Coles Group Limited
Coles Group Limited Fundamental Analysis
Coles Group Limited (COL.AX) shows weak financial fundamentals with a PE ratio of 30.25, profit margin of 2.25%, and ROE of 26.38%. The company generates $45.3B in annual revenue with weak year-over-year growth of 1.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze COL.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakCOL.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateCOL.AX shows balanced valuation metrics.
Growth Score
WeakCOL.AX faces weak or negative growth trends.
Financial Health Score
WeakCOL.AX carries high financial risk with limited liquidity.
Profitability Score
ModerateCOL.AX maintains healthy but balanced margins.
Key Financial Metrics
Is COL.AX Expensive or Cheap?
P/E Ratio
COL.AX trades at 30.25 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, COL.AX's PEG of -3.59 indicates potential undervaluation.
Price to Book
The market values Coles Group Limited at 7.90 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 3.58 times EBITDA. This is generally considered low.
How Well Does COL.AX Make Money?
Net Profit Margin
For every $100 in sales, Coles Group Limited keeps $2.25 as profit after all expenses.
Operating Margin
Core operations generate 4.13 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.38 in profit for every $100 of shareholder equity.
ROA
Coles Group Limited generates $4.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Coles Group Limited generates limited operating cash flow of $3.11B, signaling weaker underlying cash strength.
Free Cash Flow
Coles Group Limited produces free cash flow of $1.57B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.17 in free cash annually.
FCF Yield
COL.AX converts 5.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.59
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.58
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.63
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How COL.AX Stacks Against Its Sector Peers
| Metric | COL.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.25 | 22.97 | Worse (Expensive) |
| ROE | 26.38% | 1214.00% | Weak |
| Net Margin | 2.25% | -5556.00% (disorted) | Weak |
| Debt/Equity | 4.58 | 1.53 | Weak (High Leverage) |
| Current Ratio | 0.63 | 2.49 | Weak Liquidity |
| ROA | 4.97% | -601304.00% (disorted) | Weak |
COL.AX outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Coles Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
17.21%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
10.16%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
14.87%
Industry Style: Defensive, Dividend, Low Volatility
High Growth