Coles Group (COL) AI Stock Analysis

• Market Cap: $31.33B
• Dividend Yield: 2.96%
• Average Volume (3M): 3.11M
• Price to Earnings (P/E): 28.9
• Beta (1Y): 0.42
• Revenue Growth: 1.84%
• EPS Growth: -3.62%
• Country: AU
• Employees: 115,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.38
• Shares Outstanding: 1,342,138,500
• 10 Day Avg. Volume: 2,443,188
• 30 Day Avg. Volume: 3,107,450
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 3.17
• Enterprise Value/Ebitda: 9.77
• 1Y Price Target: $23.99
• Price Target Upside: 2.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 69 Neutral
• Price Target: AU$26.00 ▲(11.40% Upside)

Coles Group's overall stock score is driven by strong technical indicators and positive earnings call sentiment, reflecting operational efficiency and growth in e-commerce. However, high leverage and valuation concerns, along with potential market pullbacks due to overbought conditions, moderate the score.

Positive Factors

Negative Factors

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 generates revenue through its diversified retail operations, primarily from the sale of food, liquor, and convenience products. The company's revenue model is centered around its supermarket chain, which accounts for the majority of its earnings. Coles also operates a successful online shopping platform, which contributes to its revenue streams by catering to the growing demand for convenient, digital shopping experiences. In addition to its retail operations, Coles has partnerships with suppliers and manufacturers, which help in optimizing its supply chain and securing competitive pricing. The company's earnings are further supported by loyalty programs and financial services, which enhance customer engagement and drive repeat business.

Coles Group Financial Statement Overview

Summary

Coles Group demonstrates operational efficiency with stable margins, but faces challenges in revenue growth and high leverage. The company's strong return on equity and improved cash flow management are positive indicators, though the high debt levels warrant caution. Overall, the financial health is stable but requires careful management of leverage and growth strategies.

Income Statement

Coles Group's income statement shows a stable gross profit margin and a slight decline in net profit margin over the years. The revenue growth rate has been inconsistent, with a recent decline, indicating potential challenges in maintaining sales momentum. However, the EBIT and EBITDA margins remain relatively stable, suggesting operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which could pose risks in a volatile market. However, the return on equity remains strong, reflecting effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

The cash flow statement highlights a significant improvement in free cash flow growth, indicating better cash management. The operating cash flow to net income ratio is healthy, suggesting good cash generation relative to net income. However, the free cash flow to net income ratio has fluctuated, indicating variability in cash flow relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	44.49B	44.35B	43.68B	40.59B	38.34B	38.95B
Gross Profit	11.84B	11.70B	11.38B	9.10B	8.56B	8.67B
EBITDA	3.84B	3.22B	3.21B	3.40B	3.27B	3.44B
Net Income	1.08B	1.08B	1.12B	1.10B	1.05B	1.00B
Balance Sheet
Total Assets	20.29B	20.29B	19.87B	20.49B	21.17B	20.48B
Cash, Cash Equivalents and Short-Term Investments	705.00M	705.00M	675.00M	597.00M	589.00M	787.00M
Total Debt	10.33B	10.33B	10.07B	8.97B	9.78B	9.90B
Total Liabilities	16.49B	16.49B	16.25B	17.13B	18.05B	17.67B
Stockholders Equity	3.81B	3.81B	3.62B	3.36B	3.12B	2.81B
Cash Flow
Free Cash Flow	1.45B	1.45B	1.12B	1.29B	1.42B	1.56B
Operating Cash Flow	2.94B	2.94B	2.79B	2.81B	2.69B	2.84B
Investing Cash Flow	-1.36B	-1.36B	-1.51B	-1.00B	-1.14B	-1.11B
Financing Cash Flow	-1.54B	-1.54B	-1.20B	-1.80B	-1.75B	-1.94B

Coles Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.34
• 50DMA: Positive
• 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 Positive. The current price of 23.34 is below the 20-day moving average (MA) of 23.69, above the 50-day MA of 21.99, and above the 200-day MA of 20.38, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 55.96 is Neutral, neither overbought nor oversold. The STOCH value of 15.95 is Positive, 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
ING	72 Outperform	942.79M	10.51	―	7.48%	-3.36%	-11.53%
TWE	71 Outperform	5.76B	13.19	9.13%	5.63%	6.47%	281.30%
COL	69 Neutral	$31.33B	28.86	28.51%	2.96%	1.84%	-3.62%
MTS	61 Neutral	4.22B	14.85	17.42%	4.69%	8.86%	0.23%
WOW	49 Neutral	32.59B	33.96	19.81%	3.14%	1.70%	796.48%
BGA	46 Neutral	1.58B	-185.66	-0.87%	2.32%	0.49%	-127.84%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Coles Group Corporate Events

Coles Group to Consider Shareholder Resolutions on Governance and Sustainability

Coles Group Limited has announced that it has received resolutions for consideration at its 2025 Annual General Meeting, submitted by shareholders holding approximately 0.0021% of the company’s shares. These resolutions include a proposal to amend the company’s constitution to allow shareholders to express opinions or request information on directors’ powers, and requests for Coles to report on the impact of its farmed seafood on endangered species and align its seafood sourcing policies with global best practices. The outcomes of these resolutions could influence Coles’ operational transparency and sustainability practices, potentially affecting its industry positioning and stakeholder relations.

The most recent analyst rating on (AU:COL) stock is a Buy with a A$19.40 price target. To see the full list of analyst forecasts on Coles Group stock, see the AU:COL Stock Forecast page.