ASX:COL

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Second-rate dividend payer with limited growth.


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

3.3%

COL

0.9%

AU Consumer Retailing

-3.5%

AU Market


1 Year Return

18.2%

COL

7.1%

AU Consumer Retailing

-9.2%

AU Market

Return vs Industry: COL exceeded the Australian Consumer Retailing industry which returned 7.1% over the past year.

Return vs Market: COL exceeded the Australian Market which returned -9.2% over the past year.


Shareholder returns

COLIndustryMarket
7 Day3.3%0.9%-3.5%
30 Day4.4%4.3%0.5%
90 Day-2.3%0.2%2.3%
1 Year22.3%18.2%11.5%7.1%-6.0%-9.2%
3 Yearn/a31.3%22.6%12.4%-1.8%
5 Yearn/a47.7%31.0%39.6%10.8%

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?

24.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: COL (A$17.75) is trading above our estimate of fair value (A$16.06)

Significantly Below Fair Value: COL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: COL is poor value based on its PE Ratio (24.2x) compared to the XX Consumer Retailing industry average (20x).

PE vs Market: COL is poor value based on its PE Ratio (24.2x) compared to the Australian market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: COL is poor value based on its PEG Ratio (5.5x)


Price to Book Ratio

PB vs Industry: COL is overvalued based on its PB Ratio (9.1x) compared to the XO Consumer Retailing industry average (2.2x).


Next Steps

Future Growth

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

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COL's forecast earnings growth (4.4% per year) is above the savings rate (2.3%).

Earnings vs Market: COL's earnings (4.4% per year) are forecast to grow slower than the Australian market (18.3% per year).

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

Revenue vs Market: COL's revenue (3.1% per year) is forecast to grow slower than the Australian market (5% per year).

High Growth Revenue: COL's revenue (3.1% 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 (35.5%)


Next Steps

Past Performance

How has Coles Group performed over the past 5 years?

-9.2%

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 (2.8%).


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 (-9.2%) over the past year, making it difficult to compare to the Consumer Retailing industry average (9.9%).


Return on Equity

High ROE: COL's Return on Equity (37.4%) is considered high.


Next Steps

Financial Health

How is Coles Group's financial position?


Financial Position Analysis

Short Term Liabilities: COL's short term assets (A$3.8B) do not cover its short term liabilities (A$5.7B).

Long Term Liabilities: COL's short term assets (A$3.8B) do not cover its long term liabilities (A$10.1B).


Debt to Equity History and Analysis

Debt Level: COL's debt to equity ratio (51.8%) 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 (188.5%).

Interest Coverage: COL's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Next Steps

Dividend

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

3.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: COL's dividend (3.1%) is higher than the bottom 25% of dividend payers in the Australian market (2.17%).

High Dividend: COL's dividend (3.1%) is low compared to the top 25% of dividend payers in the Australian market (5.52%).


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: At its current payout ratio (78.4%), 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 (84.1% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Steve Cain (55 yo)

2.08yrs

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 ($USD4.89M) is above average for companies of similar size in the Australian market ($USD3.62M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Steven Cain
MD, CEO & Director2.08yrsAU$6.97m0.0037%
A$ 898.4k
Leah Weckert
Chief Financial Officer2.58yrsAU$2.87m0.0017%
A$ 402.5k
Matthew Swindells
Chief Operations Officer1.75yrsAU$2.36m0.000050%
A$ 12.0k
Greg Davis
Chief Executive - Commercial & Express1.75yrsAU$2.65m0.0042%
A$ 994.2k
Roger Sniezek
Chief Information Officerno datano datano data
Mark Howell
General Manager of Investor Relationsno datano datano data
David Brewster
Chief Legal Officerno datano datano data
Lisa Ronson
Chief Marketing Officer1.75yrsno datano data
Kris Webb
Chief People Officerno datano datano data
Thinus Keeve
Chief Property1.75yrsno datano data
George Saoud
Chief Executive Officer of Emerging Businesses0.75yrno datano data
Ben Hassing
Chief Executive of Ecommerce0.42yrno datano data

1.8yrs

Average Tenure

Experienced Management: COL's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Steven Cain
MD, CEO & Director2.08yrsAU$6.97m0.0037%
A$ 898.4k
Richard Freudenstein
Non-Executive Director1.92yrsAU$275.00k0.0014%
A$ 340.2k
James Graham
Independent Chairman1.92yrsAU$696.27k0.016%
A$ 3.9m
David Cheesewright
Non Executive Independent Director1.92yrsAU$247.00k0.0015%
A$ 359.4k
Abigail Cleland
Non-Executive Director1.92yrsAU$247.09k0.0015%
A$ 357.0k
Jacqueline Chow
Independent Non Executive Director1.92yrsAU$248.09k0.0015%
A$ 359.4k
Wendy Stops
Non-Executive Independent Director1.92yrsAU$248.19k0.0019%
A$ 448.0k
Paul O'Malley
Non-Executive Independent Directorno datano data0.00029%
A$ 69.5k

1.9yrs

Average Tenure

56.5yo

Average Age

Experienced Board: COL's board of directors are not considered experienced ( 1.9 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: COL 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$23.957b
  • 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 824 supe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 10:43
End of Day Share Price2020/10/30 00:00
Earnings2020/06/28
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.