Woolworths Holdings (WLWHY) AI Stock Analysis

• Market Cap: $2.65B
• Dividend Yield: 4.48%
• Average Volume (3M): 9.00
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.80
• Revenue Growth: 6.82%
• EPS Growth: -26.72%
• Country: US
• Employees: 37,499
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Department Stores
• EPS (TTM): 0.14
• Shares Outstanding: 988,695,900
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 9
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.14
• Enterprise Value/Ebitda: 0.85
• 1Y Price Target: $3.50
• Price Target Upside: 23.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: $3.00 ▲(6.01% Upside)

The overall stock score reflects a combination of strong cash flow and a stable balance sheet offset by bearish technical indicators and average valuation. The primary concerns are declining profitability and weak market momentum.

Woolworths Holdings Business Overview & Revenue Model

Company Description

Woolworths Holdings Limited (WLWHY) is a South African-based retail group with a diverse portfolio spanning food, clothing, homeware, and beauty products. The company operates through several well-known brands, including Woolworths South Africa, David Jones, and Country Road Group. Woolworths Holdings is known for its premium quality offerings and commitment to sustainability, catering to a wide range of customer needs across its retail segments. The company also has a significant presence in Australia and New Zealand, providing a robust international platform for its operations.

How the Company Makes Money

Woolworths Holdings generates revenue primarily through its retail operations, encompassing sales of food, clothing, homeware, and beauty products. The company's revenue model is driven by its extensive network of retail stores located in South Africa, Australia, and New Zealand, as well as a growing e-commerce platform that caters to an increasingly digital consumer base. Key revenue streams include its premium food segment, known for high-quality and sustainably sourced products, and its fashion and apparel divisions under brands like Country Road and David Jones. Strategic partnerships with suppliers and a focus on private label products help to maintain competitive pricing and profit margins. Additionally, Woolworths Holdings invests in customer loyalty programs and personalized marketing strategies to enhance customer retention and drive sales.

Woolworths Holdings Financial Statement Overview

Summary

Woolworths Holdings shows mixed financial performance. The company has strong cash flows and a stable balance sheet, but faces challenges with declining profit margins and return on equity, impacting profitability.

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
EBITDA	8.61B	10.39B	10.34B	12.27B	8.76B
Net Income	2.59B	5.07B	3.71B	4.16B	557.00M
Balance Sheet
Total Assets	38.70B	39.23B	56.08B	55.85B	65.07B
Cash, Cash Equivalents and Short-Term Investments	2.31B	3.58B	5.37B	5.62B	5.53B
Total Debt	18.12B	17.05B	31.88B	33.83B	45.72B
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: Neutral
• Last Price: 2.83
• 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 WLWHY, the sentiment is Neutral. The current price of 2.83 is above the 20-day moving average (MA) of 2.76, below the 50-day MA of 2.92, and below the 200-day MA of 3.15, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 58.30 is Neutral, neither overbought nor oversold. The STOCH value of 90.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WLWHY.

Woolworths Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DDS	77 Outperform	$7.23B	12.80	30.93%	5.55%	-3.94%	-17.78%
M	74 Outperform	$3.26B	6.07	12.92%	5.76%	-3.77%	4607.98%
KSS	65 Neutral	$1.29B	10.66	3.19%	11.65%	-7.03%	-56.59%
SIG	63 Neutral	$3.13B	82.47	2.04%	1.62%	-3.98%	-93.50%
Sector *	62 Neutral	AU$3.02B	29.09	4.95%	4.87%	2.19%	-27.19%
WLWHY	58 Neutral	$2.65B	15.85	26.07%	4.48%	6.82%	-26.72%