Coles Group (COL) AI Stock Analysis

• Market Cap: $27.93B
• Dividend Yield: 3.55%
• Average Volume (3M): 2.86M
• Price to Earnings (P/E): 25.2
• Beta (1Y): 0.50
• Revenue Growth: 6.00%
• EPS Growth: 4.02%
• Country: AU
• Employees: 115,000
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Grocery Stores
• EPS (TTM): 0.43
• Shares Outstanding: 1,341,305,400
• 10 Day Avg. Volume: 3,842,215
• 30 Day Avg. Volume: 2,863,614
• PEG Ratio: 3.54
• Price to Book (P/B): 7.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $21.46
• Price Target Upside: 3.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 77 Outperform
• Price Target: ―

Coles Group Ltd. demonstrates robust financial performance with strong revenue growth and efficient cash flow management, contributing positively to its stock score. The upward price trend and dividend yield add to its appeal, although the high P/E ratio suggests potential overvaluation. The absence of specific earnings call or corporate event data limits further insights.

Positive Factors

Financial Performance

Coles Group reported strong second half and full year 2024 results.

Profit Margins

Food gross profit margin increased by 90 basis points year-over-year.

Negative Factors

Sales Performance

Fourth quarter food sales comparisons of +1.2% year-over-year were weaker than expected.

Coles Group Business Overview & Revenue Model

Company Description

Coles Group Limited operates as a retailer in Australia. It operates through Supermarkets, Liquor, and Express segments. The company operates 835 supermarkets; and coles.com.au, which offers a choice of home delivery, including same-day, overnight drop and go services, and pick up from click and collect locations. Its Coles Financial Services provides insurance, credit cards, and personal loans to Australian families. The company is also involved in the retailing of liquor through its 933 stores under the Liquorland, First Choice, First Choice Liquor, and Vintage Cellars brand names. In addition, it operates 711 fuel and convenience stores; and operates as flybuys loyalty program. The company was formerly known as Coles Myer Ltd. and changed its name to Coles Group Limited. Coles Group Limited was founded in 1914 and is based in Hawthorn East, Australia.

How the Company Makes Money

Coles Group Ltd. generates revenue primarily through the sale of groceries and related products in its expansive network of supermarkets and convenience stores. Key revenue streams include the retail sales from its supermarkets, fuel sales from Coles Express, and online grocery sales. The company also benefits from its loyalty program, Flybuys, which drives customer engagement and sales through targeted promotions and partnerships. Additionally, Coles has established strategic partnerships with suppliers to optimize its supply chain and enhance its product offerings, contributing to its profitability. The company's focus on efficiency and cost management further aids in maintaining strong margins across its operations.

Coles Group Financial Statement Overview

Summary

Coles Group Ltd. is performing well financially, with strong revenue growth, efficient operations, and effective cash management. Despite a slightly higher debt-to-equity ratio, the company's profitability and cash flow generation capabilities provide a solid foundation for future growth and stability in the grocery store industry.

Income Statement

Coles Group Ltd. demonstrates strong financial performance with consistent growth in revenue and profit margins. The revenue growth rate year-over-year is notable, increasing from $40.59 billion to $43.68 billion, marking a 7.2% growth. Gross profit margin improved to 26.05%, and the company maintains a stable net profit margin of 2.56%. The EBIT and EBITDA margins are healthy at 7.97% and 8.42%, respectively, reflecting efficient operational management.

Balance Sheet

The company's balance sheet shows a reasonable debt-to-equity ratio of 2.78, indicating a moderate level of leverage. The return on equity (ROE) is strong at 30.91%, suggesting effective utilization of equity. However, the equity ratio is relatively low at 18.20%, indicating higher reliance on debt financing, which could pose a risk in volatile markets.

Cash Flow

Coles Group Ltd. exhibits healthy cash flow metrics with a stable free cash flow to net income ratio of 1.00. The operating cash flow to net income ratio is robust at 2.50, reflecting effective cash generation from operations. Although the free cash flow decreased slightly compared to the previous year, the overall cash flow position remains strong.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	44.52B	43.68B	40.59B	38.34B	38.95B	37.78B
Gross Profit	11.78B	11.38B	9.10B	8.56B	8.67B	8.25B
EBITDA	2.73B	3.21B	3.40B	3.27B	3.44B	3.26B
Net Income	1.10B	1.12B	1.10B	1.05B	1.00B	978.00M
Balance Sheet
Total Assets	20.20B	19.87B	20.49B	21.17B	20.48B	20.77B
Cash, Cash Equivalents and Short-Term Investments	625.00M	675.00M	597.00M	589.00M	787.00M	992.00M
Total Debt	10.71B	10.07B	8.97B	9.78B	9.90B	10.44B
Total Liabilities	16.43B	16.25B	17.13B	18.05B	17.67B	18.16B
Stockholders Equity	3.76B	3.62B	3.36B	3.12B	2.81B	2.62B
Cash Flow
Free Cash Flow	674.00M	1.12B	1.29B	1.42B	1.56B	1.72B
Operating Cash Flow	2.14B	2.79B	2.81B	2.69B	2.84B	2.55B
Investing Cash Flow	-1.43B	-1.51B	-1.00B	-1.14B	-1.11B	-658.00M
Financing Cash Flow	-1.18B	-1.20B	-1.80B	-1.75B	-1.94B	-1.84B

Coles Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.82
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:COL, the sentiment is Neutral. The current price of 20.82 is below the 20-day moving average (MA) of 21.72, below the 50-day MA of 21.66, and above the 200-day MA of 19.34, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 30.61 is Neutral, neither overbought nor oversold. The STOCH value of 11.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:COL.

Coles Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COL	77 Outperform	$27.93B	25.16	30.87%	3.55%	6.00%	4.02%
Sector *	65 Neutral	$26.91B	15.06	-4.01%	3.23%	1.02%	2.11%
WOLWF		$24.75B	23.13	32.27%	2.17%	―	―
MCSHF		$2.81B	12.97	18.20%	4.96%	―	―
TSRYF		$4.14B	40.80	3.25%	4.97%	―	―
IH1		€735.23M	13.47	38.76%	9.53%	―	―
B6G		€927.08M	43.80	3.35%	2.20%	―	―

Coles Group Corporate Events

Coles Group Achieves Solid Sales Growth Amidst Adverse Conditions

Coles Group reported a solid 3.4% increase in total group sales revenue for the third quarter of 2025, driven by growth in both supermarkets and liquor segments. Despite challenges such as Cyclone Alfred and severe flooding in Far North Queensland, Coles successfully maintained operations and supported local communities, highlighting the company’s resilience and commitment to customer service.