Returns On Capital Are Showing Encouraging Signs At Coles Group (ASX:COL)
May 02
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Australian (ASX) Food and Staples Retail Industry Analysis
UpdatedMay 11, 2025
DataAggregated Company Financials
Companies6
- 7D1.9%
- 3M11.4%
- 1Y11.9%
- YTD11.1%
In the last week, the Food and Staples Retail industry is up 1.9%, with Coles Group leading the way, up 2.5%. During this same period, the Scalare Partners Holdings underperformed, falling 12%. In the last 12 months, the industry was up 12%. Earnings are forecast to grow by 8.5% annually.
Industry Valuation and Performance
Has the Australian Food and Staples Retail Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 11 May 2025 | AU$83.4b | AU$149.1b | AU$3.5b | 24.9x | 23.7x | 0.6x |
| Tue, 08 Apr 2025 | AU$76.9b | AU$149.1b | AU$3.5b | 23x | 21.9x | 0.5x |
| Thu, 06 Mar 2025 | AU$72.7b | AU$149.1b | AU$3.5b | 21.5x | 20.7x | 0.5x |
| Sat, 01 Feb 2025 | AU$75.9b | AU$147.0b | AU$2.1b | 23.1x | 36.7x | 0.5x |
| Mon, 30 Dec 2024 | AU$75.1b | AU$147.0b | AU$2.1b | 22.4x | 36.3x | 0.5x |
| Wed, 27 Nov 2024 | AU$74.4b | AU$146.3b | AU$2.1b | 21.8x | 36x | 0.5x |
| Fri, 25 Oct 2024 | AU$79.2b | AU$146.9b | AU$2.1b | 20.4x | 37.6x | 0.5x |
| Sun, 22 Sep 2024 | AU$83.3b | AU$146.9b | AU$2.1b | 19.8x | 39.6x | 0.6x |
| Tue, 20 Aug 2024 | AU$82.8b | AU$142.8b | AU$1.9b | 19.3x | 44x | 0.6x |
| Thu, 18 Jul 2024 | AU$81.4b | AU$142.8b | AU$1.9b | 18.8x | 43.2x | 0.6x |
| Sat, 15 Jun 2024 | AU$77.5b | AU$142.8b | AU$1.9b | 18.6x | 40.8x | 0.5x |
| Mon, 13 May 2024 | AU$74.4b | AU$143.9b | AU$2.1b | 16.6x | 36.3x | 0.5x |
| Wed, 10 Apr 2024 | AU$76.7b | AU$143.9b | AU$2.1b | 17x | 37.4x | 0.5x |
| Fri, 08 Mar 2024 | AU$76.9b | AU$143.9b | AU$2.1b | 16.5x | 37.5x | 0.5x |
| Sun, 04 Feb 2024 | AU$81.5b | AU$140.9b | AU$3.7b | 19.4x | 22x | 0.6x |
| Tue, 02 Jan 2024 | AU$81.2b | AU$140.9b | AU$3.7b | 17.6x | 21.9x | 0.6x |
| Thu, 30 Nov 2023 | AU$76.0b | AU$140.8b | AU$3.7b | 16.6x | 20.6x | 0.5x |
| Sat, 28 Oct 2023 | AU$77.6b | AU$141.2b | AU$3.8b | 17x | 20.6x | 0.6x |
| Mon, 25 Sep 2023 | AU$80.6b | AU$141.2b | AU$3.8b | 17.8x | 21.4x | 0.6x |
| Wed, 23 Aug 2023 | AU$81.7b | AU$139.0b | AU$3.9b | 18.5x | 21.1x | 0.6x |
| Fri, 21 Jul 2023 | AU$86.6b | AU$138.8b | AU$4.0b | 19.3x | 21.9x | 0.6x |
| Sun, 18 Jun 2023 | AU$86.8b | AU$138.8b | AU$3.9b | 19.5x | 22x | 0.6x |
| Tue, 16 May 2023 | AU$88.6b | AU$138.7b | AU$3.9b | 20.7x | 22.5x | 0.6x |
| Thu, 13 Apr 2023 | AU$90.6b | AU$138.1b | AU$4.0b | 22.3x | 22.7x | 0.7x |
| Sat, 11 Mar 2023 | AU$86.0b | AU$138.1b | AU$4.0b | 21.2x | 21.6x | 0.6x |
| Mon, 06 Feb 2023 | AU$86.3b | AU$135.8b | AU$3.7b | 23.1x | 23.3x | 0.6x |
| Wed, 04 Jan 2023 | AU$80.0b | AU$135.8b | AU$3.7b | 20.9x | 21.6x | 0.6x |
| Fri, 02 Dec 2022 | AU$82.8b | AU$135.3b | AU$3.7b | 21.4x | 22.4x | 0.6x |
| Sun, 30 Oct 2022 | AU$79.6b | AU$134.2b | AU$3.7b | 20.7x | 21.8x | 0.6x |
| Tue, 27 Sep 2022 | AU$82.2b | AU$134.2b | AU$3.7b | 21.2x | 22.5x | 0.6x |
| Thu, 25 Aug 2022 | AU$88.2b | AU$131.4b | AU$3.5b | 22.7x | 25.1x | 0.7x |
| Sat, 23 Jul 2022 | AU$90.8b | AU$130.7b | AU$3.5b | 25.4x | 26.3x | 0.7x |
| Mon, 20 Jun 2022 | AU$81.6b | AU$130.0b | AU$3.5b | 22.5x | 23.6x | 0.6x |
| Wed, 18 May 2022 | AU$91.6b | AU$130.0b | AU$3.5b | 25.2x | 26.5x | 0.7x |
Price to Earnings Ratio
26.5x
Current Industry PE
- Investors are pessimistic on the Australian Consumer Retailing industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 23.7x which is lower than its 3-year average PE of 27.9x.
- The industry is trading close to its 3-year average PS ratio of 0.58x.
Past Earnings Growth
- The earnings for companies in the Consumer Retailing industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 4.7% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the Australian Consumer Staples industry?
| AU Market | 0.058% | |
| Consumer Staples | 1.81% | |
| Food and Staples Retail | 1.94% | |
| Food Retail | 1.95% | |
| Food Distributors | 1.81% | |
| Drug Retail | 0% | 0 |
| Big Box Super Stores | 0% | 0 |
Industry PE
- Investors are most optimistic about the Food Retail industry even though it's trading below its 3-year average PE ratio of 31.4x.
- Analysts are expecting annual earnings growth of 8.4%, which is higher than its past year's earnings decline of 1.3% per year.
- Investors are most pessimistic about the Food Distributors industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 11.9x.
Forecasted Growth
- Analysts are most optimistic on the Food Distributors industry, expecting annual earnings growth of 10% over the next 5 years.
- This is better than its past earnings decline of 41% per year.
- In contrast, the Food Retail industry is expected to see its earnings grow by 8.4% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| COL Coles Group | AU$22.48 | 2.5% +AU$735.2m | 38.4% | PE27.1x | |
| WOW Woolworths Group | AU$33.26 | 1.8% +AU$708.2m | 8.3% | PE24.9x | |
| EDV Endeavour Group | AU$4.19 | 0.7% +AU$53.7m | -19.4% | PE16.3x | |
| GNC GrainCorp | AU$6.98 | 3.4% +AU$50.6m | -11.5% | PE24.9x | |
| MTS Metcash | AU$3.32 | 1.2% +AU$43.9m | -13.3% | PE14.1x |
