Woolworths Holdings (WLWHY) AI Stock Analysis

• Market Cap: $3.28B
• Dividend Yield: 2.48%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.70
• Revenue Growth: 7.08%
• EPS Growth: -1.75%
• Country: US
• Employees: 37,499
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 0.01
• Shares Outstanding: 981,774,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -3.61
• Price to Book (P/B): 4.59
• Price to Sales (P/S): 0.61
• P/FCF Ratio: -167.72
• Enterprise Value/Market Cap: 19.56
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 2.35
• Enterprise Value/Ebitda: 8.66
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $3.50 ▲(0.57% Upside)

Woolworths Holdings' stock score is primarily influenced by its technical strength, with the stock trading above key moving averages. However, financial performance concerns, including high debt levels and cash flow issues, weigh on the score. The valuation suggests potential overvaluation, adding further risk.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable market position and effective business strategies, supporting long-term sustainability.

Brand Reputation

A strong brand reputation in the food division enhances customer loyalty and competitive advantage, driving sustained revenue.

Market Expansion

Expansion into international markets diversifies revenue streams and reduces reliance on the domestic market, supporting growth.

Negative Factors

High Debt Levels

High debt levels can strain financial flexibility and increase risk, potentially impacting long-term financial health.

Cash Flow Challenges

Negative cash flow growth indicates difficulties in cash generation, which can limit investment capacity and operational resilience.

Declining Profit Margins

Decreasing profit margins suggest challenges in maintaining cost efficiency, which could affect long-term profitability.

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 generates revenue primarily through its retail operations, which include supermarkets, department stores, and online sales. Major revenue streams include the sale of food and grocery items, clothing, and home goods. The food division, which encompasses supermarkets, is the largest contributor to the company's earnings, benefiting from a strong brand reputation for quality and freshness. The clothing and general merchandise segments also contribute significantly, particularly through seasonal promotions and loyalty programs. Additionally, Woolworths has established partnerships with various suppliers and brands, enhancing its product offerings and market reach. The company's investment in online retail has also become an essential revenue driver, especially in response to evolving consumer shopping behaviors.

Woolworths Holdings Financial Statement Overview

Summary

Woolworths Holdings shows moderate revenue growth and profitability, but faces challenges in operational efficiency and financial leverage. High debt levels and declining cash flow metrics suggest potential financial risks.

Income Statement

Woolworths Holdings has shown moderate revenue growth of 3.93% in the latest year, with a gross profit margin of 34.30% and a net profit margin of 3.07%. However, there is a declining trend in profitability margins such as EBIT and EBITDA margins, indicating potential challenges in maintaining operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 1.85, which indicates significant leverage and potential financial risk. The return on equity is relatively strong at 22.96%, suggesting effective use of equity to generate profits. However, the equity ratio is low, reflecting a higher reliance on debt financing.

Cash Flow

Woolworths Holdings experienced a significant decline in free cash flow growth, with a negative rate of -110.32%. The operating cash flow to net income ratio is low at 0.23, indicating potential challenges in converting income into cash. The negative free cash flow to net income ratio further highlights cash flow management issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	79.54B	79.54B	76.53B	72.27B	80.07B	78.76B
Gross Profit	27.28B	27.28B	27.47B	26.83B	29.19B	28.95B
EBITDA	7.40B	8.26B	8.61B	10.49B	10.34B	12.27B
Net Income	2.44B	2.44B	2.59B	5.07B	3.71B	4.16B
Balance Sheet
Total Assets	40.85B	40.85B	38.70B	39.23B	56.08B	55.85B
Cash, Cash Equivalents and Short-Term Investments	4.33B	4.33B	2.31B	3.58B	5.37B	5.62B
Total Debt	19.67B	19.67B	18.12B	17.05B	31.88B	33.83B
Total Liabilities	30.14B	30.14B	27.78B	27.21B	44.28B	46.26B
Stockholders Equity	10.64B	10.64B	10.86B	11.99B	11.78B	9.57B
Cash Flow
Free Cash Flow	1.74B	-291.00M	2.82B	2.66B	4.84B	6.60B
Operating Cash Flow	4.88B	2.84B	6.17B	5.14B	6.70B	8.03B
Investing Cash Flow	-570.00M	-570.00M	-3.93B	-2.46B	-1.85B	5.91B
Financing Cash Flow	-1.70B	336.00M	-4.40B	-5.16B	-5.10B	-13.52B

Woolworths Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 3.48 is above the 20-day moving average (MA) of 3.44, above the 50-day MA of 3.33, and above the 200-day MA of 3.04, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 69.30 is Neutral, neither overbought nor oversold. The STOCH value of 93.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WLWHY.

Woolworths Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DDS	76 Outperform	$10.38B	18.04	28.98%	3.99%	-1.07%	-5.22%
M	74 Outperform	$5.78B	12.78	11.28%	3.23%	-2.83%	184.32%
COLM	69 Neutral	$2.91B	16.22	10.84%	2.18%	2.76%	-7.83%
KSS	68 Neutral	$2.09B	10.92	5.02%	2.33%	-6.13%	-22.57%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WLWHY	61 Neutral	$3.28B	24.23	22.76%	2.48%	7.08%	-1.75%
WWW	58 Neutral	$1.58B	18.41	25.57%	2.28%	3.61%	―