Woodside Energy Group Ltd Fundamental Analysis (NYSE: WDS)
Woodside Energy Group Ltd Fundamental Analysis (NYSE: WDS)
Woodside Energy Group Ltd (NYSE: WDS) shows moderate financial fundamentals with a PE ratio of 14.56, profit margin of 22.21%, and ROE of 8.56%. The company generates $13.9B in annual revenue with weak year-over-year growth of 1.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WDS's fundamental strength across five key dimensions:
Efficiency Score
WeakWDS struggles to generate sufficient returns from assets.
Valuation Score
ModerateWDS shows balanced valuation metrics.
Growth Score
WeakWDS faces weak or negative growth trends.
Financial Health Score
ExcellentWDS maintains a strong and stable balance sheet.
Profitability Score
WeakWDS struggles to sustain strong margins.
Key Financial Metrics
Is WDS Expensive or Cheap?
P/E Ratio
WDS trades at 14.56 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WDS's PEG of 3.22 indicates potential overvaluation.
Price to Book
The market values Woodside Energy Group Ltd at 1.24 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.69 times EBITDA. This is generally considered low.
How Well Does WDS Make Money?
Net Profit Margin
For every $100 in sales, Woodside Energy Group Ltd keeps $22.21 as profit after all expenses.
Operating Margin
Core operations generate 28.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.56 in profit for every $100 of shareholder equity.
ROA
Woodside Energy Group Ltd generates $4.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Woodside Energy Group Ltd generates strong operating cash flow of $6.17B, reflecting robust business health.
Free Cash Flow
Woodside Energy Group Ltd generates weak or negative free cash flow of $-504.86M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.27 in free cash annually.
FCF Yield
WDS converts -1.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How WDS Stacks Against Its Sector Peers
| Metric | WDS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.56 | 20.52 | Better (Cheaper) |
| ROE | 8.56% | 1287.00% | Weak |
| Net Margin | 22.21% | 1262.00% | Weak |
| Debt/Equity | 0.38 | -1.75 (disorted) | Distorted |
| Current Ratio | 1.39 | 2.22 | Neutral |
| ROA | 4.55% | 4316.00% | Weak |
WDS outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Woodside Energy Group Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
86.93%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
135.04%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
82.21%
Industry Style: Cyclical, Value, Commodity
High Growth