Woolworths Group Limited
Woolworths Group Limited Fundamental Analysis
Woolworths Group Limited (WOLWF) shows weak financial fundamentals with a PE ratio of 60.16, profit margin of 0.85%, and ROE of 12.60%. The company generates $70.3B in annual revenue with weak year-over-year growth of 1.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 20.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WOLWF's fundamental strength across five key dimensions:
Efficiency Score
WeakWOLWF struggles to generate sufficient returns from assets.
Valuation Score
ModerateWOLWF shows balanced valuation metrics.
Growth Score
WeakWOLWF faces weak or negative growth trends.
Financial Health Score
WeakWOLWF carries high financial risk with limited liquidity.
Profitability Score
WeakWOLWF struggles to sustain strong margins.
Key Financial Metrics
Is WOLWF Expensive or Cheap?
P/E Ratio
WOLWF trades at 60.16 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WOLWF's PEG of -1.09 indicates potential undervaluation.
Price to Book
The market values Woolworths Group Limited at 7.76 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 1.97 times EBITDA. This is generally considered low.
How Well Does WOLWF Make Money?
Net Profit Margin
For every $100 in sales, Woolworths Group Limited keeps $0.85 as profit after all expenses.
Operating Margin
Core operations generate 2.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.60 in profit for every $100 of shareholder equity.
ROA
Woolworths Group Limited generates $1.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Woolworths Group Limited generates limited operating cash flow of $4.95B, signaling weaker underlying cash strength.
Free Cash Flow
Woolworths Group Limited produces free cash flow of $2.34B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.92 in free cash annually.
FCF Yield
WOLWF converts 6.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
60.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.82
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How WOLWF Stacks Against Its Sector Peers
| Metric | WOLWF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 60.16 | 23.13 | Worse (Expensive) |
| ROE | 12.60% | 1246.00% | Weak |
| Net Margin | 0.85% | -6035.00% (disorted) | Weak |
| Debt/Equity | 5.82 | 0.80 | Weak (High Leverage) |
| Current Ratio | 0.56 | 2.42 | Weak Liquidity |
| ROA | 1.74% | -199791.00% (disorted) | Weak |
WOLWF 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 Woolworths Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
34.09%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
-14.83%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
2.70%
Industry Style: Defensive, Dividend, Low Volatility
Growing