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COL

Coles GroupASX:COL Stock Report

Last Price

AU$16.32

Market Cap

AU$22.0b

7D

-1.0%

1Y

-9.7%

Updated

20 Jan, 2022

Data

Company Financials +
COL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance2/6
Financial Health3/6
Dividends3/6

COL Stock Overview

Coles Group Limited operates as a retailer in Australia.

Coles Group Competitors

Commonwealth Bank of Australia

ASX:CBA

AU$169.3b

National Australia Bank

ASX:NAB

AU$94.6b

Australia and New Zealand Banking Group

ASX:ANZ

AU$80.3b

Westpac Banking

ASX:WBC

AU$77.8b

Price History & Performance

Summary of all time highs, changes and price drops for Coles Group
Historical stock prices
Current Share PriceAU$16.32
52 Week HighAU$18.94
52 Week LowAU$15.28
Beta0.11
1 Month Change-8.32%
3 Month Change-9.08%
1 Year Change-9.74%
3 Year Change31.08%
5 Year Changen/a
Change since IPO28.00%

Recent News & Updates

Jan 10
Estimating The Fair Value Of Coles Group Limited (ASX:COL)

Estimating The Fair Value Of Coles Group Limited (ASX:COL)

Today we will run through one way of estimating the intrinsic value of Coles Group Limited ( ASX:COL ) by taking the...

Dec 20
Coles Group (ASX:COL) Has A Pretty Healthy Balance Sheet

Coles Group (ASX:COL) Has A Pretty Healthy Balance Sheet

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Nov 15
Some Investors May Be Worried About Coles Group's (ASX:COL) Returns On Capital

Some Investors May Be Worried About Coles Group's (ASX:COL) Returns On Capital

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Oct 02
Estimating The Fair Value Of Coles Group Limited (ASX:COL)

Estimating The Fair Value Of Coles Group Limited (ASX:COL)

Does the October share price for Coles Group Limited ( ASX:COL ) reflect what it's really worth? Today, we will...

Sep 11
Is Coles Group (ASX:COL) Using Too Much Debt?

Is Coles Group (ASX:COL) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

COLAU Consumer RetailingAU Market
7D-1.0%-1.2%-1.7%
1Y-9.7%-8.5%7.7%

Return vs Industry: COL underperformed the Australian Consumer Retailing industry which returned -8.5% over the past year.

Return vs Market: COL underperformed the Australian Market which returned 7.7% over the past year.

Price Volatility

Is COL's price volatile compared to industry and market?
COL volatility
COL Average Weekly Movement2.2%
Consumer Retailing Industry Average Movement3.4%
Market Average Movement8.5%
10% most volatile stocks in AU Market15.3%
10% least volatile stocks in AU Market3.6%

Stable Share Price: COL is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: COL's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1914120,000Steve Cainhttps://www.colesgroup.com.au

Coles Group Limited operates as a retailer in Australia. It operates through Supermarkets, Liquor, and Express segments. The company provides fresh produce and groceries through 831 supermarkets; and coles.com.au, which offers a choice of home delivery, including same-day, overnight drop and go services, and pick up from click and collect locations.

Coles Group Fundamentals Summary

How do Coles Group's earnings and revenue compare to its market cap?
COL fundamental statistics
Market CapAU$21.98b
Earnings (TTM)AU$1.01b
Revenue (TTM)AU$38.93b

21.7x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
COL income statement (TTM)
RevenueAU$38.93b
Cost of RevenueAU$28.77b
Gross ProfitAU$10.16b
ExpensesAU$9.15b
EarningsAU$1.01b

Last Reported Earnings

Jun 27, 2021

Next Earnings Date

Feb 22, 2022

Earnings per share (EPS)0.75
Gross Margin26.09%
Net Profit Margin2.58%
Debt/Equity Ratio40.6%

How did COL perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

81%

Payout Ratio

Valuation

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

10.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: COL (A$16.32) is trading below our estimate of fair value (A$18.14)

Significantly Below Fair Value: COL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: COL is good value based on its PE Ratio (21.7x) compared to the Australian Consumer Retailing industry average (21.9x).

PE vs Market: COL is poor value based on its PE Ratio (21.7x) compared to the Australian market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: COL is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: COL is overvalued based on its PB Ratio (7.7x) compared to the AU Consumer Retailing industry average (3.6x).


Future Growth

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

4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COL's forecast earnings growth (4.6% per year) is above the savings rate (1.9%).

Earnings vs Market: COL's earnings (4.6% per year) are forecast to grow slower than the Australian market (11.4% per year).

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

Revenue vs Market: COL's revenue (2.9% per year) is forecast to grow slower than the Australian market (4.9% per year).

High Growth Revenue: COL's revenue (2.9% 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 (34.4%)


Past Performance

How has Coles Group performed over the past 5 years?

2.6%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: COL has high quality earnings.

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


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if COL's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare COL's past year earnings growth to its 5-year average.

Earnings vs Industry: COL earnings growth over the past year (2.6%) underperformed the Consumer Retailing industry 12.5%.


Return on Equity

High ROE: COL's Return on Equity (35.7%) is considered high.


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$5.8B).

Long Term Liabilities: COL's short term assets (A$3.4B) do not cover its long term liabilities (A$9.5B).


Debt to Equity History and Analysis

Debt Level: COL's net debt to equity ratio (12.6%) is considered satisfactory.

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 (248.4%).

Interest Coverage: COL's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Dividend

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

3.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: COL's dividend (3.74%) is higher than the bottom 25% of dividend payers in the Australian market (2.21%).

High Dividend: COL's dividend (3.74%) is low compared to the top 25% of dividend payers in the Australian market (5.47%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, COL has been paying a dividend for less than 10 years.

Growing Dividend: COL's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (81%), COL's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: COL's dividends in 3 years are forecast to be covered by earnings (81.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Steve Cain (56 yo)

3.33yrs

Tenure

AU$6,695,594

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 ($USD4.83M) is about average for companies of similar size in the Australian market ($USD3.74M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: COL's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: COL's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Coles Group Limited's 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
  • Implied Market Cap: AU$21.979b
  • Shares outstanding: 1.34b
  • Website: https://www.colesgroup.com.au

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/20 07:02
End of Day Share Price2022/01/20 00:00
Earnings2021/06/27
Annual Earnings2021/06/27


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.