SNL - Supply Network Limited
(2026 team invest pic)
Strong and predictable growth.
A future problem might be how will electrification effect them. Electric vehicles require fewer spare parts . Their customers are struggling in 2026 because of the high fuel price.
The PE is a bit high -- 35ish .... a PE of 28-30 is better.
The 10 year median PE is 23
In june 2023, the PE was 25 .... so accumulate at $15
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Supply Network Ltd (ASX: SNL) is a leading Australian and New Zealand aftermarket distributor of truck and bus parts operating under the Multispares brand. Headquartered in Australia, the company has a market capitalisation of approximately A$1.5 billion and delivers consistent compounding growth through commercial vehicle parts supply and fleet support services. [1, 2]
Core Business & Operations
- Brand: Operates extensively via the Multispares brand name across Australia and New Zealand.
- Products & Services: Supplies replacement parts for major truck and bus brands, alongside procurement, parts interpreting, and inventory management.
Recent Performance & Financial Highlights
- FY2026 Results: Reported preliminary sales revenue of A$403.1 million and an expected profit after tax of roughly A$47.7 million. [1]
- Dividends: Declared a final fully franked dividend of 44.0 cents per share, payable on October 2, 2026 (record date September 18, 2026). [1]
- Growth Outlook: Management has targeted approximately A$50 million in additional revenue growth for fiscal year 2027 through network optimization and expanding customer accounts. [1]
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PE ratios
Over the past 10 years, Supply Network Limited (ASX: SNL) has traded at a historical median P/E ratio of approximately 23.15, with a 10-year range spanning from a low of about 15.18 to a peak maximum of 52.36. Its current trailing P/E ratio hovers around 34.25 to 35.01, sitting roughly 51% above its long-term median. [1, 2, 3]
Historical P/E Range & Statistics
- 10-Year Minimum P/E: ~15.18
- 10-Year Median P/E: ~23.15
- 10-Year Maximum P/E: ~52.36
Recent Yearly P/E Trend (Fiscal Year Ends)
- June 2022 Low: ~20.7x
- June 2023: ~25.0x
- June 2024: ~28.6x to 30.3x
- June 2025 Peak: ~40.3x to 41.8x
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Buffett analysis
Supply Network Ltd (ASX:SNL) delivers an exceptional historical Return on Equity (ROE) trend that consistently outperforms standard Warren Buffett benchmarks. Over the last six years, SNL’s ROE has averaged well above 34%, vastly exceeding Buffett’s typical threshold of 15% to 20% for excellent, compounding businesses. [1, 2, 3]
Historical ROE Trend Analysis
- Exceptional Baseline: Lowest ROE was 30.2% in FY 2021.
- Cyclical Peak: Accelerated to a high of 39.98% in FY 2023.
- Recent Moderation: Settled at 31.89% in FY 2026.
Capital Allocation vs. Buffett Benchmarks
1. Reinvestment Efficiency (ROIC vs. ROE)
- Buffett Rule: High ROE must not rely on excessive debt.
- SNL Performance: Maintains a low debt-to-equity profile.
- Core Strength: FY 2026 Return on Invested Capital (ROIC) is 27.71%.
2. The Dividend Payout Strategy
- Buffett Rule: Retain earnings only if internal returns beat benchmarks.
- SNL Performance: Distributes roughly 68%–73% of earnings as dividends.
- Shareholder Yield: Paid a $0.44 fully franked final dividend in October 2026.
Direct Benchmark Comparison
| Metric | Supply Network Ltd (FY 2026) | Standard Buffett Benchmark |
|---|---|---|
| Return on Equity (ROE) | 31.89% | 15.0% – 20.0% (Exceptional) |
| Return on Invested Capital (ROIC) | 27.71% | 15.0%+ (Strong Moat Indicator) |
| Gearing / Debt Reliance | Low Debt/Equity (0.21%) | Minimal leverage dependency |
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