Woolworths Holdings Limited (WLWHY)
OTHER OTC:WLWHY
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Woolworths Holdings
(OTC:WLWHY)
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Rating:52Neutral
Price Target:
$3.00
▼(-13.79% Downside)
Action:ReiteratedDate:03/04/26
The score is held back primarily by weak cash-flow fundamentals and leverage risk, reinforced by bearish technicals (below major moving averages and negative MACD). These are partly offset by a more positive earnings-call outlook centered on improving cash generation and a lower-CapEx phase, while valuation appears reasonable but not compelling given the risks.
Positive Factors
Strong cash generation
Sustained high cash conversion (110%) and multi‑bn ZAR free cash flow materially improve financial flexibility. This durable cash generation supports dividend payouts, buybacks, ongoing investment and lowers refinancing risk by reducing dependence on new debt.
Negative Factors
Elevated leverage
A debt‑to‑equity of 1.85 signals material reliance on debt funding, which constrains capital flexibility. Persistent leverage raises refinancing and interest‑cost vulnerability and limits the company's ability to pursue opportunistic investments or absorb macro shocks without restructuring financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained high cash conversion (110%) and multi‑bn ZAR free cash flow materially improve financial flexibility. This durable cash generation supports dividend payouts, buybacks, ongoing investment and lowers refinancing risk by reducing dependence on new debt.
Read all positive factors
Woolworths Holdings (WLWHY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.67B
Dividend Yield2.48%
Average Volume (3M)0.00
Price to Earnings (P/E)8.8
Beta (1Y)0.77
Revenue Growth7.08%
EPS Growth-1.75%
CountryUS
Employees37,499
SectorConsumer Cyclical
Sector Strength84
IndustryDepartment Stores
Share Statistics
EPS (TTM)0.10
Shares Outstanding978,983,800
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
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 Cap22.75
Enterprise Value/Revenue0.76
Enterprise Value/Gross Profit2.24
Enterprise Value/Ebitda9.33
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 Logist...
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, w...
Woolworths Holdings Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call presents a constructive recovery narrative: sales growth, market-share gains across all divisions, strong cash generation, improved operational metrics (availability, inventory reduction, CRG turnaround) and continued investment in digital and customer-facing initiatives. However, margin pressure from recent capital investment (Midrand DC), deliberate price investments and inventory clearances, plus material foreign exchange headwinds and elevated depreciation, have constrained near-term EBIT and EPS growth in rand terms. On balance the company has moved decisively beyond its trough, showing multiple positive proof points and a clear pathway for improved full-year performance despite identifiable short-term challenges.Positive Updates
Group Sales and Top-Line Momentum
Group turnover of ZAR 42.5 billion, up ~6% in constant currency; Woolworths South Africa sales +6.8%. Each business grew sales ahead of its competitor set and gained market share.
Negative Updates
Gross Margin Pressure Across the Group
GP margin headwinds in multiple businesses driven by depreciation from the new Midrand DC (ZAR ~1.7bn investment now being depreciated), higher online mix diluting Food GP, deliberate price investments (e.g., FBH kids/baby) and clearance activity; overall aEBIT growth was modest (~4% cc) despite ~6% sales growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Group Sales and Top-Line Momentum
Group turnover of ZAR 42.5 billion, up ~6% in constant currency; Woolworths South Africa sales +6.8%. Each business grew sales ahead of its competitor set and gained market share.
Read all positive updates
Company Guidance
Guidance from the call was that the group is moving into a cleaner, lower‑CapEx phase with continued improvement in cash generation and margins: H1 group turnover was ZAR 42.5bn (+~6% cc) with adjusted EBITDA ZAR 4.6bn (+4.2% cc) and adjusted EBIT ZAR 2.9bn (+4.1% cc), adHEPS ZAR 1.70 (+3.8% cc; +0.7% in rands) and an interim dividend of ZAR 1.18/share (70% payout); net borrowings were ZAR 5.8bn (net debt/EBITDA 1.48x incl. leases), cash conversion 110% and free cash flow >ZAR 2bn (FCF/share ZAR 2.31, >3x prior year), with ZAR 300m working capital released and group inventory down 1.4% (FBH inventories 7% down vs Jun, CRG inventory 15% lower YoY); H2 guidance: CapEx H2 ≈ ZAR 1.2bn (H1 ZAR 1.4bn), Food price movement ~3–4% (excl. meat), FBH price movement ~3–3.5%, expectation of normalising apparel inventory and improving GP margins in H2 (CRG EBIT was AUD 14.8m in H1, +4.2% AUD but –0.6% ZAR; AUD 220m proceeds from Bourke St sale realized with ~AUD100m remaining to repatriate), and management expects continued aEBIT/aEBITDA growth, sustained ROCE (group 16.6%; WSA 25.7%; Food 41%; FBH 13.5%) and that CRG should be at least break‑even at EBIT level in H2.Woolworths Holdings Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
55
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 79.63B | 79.54B | 76.53B | 72.27B | 80.07B | 78.76B |
| Gross Profit | 27.09B | 27.28B | 27.47B | 26.83B | 29.19B | 28.95B |
| EBITDA | 6.51B | 8.26B | 8.61B | 10.49B | 10.34B | 12.27B |
| Net Income | 1.65B | 2.44B | 2.59B | 5.07B | 3.71B | 4.16B |
Balance Sheet | ||||||
| Total Assets | 41.99B | 40.85B | 38.70B | 39.23B | 56.08B | 55.85B |
| Cash, Cash Equivalents and Short-Term Investments | 4.56B | 4.33B | 2.31B | 3.58B | 5.37B | 5.62B |
| Total Debt | 20.37B | 19.67B | 18.12B | 17.05B | 31.88B | 33.83B |
| Total Liabilities | 31.64B | 30.14B | 27.78B | 27.21B | 44.28B | 46.26B |
| Stockholders Equity | 10.29B | 10.64B | 10.86B | 11.99B | 11.78B | 9.57B |
Cash Flow | ||||||
| Free Cash Flow | 3.44B | -291.00M | 2.82B | 2.66B | 4.84B | 6.60B |
| Operating Cash Flow | 6.31B | 2.84B | 6.17B | 5.14B | 6.70B | 8.03B |
| Investing Cash Flow | -2.86B | -570.00M | -3.93B | -2.46B | -1.85B | 5.91B |
| Financing Cash Flow | -3.89B | 336.00M | -4.40B | -5.16B | -5.10B | -13.52B |
Woolworths Holdings Technical Analysis
Negative
3.48
Price Trends
3.22
Negative
3.27
Negative
3.07
Negative
Market Momentum
-0.07
Negative
44.22
Neutral
77.50
Neutral
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 3.48 is above the 20-day moving average (MA) of 3.02, above the 50-day MA of 3.22, and above the 200-day MA of 3.07, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 44.22 is Neutral, neither overbought nor oversold. The STOCH value of 77.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WLWHY.
Woolworths Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $8.93B | 16.61 | 30.03% | 3.99% | -1.07% | -5.22% | |
63 Neutral | $2.91B | 17.00 | 10.53% | 2.18% | 2.76% | -7.83% | |
62 Neutral | $4.78B | 8.44 | 14.20% | 3.23% | -2.83% | 184.32% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $1.29B | 11.34 | 26.62% | 2.28% | 3.61% | ― | |
52 Neutral | $2.67B | 8.84 | 16.46% | 2.48% | 7.08% | -1.75% | |
50 Neutral | $1.50B | 7.19 | 6.91% | 2.33% | -6.13% | -22.57% |
* Consumer Cyclical Sector Average
WLWHY
Woolworths Holdings
3.00
0.47
18.48%
COLM
Columbia Sportswear
55.64
-4.04
-6.77%
DDS
Dillard's
571.62
289.59
102.68%
KSS
Kohl's
13.33
7.37
123.66%
M
Macy's
18.13
8.55
89.29%
WWW
Wolverine World Wide
15.83
5.97
60.52%
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.