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Market Cap

AU$21.1b

Last Updated

2021/04/10 08:21 UTC

Data Sources

Company Financials +

Executive Summary

Coles Group Limited operates as a retailer in Australia. More Details


Snowflake Analysis

Second-rate dividend payer with questionable track record.


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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: COL's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.3%

COL

0.5%

AU Consumer Retailing

1.5%

AU Market


1 Year Return

-0.6%

COL

13.2%

AU Consumer Retailing

35.6%

AU Market

Return vs Industry: COL underperformed the Australian Consumer Retailing industry which returned 13.2% over the past year.

Return vs Market: COL underperformed the Australian Market which returned 35.6% over the past year.


Shareholder returns

COLIndustryMarket
7 Day-0.3%0.5%1.5%
30 Day2.6%4.6%2.6%
90 Day-15.7%-3.1%2.5%
1 Year3.0%-0.6%16.5%13.2%39.8%35.6%
3 Yearn/a38.7%28.4%35.1%18.7%
5 Yearn/a59.7%40.2%67.0%34.3%

Long-Term 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?

4.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: COL (A$15.85) is trading below our estimate of fair value (A$16.55)

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 poor value based on its PE Ratio (20.2x) compared to the XO Consumer Retailing industry average (20.1x).

PE vs Market: COL's PE Ratio (20.2x) is in line with the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: COL is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: COL is overvalued based on its PB Ratio (7.6x) compared to the AU Consumer Retailing industry average (5.6x).


Future Growth

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

4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COL's forecast earnings growth (4.2% per year) is above the savings rate (2%).

Earnings vs Market: COL's earnings (4.2% per year) are forecast to grow slower than the Australian market (15.4% per year).

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

Revenue vs Market: COL's revenue (2.7% per year) is forecast to grow slower than the Australian market (5.8% per year).

High Growth Revenue: COL's revenue (2.7% 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 (35.6%)


Past Performance

How has Coles Group performed over the past 5 years?

-11.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: COL has high quality earnings.

Growing Profit Margin: COL's current net profit margins (2.7%) are lower than last year (3.2%).


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: COL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: COL had negative earnings growth (-11.5%) over the past year, making it difficult to compare to the Consumer Retailing industry average (14.8%).


Return on Equity

High ROE: COL's Return on Equity (37.6%) is considered high.


Financial Health

How is Coles Group's financial position?


Financial Position Analysis

Short Term Liabilities: COL's short term assets (A$4.1B) do not cover its short term liabilities (A$6.3B).

Long Term Liabilities: COL's short term assets (A$4.1B) do not cover its long term liabilities (A$9.9B).


Debt to Equity History and Analysis

Debt Level: COL's debt to equity ratio (40.8%) 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 (286.3%).

Interest Coverage: COL's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Dividend

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

3.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: COL's dividend (3.82%) is higher than the bottom 25% of dividend payers in the Australian market (1.99%).

High Dividend: COL's dividend (3.82%) is low compared to the top 25% of dividend payers in the Australian market (5.39%).


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 (76.9%), 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 (83.7% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Steve Cain (55 yo)

2.58yrs

Tenure

AU$6,965,079

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 ($USD5.32M) is above average for companies of similar size in the Australian market ($USD3.43M).

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


Leadership Team

Experienced Management: COL's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: COL's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


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 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$21.143b
  • 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


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 824 supe...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/10 08:21
End of Day Share Price2021/04/09 00:00
Earnings2021/01/03
Annual Earnings2020/06/28


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.