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Market Cap

AU$52.1b

Last Updated

2021/04/11 08:11 UTC

Data Sources

Company Financials +

Executive Summary

Woolworths Group Limited operates retail stores. More Details


Snowflake Analysis

Adequate balance sheet second-rate dividend payer.


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Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

0.8%

WOW

0.4%

AU Consumer Retailing

2.6%

AU Market


1 Year Return

17.5%

WOW

13.0%

AU Consumer Retailing

37.1%

AU Market

Return vs Industry: WOW exceeded the Australian Consumer Retailing industry which returned 13% over the past year.

Return vs Market: WOW underperformed the Australian Market which returned 37.1% over the past year.


Shareholder returns

WOWIndustryMarket
7 Day0.8%0.4%2.6%
30 Day5.5%5.3%4.4%
90 Day3.3%-3.3%3.6%
1 Year20.5%17.5%16.4%13.0%41.3%37.1%
3 Year69.5%54.9%38.1%28.0%36.2%19.8%
5 Year116.4%85.8%58.5%39.1%67.4%34.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

36.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WOW (A$41.23) is trading above our estimate of fair value (A$34.86)

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


Price To Earnings Ratio

PE vs Industry: WOW is poor value based on its PE Ratio (36.7x) compared to the XO Consumer Retailing industry average (20.2x).

PE vs Market: WOW is poor value based on its PE Ratio (36.7x) compared to the Australian market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: WOW is poor value based on its PEG Ratio (5.7x)


Price to Book Ratio

PB vs Industry: WOW's PB Ratio (5.6x) is in line with the AU Consumer Retailing industry average.


Future Growth

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

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WOW's forecast earnings growth (6.5% per year) is above the savings rate (2%).

Earnings vs Market: WOW's earnings (6.5% per year) are forecast to grow slower than the Australian market (15.3% per year).

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

Revenue vs Market: WOW's revenue (2.5% per year) is forecast to grow slower than the Australian market (5.8% per year).

High Growth Revenue: WOW's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WOW's Return on Equity is forecast to be high in 3 years time (20.1%)


Past Performance

How has Woolworths Group performed over the past 5 years?

-7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WOW has a large one-off loss of A$591.0M impacting its January 3 2021 financial results.

Growing Profit Margin: WOW's current net profit margins (2.1%) are lower than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: WOW's earnings have declined by 7.3% per year over the past 5 years.

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

Earnings vs Industry: WOW had negative earnings growth (-4.3%) over the past year, making it difficult to compare to the Consumer Retailing industry average (14.6%).


Return on Equity

High ROE: WOW's Return on Equity (15%) is considered low.


Financial Health

How is Woolworths Group's financial position?


Financial Position Analysis

Short Term Liabilities: WOW's short term assets (A$8.1B) do not cover its short term liabilities (A$13.3B).

Long Term Liabilities: WOW's short term assets (A$8.1B) do not cover its long term liabilities (A$16.5B).


Debt to Equity History and Analysis

Debt Level: WOW's debt to equity ratio (27.1%) is considered satisfactory.

Reducing Debt: WOW's debt to equity ratio has reduced from 48.1% to 27.1% over the past 5 years.

Debt Coverage: WOW's debt is well covered by operating cash flow (204.9%).

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


Balance Sheet


Dividend

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

2.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WOW's dividend (2.45%) is higher than the bottom 25% of dividend payers in the Australian market (1.99%).

High Dividend: WOW's dividend (2.45%) is low compared to the top 25% of dividend payers in the Australian market (5.31%).


Stability and Growth of Payments

Stable Dividend: WOW's dividend payments have been volatile in the past 10 years.

Growing Dividend: WOW's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (89.8%), WOW's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WOW's dividends in 3 years are forecast to be covered by earnings (76.1% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Brad Banducci

5.17yrs

Tenure

AU$6,108,437

Compensation

Mr. Bradford Leon Banducci, also known as Brad, BComm (Acc), LLB, MBA, has been the Chief Executive Officer and Managing Director at Woolworths Group Limited since February 26, 2016. He serves as the Chief...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD4.66M) is above average for companies of similar size in the Australian market ($USD3.43M).

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


Leadership Team

Experienced Management: WOW's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: WOW's board of directors are considered experienced (5.2 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

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


Key Information

  • Name: Woolworths Group Limited
  • Ticker: WOW
  • Exchange: ASX
  • Founded: 1924
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: AU$52.109b
  • Shares outstanding: 1.26b
  • Website: https://www.woolworthsgroup.com.au

Number of Employees


Location

  • Woolworths Group Limited
  • 1 Woolworths Way
  • Bella Vista
  • New South Wales
  • 2153
  • Australia

Listings


Biography

Woolworths Group Limited operates retail stores. It operates through Australian Food, New Zealand Food, Endeavour Drinks, BIG W, and Hotels segments. The Australian Food segment procures and resells food a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/11 08:11
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.