Woolworths Group Ltd (AU:WOW)
ASX:WOW
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Woolworths Group Ltd
(Sydney:WOW)
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Rating:55Neutral
Price Target:
AU$37.00
â–¼(-0.03% Downside)
Action:ReiteratedDate:02/26/26
The score is held back primarily by weak financial statement quality (low profitability, high leverage, and revenue decline) and a very high P/E valuation. These are partly offset by improved cash generation, positive earnings-call indicators (cost savings and stronger underlying EBIT/EPS trends), and supportive—though overextended—technical momentum.
Positive Factors
eCommerce scale & profitability
Rapid growth and a large jump in eComX profit show the online channel is shifting from investment to a durable profit contributor. Improved picking, last‑mile productivity and higher direct profitability reduce structural cost-to-serve and strengthen omnichannel competitive positioning.
Negative Factors
High financial leverage
Elevated leverage increases refinancing and liquidity risk, limiting strategic optionality. With meaningful capex and multi‑year transition costs ahead, high debt-to-equity constrains the company’s ability to absorb shocks or accelerate investments without further raising leverage or cutting returns.
Read all positive and negative factors
Positive Factors
Negative Factors
eCommerce scale & profitability
Rapid growth and a large jump in eComX profit show the online channel is shifting from investment to a durable profit contributor. Improved picking, last‑mile productivity and higher direct profitability reduce structural cost-to-serve and strengthen omnichannel competitive positioning.
Read all positive factors
Woolworths Group Ltd (WOW) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$45.02B
Dividend Yield2.86%
Average Volume (3M)2.55M
Price to Earnings (P/E)24.0
Beta (1Y)0.49
Revenue Growth1.70%
EPS Growth796.48%
CountryAU
Employees201,413
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)0.70
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$36.16Price Target Upside-2.28% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)1.31
Revenue Forecast (FY)AU$71.63B
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 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 pro...
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
37.01
Price Trends
33.73
Positive
31.27
Positive
30.01
Positive
Market Momentum
0.80
Positive
69.12
Neutral
68.01
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 37.01 is above the 20-day moving average (MA) of 36.16, above the 50-day MA of 33.73, and above the 200-day MA of 30.01, indicating a bullish trend. The MACD of 0.80 indicates Positive momentum. The RSI at 69.12 is Neutral, neither overbought nor oversold. The STOCH value of 68.01 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$5.75B | 6.65 | 9.59% | 5.12% | -2.04% | -16.79% | |
65 Neutral | AU$3.27B | 7.36 | 17.24% | 5.47% | 4.74% | 6.60% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | AU$30.38B | 14.02 | 26.38% | 3.24% | 1.84% | -3.62% | |
57 Neutral | AU$3.01B | -1.63 | -10.03% | 7.42% | 6.47% | 281.30% | |
55 Neutral | AU$45.02B | 23.98 | 12.60% | 2.86% | 1.70% | 796.48% | |
51 Neutral | AU$1.84B | 9.86 | 0.82% | 1.95% | 0.49% | -127.84% |
* Consumer Defensive Sector Average
AU:WOW
Woolworths Group Ltd
37.01
6.87
22.79%
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Woolworths Group Ltd Corporate Events
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 ...
Woolworths Group Strengthens Board with Silicon Valley Technologist as Director Retires
Jan 28, 2026
Woolworths Group has announced the appointment of Jon Alferness as a non-executive director to its board effective 1 March 2026, pending licensing approvals, coinciding with the retirement of current director Tracey Fellows on the same date. Alfer...
Woolworths Group Updates Director’s Interest Notice
Dec 17, 2025
Woolworths Group Limited has announced a change in the director’s interest notice for Tracey Fellows, with no changes in the number of ordinary shares held. However, there was an acquisition of 340 NED Share Rights, bringing the total to 701...
Woolworths Group Seeks Quotation for New Securities
Dec 17, 2025
Woolworths Group Limited has announced an application for the quotation of ordinary securities to the trustee of the NED Equity Plan, which will satisfy future vesting of share rights issued on December 12, 2025. This move is part of the company&#...
Woolworths Group Issues Unquoted Share Rights Under Employee Incentive Scheme
Dec 17, 2025
Woolworths Group Limited announced the issuance of 20,489 unquoted share rights under an employee incentive scheme. These securities are subject to transfer restrictions and will not be quoted on the ASX until these restrictions are lifted, reflec...
Woolworths Group Issues New Securities to Enhance Equity Structure
Dec 17, 2025
Woolworths Group Limited has announced the issuance of 3,799 ordinary fully paid securities, effective from December 10, 2025. This move involves the conversion of unquoted options or other convertible securities, which may impact the company̵...
Woolworths Group Announces Cessation of Share Rights
Dec 17, 2025
Woolworths Group Limited announced the cessation of 4,221 share rights due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This announcement may affect the company’s capital structur...
Woolworths Group Faces Class Action Over Alleged Underpayments
Dec 15, 2025
Woolworths Group Ltd has been notified of class action proceedings initiated by Shine Lawyers in the Federal Court of Australia. The case involves allegations of potential underpayments to team members in South Australia, linked to outdated legisl...
Woolworths Group Highlights Moorebank Distribution Centers in Investor Presentation
Dec 3, 2025
Woolworths Group Ltd has released a presentation related to a site visit at its Moorebank distribution centers. This visit underscores the company’s commitment to enhancing its distribution capabilities, which is crucial for maintaining its ...
Woolworths Faces Class Action Over Underpayment Disclosures
Dec 1, 2025
Woolworths Group Ltd has acknowledged the commencement of shareholder class action proceedings in the Federal Court of Australia, initiated by Dutton Law Pty Ltd. The legal action pertains to allegations of inadequate disclosures concerning team m...
Woolworths Group Updates Director’s Interest Notice
Nov 26, 2025
Woolworths Group Limited announced a change in the director’s interest notice, specifically regarding Amanda Bardwell’s securities holdings. There were no changes in the number of ordinary shares held by Ms. Bardwell or the Jefferson J...
Woolworths Group Issues Unquoted Equity Securities for Employee Incentives
Nov 26, 2025
Woolworths Group Limited has announced the issuance of unquoted equity securities under an employee incentive scheme. This includes 2,568,743 performance rights and 1,418,367 share rights, which are subject to transfer restrictions and will not be...
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.