ASX:COL

Stock Analysis Report

Executive Summary

Coles Group Limited operates as a retailer in Australia.


Snowflake Analysis

Proven track record and fair value.


Similar Companies

Share Price & News

How has Coles Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: COL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.2%

COL

-0.2%

AU Consumer Retailing

-2.0%

AU Market


1 Year Return

21.1%

COL

10.5%

AU Consumer Retailing

16.7%

AU Market

Return vs Industry: COL exceeded the Australian Consumer Retailing industry which returned 10.5% over the past year.

Return vs Market: COL exceeded the Australian Market which returned 16.7% over the past year.


Shareholder returns

COLIndustryMarket
7 Day-6.2%-0.2%-2.0%
30 Day-0.1%-1.0%0.1%
90 Day3.9%1.9%0.4%
1 Year24.4%21.1%12.9%10.5%22.5%16.7%
3 Yearn/a31.0%21.9%35.4%16.8%
5 Yearn/a47.5%30.6%60.6%24.4%

Price Volatility Vs. Market

How volatile is Coles Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Coles Group undervalued compared to its fair value and its price relative to the market?

27.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: COL (A$15.26) is trading below our estimate of fair value (A$21.09)

Significantly Below Fair Value: COL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: COL is good value based on its PE Ratio (18.9x) compared to the Consumer Retailing industry average (20.6x).

PE vs Market: COL is poor value based on its PE Ratio (18.9x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: COL is poor value based on its PEG Ratio (48x)


Price to Book Ratio

PB vs Industry: COL is overvalued based on its PB Ratio (6.1x) compared to the XX Consumer Retailing industry average (1.5x).


Next Steps

Future Growth

How is Coles Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COL's forecast earnings growth (0.4% per year) is below the savings rate (1.1%).

Earnings vs Market: COL's earnings (0.4% per year) are forecast to grow slower than the Australian market (9.4% per year).

High Growth Earnings: COL's earnings are forecast to grow, but not significantly.

Revenue vs Market: COL's revenue (1.5% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: COL's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: COL's Return on Equity is forecast to be high in 3 years time (27.2%)


Next Steps

Past Performance

How has Coles Group performed over the past 5 years?

5.4%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: COL has high quality earnings.

Growing Profit Margin: COL's current net profit margins (2.8%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if COL's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare COL's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.

Earnings vs Industry: COL earnings growth over the past year (5.4%) exceeded the Consumer Retailing industry 2.2%.


Return on Equity

High ROE: COL's Return on Equity (32.1%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Coles Group's financial position?


Financial Position Analysis

Short Term Liabilities: COL's short term assets (A$3.4B) do not cover its short term liabilities (A$4.3B).

Long Term Liabilities: COL's short term assets (A$3.4B) exceed its long term liabilities (A$2.1B).


Debt to Equity History and Analysis

Debt Level: COL's debt to equity ratio (43.5%) is considered high.

Reducing Debt: Insufficient data to determine if COL's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: COL's debt is well covered by operating cash flow (155.8%).

Interest Coverage: COL's interest payments on its debt are well covered by EBIT (35x coverage).


Balance Sheet

Inventory Level: COL has a high level of physical assets or inventory.

Debt Coverage by Assets: COL's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

What is Coles Group's current dividend yield, its reliability and sustainability?

1.57%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%2.4%markettop25%5.6%industryaverage2.0%forecastin3Years4.0%

Current dividend yield vs market & industry

Notable Dividend: COL's dividend (1.57%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: COL's dividend (1.57%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether COL's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if COL's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.7%), COL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: COL's dividends in 3 years are forecast to be covered by earnings (82.8% payout ratio).


Next Steps

Management

What is the CEO of Coles Group's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

steve Cain (54yo)

1.3yrs

Tenure

AU$5,882,981

Compensation

Mr. Steven Cain, also known as Steve, serves as Managing Director at Coles Group Ltd. (operates independently of Wesfarmers Limited) since September 28, 2018. He serves as Director at Coles Group Limited s ...


CEO Compensation Analysis

Compensation vs Market: steve's total compensation ($USD4.03M) is about average for companies of similar size in the Australian market ($USD3.84M).

Compensation vs Earnings: Insufficient data to compare steve's compensation with company performance.


Management Age and Tenure

0.9yrs

Average Tenure

Experienced Management: COL's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

1.1yrs

Average Tenure

54yo

Average Age

Experienced Board: COL's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$254,61910 Sep 19
Abigail Cleland
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares18,000
Max PriceAU$14.15
BuyAU$268,82404 Sep 19
David Cheesewright
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares20,000
Max PriceAU$13.44
BuyAU$109,66030 Aug 19
Wendy Stops
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares8,090
Max PriceAU$13.56
BuyAU$225,40018 Mar 19
Jacqueline Chow
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares20,000
Max PriceAU$11.27
SellAU$9,13614 Mar 19
James Graham
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares800
Max PriceAU$11.42
BuyAU$457,94112 Mar 19
Steven Cain
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares40,000
Max PriceAU$11.59

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • steve Cain (54yo)

    MD, CEO & Director

    • Tenure: 1.3yrs
    • Compensation: AU$5.88m
  • Leah Weckert

    Chief Financial Officer

    • Tenure: 1.8yrs
    • Compensation: AU$2.46m
  • Matthew Swindells

    Chief Operations Officer

    • Tenure: 0.9yrs
  • Mark Howell

    General Manager of Investor Relations

    • Tenure: 0yrs
  • David Brewster

    Chief Legal Officer

    • Tenure: 0yrs
  • Greg Davis

    Chief Executive - Commercial & Express

    • Tenure: 0.9yrs
    • Compensation: AU$2.29m
  • Thinus Keeve

    Chief Property & Export Officer

    • Tenure: 0.9yrs
  • Lisa Ronson

    Chief Marketing Officer

    • Tenure: 0.9yrs
  • Roger Sniezek

    Chief Information & Digital Officer

    • Tenure: 0yrs
  • Kris Webb

    Chief People Officer

    • Tenure: 0yrs

Board Members

  • Richard Freudenstein (54yo)

    Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: AU$170.83k
  • James Graham (71yo)

    Independent Chairman

    • Tenure: 1.1yrs
    • Compensation: AU$431.87k
  • steve Cain (54yo)

    MD, CEO & Director

    • Tenure: 1.3yrs
    • Compensation: AU$5.88m
  • Dave Cheesewright (57yo)

    Non Executive Director

    • Tenure: 1.1yrs
    • Compensation: AU$153.44k
  • Abi Cleland (46yo)

    Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: AU$153.44k
  • Zlatko Todorcevski (51yo)

    Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: AU$170.89k
  • Jacqueline Chow

    Non Executive Director

    • Tenure: 1.1yrs
    • Compensation: AU$153.63k
  • Wendy Stops (58yo)

    Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: AU$153.55k

Company Information

Coles Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Coles Group Limited
  • Ticker: COL
  • Exchange: ASX
  • Founded: 1914
  • Industry: Hypermarkets and Super Centers
  • Sector: Consumer Retailing
  • Market Cap: AU$20.302b
  • Shares outstanding: 1.33b
  • Website: https://www.colesgroup.com.au

Number of Employees


Location

  • Coles Group Limited
  • 800 Toorak Road
  • Hawthorn East
  • Victoria
  • 3123
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
COLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2018
COLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2018
CLEG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2018
2OFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2018

Biography

Coles Group Limited operates as a retailer in Australia. The company operates through Supermarkets, Liquor, and Express segments. It provides fresh food, groceries, and general merchandise through 821 supe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 10:42
End of Day Share Price2019/12/06 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.