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WOW

Woolworths Group ASX:WOW Stock Report

Last Price

AU$33.95

Market Cap

AU$41.5b

7D

0.2%

1Y

-12.3%

Updated

30 Sep, 2022

Data

Company Financials +
WOW fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance2/6
Financial Health2/6
Dividends1/6

WOW Stock Overview

Woolworths Group Limited operates retail stores.

Woolworths Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Woolworths Group
Historical stock prices
Current Share PriceAU$33.95
52 Week HighAU$41.13
52 Week LowAU$32.62
Beta0.14
1 Month Change-5.93%
3 Month Change-4.98%
1 Year Change-12.27%
3 Year Change-6.53%
5 Year Change36.57%
Change since IPO1,108.19%

Recent News & Updates

Sep 05
We Think Woolworths Group (ASX:WOW) Can Stay On Top Of Its Debt

We Think Woolworths Group (ASX:WOW) Can Stay On Top Of Its Debt

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

WOWAU Consumer RetailingAU Market
7D0.2%1.5%-0.5%
1Y-12.3%-5.8%-9.7%

Return vs Industry: WOW underperformed the Australian Consumer Retailing industry which returned -5.8% over the past year.

Return vs Market: WOW underperformed the Australian Market which returned -9.7% over the past year.

Price Volatility

Is WOW's price volatile compared to industry and market?
WOW volatility
WOW Average Weekly Movement2.6%
Consumer Retailing Industry Average Movement2.7%
Market Average Movement9.5%
10% most volatile stocks in AU Market16.7%
10% least volatile stocks in AU Market4.2%

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.

About the Company

FoundedEmployeesCEOWebsite
1924197,773Brad Banduccihttps://www.woolworthsgroup.com.au

Woolworths Group Limited operates retail stores. It operates through Australian Food, Australian B2B, New Zealand Food, BIG W, and Other segments. The Australian Food segment procures and resells food and related products, and provides services to customers in Australia.

Woolworths Group Fundamentals Summary

How do Woolworths Group's earnings and revenue compare to its market cap?
WOW fundamental statistics
Market CapAU$41.47b
Earnings (TTM)AU$1.55b
Revenue (TTM)AU$60.85b

26.5x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WOW income statement (TTM)
RevenueAU$60.85b
Cost of RevenueAU$42.81b
Gross ProfitAU$18.04b
Other ExpensesAU$16.50b
EarningsAU$1.55b

Last Reported Earnings

Jun 26, 2022

Next Earnings Date

Feb 22, 2023

Earnings per share (EPS)1.28
Gross Margin29.65%
Net Profit Margin2.54%
Debt/Equity Ratio70.3%

How did WOW perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

73%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is WOW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WOW?

Other financial metrics that can be useful for relative valuation.

WOW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.9x
Enterprise Value/EBITDA5.7x
PEG Ratio3.6x

Price to Earnings Ratio vs Peers

How does WOW's PE Ratio compare to its peers?

WOW PE Ratio vs Peers
The above table shows the PE ratio for WOW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average24.6x
MTS Metcash
15.3x6.3%AU$3.8b
WMT Walmart
25.9x8.7%US$359.0b
COL Coles Group
20.9x5.9%AU$22.2b
COST Costco Wholesale
36.3x8.8%US$212.0b
WOW Woolworths Group
26.5x7.3%AU$41.5b

Price-To-Earnings vs Peers: WOW is expensive based on its Price-To-Earnings Ratio (26.5x) compared to the peer average (24.6x).


Price to Earnings Ratio vs Industry

How does WOW's PE Ratio compare vs other companies in the Global Consumer Retailing Industry?

Price-To-Earnings vs Industry: WOW is expensive based on its Price-To-Earnings Ratio (26.5x) compared to the Global Consumer Retailing industry average (15.4x)


Price to Earnings Ratio vs Fair Ratio

What is WOW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WOW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.5x
Fair PE Ratio29.9x

Price-To-Earnings vs Fair Ratio: WOW is good value based on its Price-To-Earnings Ratio (26.5x) compared to the estimated Fair Price-To-Earnings Ratio (29.9x).


Share Price vs Fair Value

What is the Fair Price of WOW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WOW (A$33.95) is trading below our estimate of fair value (A$43.14)

Significantly Below Fair Value: WOW is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Woolworths Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


7.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WOW's forecast earnings growth (7.3% per year) is above the savings rate (1.8%).

Earnings vs Market: WOW's earnings (7.3% per year) are forecast to grow faster than the Australian market (6.5% per year).

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

Revenue vs Market: WOW's revenue (3.7% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: WOW's revenue (3.7% 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 (26.4%)


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Past Performance

How has Woolworths Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-3.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WOW has a large one-off loss of A$6.4B impacting its June 26 2022 financial results.

Growing Profit Margin: WOW's current net profit margins (2.5%) are lower than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: WOW's earnings have declined by 3.8% per year over the past 5 years.

Accelerating Growth: WOW's earnings growth over the past year (0.7%) exceeds its 5-year average (-3.8% per year).

Earnings vs Industry: WOW earnings growth over the past year (0.7%) underperformed the Consumer Retailing industry 4.3%.


Return on Equity

High ROE: WOW's Return on Equity (25.5%) is considered high.


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Financial Health

How is Woolworths Group's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: WOW's short term assets (A$6.1B) do not cover its short term liabilities (A$10.8B).

Long Term Liabilities: WOW's short term assets (A$6.1B) do not cover its long term liabilities (A$16.4B).


Debt to Equity History and Analysis

Debt Level: WOW's net debt to equity ratio (53.4%) is considered high.

Reducing Debt: WOW's debt to equity ratio has increased from 25.4% to 70.3% over the past 5 years.

Debt Coverage: WOW's debt is well covered by operating cash flow (78.7%).

Interest Coverage: WOW's interest payments on its debt are well covered by EBIT (14.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.71%

Current Dividend Yield

Dividend Yield vs Market

Woolworths Group Dividend Yield vs Market
How does Woolworths Group dividend yield compare to the market?
SegmentDividend Yield
Company (Woolworths Group)2.7%
Market Bottom 25% (AU)2.8%
Market Top 25% (AU)7.2%
Industry Average (Consumer Retailing)3.1%
Analyst forecast in 3 Years (Woolworths Group)3.3%

Notable Dividend: WOW's dividend (2.71%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.77%).

High Dividend: WOW's dividend (2.71%) is low compared to the top 25% of dividend payers in the Australian market (7.18%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (72.6%), WOW's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (115.6%), WOW's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

4.8yrs

Average management tenure


CEO

Brad Banducci

6.5yrs

Tenure

AU$7,557,457

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

Brad Banducci's Compensation vs Woolworths Group Earnings
How has Brad Banducci's remuneration changed compared to Woolworths Group's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 26 2022AU$8mAU$3m

AU$2b

Jan 02 2022n/an/a

AU$1b

Oct 02 2021n/an/a

AU$1b

Jun 27 2021AU$8mAU$3m

AU$2b

Jan 03 2021n/an/a

AU$818m

Oct 03 2020n/an/a

AU$856m

Jun 28 2020AU$6mAU$3m

AU$894m

Mar 28 2020n/an/a

AU$1b

Jan 05 2020n/an/a

AU$1b

Oct 05 2019n/an/a

AU$1b

Jun 30 2019AU$8mAU$3m

AU$1b

Mar 31 2019n/an/a

AU$2b

Dec 30 2018n/an/a

AU$2b

Sep 30 2018n/an/a

AU$2b

Jun 24 2018AU$8mAU$3m

AU$2b

Dec 31 2017n/an/a

AU$2b

Sep 30 2017n/an/a

AU$1b

Jun 25 2017AU$6mAU$3m

AU$1b

Jan 01 2017n/an/a

AU$574m

Oct 01 2016n/an/a

AU$1b

Jun 26 2016AU$2mAU$2m

AU$2b

Compensation vs Market: Brad's total compensation ($USD4.90M) is about average for companies of similar size in the Australian market ($USD3.85M).

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 (4.8 years average tenure).


Board Members

Experienced Board: WOW's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WOW insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

ASX:WOW Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
01 Sep 22SellAU$8,362,846Bradford BanducciIndividual230,000AU$36.36
31 Aug 22BuyAU$97,551Maxine BrennerIndividual2,700AU$36.13
26 Aug 22BuyAU$183,354Philip ChronicanIndividual5,000AU$36.67
26 Aug 22BuyAU$1,023,435Scott PerkinsIndividual28,500AU$35.91
05 Nov 21BuyAU$123,435,226The Vanguard Group, Inc.Company2,934,292AU$42.17
03 Nov 21BuyAU$199,898,136State Street Global Advisors, Inc.Company4,809,360AU$41.68
29 Oct 21SellAU$95,356,862The Vanguard Group, Inc.Company2,314,467AU$41.20
28 Oct 21BuyAU$271,198Philip ChronicanIndividual7,000AU$38.74

Ownership Breakdown

What is the ownership structure of WOW?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders614,5740.05%
Public Companies2,936,9730.2%
Institutions303,344,27425.1%
General Public902,207,20074.6%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 22.75% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
6.7%
BlackRock, Inc.
80,972,196A$2.7b0%0.05%
5.08%
State Street Global Advisors, Inc.
61,386,532A$2.1b0%0.08%
4.61%
The Vanguard Group, Inc.
55,763,745A$1.9b0%0.03%
1.45%
Norges Bank Investment Management
17,528,221A$595.1m0%0.05%
0.59%
Australian Foundation Investment Company Limited
7,174,718A$243.6m11.81%3.46%
0.57%
Geode Capital Management, LLC
6,857,302A$232.8m0.75%0.02%
0.5%
J.P. Morgan Asset Management, Inc.
6,097,794A$207.0m-0.99%0.03%
0.41%
Netwealth Investments Ltd.
4,934,215A$167.5m0.78%2.32%
0.29%
Argo Investments Limited
3,479,526A$118.1m0%2.19%
0.29%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
3,461,602A$117.5m1.27%0.03%
0.27%
Charles Schwab Investment Management, Inc.
3,279,368A$111.3m1.83%0.02%
0.24%
Washington H. Soul Pattinson and Company Limited
2,936,973A$99.7m0%no data
0.23%
Dimensional Fund Advisors LP
2,738,579A$93.0m3.27%0.02%
0.19%
BetaShares Capital Limited
2,252,830A$76.5m4.66%0.65%
0.17%
UBS Asset Management
2,048,056A$69.5m-15.29%0.01%
0.16%
Mutual Trust Pty Ltd, Asset Management Arm
1,902,748A$64.6m0%3.75%
0.15%
AMP Capital Investors Limited
1,772,944A$60.2m0%2.94%
0.14%
Franklin Resources, Inc.
1,706,230A$57.9m0.06%0.02%
0.13%
Schroder Investment Management Limited
1,593,448A$54.1m0.18%0.03%
0.12%
National Australia Bank Limited, Asset Management Arm
1,505,120A$51.1m-8.49%6.09%
0.1%
Columbia Management Investment Advisers, LLC
1,225,262A$41.6m-23.84%0.01%
0.097%
TD Asset Management, Inc.
1,169,565A$39.7m0.21%0.03%
0.096%
BKI Investment Company Limited
1,159,906A$39.4m-6.43%3.43%
0.091%
Credit Suisse Asset Management (Switzerland)
1,098,511A$37.3m1.28%0.02%
0.09%
New York Life Investment Management LLC
1,084,099A$36.8m0.18%0.17%

Company Information

Woolworths Group Limited's 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
  • Implied Market Cap: AU$41.472b
  • Shares outstanding: 1.21b
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/26
Annual Earnings2022/06/26


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.