15 Most Valuable Australian Companies

Published on March 9, 2021 at 3:55 am by Trish Novicio in Lists, News

In this article, we will take a look at the 15 Most Valuable Australian Companies.

Australia proved to be one of the most resilient economies in the wake of the coronavirus crisis. The Australian Bureau of Statistics (ABS) announced that the Australian economy has increased by 3.1% in the last quarter of 2020, surpassing the forecasted 2.5% rise. As of February 2020, the country only recorded a total of 29,029 coronavirus cases in which more than 26,000 people have recovered. Australia is one of the countries with the lowest community transmission of COVID-19. The Australian economy was able to bounce back at a faster rate thanks to the recovery plan of the government with massive and timely financial assistance.

Biggest Trade Surplus Post-COVID

Australia welcomed 2021 with a rebounding economy. Based on data from the ABS, the country recorded the highest monthly trade surplus in January 2021 where the trade of goods and services ballooned to $10.1 billion, up over $3 billion compared with the values from December 2020. This was the outcome of a 6% increase in exports, while imports decreased by 2%. Data shows that the Australian consumer market trusts how the federal government contains and handles the pandemic. Australia’s economic output decreased by 2.5%, a lot less than the country’s first-world peers such as the US (3%), Canada (5%), Italy (9%), and the UK (10%).

Australia’s Trade with China

According to the data from the ABS, exports to China were down about 17% in January 2020 and 12% in February 2020. The country’s iron ore export declined due to supply chain disruptions caused by Cyclone Damien. The numbers started to pick up in March to over $12 billion, an increase of 32% compared to February’s export, and continued until June 2020. China is the biggest trading partner of Australia for both the imports and export of goods.

Trade with China accounts for 27.4% of Australia’s total trade with the world. Yet, last year, China posted an 80% tariff on Australian barley export and beef export suspension. Based on the news by BBC, China imposed a 200% tariff increase on imported wines from Australia to stop subsidized imports. On the other hand, the share price of Australia’s largest wine company Treasury Wine Estates (TWE) declined by 13% following the announcement.

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As of October 2020, Australia has a GDP of $1.3 trillion and houses the largest mining companies in the world. Australia is also the most prosperous country in the Asia-Pacific region with its economic growth being led by its wealth in natural resources. The country also holds more than half of the world’s iron ore exports. The country is home to the largest iron ore companies in the world including BHP (NYSE: BHP), Rio Tinto (NYSE: RIO), and Fortescue Metals Group (OTC: FSUGY). Moreover, 80% of the country’s GDP is produced by the service industry including manufacturing, retail, construction, transport, healthcare, telecom, education and training, and finance. The Australian government is investing approximately $1.5 billion into local manufacturing prioritizing the key resource industries of the country including defense and space, food and beverage, clean energy and recycling, technology, and critical mineral processing, and medical products.

To give you the most accurate insights about the 15 most valuable Australian companies, we ranked these companies by market cap.

Let’s take a look at the 15 most valuable Australian companies starting from number 15.

15. Woodside Petroleum (OTC: WOPEY)

Market cap: $18.8 billion

Perth-based Woodside Petroleum is one of the 15 most valuable Australian companies which is engaged in petroleum exploration and production of oil and gas. The company produces liquefied natural gas, natural gas pipeline, and liquefied petroleum gas. Woodside is one of the leading liquefied natural gas (LNG) companies in Australia earning revenue of $3.6 billion based on its full-year 2020 report. To promote sustainability, the company aims to achieve net-zero direct emission by 2050.

Shares of WOPEY increased by 14.3% over the past twelve months.

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14. Goodman Group (ASX: GMG)

Market cap: $23.8 billion

Ranking 14th on our list of the 15 most valuable Australian companies is Sydney-based Goodman Group. The company is engaged in integrated industrial real estate development, ownership, and investment. As of 2020, the company owns a portfolio of more than $50 billion worth of assets and 369 properties worldwide. The company is focused on investing in high-value properties including business parks, warehouses, and logistics facilities.

In the second quarter of 2021, Goodman Group earned an operating profit of $472.6 million for the first half of the year, up 16% from $407.7 million in 2020. Shares of GMG increased by 11.45% over the past twelve months.

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13. Transurban (ASX: TCL)

Market cap: $26 billion

Transurban is one of the largest toll-road operators in the world making it one of the most valuable Australian companies. The company operates 17 motorways in the metros of Australia and 4 in North America. Transurban also specializes in tolling and transport technology aiding in innovative transportation solutions. Earlier this year, the Maryland Department of Transportation (MDOT) and Maryland Transportation Authority have chosen Transurban to lead the major highway project in Montgomery County, an $11 billion project that will be developed by various construction companies including Macquarie Infrastructure Corp (NYSE: MIC).

Based on the company’s full-year 2020 report, Transurban earned $2.6 billion in revenue across all existing Australian and North American toll networks, down 3% from the previous year. The restriction in movement and government-mandated lockdown directly impacted Transurban’s operations in 2020, most notably in early March. Shares of TCL fell by 17% over the past twelve months.

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12. Telstra Corporation Limited (ASX: TLS)

Market cap: $28 billion

Telecom giant Telstra ranks 12th on our list of the 15 most valuable Australian companies. As of June 2020, Telstra holds 47% market of the Australian broadband sector making the company the largest telecom conglomerate in the country. Telstra’s global operations are based in Hong Kong, providing wholesale and enterprise customers with a full range of integrative and end-to-end solutions including data, voice, satellite, and managed network services.

Based on Telstra’s full-year 2020 report, the company earned a net profit of $1.8 billion and served more than 4 million new customers on new plans. Shares of TLS fell by 7.73% over the past twelve months.

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11. Woolworths Ltd. (OTC: WOLWF)

Market cap: $37.6 billion

Sydney-based supermarket retailer Woolworths Group Limited ranks 11th on our list of the 15 most valuable Australian companies. The company is engaged in the retail sale of supermarket food, general merchandise, and liquor. On top of the 3,000 stores the company owns in Australia and New Zealand, Woolworths also operates in the hotel management sector.

In their first half-year 2021 report, Woolworths reported revenue of $35.8 billion, up by 10.6% compared to the same period in 2020. Shares of WOLWF increased by 25% over the past twelve months.

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10. Macquarie Group (ASX: MQG)

Market cap: $39.9 billion

Ranking 10th on our list of the 15 most valuable Australian companies is global financial services company Macquarie Group. Sydney-based Macquarie Group provides a variety of financial services including asset and wealth management, investment banking, retail and business banking, and commodity trading.

Based on MQG’s full-year 2020 report, the company earned a net profit of $2 billion, which decreased by 8% compared to the same period in 2019. Shares of MQG increased by 22.18% over the past twelve months.

9. Wesfarmers Limited (OTC: WFAFF)

Market cap: $43 billion

Wesfarmers is one of the most valuable Australian companies. The company’s diversified operations include department store and apparel retail, home improvement, and outdoor living merchandise, and office supplies. Moreover, Wesfarmers also operates an industrial sector manufacturing segment, distributing chemical, fertilizers, and safety products.

Based on the company’s full-year 2020 report, Wesfarmers earned revenue of $30.8 billion, up by 10.5% from the previous year. Bunnings, the home improvement division of Wesfarmers, was one of the key drivers for the company’s growth ending the year 2020 with $14.9 billion in revenue. Amid an increase in DIY home projects following coronavirus-related lockdowns, Bunnings’ revenue of the home improvement segment jumped significantly.

Image by Steve Buissinne from Pixabay

8. Fortescue Metals Group Ltd. (OTC: FSUGY)

Market cap: $52 billion

Fortescue Metals Group (FMG) is one of the most valuable Australian companies as it is one of the largest iron ore companies in the country. The company exports approximately 175 to 180 million tonnes of iron ore annually. In order to combat the negative impacts of iron ore mining on the environment, Fortescue has begun integration of solar and wind energy, gas, and the hybrid battery storage project to decimate the current thermal generation. The company aims net-zero operational carbon emissions by 2040.

Based on the company’s 2020 annual report, Fortescue earned revenue of $12.8 billion. Shares of FSUGY increased by 203.1% over the past twelve months.

7. Atlassian Corp Plc (NASDAQ: TEAM)

Market cap: $57 billion

Sydney-based software company Atlassian Corp ranks 7th on our list of the 15 most valuable Australian companies. Founded in 2002, Atlassian Corp is one of the fastest-growing software companies supporting several Fortune 500 companies including Capgemini (EPA: CAP), IBM (NYSE: IBM), Slack Technologies (NYSE: WORK), Twitter Inc. (NYSE: TWTR), and VMWare Inc. (NYSE: VMW) to name a few. In February 2021, Atlassian announced its acquisition of the cloud-based visualization and analytics software Chartio for an undisclosed price.

In its full-year 2020 report, Atlassian announced total revenue of $1.6 billion, an increase of 33% from $1.2 billion in 2019. Shares of TEAM increased by 71.59% over the past twelve months.

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6. Westpac Banking Corp (NYSE: WBK)

Market cap: $70.4 billion

Sydney-based Westpac Banking Corp is one of the most valuable Australian companies providing banking and financial services mainly in Australia and New Zealand. The Australian bank offers lending, investment portfolio management, foreign exchange services, and insurance services. Through one of its subsidiaries, Westpac provides financial assistance of up to $200 million to micro to medium enterprises. As of 2020, Westpac’s home loan portfolio reached over $400 billion.

In the first quarter of 2021, Westpac Banking Corp earned a net profit of $1.7 billion, up by over 200% compared to the same period in 2020. Shares of WBK increased by 54.75% over the past twelve months.

5. CSL Limited (ASX: CSL)

Market cap: $86.8 billion

Melbourne-based biotech giant CSL Limited ranks 5th on our list of the 15 most valuable Australian companies. The company develops plasma therapies through its CSL Behring segment and produces influenza vaccines through its CSL Seqirus segment. In February 2021, CSL announced its partnership with AstraZeneca (LON: AZN) to produce 30 million doses of the Oxford University vaccine. CSL has also joined the COVIg-19 Plasma Alliance, which develops anti-coronavirus hyperimmune intravenous immunoglobulin (H-Ig) medicine to treat hospitalized adults at risk of severe complications of COVID-19. Microsoft (NASDAQ: MSFT) provides technical support in the COVIg-19 Plasma Alliance website and Plasma Bot for donor recruitment.

Based on the half-year results that ended in December 2020, CSL announced total revenue of $5.7 billion, an increase of 16.9% compared to the same period in the previous year. Shares of CSL fell by 16.88% over the past twelve months.

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4. Commonwealth Bank of Australia ADR (OTC: CMWAY)

Market cap: $117.6 billion

Commonwealth Bank of Australia (CBA), or CommBank, ranks 4th on our list of the 15 most valuable Australian companies. Established in 1911, the multinational bank offers an array of financial services in retail, business, and institutional banking, fund management, pensions, insurance, investment, and brokerage. With its aim to contribute to the transition to net-zero emissions, Commbank announced in February 2020 its new “Commbank Green Loan” which allows homeowners to loan up to $20,000 to invest in renewable technology that can be repaid over ten years.

Based on the company’s first-half of 2021 report, Commonwealth Bank of Australia posted a net profit of $4.7 billion, a decrease of 20.8% from the same period in 2020. Shares of CMWAY increased by 46.9% over the past twelve months.

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3. National Australia Bank (OTC: NABZY)

Market cap: $133.7 billion

Melbourne-based National Australia Bank (NAB) ranks 3rd on our list of the 15 most valuable Australian companies. NAB is engaged in providing financial and banking services such as wealth management, credit, and access card facilities, insurance, investment banking, and trustee and nominee services. The leading multinational bank conglomerate primarily operates in Australia and New Zealand and has established operations in the US, the UK, and Asia. In January 2021, NAB is currently in the process of acquiring 86400 Ltd. to strengthen NAB’s online banking segment, UBank.

In the first quarter of 2021, NAB announced a total net profit of $1.7 billion. Shares of NABZY increased by 53.33% over the past twelve months.

2. Rio Tinto Plc (NYSE: RIO)

Market cap: $135.3 billion

Ranking second on our list of the 15 most valuable Australian companies is Rio Tinto Group. Rio Tinto is one of the biggest iron ore producers in the world. The Anglo-Australian mining and metal conglomerate is globally recognized in the extraction of iron ore, aluminum, uranium, copper, and diamonds. Rio Tinto’s production and shipments during the pandemic were directly impacted by the movement restriction globally. Rio Tinto’s revenue decreased by 7% to $19.4 billion, while its net earnings decreased by 20%, according to the company’s first-half of 2020 report.

Based on RIO’s 2020 annual report, the company announced total net cash generated from operating activities of $15.9 billion mainly driven by iron ore prices. Shares of RIO increased by 100% over the past twelve months.

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1. BHP Group Ltd ADR (NYSE: BHP)

Market cap: $194.3 billion

Topping our list of the 15 most valuable Australian companies is Melbourne-based BHP Group. BHP Group is a multinational mining conglomerate specializing in the exploration and production of minerals such as iron ore, copper, and metallurgical coal. BHP also operates in the oil, gas, and energy coal sector. BHP is one of the world’s largest iron ore companies. In 2020, BHP produced approximately 280 million tonnes of iron ore.

In February 2021, BHP launched a partnership with two of the largest steel companies in the world, China’s HBIS Group Ltd and Japan’s JFE Steel. BHP is to invest $15 million in each partnership to develop technologically integrated material-making solutions that will reduce greenhouse gas emissions.

In the first half of the year ended on 31 December 2020, BHP announced total earnings of $14.7 billion, with $10.2 billion EBITDA from the iron ore segment. The copper segment added $3.7 billion EBITDA. Shares of BHP increased by 119% over the past twelve months.