Woolworths Group Ltd (WOW) AI Stock Analysis

• Market Cap: $32.80B
• Dividend Yield: 3.12%
• Average Volume (3M): 3.20M
• Price to Earnings (P/E): 34.2
• Beta (1Y): 0.67
• Revenue Growth: 1.70%
• EPS Growth: 796.48%
• Country: AU
• Employees: 201,413
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.53
• Shares Outstanding: 1,221,597,300
• 10 Day Avg. Volume: 3,316,256
• 30 Day Avg. Volume: 3,202,573
• 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: 1.67
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 3.11
• Enterprise Value/Ebitda: 10.62
• 1Y Price Target: $30.26
• Price Target Upside: 12.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 49 Neutral
• Price Target: AU$28.00 ▲(4.40% Upside)

Woolworths Group Ltd's overall stock score reflects significant financial and operational challenges, including high leverage and declining profitability. Technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. While the earnings call showed some positive strategic initiatives, the decline in EBIT and customer perception issues weigh heavily on the score.

Positive Factors

Negative Factors

Woolworths Group Ltd Business Overview & Revenue Model

Company Description

Woolworths Group Ltd (WOW) is one of Australia's largest retail companies, operating primarily in the supermarket and grocery sector. The company operates a diverse portfolio of businesses, including Woolworths Supermarkets, Countdown in New Zealand, and a range of other specialty retail formats. Woolworths is known for its core offerings of fresh food, groceries, and general merchandise, along with services such as online shopping and home delivery. The company aims to deliver quality products and exceptional customer service, making it a leading choice for consumers in the region.

How the Company Makes Money

Woolworths Group generates revenue primarily through the sale of groceries and fresh food products in its supermarkets. The company's revenue model is heavily based on retail sales, with significant income coming from the sale of private label products, which typically have higher margins than branded items. Additionally, Woolworths earns revenue from its online shopping services, where customers can order groceries for delivery or pick-up. The company also benefits from ancillary services, including loyalty programs like the Woolworths Rewards program, which drive customer engagement and repeat purchases. Strategic partnerships with suppliers and investment in technology to enhance supply chain efficiency further contribute to Woolworths' earnings. Seasonal promotions and exclusive product offerings also play a role in boosting sales during peak shopping periods.

Woolworths Group Ltd Financial Statement Overview

Summary

Woolworths Group Ltd faces financial pressure with declining revenues and operational challenges. Despite improved cash flow generation, high leverage and low profitability margins pose risks. The company needs to enhance operational efficiency and manage debt levels to strengthen its financial position.

Income Statement

Woolworths Group Ltd has faced challenges in maintaining revenue growth, with a significant decline of 20.2% in the latest year. The gross profit margin remains stable at around 27%, but the net profit margin is low at 1.39%, indicating limited profitability. The negative EBIT margin suggests operational inefficiencies or extraordinary expenses impacting earnings.

Balance Sheet

The company has a high debt-to-equity ratio of 3.58, indicating significant leverage which could pose financial risks. However, the return on equity is relatively strong at 19.81%, suggesting effective use of equity to generate profits. The equity ratio is not provided, but the high leverage remains a concern.

Cash Flow

Woolworths has shown a strong free cash flow growth rate of 61.89%, reflecting improved cash generation. The operating cash flow to net income ratio is 0.37, indicating adequate cash flow relative to net income. However, the free cash flow to net income ratio of 0.44 suggests room for improvement in converting income to free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	69.08B	69.08B	67.92B	64.29B	60.85B	55.73B
Gross Profit	17.56B	18.82B	18.55B	17.18B	18.04B	16.33B
EBITDA	5.15B	4.57B	3.53B	5.36B	5.05B	5.43B
Net Income	963.00M	963.00M	108.00M	1.62B	1.55B	2.07B
Balance Sheet
Total Assets	33.83B	33.83B	33.94B	37.18B	33.27B	39.24B
Cash, Cash Equivalents and Short-Term Investments	1.27B	1.27B	1.30B	1.14B	1.03B	1.01B
Total Debt	17.39B	17.39B	16.72B	15.73B	16.76B	14.89B
Total Liabilities	28.87B	28.87B	28.37B	30.61B	27.17B	37.50B
Stockholders Equity	4.86B	4.86B	5.41B	6.42B	5.98B	1.38B
Cash Flow
Free Cash Flow	2.02B	2.02B	1.81B	2.28B	1.01B	2.25B
Operating Cash Flow	4.55B	4.55B	4.36B	4.80B	3.43B	4.64B
Investing Cash Flow	-2.35B	-1.93B	-2.31B	-1.89B	-2.51B	-2.21B
Financing Cash Flow	-2.23B	-2.65B	-1.92B	-2.81B	-1.34B	-3.04B

Woolworths Group Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WOW, the sentiment is Negative. The current price of 26.82 is above the 20-day moving average (MA) of 26.46, below the 50-day MA of 27.63, and below the 200-day MA of 29.69, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 51.73 is Neutral, neither overbought nor oversold. The STOCH value of 91.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:WOW.

Woolworths Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTS	―	$4.22B	14.85	18.20%	4.69%	8.86%	0.23%
COL	―	$30.53B	28.17	28.51%	2.98%	1.84%	-3.62%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
WOW	―	$32.80B	34.18	18.56%	3.12%	1.70%	796.48%

Woolworths Group Ltd Corporate Events

Woolworths Group to Close MyDeal and Focus on Marketplace Consolidation

Woolworths Group Ltd has announced the closure of its MyDeal customer website by 30 September, as part of a strategic move to consolidate its marketplace offerings into BIG W Market and Everyday Market. This decision aims to reduce operating losses and capitalize on the strong traffic growth of its existing digital platforms. The closure is expected to incur cash costs of $90 – $100 million and non-cash costs related to asset impairment, with further updates to be provided in August.

The most recent analyst rating on (AU:WOW) stock is a Hold with a A$33.00 price target. To see the full list of analyst forecasts on Woolworths Group Ltd stock, see the AU:WOW Stock Forecast page.

Woolworths Group Seeks Quotation for New Securities

Woolworths Group Limited has announced the application for the quotation of ordinary securities to satisfy future vesting of share rights under the NED Equity Plan. This move is part of their strategic financial operations, potentially impacting their market positioning and providing value to stakeholders.

The most recent analyst rating on (AU:WOW) stock is a Hold with a A$33.00 price target. To see the full list of analyst forecasts on Woolworths Group Ltd stock, see the AU:WOW Stock Forecast page.

Woolworths Group Issues Unquoted Equity Securities for Employee Incentive

Woolworths Group Limited announced the issuance of unquoted equity securities under an employee incentive scheme. This move involves the allocation of performance rights and share rights, which are subject to transfer restrictions until certain conditions are met. This initiative is likely aimed at aligning employee interests with company performance, potentially enhancing workforce motivation and retention.

The most recent analyst rating on (AU:WOW) stock is a Hold with a A$33.00 price target. To see the full list of analyst forecasts on Woolworths Group Ltd stock, see the AU:WOW Stock Forecast page.

Woolworths Group Announces Cessation of Securities Due to Unmet Conditions

Woolworths Group Limited announced the cessation of certain securities, specifically 264,413 performance rights and 38,446 share rights, due to unmet conditions. This announcement may impact the company’s capital structure and could have implications for stakeholders, reflecting potential challenges in meeting performance criteria.

The most recent analyst rating on (AU:WOW) stock is a Hold with a A$33.00 price target. To see the full list of analyst forecasts on Woolworths Group Ltd stock, see the AU:WOW Stock Forecast page.

Woolworths Group Director Increases Shareholding

Woolworths Group Limited has announced a change in the director’s interest, with Maxine Brenner acquiring an additional 470 ordinary shares through her superannuation fund, bringing her total to 8,935 shares. This acquisition reflects a strategic move within the company’s leadership, potentially impacting shareholder confidence and market perception.

The most recent analyst rating on (AU:WOW) stock is a Hold with a A$33.00 price target. To see the full list of analyst forecasts on Woolworths Group Ltd stock, see the AU:WOW Stock Forecast page.

Woolworths Director Increases Shareholding

Woolworths Group Limited announced a change in the director’s interest notice, revealing that Director Maxine Brenner has increased her indirect interest in the company’s ordinary shares. The transaction involved the acquisition of 625 shares, bringing her total to 8,465 shares, which were purchased on the market for $20,401.05. This change reflects a strategic move in the director’s investment portfolio, potentially indicating confidence in the company’s future performance.