VOL. XCIV, NO. 247

WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES

Checking

Wide moat stocks

Brambles Limited BXB

ASX Business servicesFinancials to Jun 30, 2026 · Updated Nov 11, 2026

On Stock Analysis · affiliate link

BXB financials

Moat score

ROIC

20.3%

P/E

–

EV/EBIT

–

FCF yield

–

Dividend yield

–

Market cap

–

Moat ranks

Score rankTied #57 of 396

Durabilitydurable

Market structureOligopoly

Pricing powermoderate

Balance sheet

6/30/26

$B	Jun '25	Jun '26
Cash	0.6	0.1
Securities	0.0	0.0
Debt	2.3	2.0
Net cash	-1.7	-1.9
Equity	3.4	3.2

Leverage

Debt / EBITDA: 0.83×
Debt / equity: 0.61×
Leases (6/30/26): $1.0B

Capital

Diluted shares: 1,364M
Book value / share: $2.37
Price / book: –
Net cash / share: −$1.40
Market cap: –
Enterprise value: –

Per-share record

Fiscal years and TTM

Revenue per shareCash flow per share

Key indicators

Latest: H2 '26

Indicator	Latest	Vs year ago
Revenue growth	6.4%	+5.0 pts
Operating margin	20.0%	+0.2 pts
FCF margin	12.8%	-3.6 pts
Capex / revenue	16.2%	+2.0 pts
Pallets, crates and containers	~352.0M	+1%
Service centres	≥750	0%
Irrecoverable pooling equipment provision	$117M	+25%
Net new business contribution	3.0%	+1.0 pts
Like-for-like volume growth	-2%	-1 pts

Margins and growth from reported quarters; company KPIs as reported in results releases.

About BXB

Brambles rents and recovers reusable pallets, crates and containers through CHEP, mainly for consumer staples, retailers and manufacturers. Americas provides 55% of sales, EMEA 37% and Asia-Pacific 8%.

Revenue mix

CHEP Americas 54.9%CHEP EMEA 36.6%CHEP Asia-Pacific 8.5%

Physical Network Density
Dense service-centre coverage and a large reusable asset pool support availability and repositioning, but April 2026 repair bottlenecks in the U.S. showed that nominal density does not guarantee usable pallet supply.
Scale Economies Unit Cost
Pool scale and density reduce per-move unit costs (repair, repositioning, transport) and improve asset utilisation through shared reuse across many counterparties.
Switching Costs General
Customers integrate operations into the share-and-reuse network; switching implies process changes, partner coordination, and transitioning flows back to owned/exchange pallets or another pool.
Physical Network Density
A dense regional service network supports availability and reuse across many touchpoints, improving cycle efficiency and resilience versus smaller pools.

Timeline

Oct 22, 2026
The October 22 AGM reported US repair capacity up 3% and 1.4 million support pallets purchased in Q1. Guidance was reaffirmed; network recovery remains an execution test.
Sep 9, 2026
Brambles published its FY2026 sustainability review: customer sustainability certificates reached 7,440 and circular materials replaced 50% of virgin plastic purchases, supporting its reusable packaging proposition.
Sep 2026
Brambles updated its Green Finance Framework to support funding for reuse assets and lower-carbon operations; the framework does not itself announce a new bond or cheaper borrowing.
Aug 20, 2026
Brambles reported about US$90 million of FY2026 earnings lost to U.S. repair constraints and forecast FY2027 sales growth of 2–4% with further repair investment.
Jul 1, 2026
Brambles filed an appeal against the shareholder class-action judgment; insurance arrangements are in place and payment obligations remain uncertain.

Ownership

CEO

Graham Chipchase

Since 2017 · 9 yrs

Professional CEOSingle share class

Go deeper on BXB

On Find My Moat

Financial record

Fiscal year	2017	2018	2019	2020	2021	2022	2023	2024	2025	2026	Change 2017–26
Per share ($)
Revenue	3.20	2.80	2.87	3.04	3.52	3.88	4.36	4.66	4.80	5.16	+5.5%/yr
Cash flow	0.76	0.89	0.84	0.89	1.05	1.12	1.43	1.29	1.32	1.45	+7.5%/yr
Earnings	0.28	0.35	0.28	0.33	0.36	0.40	0.47	0.55	0.62	0.70	+10.7%/yr
Free cash flow	0.07	0.17	0.07	0.23	0.31	-0.06	0.22	0.47	0.63	0.62	+27.3%/yr
Capex	0.69	0.73	0.77	0.66	0.74	1.18	1.21	0.82	0.69	0.83	+2.2%/yr
Dividends	0.22	0.22	0.21	0.31	0.19	0.21	0.23	0.29	0.38	0.44	+8.2%/yr
Book value	1.78	1.74	2.38	1.77	1.81	1.72	2.06	2.31	2.41	2.37	+3.2%/yr
Diluted shares (M)	1,595	1,596	1,599	1,553	1,480	1,421	1,394	1,398	1,390	1,364	-1.7%/yr
Totals ($B)
Revenue	5.1	4.5	4.6	4.7	5.2	5.5	6.1	6.5	6.7	7.0	+3.6%/yr
Operating income	0.8	0.8	0.7	0.8	0.9	0.9	1.1	1.3	1.4	1.5	+7.6%/yr
Net income	0.4	0.6	0.5	0.5	0.5	0.6	0.7	0.8	0.9	0.9	+8.8%/yr
Free cash flow	0.1	0.3	0.1	0.4	0.5	-0.1	0.3	0.7	0.9	0.8	+25.1%/yr
Buybacks	0.0	0.0	0.1	0.6	0.5	0.4	0.0	0.0	0.4	0.5	–
Dividends	0.3	0.4	0.3	0.5	0.3	0.3	0.3	0.4	0.5	0.6	+6.4%/yr
Net cash	-2.6	-2.3	-0.1	-1.0	-1.3	-2.0	-2.0	-1.7	-1.7	-1.9	+$0.6B
Margins & returns (%)
Operating margin	15.1	17.4	16.1	16.9	16.8	16.8	17.6	19.3	20.6	21.2	+6.1 pts
Net margin	8.7	12.4	9.9	10.8	10.2	10.4	10.8	11.9	13.0	13.5	+4.8 pts
FCF margin	2.2	5.9	2.4	7.6	8.8	-1.6	5.0	10.0	13.1	12.0	+9.8 pts
ROIC	10.0	10.7	13.2	14.8	15.2	14.6	15.3	18.0	19.0	20.3	+10.3 pts
Return on equity	15.6	19.9	11.9	18.4	19.8	23.4	22.9	24.0	25.8	29.3	+13.7 pts
Stock pay % of revenue	0.6	0.3	0.4	0.4	0.5	0.5	0.5	0.5	0.5	0.5	-0.1 pts
Capex % of revenue	21.5	25.9	26.8	21.8	21.0	30.3	27.7	17.6	14.4	16.2	-5.4 pts

Change uses 2017 and 2026 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2017 base. Trend shows the fiscal years.

Per-share values use diluted weighted shares.ROIC = operating income × (1 − 30.2% tax rate, the company's own over three fiscal years excluding one-offs) ÷ (equity + debt − cash and current securities). Returns show a dash when their base is negative or under 10% of revenue. Free cash flow = operating cash flow − capex. Debt is all borrowings; net cash counts long-term securities and excludes leases. No trailing-twelve-month column: no complete four quarters end after the last fiscal year.

Moat

Moat scorecard

Moat score88

Strength
Confidence
Structure: Oligopoly
Durability: durable
Trajectory: narrowing
Pricing power: moderate

Segments

CHEP Americas54.9%
3 claims
CHEP EMEA36.6%
3 claims
CHEP Asia-Pacific8.5%
3 claims

Moat claims

Applies to: CHEP Americas
Confidence
Durability: durable
Trajectory: narrowingas of Jun 30, 2026

Why it holds

Dense service-centre coverage and a large reusable asset pool support availability and repositioning, but April 2026 repair bottlenecks in the U.S. showed that nominal density does not guarantee usable pallet supply.

Why narrowing

U.S. repair capacity constraints cost about US$90 million in FY2026 and reduced service reliability despite a global pool of about 352 million assets and more than 750 service centres.

Indicators

Pallets, crates and containers~352,000,000+1%
Service centres≥7500%
Irrecoverable pooling equipment provision$117M+25%
Net new business contribution3.0%+1.0 pts
Like-for-like volume growth-2%
Collection in full, on time5
US repair capacity increase3.0%
Additional US pallets purchased~1,400,000

Risks

Competitors expanding depot footprints in key corridors
Service disruption (automation outages, labor shortages)
Sustained customer destocking reducing turns
Subcontractor exits or repair backlogs reduce effective pallet availability

Sources

SourceBrambles FY26 Trading Update - current network scaleMay 18, 2026
SourceBrambles FY26 Trading Update - U.S. repair constraintMay 18, 2026
SourceBrambles FY2026 resultsAug 20, 2026

Applies to: CHEP Americas
Confidence
Durability: durable
Trajectory: narrowingas of Jun 30, 2026

Why it holds

Pool scale and density reduce per-move unit costs (repair, repositioning, transport) and improve asset utilisation through shared reuse across many counterparties.

Why narrowing

Americas profit was reduced by about US$90 million of repair constraints in FY2026; added shifts, pallet relocations and higher losses showed that asset scale alone does not assure low unit costs.

Indicators

Pallets, crates and containers~352,000,000+1%
Irrecoverable pooling equipment provision$117M+25%
Collection in full, on time5
Return on capital invested22.6%+0.7 pts
US repair capacity increase3.0%
Additional US pallets purchased~1,400,000

Risks

Higher damage and loss rates increasing replacement capex
Fuel and transport inflation raising repositioning costs
Commoditization of pooling services
Repair bottlenecks force costly pallet relocations and spot transport

Sources

SourceBrambles Annual Report 2025 (online) - Network advantage descriptionAug 21, 2025

Applies to: CHEP Americas
Confidence
Durability: medium
Trajectory: stableas of Jun 30, 2026

Why it holds

Customers integrate operations into the share-and-reuse network; switching implies process changes, partner coordination, and transitioning flows back to owned/exchange pallets or another pool.

Why stable

CHEP resumed new business conversions and reported no missed U.S. orders since June 2026, but group NPS improvement does not establish U.S. customer recovery; switching and dual sourcing remain possible.

Indicators

Net new business contribution3.0%+1.0 pts
Like-for-like volume growth-2%
Net Promoter Score1

Risks

Standardized freight platforms reduce differentiation
Customers pursue dual-sourcing to reduce dependency
Improved pallet tracking and visibility for owned fleets

Sources

SourceBrambles Annual Report 2025 (online) - Share and reuse flowAug 21, 2025

Applies to: CHEP EMEA
Confidence
Durability: durable
Trajectory: stableas of Jun 30, 2026

Why it holds

A dense regional service network supports availability and reuse across many touchpoints, improving cycle efficiency and resilience versus smaller pools.

Why stable

European pallet net new business grew 3% in FY2026, but EMEA profit was flat at constant currency and relocation costs rose; the network remains useful without clear evidence of a wider regional advantage.

Indicators

Pallets, crates and containers~352,000,000+1%
Service centres≥7500%
Irrecoverable pooling equipment provision$117M+25%
Net new business contribution3.0%+1.0 pts
Like-for-like volume growth-2%
Collection in full, on time5
US repair capacity increase3.0%
Additional US pallets purchased~1,400,000

Risks

Localized competitor density in certain countries
Higher regulatory and operational costs in some markets
Sustained low manufacturing and retail volumes in Europe
Pallet relocations and supply-chain inefficiencies prevent expected margin expansion

Sources

SourceBrambles FY26 Trading Update - current network scaleMay 18, 2026

Applies to: CHEP EMEA
Confidence
Durability: durable
Trajectory: stableas of Jun 30, 2026

Why it holds

Scale and density reduce unit repair and repositioning costs and enable investments in automation and productivity that smaller pools may not justify.

Why stable

EMEA FY2026 profit was flat at constant currency despite about US$20 million of plant savings and US$25 million of transport savings; higher loss expense and relocations absorbed these benefits.

Indicators

Pallets, crates and containers~352,000,000+1%
Irrecoverable pooling equipment provision$117M+25%
Collection in full, on time5
Return on capital invested22.6%+0.7 pts
US repair capacity increase3.0%
Additional US pallets purchased~1,400,000

Risks

Inflation in labor and repairs outpacing price recovery
Capital intensity rises if loss and damage worsens
Technology diffusion narrowing productivity gaps

Sources

SourceBrambles Annual Report 2025 (online) - Network advantage descriptionAug 21, 2025

Applies to: CHEP EMEA
Confidence
Durability: medium
Trajectory: stableas of Jun 30, 2026

Why it holds

Once embedded into a multi-party reuse network, switching requires operational and partner coordination changes and can disrupt supply-chain routines.

Why stable

Group net new business contributed 3% to FY2026 sales growth and NPS improved one point; the report confirms better NPS outside the U.S., although it gives no separate regional retention rate.

Indicators

Net new business contribution3.0%+1.0 pts
Like-for-like volume growth-2%
Net Promoter Score1

Risks

Standardized systems make multi-homing easier
Large retailers enforcing compatibility across pallet types
Third-party logistics providers offering alternative pooling

Sources

SourceBrambles Annual Report 2025 (online) - Share and reuse flowAug 21, 2025

Applies to: CHEP Asia-Pacific
Confidence
Durability: durable
Trajectory: stableas of Jun 30, 2026

Why it holds

Regional pooling benefits from Brambles broader network scale and asset management capabilities, supporting reliable reuse and availability.

Why stable

Asia-Pacific pallet volumes fell 1% in FY2026 as Australian inventory reductions offset growth elsewhere; the regional network remains established, but global asset growth alone does not show rising local density.

Indicators

Pallets, crates and containers~352,000,000+1%
Service centres≥7500%
Irrecoverable pooling equipment provision$117M+25%
Net new business contribution3.0%+1.0 pts
Like-for-like volume growth-2%
Collection in full, on time5
US repair capacity increase3.0%
Additional US pallets purchased~1,400,000

Risks

Local competitor strength in specific countries
Supply chain disruptions affecting asset returns
Higher transport cost volatility in some markets

Sources

SourceBrambles FY26 Trading Update - current network scaleMay 18, 2026

Applies to: CHEP Asia-Pacific
Confidence
Durability: durable
Trajectory: stableas of Jun 30, 2026

Why it holds

Shared platforms and processes lower average costs relative to smaller pools; benefits can be more modest in smaller geographies with less density.

Why stable

Asia-Pacific FY2026 underlying profit grew 8% at constant currency as cost recovery and efficiencies supported earnings, while customer inventory reductions and investment in platform quality limited further expansion.

Indicators

Pallets, crates and containers~352,000,000+1%
Irrecoverable pooling equipment provision$117M+25%
Collection in full, on time5
Return on capital invested22.6%+0.7 pts
US repair capacity increase3.0%
Additional US pallets purchased~1,400,000

Risks

Lower density reduces scale advantages vs competitors
Input-cost inflation (labor, repairs) in local markets
Higher capital costs from loss and damage

Sources

SourceBrambles Annual Report 2025 (online) - Network advantage descriptionAug 21, 2025

Applies to: CHEP Asia-Pacific
Confidence
Durability: medium
Trajectory: stableas of Jun 30, 2026

Why it holds

Operational integration into share-and-reuse routines and partner flows creates friction to exit the pool, though switching can still occur for price and availability reasons.

Why stable

Group net new business contributed 3% to FY2026 sales growth and NPS improved one point; the report confirms better NPS outside the U.S., although it gives no separate regional retention rate.

Indicators

Net new business contribution3.0%+1.0 pts
Like-for-like volume growth-2%
Net Promoter Score1

Risks

Interoperability improvements reduce switching friction
Procurement-driven switching in cost pressure periods
Local supply constraints driving customers to alternatives

Sources

SourceBrambles Annual Report 2025 (online) - Share and reuse flowAug 21, 2025

Profile change log

Nov 11, 2026 · business change
The October 22 AGM reported US repair capacity up 3% and 1.4 million support pallets purchased in Q1. Guidance was reaffirmed; network recovery remains an execution test.
Oct 9, 2026 · analyst revision
Corrected FY2025 group ROCI from 22.2% to 21.9%, removed the unsupported 2019 share-consolidation note, and separated U.S. customer recovery from group service improvements. Regional trajectories now use local demand and cost evidence; claim strengths and evidence status are unchanged.
Oct 9, 2026 · business change
Brambles updated its Green Finance Framework to support funding for reuse assets and lower-carbon operations; the framework does not itself announce a new bond or cheaper borrowing.
Oct 9, 2026 · business change
Brambles published its FY2026 sustainability review: customer sustainability certificates reached 7,440 and circular materials replaced 50% of virgin plastic purchases, supporting its reusable packaging proposition.
Oct 9, 2026 · business change
Brambles reported about US$90 million of FY2026 earnings lost to U.S. repair constraints and forecast FY2027 sales growth of 2–4% with further repair investment.
Oct 9, 2026 · business change
Brambles filed an appeal against the shareholder class-action judgment; insurance arrangements are in place and payment obligations remain uncertain.
Oct 9, 2026 · business change
The Federal Court upheld parts of the shareholder claims about FY2017 guidance; potential damages remain unquantified.
Oct 9, 2026 · business change
Brambles sold CHEP India to LEAP India for an enterprise value of about US$81 million, removing the business from continuing operations.
Oct 9, 2026 · business change
Brambles combined CHEP China with Loscam China and retained a 20% associate stake, replacing consolidated China operations with equity-accounted exposure.
Oct 9, 2026 · business change
Brambles combined Kegstar with MicroStar and received a 16% associate stake, removing consolidated keg pooling from continuing operations.
Oct 9, 2026 · business change
Brambles sold IFCO, reducing its exposure to global reusable produce-crate pooling and returning capital to shareholders.
Oct 9, 2026 · analyst revision
Segment profit shares of 44.34%, 42.98% and 12.68% omitted because they divided regional profits before corporate costs. FY2026 revenue shares remain based on reported sales. Added sourced moat trajectories, operating tests, management and the investment debate; claim strengths and evidence status are unchanged.

Industry & peers

Peer map

No peer numbers yet

Peers appear on the map as their numbers are collected.

Global pallet and returnable transport packaging pooling

As of Oct 9, 2026

OligopolyMedium cyclicality

Rental and shared-use services for reusable pallets, plastic crates, large containers, bins and trays used to move goods between manufacturers, distributors and retailers worldwide. Excludes manufacturing and sale of owned or single-use packaging, freight transport and warehouse equipment rental.

CHEP (Brambles)
Loscam
Euro Pool Group / LPR
Faber Group / IPP
Tosca / Contraload
PECO Pallet
Japan Pallet Rental
Korea Pallet Pool
iGPS Logistics
LEAP India

2024 leaders, no comparable shares · Frost & Sullivan, Asset Pooling as a Service, August 2025

	Stocks	Moat	Gross m.	Op. m.
BXB		88	–	21.2%
Industry median	13	70	74.4%	19.2%
Sector median	88	76	37.3%	18.0%
All stocks median	398	76	53.1%	20.0%

Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.

Drivers & risks

Demand drivers

Food, beverages and consumer staples give pools recurring shipment demand; industrial and automotive flows are more sensitive to production cycles.
Converting owned and single-use packaging to reuse can lower customer capital needs and waste, but savings depend on reliable collections and asset turns.
Automated warehouses require consistent pallet quality and dimensions, favouring dependable poolers while raising inspection and repair investment.
Digital tracking can improve asset recovery and identify unauthorised reuse; savings depend on working read infrastructure and customer cooperation.
European reuse rules support demand for returnable packaging. Operators must meet traceability, safety and sustainability requirements and prove the environmental benefit.

Risks

Low-cost owned whitewood pallets, private loops and regional providers limit rental pricing and make dual sourcing practical.
Labour availability, repair capacity, lumber and freight inflation can outrun cost recovery; the U.S. CHEP shortfall in FY2026 shows that a large pool cannot replace sufficient repair throughput.
Retailer destocking and slow consumer demand reduce existing-customer volumes, while congestion and slower asset return cycles can increase capital needs.
Lost or unauthorised assets require replacement purchases; compensation collection, pool estimates and FIFO costs can obscure near-term changes in physical losses.
Currencies can boost translated dollar growth without stronger local demand. Rates affect funding and customers, although fixed and hedged debt limits CHEP's immediate rate exposure. Timber scarcity, extreme weather and regulation can raise sourcing costs.

Bulls & bears

Key question · as of Oct 9, 2026

Can CHEP restore reliable U.S. repair capacity and keep winning customers without giving back its asset-efficiency gains in extra labour, transport and replacement pallets?

Arguments

4 forFaded: weakening or settled5 against

What to watch

1U.S. service restoration, missed orders and FY2027 remediation costs
2Net new business contribution versus like-for-like volumes
3IPEP expense, statutory operating cash flow and capital expenditure
4Input-cost recovery, regional volumes and currency translation

Next check: 22 October 2026 AGM for repair and appeal updates; confirmed FY2027 half-year results on 18 February 2027.

Sources: company filings and dated sources collected for Find My Moat; Current shares outstanding after the ongoing buyback have not been verified; market cap and valuation multiples are unavailable. Not investment advice.

Cite or reuse this data

Free to reuse, commercially too, with a credit link. See the data license.

Moat Score 88/100 by <a href="https://www.findmymoat.com/stocks/XASX:BXB">Find My Moat</a> (as of September 2026)

Curation & Accuracy

This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).

Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.

★WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES★

Moat ranks

Balance sheet

Per-share record

Key indicators

About BXB

Ownership

Go deeper on BXB

On this page

Financial record

Moat

Moat scorecard

Moat claims

Profile change log

Industry & peers

Peer map

Global pallet and returnable transport packaging pooling

Drivers & risks

Bulls & bears

Arguments

What to watch

Curation & Accuracy

WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES