Woolworths Holdings (WLWHY) AI Stock Analysis

• Market Cap: $2.57B
• Dividend Yield: 4.07%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.85
• Revenue Growth: 6.82%
• EPS Growth: -26.72%
• Country: US
• Employees: 37,499
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Department Stores
• EPS (TTM): 0.18
• Shares Outstanding: 988,695,900
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.30
• Price to Book (P/B): 5.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.19
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: $3.50 ▲(22.81%Upside)

Woolworths Holdings demonstrates strong financial resilience with robust cash flows and a stable balance sheet as key strengths. Technical analysis shows a neutral to slightly positive trend, while valuation metrics suggest a fair market value. The company should focus on improving profitability to enhance overall performance.

Woolworths Holdings Business Overview & Revenue Model

Company Description

Woolworths Holdings Limited, through its subsidiaries, operates a chain of retail stores in sub-Saharan Africa, Australia, and New Zealand. It operates through seven segments: Woolworths Fashion, Beauty and Home; Woolworths Food; Woolworths Logistics; David Jones; Country Road Group; Woolworths Financial Services; and Treasury. The company provides food, clothing, homeware, beauty, and various lifestyle products, as well as operates department stores. It offers financial products and services, such as store cards, credit cards, personal loans, and insurance products. The company is also involved in the cash and debt management activities. It operates approximately 719 WSA stores in South Africa and 88 stores in the rest of Africa. The company was founded in 1931 and is based in Cape Town, South Africa.

How the Company Makes Money

Woolworths Holdings makes money primarily through the sale of goods in its retail operations, which include food, clothing, homeware, and beauty products. The company's revenue streams are divided among its various segments: Woolworths South Africa, David Jones in Australia, and Country Road Group. Each segment contributes to the overall income by targeting different market demographics. Woolworths also generates revenue through its financial services division, which includes offering credit cards and insurance products to its customers. Key partnerships, such as collaborations with local and international suppliers, help maintain a diverse product offering and support the company's sustainability initiatives. Additionally, Woolworths benefits from its strong brand reputation and customer loyalty programs, which contribute to consistent foot traffic and repeat business.

Woolworths Holdings Financial Statement Overview

Summary

Woolworths Holdings shows strong cash flows and a stable balance sheet, but declining profit margins and return on equity highlight challenges in maintaining profitability and efficiency.

Income Statement

Woolworths Holdings shows a mixed performance in its income statement. The gross profit margin is healthy at approximately 35.9% for the latest year, but the net profit margin has decreased to 3.4% from 7.0% in the previous year, indicating reduced profitability. Revenue growth is modest, with a revenue increase of 5.9% from 2023 to 2024. However, EBIT and EBITDA margins have declined, reflecting increased operational costs or inefficiencies.

Balance Sheet

The balance sheet reveals a relatively stable financial position. The debt-to-equity ratio has improved, indicating reduced leverage, though it remains high at 1.67. The equity ratio stands at 28.1%, showing a balanced asset structure. Return on equity has decreased to 23.9%, down from 42.3%, reflecting the impact of reduced net income on shareholder returns.

Cash Flow

Cash flow statements show strong operating cash flows, with an increase to 6170 million in 2024. Free cash flow growth is moderate at 5.8% from the previous year. The operating cash flow to net income ratio is robust at 2.38, indicating efficient cash generation compared to net income. However, free cash flow to net income ratio is lower at 1.09, suggesting limited free cash flow relative to net profits.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
76.53B	72.27B	80.07B	78.76B	72.21B
	Gross Profit
27.47B	26.83B	29.19B	28.95B	25.35B
	EBIT
5.36B	6.64B	6.77B	6.73B	4.73B
	EBITDA
8.61B	10.39B	10.34B	12.27B	8.76B
	Net Income Common Stockholders
2.59B	5.07B	3.71B	4.16B	557.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.31B	3.58B	5.37B	5.62B	5.53B
	Total Assets
38.70B	39.23B	56.08B	55.85B	65.07B
	Total Debt
18.12B	17.05B	31.88B	33.83B	45.72B
	Net Debt
15.81B	13.47B	26.51B	28.21B	40.19B
	Total Liabilities
27.78B	27.21B	44.28B	46.26B	58.56B
	Stockholders Equity
10.86B	11.99B	11.78B	9.57B	6.49B
Cash Flow		Free Cash Flow
2.82B	2.66B	4.84B	6.60B	3.88B
	Operating Cash Flow
6.17B	5.14B	6.70B	8.03B	6.31B
	Investing Cash Flow
-3.93B	-2.46B	-1.85B	5.91B	-2.43B
	Financing Cash Flow
-4.40B	-5.16B	-5.10B	-13.52B	-1.00M

Woolworths Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLWHY, the sentiment is Negative. The current price of 2.85 is below the 20-day moving average (MA) of 3.08, below the 50-day MA of 3.07, and below the 200-day MA of 3.27, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 25.46 is Positive, neither overbought nor oversold. The STOCH value of 0.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WLWHY.

Woolworths Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DDS	78 Outperform	$6.33B	11.18	30.93%	0.25%	-3.94%	-17.78%
M	73 Outperform	$3.00B	5.59	12.92%	6.60%	-3.77%	4607.98%
WLWHY	68 Neutral	$2.57B	15.60	26.07%	4.07%	6.82%	-26.72%
SIG	68 Neutral	$3.36B	88.61	2.04%	1.57%	-3.98%	-93.50%
JWN	60 Neutral	$4.12B	14.17	29.58%	3.08%	2.20%	120.00%
KSS	59 Neutral	$922.10M	7.63	3.19%	6.08%	-7.03%	-56.59%
Sector *	55 Neutral	HK$24.12B	4.36	-1.73%	9.58%	-0.05%	-66.27%