Coles Group (COL) AI Stock Analysis

• Market Cap: AU$29.48B
• Dividend Yield: 3.18%
• Average Volume (3M): 2.88M
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.47
• Revenue Growth: 6.00%
• EPS Growth: 4.02%
• Country: AU
• Employees: 115,000
• Sector: Consumer Defensive
• Sector Strength: 69
• Industry: Grocery Stores
• EPS (TTM): 0.83
• Shares Outstanding: 1,341,305,400
• 10 Day Avg. Volume: 2,782,968
• 30 Day Avg. Volume: 2,879,338
• PEG Ratio: -22.89
• Price to Book (P/B): 8.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 44.74
• 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: AU$21.48
• Price Target Upside: -1.64% Downside
• 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 Ltd. (COL) is one of Australia's largest and most recognized retail companies, primarily operating in the supermarket sector. Founded in 1914, Coles provides a wide range of products, including groceries, fresh produce, household goods, and general merchandise through its network of over 800 supermarkets across Australia. Additionally, Coles Group operates Coles Express, a chain of convenience stores, and offers online shopping services, enhancing accessibility and convenience for its customers.

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
	EBIT
3.51B	1.85B	1.70B	1.75B	1.80B	1.66B
	EBITDA
2.73B	3.21B	3.40B	3.27B	3.44B	3.26B
	Net Income Common Stockholders
1.10B	1.12B	1.10B	1.05B	1.00B	978.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
625.00M	675.00M	597.00M	589.00M	787.00M	992.00M
	Total Assets
20.20B	19.87B	20.49B	21.17B	20.48B	20.77B
	Total Debt
10.71B	10.07B	8.97B	9.78B	9.90B	10.44B
	Net Debt
10.09B	9.39B	8.37B	9.19B	9.11B	9.45B
	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: Positive
• Last Price: 21.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:COL, the sentiment is Positive. The current price of 21.84 is above the 20-day moving average (MA) of 21.71, above the 50-day MA of 21.27, and above the 200-day MA of 19.09, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 52.84 is Neutral, neither overbought nor oversold. The STOCH value of 49.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	AU$29.48B	26.40	30.87%	3.18%	6.00%	4.02%
ING	76 Outperform	€1.40B	15.64	38.76%	5.42%	1.77%	-15.93%
WOW	69 Neutral	$38.99B	23.98	32.27%	3.04%	5.26%	―
BGA	65 Neutral	AU$1.72B	50.18	3.35%	1.93%	4.28%	―
Sector *	65 Neutral	$8.94B	14.98	4.76%	203.76%	3.54%	-2.49%
MTS	64 Neutral	AU$3.75B	14.03	19.53%	5.16%	4.04%	-14.50%
TWE	63 Neutral	$6.73B	43.56	3.25%	5.25%	22.94%	-40.23%

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.

Coles Group Announces Director’s Shareholding Change

Coles Group Limited has announced a change in the director’s interest, specifically involving Jacqueline Chow, who disposed of 3,000 fully paid ordinary shares at an average price of $19.23 per share. This change reflects a reduction in her holdings from 20,000 to 17,000 shares, which may have implications for investor perceptions and the company’s governance dynamics.

Coles Group Updates Dividend Distribution Details

Coles Group Limited announced an update to its previous notification regarding the dividend distribution for its ordinary fully paid securities. The update pertains to currency information for the dividend related to the six-month period ending January 5, 2025. This announcement is significant for stakeholders as it provides clarity on the financial details and timelines associated with the dividend distribution, impacting investor expectations and market positioning.