Woolworths Holdings (WLWHY) AI Stock Analysis

• Market Cap: $2.61B
• Dividend Yield: 4.09%
• Average Volume (3M): 53.00
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.79
• Revenue Growth: 6.82%
• EPS Growth: -26.72%
• Country: US
• Employees: 37,499
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Department Stores
• EPS (TTM): 0.14
• Shares Outstanding: 988,695,900
• 10 Day Avg. Volume: 41
• 30 Day Avg. Volume: 53
• 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: 1.51
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.14
• Enterprise Value/Ebitda: 0.85
• 1Y Price Target: $3.00
• Price Target Upside: -0.99% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: $3.00 ▼(-0.99% Downside)

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, 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 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	76.53B	76.53B	72.27B	80.07B	78.76B	72.21B
Gross Profit	27.47B	27.47B	26.83B	29.19B	28.95B	25.35B
EBITDA	4.61B	8.61B	10.39B	10.34B	12.27B	8.76B
Net Income	2.59B	2.59B	5.07B	3.71B	4.16B	557.00M
Balance Sheet
Total Assets	38.70B	38.70B	39.23B	56.08B	55.85B	65.07B
Cash, Cash Equivalents and Short-Term Investments	2.31B	2.31B	3.58B	5.37B	5.62B	5.53B
Total Debt	18.12B	18.12B	17.05B	31.88B	33.83B	45.72B
Total Liabilities	27.78B	27.78B	27.21B	44.28B	46.26B	58.56B
Stockholders Equity	10.86B	10.86B	11.99B	11.78B	9.57B	6.49B
Cash Flow
Free Cash Flow	2.82B	2.82B	2.66B	4.84B	6.60B	3.88B
Operating Cash Flow	6.17B	6.17B	5.14B	6.70B	8.03B	6.31B
Investing Cash Flow	-3.93B	-3.93B	-2.46B	-1.85B	5.91B	-2.43B
Financing Cash Flow	-4.40B	-4.40B	-5.16B	-5.10B	-13.52B	-1.00M

Woolworths Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 3.03 is above the 20-day moving average (MA) of 2.89, above the 50-day MA of 2.84, and below the 200-day MA of 3.08, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 60.78 is Neutral, neither overbought nor oversold. The STOCH value of 79.21 is Neutral, 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
M	77 Outperform	$3.63B	6.71	12.92%	5.24%	-3.77%	4607.98%
DDS	77 Outperform	$8.20B	14.75	29.76%	4.74%	-2.44%	-10.73%
SIG	71 Outperform	$3.61B	92.45	2.04%	1.31%	-3.98%	-93.50%
KSS	70 Outperform	$1.46B	7.09	5.36%	7.73%	-7.23%	-27.81%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
JWN	60 Neutral		―		―	2.20%	120.00%
WLWHY	58 Neutral	$2.61B	16.17	26.07%	4.09%	6.82%	-26.72%