Woolworths Group Ltd (AU:WOW)
ASX:WOW
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Woolworths Group Ltd
(Sydney:WOW)
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Rating:54Neutral
Price Target:
AU$35.00
â–Ľ(-4.87% Downside)
Action:Reiterated
Date:05/01/26
The score is held back primarily by weak financial performance indicators (revenue decline, thin/pressured profitability and high leverage) and bearish technical positioning (below key moving averages with oversold RSI). Offsetting these are improved cash flow trends and a relatively positive earnings call with reaffirmed growth guidance, cost-savings progress and eCommerce profitability improvement, while valuation is broadly moderate.
Positive Factors
Improved free cash flow
A 61.9% free cash flow growth rate indicates materially improved cash conversion, supporting sustainable reinvestment, capex funding and shareholder distributions. Strong cash generation increases resilience to shocks and provides flexibility to de‑leverage or invest in strategic initiatives over the medium term.
Negative Factors
High financial leverage
A debt-to-equity ratio of 3.58 signals elevated leverage that constrains balance‑sheet flexibility. High indebtedness limits ability to absorb shocks, increases interest exposure and may restrict strategic spending or de‑risking without eroding cash flow available for dividends and capex over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved free cash flow
A 61.9% free cash flow growth rate indicates materially improved cash conversion, supporting sustainable reinvestment, capex funding and shareholder distributions. Strong cash generation increases resilience to shocks and provides flexibility to de‑leverage or invest in strategic initiatives over the medium term.
Read all positive factors
Woolworths Group Ltd (WOW) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$40.12B
Dividend Yield2.86%
Average Volume (3M)2.55M
Price to Earnings (P/E)24.0
Beta (1Y)0.44
Revenue Growth1.54%
EPS Growth-63.29%
CountryAU
Employees201,413
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)0.49
Shares Outstanding1,221,599,200
10 Day Avg. Volume2,602,115
30 Day Avg. Volume2,546,696
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)7.81
Price to Sales (P/S)0.55
P/FCF Ratio18.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$34.91Price Target Upside-5.11% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)1.26
Revenue Forecast (FY)AU$71.68B
Woolworths Group Ltd Business Overview & Revenue Model
Company Description
Woolworths Group Limited operates retail stores. It operates through Australian Food, Australian B2B, New Zealand Food, BIG W, and Other segments. The Australian Food segment procures and resells food and related products, and provides services to...
How the Company Makes Money
Woolworths Group makes money primarily by selling groceries and everyday household products through its supermarket stores and online channels, generating revenue from the retail margin between what it pays suppliers and what customers pay at chec...
Woolworths Group Ltd Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial half when excluding one-off remediation charges: solid sales growth, strong EBIT and EPS progression before significant items, meaningful eCommerce and complementary business momentum, delivery of $400m cost savings, and a range of sustainability and AI adoption milestones. Key challenges were a large one-off remediation charge that sharply reduced reported NPAT, ongoing supply chain transition costs with multi‑year ramp-up, margin pressures in some categories and heightened competitive intensity in eCommerce. On balance the fundamental trading improvement, cost delivery and strategic progress outweigh the one‑off and transitional headwinds.Positive Updates
Group revenue growth
Group sales increased 3.4% to $37.1 billion for H1 FY26, with all trading segments reporting sales growth.
Negative Updates
Remediation significant items hit earnings
The group recorded significant items before tax of $698 million (remediation of award-covered salary team members following a Federal Court decision). Including significant items, NPAT attributable to owners fell 49.4% to $374 million and EPS declined 49.4%.
Read all updates
Q2-2026 Updates
Positive
Negative
Group revenue growth
Group sales increased 3.4% to $37.1 billion for H1 FY26, with all trading segments reporting sales growth.
Read all positive updates
Company Guidance
Management reaffirmed they are on track to deliver mid‑ to high‑single‑digit reported EBIT growth in Australian Food for FY26 and an improved result in New Zealand Food and BIG W, and reiterated a medium‑term ambition of mid‑ to high‑single‑digit EBIT growth supporting a double‑digit total shareholder‑return target. They confirmed FY26 operating capex of ~$2.0bn (H1 operating capex $913m), reported H1 group sales $37.1bn (+3.4%), group EBIT before significant items $1.7bn (+14.4%), NPAT before significant items $859m (+16.4%) and EPS $0.704 (+16.4%), with H1 operating cash flow before interest and tax $3.2bn (+4.5%) and a cash realization ratio of 95%. Management also flagged delivery of the $400m run‑rate cost savings by December, H1 significant items of $698m (award remediation), eCommerce sales +14.6% and a 93% increase in eComX directly attributable profit, net debt/EBITDA of 2.7x, and a final dividend of $0.45 per share (up 15.4%).Woolworths Group Ltd Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
50
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 70.28B | 69.08B | 67.92B | 64.29B | 60.85B | 55.73B |
| Gross Profit | 16.61B | 18.82B | 18.55B | 17.18B | 18.04B | 16.33B |
| EBITDA | 4.58B | 4.57B | 3.53B | 5.36B | 4.51B | 4.90B |
| Net Income | 598.00M | 963.00M | 108.00M | 1.62B | 1.55B | 2.07B |
Balance Sheet | ||||||
| Total Assets | 34.39B | 33.83B | 33.94B | 37.18B | 33.27B | 39.24B |
| Cash, Cash Equivalents and Short-Term Investments | 1.29B | 1.27B | 1.30B | 1.14B | 1.03B | 1.01B |
| Total Debt | 26.99B | 17.39B | 16.72B | 15.73B | 16.76B | 14.89B |
| Total Liabilities | 29.63B | 28.87B | 28.37B | 30.61B | 27.17B | 37.50B |
| Stockholders Equity | 4.63B | 4.86B | 5.41B | 6.42B | 5.98B | 1.38B |
Cash Flow | ||||||
| Free Cash Flow | 2.34B | 2.02B | 1.81B | 2.28B | 1.01B | 2.25B |
| Operating Cash Flow | 4.95B | 4.55B | 4.36B | 4.80B | 3.43B | 4.64B |
| Investing Cash Flow | -2.86B | -1.93B | -2.31B | -1.89B | -2.51B | -2.21B |
| Financing Cash Flow | -2.09B | -2.65B | -1.92B | -2.81B | -1.34B | -3.04B |
Woolworths Group Ltd Technical Analysis
Positive
36.79
Price Trends
35.84
Negative
33.51
Positive
30.83
Positive
Market Momentum
-0.86
Positive
45.59
Neutral
49.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WOW, the sentiment is Positive. The current price of 36.79 is above the 20-day moving average (MA) of 34.84, above the 50-day MA of 35.84, and above the 200-day MA of 30.83, indicating a neutral trend. The MACD of -0.86 indicates Positive momentum. The RSI at 45.59 is Neutral, neither overbought nor oversold. The STOCH value of 49.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:WOW.
Woolworths Group Ltd Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$5.42B | 6.65 | 9.59% | 5.12% | -1.17% | -18.45% | |
65 Neutral | AU$3.21B | 7.36 | 17.24% | 5.47% | 4.74% | 6.60% | |
63 Neutral | AU$3.39B | -1.63 | -10.03% | 7.42% | -10.96% | -383.84% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | AU$28.00B | 14.02 | 26.38% | 3.24% | 1.26% | -8.33% | |
54 Neutral | AU$40.12B | 23.98 | 12.60% | 2.86% | 1.54% | -63.29% | |
51 Neutral | AU$1.61B | 9.86 | 0.82% | 1.95% | 1.47% | -76.20% |
* Consumer Defensive Sector Average
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Woolworths Group Ltd Corporate Events
Woolworths Group Lifts Q3 Sales but Warns on Rising Uncertainty
Apr 29, 2026
Woolworths Group reported third-quarter group sales of $18.1 billion, up 4.5% year on year, driven chiefly by a 5.9% rise in Australian Food sales and strong eCommerce growth of 20.2%. The company also saw solid contributions from Australian B2B, ...
Woolworths Updates DRP Pricing on Half‑Year Dividend
Mar 23, 2026
Woolworths Group Limited has updated its notification regarding a dividend on its ordinary fully paid shares for the six‑month period ended 4 January 2026. The update, dated 23 March 2026, specifically revises the Dividend Reinvestment Plan ...
Woolworths Issues New Unquoted Equity Rights Under Employee Incentive Schemes
Mar 20, 2026
Woolworths Group Limited has notified the market of the issue of unquoted equity securities under its employee incentive schemes, comprising 188,119 performance rights (WOWAK) and 209,628 share rights (WOWAA) issued on 16 March 2026. These securit...
Woolworths Issues New Shares After Conversion of Unquoted Equity Securities
Mar 17, 2026
Woolworths Group Limited has notified the market of the issue of 16,933 ordinary fully paid shares following the conversion or exercise of previously unquoted equity securities. The new shares, issued on 11 March 2026, reflect the company’s ...
Woolworths Group Discloses Final Director Interest Notice for Tracey Fellows
Mar 3, 2026
Woolworths Group Limited has announced that Tracey Fellows ceased to be a director of the company effective 1 March 2026, with this notice lodged under Australian Securities Exchange disclosure rules. The filing confirms that she holds no directly...
Woolworths Group Adds Jonathan Alferness as Independent Non-Executive Director
Mar 2, 2026
Woolworths Group has appointed Jonathan Alferness as a non-executive director, effective 1 March 2026, and lodged the required Initial Director’s Interest Notice with the ASX. The filing confirms that Alferness holds no relevant interests in...
Woolworths NED Equity Plan Triggers Half-Yearly Share Vesting
Mar 2, 2026
Woolworths Group has confirmed the half-yearly vesting of share rights under its Non-Executive Director (NED) Equity Plan, with Change of Director’s Interest Notices lodged for non-executive directors Tracey Fellows and Warwick Bray. Under t...
Woolworths lifts underlying profit and dividend despite hefty remediation hit
Feb 25, 2026
Woolworths Group reported half-year group sales of $37.1 billion, up 3.4%, with EBIT before significant items rising 14.4% as all segments delivered sales and earnings growth, supported by cost reductions and strong e-commerce expansion. The compa...
Woolworths Group Declares Interim Dividend of AUD 0.45 per Share
Feb 25, 2026
Woolworths Group Limited has declared an ordinary dividend of AUD 0.45 per fully paid share for the six-month period ended 4 January 2026, reinforcing its ongoing commitment to shareholder returns. The dividend will trade ex on 4 March 2026, with ...
Woolworths Lifts Underlying Profit but Takes $710m Payroll Hit in Half-Year
Feb 25, 2026
Woolworths Group has reported its half-year results to 4 January 2026, posting revenue of $37.1 billion, up 3.4%, while profit attributable to equity holders before significant items rose 16.4% to $859 million. Statutory profit fell 49.4% to $374 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.