio is not given for every stock in this book.
The revenues for some companies include a mix of sales and services. Where a breakdown is possible, the gross profit figure will relate to sales only.
Profit before tax/profit after tax
The profit before tax figure is simply the EBIT figure minus interest payments. The profit after tax figure is, of course, the company’s profit after the payment of tax and also after the deduction of minority interests. Minority interests are that part of a company’s profit that is claimed by outside interests, usually the other shareholders in a subsidiary that is not fully owned by the company. Many companies do not have any minority interests, and for those that do it is generally a tiny figure.
As much as possible, I have adjusted the profit figures to exclude non-recurring profits and losses, which are often referred to as significant items. It is for this reason that the profit figures in Top Stocks sometimes differ from those in the financial media, where profit figures often include significant items.
Significant items are those that have an abnormal impact on profits, even though they happen in the normal course of the company’s operations. Examples are the profit from the sale of a business, the expenses of a business restructuring, the write-down of an asset, an inventory write-down or a bad-debt loss. These are all generally one-off profits or expenses.
Significant items are controversial. It is often a matter of subjective judgement as to what is included and what excluded. After analysing the accounts of hundreds of companies while writing the various editions of this book, it is clear that different companies use varying interpretations of what is significant.
Further, when they do report a significant item there is no consistency as to whether they use pre-tax figures or after-tax figures. Some report both, making it easy to adjust the profit figures in the tables in this book. But difficulties arise when only one figure is given for significant items.
In normal circumstances most companies do not report significant items. But investors should be aware of this issue. It sometimes causes consternation for readers of Top Stocks to find that a particular profit figure in this book is substantially different from that given in a media report or by some other source.
It is also worth noting my observation that a growing number of companies present what they call an underlying profit (called a cash profit for the banks), or even a so-called normalised profit, in addition to their reported (statutory) profit. This underlying profit will exclude not only significant items but also discontinued businesses and sometimes other related items. Where all the relevant figures are available, I have generally used these underlying figures for the tables in this book.
As already noted, when a company sells or terminates one of its businesses it will now usually report the profit or loss of that business as a separate item. It will also usually back-date its previous year’s accounts, to exclude that business, so that worthwhile comparisons can be made of continuing businesses.
The tables in this book usually refer to continuing businesses only.
Earnings per share
Earnings per share is the after-tax profit divided by the number of shares. Because the profit figure is for a 12-month period the number of shares used is a weighted average of those on issue during the year. This number is provided by the company in its annual report and its results announcements.
Cashflow per share
The cashflow per share ratio tells — in theory — how much actual cash the company has generated from its operations.
