Stock Analysis Report

Executive Summary

Coles Group Limited operates as a retailer in Australia.

Snowflake Analysis

Good value average dividend payer.

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: 2OF has not had significant price volatility in the past 3 months.

Market Performance

7 Day Return




DE Consumer Retailing


DE Market

1 Year Return




DE Consumer Retailing


DE Market

Return vs Industry: 2OF exceeded the German Consumer Retailing industry which returned -4.4% over the past year.

Return vs Market: 2OF exceeded the German Market which returned 2.9% over the past year.

Shareholder returns

7 Day-11.6%-7.0%-9.1%
30 Day-12.0%-5.0%-7.2%
90 Day-12.1%-3.7%-6.5%
1 Year30.2%24.2%-0.6%-4.4%6.1%2.9%
3 Yearn/a1.0%-9.0%3.5%-5.6%
5 Yearn/a1.5%-14.1%8.0%-6.8%

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

No news available


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


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 2OF (€8.71) is trading below our estimate of fair value (€11.68)

Significantly Below Fair Value: 2OF is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 2OF is good value based on its PE Ratio (16.5x) compared to the Consumer Retailing industry average (19.3x).

PE vs Market: 2OF is good value based on its PE Ratio (16.5x) compared to the German market (19.9x).

Price to Earnings Growth Ratio

PEG Ratio: 2OF is poor value based on its PEG Ratio (3.8x)

Price to Book Ratio

PB vs Industry: 2OF is overvalued based on its PB Ratio (7.8x) compared to the XE Consumer Retailing industry average (1.6x).

Next Steps

Future Growth

How is Coles Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2OF's forecast earnings growth (4.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: 2OF's earnings (4.3% per year) are forecast to grow slower than the German market (13.1% per year).

High Growth Earnings: 2OF's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2OF's revenue (3.6% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: 2OF's revenue (3.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 2OF's Return on Equity is forecast to be high in 3 years time (25%)

Next Steps

  • Explore growth companies in the Consumer Retailing industry.

Past Performance

How has Coles Group performed over the past 5 years?


Last years earnings growth

Earnings and Revenue History

Quality Earnings: 2OF has a large one-off gain of A$270.2M impacting its January 5 2020 financial results.

Growing Profit Margin: 2OF's current net profit margins (3.2%) are higher than last year (2.2%).

Past Earnings Growth Analysis

Earnings Trend: Unable to establish if 2OF's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare 2OF's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.

Earnings vs Industry: 2OF earnings growth over the past year (36.1%) exceeded the Consumer Retailing industry 2.3%.

Return on Equity

High ROE: 2OF's Return on Equity (47.1%) is considered outstanding.

Return on Assets

Return on Capital Employed

Next Steps

Financial Health

How is Coles Group's financial position?

Financial Position Analysis

Short Term Liabilities: 2OF's short term assets (A$3.8B) do not cover its short term liabilities (A$5.9B).

Long Term Liabilities: 2OF's short term assets (A$3.8B) do not cover its long term liabilities (A$9.4B).

Debt to Equity History and Analysis

Debt Level: 2OF's debt to equity ratio (54.1%) is considered high.

Reducing Debt: Insufficient data to determine if 2OF's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 2OF's debt is well covered by operating cash flow (126.1%).

Interest Coverage: 2OF's interest payments on its debt are well covered by EBIT (5.1x coverage).

Balance Sheet

Inventory Level: 2OF has a high level of physical assets or inventory.

Debt Coverage by Assets: 2OF's debt is covered by short term assets (assets are 2.8x debt).

Next Steps


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


Current Dividend Yield

Dividend Yield vs Market


Current dividend yield vs market & industry

Notable Dividend: 2OF's dividend (4.09%) is higher than the bottom 25% of dividend payers in the German market (1.52%).

High Dividend: 2OF's dividend (4.09%) is in the top 25% of dividend payers in the German market (3.92%)

Stability and Growth of Payments

Stable Dividend: Too early to tell whether 2OF's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 2OF's dividend payments are increasing as they only just started paying a dividend.

Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.7%), 2OF's dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: 2OF's dividends in 3 years are forecast to be covered by earnings (84.6% payout ratio).

Next Steps


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


Average management tenure


Steve Cain (54yo)





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 ($USD3.87M) is about average for companies of similar size in the German market ($USD4.64M).

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

Leadership Team

Steven Cain
MD, CEO & Director1.4yrsAU$5.88m0.010% A$1.2m
Leah Weckert
Chief Financial Officer1.9yrsAU$2.46m0.0055% A$640.4k
Greg Davis
Chief Executive - Commercial & Express1.1yrsAU$2.29m0.0064% A$747.2k
Matthew Swindells
Chief Operations Officer1.1yrsno datano data
Roger Sniezek
Chief Information & Digital Officer0yrsno datano data
Mark Howell
General Manager of Investor Relations0yrsno datano data
David Brewster
Chief Legal Officer0yrsno datano data
Lisa Ronson
Chief Marketing Officer1.1yrsno datano data
Kris Webb
Chief People Officer0yrsno datano data
Thinus Keeve
Chief Property & Export Officer1.1yrsno datano data


Average Tenure

Experienced Management: 2OF's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.

Board Members

Steven Cain
MD, CEO & Director1.4yrsAU$5.88m0.010% A$1.2m
Richard Freudenstein
Non-Executive Director1.3yrsAU$170.83k0.0014% A$166.6k
James Graham
Independent Chairman1.3yrsAU$431.87k0.013% A$1.6m
David Cheesewright
Non Executive Director1.3yrsAU$153.44k0.0015% A$175.9k
Abigail Cleland
Non-Executive Director1.3yrsAU$153.44k0.0015% A$174.8k
Zlatko Todorcevski
Non-Executive Director1.3yrsAU$170.89k0.0014% A$168.9k
Jacqueline Chow
Non Executive Director1.3yrsAU$153.63k0.0015% A$175.9k
Wendy Stops
Non-Executive Director1.3yrsAU$153.55k0.0015% A$175.9k


Average Tenure


Average Age

Experienced Board: 2OF's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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

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

Key Information

  • Name: Coles Group Limited
  • Ticker: 2OF
  • Exchange: DB
  • Founded: 1914
  • Industry: Hypermarkets and Super Centers
  • Sector: Consumer Retailing
  • Market Cap: AU$19.569b
  • Listing Market Cap: AU$11.730b
  • Shares outstanding: 1.33b
  • Website: https://www.colesgroup.com.au

Number of Employees


  • Coles Group Limited
  • 800 Toorak Road
  • Hawthorn East
  • Victoria
  • 3123
  • Australia


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


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 821 supermarkets, including Coles Online and Coles financial services. The company operates coles.com.au, which offers a choice of home delivery; and provides insurance, credit cards, and personal loans to Australian families. It is also involved in the retailing of liquor through its 910 Liquorland, First Choice, First Choice Liquor, and Vintage Cellars stores, including online liquor delivery services through Coles Online and Liquor Direct; and operation of 87 hotels in Queensland, Western Australia, South Australia, and New South Wales under the Spirit Hotels brand. In addition, the company operates 714 fuel and convenience stores that sell Shell fuels; and a range of everyday products, such as groceries, snacks, drinks, gas bottles, firewood, and Shell oils and lubricants, as well as operates as the participating partner in the flybuys loyalty program. The company was formerly known as Coles Myer Ltd. and changed its name to Coles Group Limited in November 2006. Coles Group Limited was founded in 1914 and is based in Hawthorn East, Australia. 

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 23:49
End of Day Share Price2020/02/27 00:00
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.