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Woolworths Group

ASX:WOW
Snowflake Description

Excellent balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WOW
ASX
A$43B
Market Cap
  1. Home
  2. AU
  3. Consumer Retailing
Company description

Woolworths Group Limited operates retail stores. The last earnings update was 96 days ago. More info.


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WOW Share Price and Events
7 Day Returns
-4.3%
ASX:WOW
-0.2%
Global Consumer Retailing
1.2%
AU Market
1 Year Returns
12.8%
ASX:WOW
9.7%
Global Consumer Retailing
4.7%
AU Market
WOW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Woolworths Group (WOW) -4.3% 2.2% 13.6% 12.8% 48.1% -12.9%
Global Consumer Retailing -0.2% -0.4% 0.7% 9.7% 17.5% 17.1%
AU Market 1.2% 1.1% 4.3% 4.7% 18.3% 9%
1 Year Return vs Industry and Market
  • WOW outperformed the Consumer Retailing industry which returned 9.7% over the past year.
  • WOW outperformed the Market in Australia which returned 4.7% over the past year.
Price Volatility
WOW
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Woolworths Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Woolworths Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Woolworths Group.

ASX:WOW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:WOW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Consumer Retailing Unlevered Beta Simply Wall St/ S&P Global 0.46
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.456 (1 + (1- 30%) (6.69%))
0.65
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.8 * 5.96%)
7.08%

Discounted Cash Flow Calculation for ASX:WOW using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Woolworths Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:WOW DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 7.08%)
2019 1,420.47 Analyst x3 1,326.55
2020 1,510.20 Analyst x4 1,317.10
2021 1,626.60 Analyst x3 1,324.82
2022 1,722.44 Est @ 5.89% 1,310.12
2023 1,805.43 Est @ 4.82% 1,282.45
2024 1,878.84 Est @ 4.07% 1,246.35
2025 1,945.36 Est @ 3.54% 1,205.15
2026 2,007.05 Est @ 3.17% 1,161.16
2027 2,065.53 Est @ 2.91% 1,115.98
2028 2,121.99 Est @ 2.73% 1,070.68
Present value of next 10 years cash flows A$12,360.35
ASX:WOW DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$2,121.99 × (1 + 2.31%) ÷ (7.08% – 2.31%)
A$45,533.76
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$45,533.76 ÷ (1 + 7.08%)10
A$22,974.70
ASX:WOW Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$12,360.35 + A$22,974.70
A$35,335.05
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$35,335.05 / 1,312.52
A$26.92
ASX:WOW Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$26.92
Current discount Discount to share price of A$32.70
= -1 x (A$32.70 - A$26.92) / A$26.92
-21.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Woolworths Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Woolworths Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Woolworths Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:WOW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-30) in AUD A$1.24
ASX:WOW Share Price ** ASX (2019-05-24) in AUD A$32.7
Global Consumer Retailing Industry PE Ratio Median Figure of 109 Publicly-Listed Consumer Retailing Companies 20.16x
Australia Market PE Ratio Median Figure of 543 Publicly-Listed Companies 16.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Woolworths Group.

ASX:WOW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:WOW Share Price ÷ EPS (both in AUD)

= 32.7 ÷ 1.24

26.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Woolworths Group is overvalued based on earnings compared to the Global Consumer Retailing industry average.
  • Woolworths Group is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Woolworths Group's expected growth come at a high price?
Raw Data
ASX:WOW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.36x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
-4.6%per year
Global Consumer Retailing Industry PEG Ratio Median Figure of 50 Publicly-Listed Consumer Retailing Companies 2.13x
Australia Market PEG Ratio Median Figure of 358 Publicly-Listed Companies 1.41x

*Line of best fit is calculated by linear regression .

ASX:WOW PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.36x ÷ -4.6%

-5.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Woolworths Group earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Woolworths Group's assets?
Raw Data
ASX:WOW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-30) in AUD A$8.29
ASX:WOW Share Price * ASX (2019-05-24) in AUD A$32.7
Global Consumer Retailing Industry PB Ratio Median Figure of 161 Publicly-Listed Consumer Retailing Companies 1.6x
Australia Market PB Ratio Median Figure of 1,682 Publicly-Listed Companies 1.66x
ASX:WOW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:WOW Share Price ÷ Book Value per Share (both in AUD)

= 32.7 ÷ 8.29

3.94x

* Primary Listing of Woolworths Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Woolworths Group is overvalued based on assets compared to the Global Consumer Retailing industry average.
X
Value checks
We assess Woolworths Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Retailing industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Retailing industry average (and greater than 0)? (1 check)
  5. Woolworths Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-4.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Woolworths Group expected to grow at an attractive rate?
  • Woolworths Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Woolworths Group's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.
  • Woolworths Group's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:WOW Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:WOW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts -4.6%
ASX:WOW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 2.8%
Global Consumer Retailing Industry Earnings Growth Rate Market Cap Weighted Average 8.4%
Global Consumer Retailing Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:WOW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:WOW Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 67,354 2,161 2
2022-06-30 64,925 1,860 4
2021-06-30 62,663 3,320 1,905 11
2020-06-30 60,770 3,160 1,746 13
2019-06-30 60,021 3,542 2,332 13
ASX:WOW Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-30 57,645 2,970 1,623
2018-09-30 57,305 2,950 1,614
2018-06-24 56,965 2,930 1,605
2017-12-31 56,110 2,901 1,538
2017-09-30 55,572 3,012 1,480
2017-06-25 55,034 3,122 1,422
2017-01-01 54,077 3,301 574
2016-10-01 53,870 2,829 1,225
2016-06-26 53,664 2,358 1,876
2016-01-03 54,880 3,090 3,117

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Woolworths Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Woolworths Group's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:WOW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Woolworths Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:WOW Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 1.68 1.68 1.68 1.00
2022-06-30 1.50 1.62 1.39 2.00
2021-06-30 1.51 1.60 1.36 7.00
2020-06-30 1.40 1.46 1.29 9.00
2019-06-30 1.79 2.05 1.30 7.00
ASX:WOW Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-30 1.24
2018-09-30 1.24
2018-06-24 1.23
2017-12-31 1.19
2017-09-30 1.15
2017-06-25 1.11
2017-01-01 0.45
2016-10-01 0.97
2016-06-26 1.48
2016-01-03 2.47

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Woolworths Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Woolworths Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Global market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Woolworths Group has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Woolworths Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Woolworths Group's growth in the last year to its industry (Consumer Retailing).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Woolworths Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Woolworths Group's 1-year earnings growth exceeds its 5-year average (5.6% vs -13%)
  • Woolworths Group's earnings growth has exceeded the Global Consumer Retailing industry average in the past year (5.6% vs 3.1%).
Earnings and Revenue History
Woolworths Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Woolworths Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:WOW Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-30 57,645.00 1,623.00 14,549.00
2018-09-30 57,305.00 1,614.00 14,466.00
2018-06-24 56,965.00 1,605.00 14,383.00
2017-12-31 56,110.00 1,538.00 14,121.00
2017-09-30 55,572.00 1,480.00 13,984.00
2017-06-25 55,034.00 1,422.00 13,847.00
2017-01-01 54,076.90 573.90 14,368.40
2016-10-01 53,870.30 1,224.95 14,137.05
2016-06-26 53,663.70 1,876.00 13,905.70
2016-01-03 54,879.60 3,117.10 12,340.90
2015-10-03 56,940.45 2,713.25 12,426.70
2015-06-28 59,001.30 2,309.40 12,512.50
2015-03-28 61,212.10 2,278.20 13,151.75
2015-01-04 61,555.80 2,410.40 13,104.00
2014-10-04 61,254.00 2,431.05 13,024.55
2014-06-29 60,952.20 2,451.70 12,945.10
2014-03-29 60,720.60 2,402.20 12,870.35
2014-01-05 60,489.00 2,352.70 12,795.60
2013-10-05 59,581.55 2,301.20 12,605.05
2013-06-30 58,674.10 2,249.70 12,414.50
2013-03-31 57,489.40 2,232.30 12,110.15
2012-12-30 56,304.70 2,214.90 11,805.80
2012-09-30 55,610.35 2,196.80 11,571.95
2012-06-24 54,916.00 2,178.70 11,338.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Woolworths Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Woolworths Group used its assets more efficiently than the Global Consumer Retailing industry average last year based on Return on Assets.
  • Woolworths Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Woolworths Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Retailing industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Woolworths Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Woolworths Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Woolworths Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Woolworths Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Woolworths Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Woolworths Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Woolworths Group Company Filings, last reported 4 months ago.

ASX:WOW Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-30 11,264.00 2,871.00 1,618.00
2018-09-30 11,264.00 2,871.00 1,618.00
2018-06-24 10,849.00 2,803.00 1,273.00
2017-12-31 10,360.00 2,797.00 1,688.00
2017-09-30 10,360.00 2,797.00 1,688.00
2017-06-25 9,876.00 3,031.00 909.00
2017-01-01 9,361.80 3,260.60 1,421.30
2016-10-01 9,361.80 3,260.60 1,421.30
2016-06-26 8,781.90 4,361.60 948.10
2016-01-03 9,408.60 4,524.60 1,002.40
2015-10-03 9,408.60 4,524.60 1,002.40
2015-06-28 11,132.00 4,724.70 1,333.40
2015-03-28 11,132.00 4,724.70 1,333.40
2015-01-04 11,186.20 4,899.90 1,550.30
2014-10-04 11,186.20 4,899.90 1,550.30
2014-06-29 10,525.40 4,355.50 922.60
2014-03-29 10,525.40 4,355.50 922.60
2014-01-05 10,098.10 4,755.20 1,322.40
2013-10-05 10,098.10 4,755.20 1,322.40
2013-06-30 9,300.50 4,726.00 849.20
2013-03-31 9,300.50 4,726.00 849.20
2012-12-30 8,603.30 4,630.20 2,274.90
2012-09-30 8,603.30 4,630.20 2,274.90
2012-06-24 8,446.30 5,144.30 833.40
  • Woolworths Group's level of debt (25.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (47.1% vs 25.5% today).
  • Debt is well covered by operating cash flow (103.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 17.9x coverage).
X
Financial health checks
We assess Woolworths Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Woolworths Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.91%
Current annual income from Woolworths Group dividends. Estimated to be 3.24% next year.
If you bought A$2,000 of Woolworths Group shares you are expected to receive A$58 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Woolworths Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.59%).
  • Woolworths Group's dividend is below the markets top 25% of dividend payers in Australia (5.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:WOW Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
Global Consumer Retailing Industry Average Dividend Yield Market Cap Weighted Average of 74 Stocks 2.3%
Australia Market Average Dividend Yield Market Cap Weighted Average of 414 Stocks 4.2%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:WOW Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 1.26 2.00
2022-06-30 1.14 4.00
2021-06-30 1.11 12.00
2020-06-30 1.04 14.00
2019-06-30 0.99 14.00
ASX:WOW Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-19 0.950 3.065
2018-08-20 0.930 3.226
2018-02-22 0.930 3.261
2017-08-22 0.840 3.198
2017-02-21 0.670 2.551
2016-08-25 0.770 3.227
2016-02-25 1.160 5.254
2015-09-29 1.390 5.763
2014-10-10 1.370 4.693
2014-04-24 1.360 3.763
2013-09-27 1.330 3.832
2013-08-27 1.330 3.797
2012-12-19 1.290 3.898
2012-08-24 1.260 4.327
2012-03-01 1.240 4.652
2011-08-25 1.220 4.903
2011-04-29 1.190 4.417
2010-08-26 1.150 4.195
2010-02-26 1.090 4.008
2009-08-27 1.120 4.027

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Woolworths Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Woolworths Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Woolworths Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Woolworths Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Woolworths Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brad Banducci
COMPENSATION A$7,756,094
TENURE AS CEO 3.3 years
CEO Bio

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 Executive Officer of Woolworths Group at W-stores (Tanzania) Ltd. He continues to play an active leadership role in the Woolworths Supermarkets, Digital, Metro and New Zealand Supermarkets businesses. Mr. Banducci served as Managing Director of Woolworths Food Group at Woolworths Group Limited since March 2015 until February 2016. Mr. Banducci served as Managing Director of Australian Food and Liquor at Woolworths Group Limited since February 2015. Mr. Banducci served as the Chief Financial Officer of Tyro Payments Limited August 8, 2005. Mr. Banducci also served as Chief Executive Officer of the Cellarmasters Group from 2007 to 2011. Mr. Banducci spent 15 years with The Boston Consulting Group (BCG) and served for 9 years as Vice President. He was Director of Woolworths Group’s Drinks business between 2012 and March 2015. He joined the Group in 2011 after the acquisition of the Cellarmasters Group, a direct wine retail and production company. He has extensive experience in the drinks industry, direct sales channels and beverage manufacturing. He worked for BCG in Australia (Sydney), the United States (Chicago) and New Zealand (Auckland). Mr. Banducci has helped a broad range of companies in retailing, consumer goods, media and travel and tourism to develop and implement growth (both organic and acquisition based) and performance improvement strategies. He successfully led BCG's Sydney Office during the post e-commerce downturn. He was also the leader of BCG's Asia Pacific Corporate Finance and Strategy Practice. He has been a Director at Woolworths Group Limited since February 2016. Mr. Banducci served as a Director of Woolworths Liquor Group since May 1, 2012 until March 2015. He served as Director of The Boston Consulting Group (BCG). He served as Non-Executive Director of Tyro Payments Limited since December 14, 2006.

CEO Compensation
  • Brad's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Brad's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Woolworths Group management team in years:

2.5
Average Tenure
  • The tenure for the Woolworths Group management team is about average.
Management Team

Brad Banducci

TITLE
MD, CEO & Executive Director
COMPENSATION
A$8M
TENURE
3.3 yrs

David Marr

TITLE
Chief Financial Officer
COMPENSATION
A$4M
TENURE
5.3 yrs

Claire Peters

TITLE
Managing Director of Woolworths Supermarkets
COMPENSATION
A$4M
TENURE
1.9 yrs

Steve Donohue

TITLE
Managing Director of Endeavour Drinks Group
COMPENSATION
A$2M
TENURE
1.3 yrs

Colin Storrie

TITLE
Group Portfolio Director
COMPENSATION
A$3M
AGE
50
TENURE
2.8 yrs

Rod Evenden

TITLE
General Manager of Operations
TENURE
0.2 yrs

John Hunt

TITLE
Chief Information Officer
TENURE
2.3 yrs

Paul van Meurs

TITLE
Head of Investor Relations

Caryn Katsikogianis

TITLE
Chief People Officer
TENURE
2.5 yrs

Steve Greentree

TITLE
Managing Director of Foodco
COMPENSATION
A$2M
TENURE
7 yrs
Board of Directors Tenure

Average tenure and age of the Woolworths Group board of directors in years:

3.5
Average Tenure
55
Average Age
  • The tenure for the Woolworths Group board of directors is about average.
Board of Directors

Gordon Cairns

TITLE
Independent Chairman
COMPENSATION
A$780K
AGE
67
TENURE
3.7 yrs

Brad Banducci

TITLE
MD, CEO & Executive Director
COMPENSATION
A$8M
TENURE
3.3 yrs

Michael Ullmer

TITLE
Independent Non-Executive Director
COMPENSATION
A$328K
AGE
67
TENURE
7.3 yrs

Holly Kramer

TITLE
Independent Non-Executive Director
COMPENSATION
A$328K
AGE
53
TENURE
3.3 yrs

Jillian Broadbent

TITLE
Independent Non-Executive Director
COMPENSATION
A$301K
AGE
70
TENURE
8.3 yrs

Scott Perkins

TITLE
Independent Non-Executive Director
COMPENSATION
A$346K
AGE
53
TENURE
4.7 yrs

Siobhan McKenna

TITLE
Independent Non-Executive Director
COMPENSATION
A$310K
AGE
46
TENURE
3.3 yrs

Kathee Tesija

TITLE
Independent Non-Executive Director
COMPENSATION
A$317K
AGE
55
TENURE
3 yrs

Jennifer Carr-Smith

TITLE
Non-Executive Director
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
17. Oct 18 Buy The Vanguard Group, Inc. Company 11. Oct 18 15. Oct 18 56,667 A$27.68 A$1,561,426
15. Oct 18 Sell The Vanguard Group, Inc. Company 10. Oct 18 10. Oct 18 -9,433 A$28.12 A$-265,256
15. Oct 18 Buy The Vanguard Group, Inc. Company 08. Oct 18 11. Oct 18 127,131 A$28.15 A$3,563,977
07. Oct 18 Sell The Vanguard Group, Inc. Company 01. Jun 18 02. Oct 18 -880,738 A$31.12 A$-27,358,949
07. Oct 18 Buy The Vanguard Group, Inc. Company 01. Jun 18 03. Oct 18 3,171,252 A$31.39 A$99,237,713
31. Aug 18 Buy Holly Kramer Individual 30. Aug 18 30. Aug 18 1,500 A$28.32 A$42,480
28. Aug 18 Buy Kathryn Tesija Individual 27. Aug 18 27. Aug 18 4,000 A$28.60 A$114,400
X
Management checks
We assess Woolworths Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Woolworths Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does Woolworths Group Limited (ASX:WOW) Have A Place In Your Portfolio?

Historically, Woolworths Group Limited (ASX:WOW) has paid dividends to shareholders, and these days it yields 3.1%. … Let's take a look at Woolworths Group in more detail. … Check out our latest analysis for Woolworths Group

Simply Wall St -

Before Investing In Woolworths Group Limited (ASX:WOW), Consider This

If you are currently a shareholder in Woolworths Group Limited (ASX:WOW), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … I will take you through Woolworths Group’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Woolworths Group’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure.

Simply Wall St -

What You Must Know About Woolworths Group Limited's (ASX:WOW) Financial Health

Most investors favour these big stocks due to their strong balance sheet and high market liquidity, meaning there are an abundance of stock in the public market available for trading. … These companies are resilient in times of low liquidity and are not as strongly impacted by interest rate hikes as companies with lots of debt. … Using the most recent data for WOW, I will determine its financial status based on its solvency and liquidity, and assess whether the stock is a safe investment.

Simply Wall St -

Woolworths Group Limited's (ASX:WOW) Earnings Grew 5.6%, Did It Beat Long-Term Trend?

After looking at Woolworths Group Limited's (ASX:WOW) latest earnings announcement (30 December 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … Check out our latest analysis for Woolworths Group? … WOW's trailing twelve-month earnings (from 30 December 2018) of AU$1.6b has.

Simply Wall St -

Does Woolworths Group's Share Price Gain of 28% Match Its Business Performance?

That's what has happened with the Woolworths Group Limited (ASX:WOW) share price. … In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. … Over the last three years, Woolworths Group failed to grow earnings per share, which fell 12% (annualized).

Simply Wall St -

Should You Be Excited About Woolworths Group Limited's (ASX:WOW) 15% Return On Equity?

We'll use ROE to examine Woolworths Group Limited (ASX:WOW), by way of a worked example. … Another way to think of that is that for every A$1 worth of equity in the company, it was able to earn A$0.15. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Woolworths Group Limited's (ASX:WOW) CEO Salary Justified?

Brad Banducci has been the CEO of Woolworths Group Limited (ASX:WOW) since 2016. … First, this article will compare CEO compensation with compensation at other large companies. … How Does Brad Banducci's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Woolworths Group Limited (ASX:WOW): Immense Growth Potential?

After Woolworths Group Limited's (ASX:WOW) earnings announcement in June 2018,. … it seems that analyst forecasts are fairly optimistic, … the past 5-year average growth rate of -13%

Simply Wall St -

What Should We Expect From Woolworths Group Limited's (ASX:WOW) Earnings In The Next Couple Of Years?

The most recent earnings announcement Woolworths Group Limited's (ASX:WOW) released in June 2018a

Simply Wall St -

Have Insiders Been Buying Woolworths Group Limited (ASX:WOW) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Woolworths Group Limited (ASX:WOW). … Woolworths Group Insider Transactions Over The Last Year. … In total, Woolworths Group insiders bought more than they sold over the last year

Simply Wall St -

Company Info

Description

Woolworths Group Limited operates retail stores. It operates through Australian Food, New Zealand Food, Endeavour Drinks, BIG W, Hotels, and Other segments. The Australian Food segment engages in the procurement and resale of food products to customers in Australia. It operates 1,008 Woolworths supermarkets and Metro stores. The New Zealand Food segment is involved in the procurement and resale of food and drinks to customers in New Zealand. This segment operates 181 Countdown supermarkets, as well as engages in the wholesale operations. The Endeavour Drinks segment procures and resells liquor products to customers in Australia. It operates 1,545 liquor stores under Dan Murphy’s and BWS brands; and Summergate stores, as well as Cellarmasters, Langtons, and winemarket.com.au online platforms. The BIG W segment procures and resells discount general merchandise products to customers in Australia. This segment operates 183 BIG W stores. The Hotels segment offers leisure and hospitality services, including food and drinks, accommodation, entertainment, and gaming in Australia. It operates 323 hotels, including bars, dining, gaming, accommodation, and venue hire operations. The Other segment is also involved in the property leasing business. Woolworths Group Limited has a strategic alliance with Caltex across convenience, wholesale food, redemption, loyalty, and fuel supply. The company was formerly known as Woolworths Limited and changed its name to Woolworths Group Limited in December 2017. Woolworths Group Limited was founded in 1924 and is based in Bella Vista, Australia.

Details
Name: Woolworths Group Limited
WOW
Exchange: ASX
Founded: 1924
A$42,919,421,004
1,312,520,520
Website: http://www.woolworthsgroup.com.au
Address: Woolworths Group Limited
1 Woolworths Way,
Bella Vista,
New South Wales, 2153,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX WOW Ordinary Shares Australian Securities Exchange AU AUD 12. Jul 1993
OTCPK WOLW.F Ordinary Shares Pink Sheets LLC US USD 12. Jul 1993
DB WWR Ordinary Shares Deutsche Boerse AG DE EUR 12. Jul 1993
CHIA WOW Ordinary Shares Chi-X Australia AU AUD 12. Jul 1993
Number of employees
Current staff
Staff numbers
201,522
Woolworths Group employees.
Industry
Food Retail
Consumer Retailing
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/26 10:31
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/21
Last earnings filing: 2019/02/19
Last earnings reported: 2018/12/30
Last annual earnings reported: 2018/06/24


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.