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WHL

Woolworths HoldingsJSE:WHL Stock Report

Market Cap

R54.7b

7D

-0.2%

1Y

60.6%

Updated

15 Oct, 2021

Data

Company Financials +
WHL fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance5/6
Financial Health3/6
Dividends0/6

WHL Overview

Woolworths Holdings Limited, through its subsidiaries, operates a chain of retail stores in sub-Saharan Africa, Australia, and New Zealand.

Woolworths Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Woolworths Holdings
Historical stock prices
Current Share PriceR56.50
52 Week HighR34.10
52 Week LowR64.49
Beta0.67
1 Month Change-5.04%
3 Month Change6.26%
1 Year Change60.60%
3 Year Change18.52%
5 Year Change-27.28%
Change since IPO549.43%

Recent News & Updates

Shareholder Returns

WHLZA Multiline RetailZA Market
7D-0.2%2.4%1.6%
1Y60.6%12.4%21.3%

Return vs Industry: WHL exceeded the ZA Multiline Retail industry which returned 11.8% over the past year.

Return vs Market: WHL exceeded the ZA Market which returned 21.2% over the past year.

Price Volatility

Is WHL's price volatile compared to industry and market?
WHL volatility
WHL Beta0.67
Industry Beta0.88
Market Beta1

Stable Share Price: WHL is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: WHL's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
193140,339Roy Bagattinihttps://www.woolworthsholdings.co.za

Woolworths Holdings Limited, through its subsidiaries, operates a chain of retail stores in sub-Saharan Africa, Australia, and New Zealand. It operates through seven segments: Woolworths Fashion, Beauty and Home; Woolworths Food; Woolworths Logistics; David Jones; Country Road Group; Woolworths Financial Services; and Treasury. The company provides food, clothing, homeware, beauty, and various lifestyle products, as well as operates department stores.

Woolworths Holdings Fundamentals Summary

How do Woolworths Holdings's earnings and revenue compare to its market cap?
WHL fundamental statistics
Market CapR54.67b
Earnings (TTM)R4.16b
Revenue (TTM)R78.76b

13.1x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WHL income statement (TTM)
RevenueR78.76b
Cost of RevenueR49.69b
Gross ProfitR29.07b
ExpensesR24.91b
EarningsR4.16b

Last Reported Earnings

Jun 27, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.30
Gross Margin36.91%
Net Profit Margin5.28%
Debt/Equity Ratio69.8%

How did WHL perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

15%

Payout Ratio

Valuation

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

13.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WHL (ZAR56.5) is trading above our estimate of fair value (ZAR55.59)

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


Price To Earnings Ratio

PE vs Industry: WHL is good value based on its PE Ratio (13.1x) compared to the Global Multiline Retail industry average (19x).

PE vs Market: WHL is poor value based on its PE Ratio (13.1x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: WHL is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: WHL is overvalued based on its PB Ratio (5.7x) compared to the XX Multiline Retail industry average (1.6x).


Future Growth

How is Woolworths Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WHL's forecast earnings growth (5.5% per year) is below the savings rate (8.8%).

Earnings vs Market: WHL's earnings (5.5% per year) are forecast to grow slower than the ZA market (12.5% per year).

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

Revenue vs Market: WHL's revenue (3.7% per year) is forecast to grow slower than the ZA market (6.2% per year).

High Growth Revenue: WHL'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: WHL's Return on Equity is forecast to be high in 3 years time (30.7%)


Past Performance

How has Woolworths Holdings performed over the past 5 years?

-19.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WHL has high quality earnings.

Growing Profit Margin: WHL's current net profit margins (5.3%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: WHL's earnings have declined by 19.1% per year over the past 5 years.

Accelerating Growth: WHL's earnings growth over the past year (661.6%) exceeds its 5-year average (-19.1% per year).

Earnings vs Industry: WHL earnings growth over the past year (661.6%) exceeded the Multiline Retail industry 30.6%.


Return on Equity

High ROE: WHL's Return on Equity (43.4%) is considered outstanding.


Financial Health

How is Woolworths Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: WHL's short term assets (ZAR15.5B) exceed its short term liabilities (ZAR15.0B).

Long Term Liabilities: WHL's short term assets (ZAR15.5B) do not cover its long term liabilities (ZAR31.3B).


Debt to Equity History and Analysis

Debt Level: WHL's debt to equity ratio (69.8%) is considered high.

Reducing Debt: WHL's debt to equity ratio has reduced from 80.2% to 69.8% over the past 5 years.

Debt Coverage: WHL's debt is well covered by operating cash flow (119.8%).

Interest Coverage: WHL's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Dividend

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

1.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WHL's dividend (1.17%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (3.05%).

High Dividend: WHL's dividend (1.17%) is low compared to the top 25% of dividend payers in the ZA market (8.04%).


Stability and Growth of Payments

Stable Dividend: WHL is not paying a notable dividend for the ZA market, therefore no need to check if payments are stable.

Growing Dividend: WHL is not paying a notable dividend for the ZA market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: WHL is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WHL's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Roy Bagattini (57 yo)

1.67yrs

Tenure

R19,712,000

Compensation

Mr. Roy Enzo Bagattini has been Group Chief Executive Officer and Executive Director of Woolworths Holdings Limited since February 17, 2020. He has been the President of Levi Strauss North America since Ju...


CEO Compensation Analysis

Compensation vs Market: Roy's total compensation ($USD1.35M) is about average for companies of similar size in the ZA market ($USD1.26M).

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


Leadership Team

Experienced Management: WHL's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: WHL's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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 Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Woolworths Holdings Limited
  • Ticker: WHL
  • Exchange: JSE
  • Founded: 1931
  • Industry: Department Stores
  • Sector: Retail
  • Market Cap: R54.669b
  • Shares outstanding: 967.59m
  • Website: https://www.woolworthsholdings.co.za

Number of Employees


Location

  • Woolworths Holdings Limited
  • Woolworths House
  • 93 Longmarket Street
  • Cape Town
  • Western Cape
  • 8001
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/15 22:38
End of Day Share Price2021/10/15 00:00
Earnings2021/06/27
Annual Earnings2021/06/27


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.