ASX:WOW

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Executive Summary

Woolworths Group Limited operates retail stores.


Snowflake Analysis

Adequate balance sheet second-rate dividend payer.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

WOW

0.9%

AU Consumer Retailing

0.3%

AU Market


1 Year Return

10.0%

WOW

10.9%

AU Consumer Retailing

-7.8%

AU Market

Return vs Industry: WOW matched the Australian Consumer Retailing industry which returned 10.9% over the past year.

Return vs Market: WOW exceeded the Australian Market which returned -7.8% over the past year.


Shareholder returns

WOWIndustryMarket
7 Day0.7%0.9%0.3%
30 Day1.9%2.7%1.3%
90 Day12.2%6.3%13.4%
1 Year13.1%10.0%13.0%10.9%-4.0%-7.8%
3 Year60.1%44.9%34.2%25.4%18.5%2.8%
5 Year71.9%44.2%38.2%23.2%39.1%9.0%

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?

33.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WOW (A$38.94) is trading above our estimate of fair value (A$34.33)

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 (33.7x) compared to the XX Consumer Retailing industry average (20.8x).

PE vs Market: WOW is poor value based on its PE Ratio (33.7x) compared to the Australian market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: WOW is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: WOW is overvalued based on its PB Ratio (5.4x) compared to the XX Consumer Retailing industry average (1.5x).


Next Steps

Future Growth

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

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WOW's forecast earnings growth (14.7% per year) is above the savings rate (2.3%).

Earnings vs Market: WOW's earnings (14.7% per year) are forecast to grow faster than the Australian market (14.2% per year).

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

Revenue vs Market: WOW's revenue (2.9% per year) is forecast to grow slower than the Australian market (4.3% per year).

High Growth Revenue: WOW'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: WOW's Return on Equity is forecast to be low in 3 years time (17.6%).


Next Steps

Past Performance

How has Woolworths Group performed over the past 5 years?

-12.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WOW has high quality earnings.

Growing Profit Margin: WOW's current net profit margins (2.4%) are lower than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: WOW's earnings have declined by 12.2% 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 (-7.7%) over the past year, making it difficult to compare to the Consumer Retailing industry average (9.7%).


Return on Equity

High ROE: WOW's Return on Equity (16.5%) is considered low.


Next Steps

Financial Health

How is Woolworths Group's financial position?


Financial Position Analysis

Short Term Liabilities: WOW's short term assets (A$7.0B) do not cover its short term liabilities (A$12.2B).

Long Term Liabilities: WOW's short term assets (A$7.0B) do not cover its long term liabilities (A$15.2B).


Debt to Equity History and Analysis

Debt Level: WOW's debt to equity ratio (32.1%) is considered satisfactory.

Reducing Debt: WOW's debt to equity ratio has reduced from 43.7% to 32.1% over the past 5 years.

Debt Coverage: WOW's debt is well covered by operating cash flow (99.1%).

Interest Coverage: WOW's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet


Next Steps

Dividend

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

2.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WOW's dividend (2.65%) is higher than the bottom 25% of dividend payers in the Australian market (2.42%).

High Dividend: WOW's dividend (2.65%) is low compared to the top 25% of dividend payers in the Australian market (6.6%).


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 (89.1%), 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 (73.7% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Brad Banducci

4.5yrs

Tenure

AU$7,706,283

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 ($USD5.56M) is above average for companies of similar size in the Australian market ($USD4.01M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Bradford Banducci
MD, CEO & Executive Director4.5yrsAU$7.71m0.016%
A$ 7.7m
David Marr
Chief Operating Officer1yrAU$3.33m0.0044%
A$ 2.2m
Colin Storrie
Managing Director of Group Portfoliono dataAU$2.34m0.0016%
A$ 775.0k
Claire Peters
Managing Director of Woolworths Supermarkets3.17yrsAU$3.37m0.0019%
A$ 923.0k
Steve Donohue
Managing Director of Endeavour Drinks Group2.58yrsAU$2.22m0.0016%
A$ 794.7k
Stephen Harrison
Chief Financial Officer1yrno datano data
John Hunt
Chief Information Officer3.58yrsno datano data
Paul van Meurs
Head of Investor Relationsno datano datano data
Bill Reid
Chief Legal Officer0.83yrno datano data
Andrew Hicks
Chief Marketing Officer1.17yrsno datano data
Caryn Katsikogianis
Chief People Officer3.75yrsno datano data
Steven Greentree
Managing Director of New Businesses8.25yrsAU$1.58mno data

2.9yrs

Average Tenure

Experienced Management: WOW's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bradford Banducci
MD, CEO & Executive Director4.5yrsAU$7.71m0.016%
A$ 7.7m
Gordon Cairns
Independent Chairman4.92yrsAU$792.04k0.0028%
A$ 1.4m
Jillian Broadbent
Independent Non-Executive Director9.58yrsAU$326.51k0.0058%
A$ 2.9m
Michael Ullmer
Independent Non-Executive Director8.58yrsAU$322.33k0.0022%
A$ 1.1m
Holly Kramer
Independent Non-Executive Director4.5yrsAU$333.50k0.00091%
A$ 449.2k
Kathryn Tesija
Independent Non-Executive Director4.25yrsAU$357.96k0.00071%
A$ 350.5k
Scott Perkins
Independent Non-Executive Director5.92yrsAU$367.92k0.0014%
A$ 686.1k
Jennifer Carr-Smith
Independent Non-Executive Director1.25yrsAU$43.38kno data
Siobhan McKenna
Independent Non-Executive Director4.5yrsAU$316.25k0.00070%
A$ 345.5k

4.5yrs

Average Tenure

57yo

Average Age

Experienced Board: WOW's board of directors are considered experienced (4.5 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.


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$49.361b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WOLW.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1993
WOWASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 1993
WWRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1993
WOWCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 1993

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 Analysis2020/08/07 10:37
End of Day Share Price2020/08/07 00:00
Earnings2020/01/05
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.