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Woolworths Group Ltd
(Sydney:WOW)
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Rating:57Neutral
Price Target:
AU$42.00
▲(8.11% Upside)
Action:Reiterated
Date:08/27/26
The score is held back primarily by weaker financial quality (high leverage and profit volatility) and a demanding valuation (very high P/E). These are partly offset by a constructive earnings-call outlook (sales/EBIT momentum, e-commerce improvements, cost savings, and higher dividends) and a technically mixed setup with soft momentum despite prices holding above longer-term moving averages.
Positive Factors
Resilient revenue and EBIT growth
Steady sales growth, stronger EBIT and modest margin expansion indicate resilient demand and improving operating execution. This supports earnings durability as Woolworths benefits from grocery scale, customer frequency and productivity initiatives.
Negative Factors
Heavy leverage limits financial flexibility
The large debt load relative to equity increases sensitivity to interest costs, earnings setbacks and investment needs. It may constrain flexibility for expansion or shareholder returns if operating conditions weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient revenue and EBIT growth
Steady sales growth, stronger EBIT and modest margin expansion indicate resilient demand and improving operating execution. This supports earnings durability as Woolworths benefits from grocery scale, customer frequency and productivity initiatives.
Read all positive factors
Woolworths Group Ltd (WOW) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$49.05B
Dividend Yield2.41%
Average Volume (3M)2.51M
Price to Earnings (P/E)42.9
Beta (1Y)0.40
Revenue Growth3.56%
EPS Growth18.13%
CountryAU
Employees209,000
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)0.94
Shares Outstanding1,221,599,200
10 Day Avg. Volume3,508,042
30 Day Avg. Volume2,505,133
Financial Highlights & Ratios
PEG Ratio2.43
Price to Book (P/B)10.19
Price to Sales (P/S)0.68
P/FCF Ratio19.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$39.65Price Target Upside2.05% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)1.46
Revenue Forecast (FY)AU$74.82B
Woolworths Group Ltd Business Overview & Revenue Model
Company Description
Woolworths Group Limited is a major retail conglomerate that manages a diverse portfolio of stores. Its extensive operations are structured across several key divisions: The Australian Food segment is responsible for sourcing and distributing food...
How the Company Makes Money
Woolworths Group makes money primarily by buying products (especially groceries and household essentials) from suppliers and selling them to customers through its store network and online channels at a margin. The main revenue stream is retail sal...
Woolworths Group Ltd Earnings Call Summary
Earnings Call Date:Aug 25, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 24, 2027
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial story: solid group sales and strong EBIT expansion, marked progress in Australian Food momentum, material e-commerce and WooliesX improvements, delivered cost savings, an increased dividend, and improved cash/return metrics. Offset risks include remediation-related significant items, New Zealand H2 softness and implementation disruption, some margin pressure from commodities and commissioning costs, and continued customer affordability headwinds. On balance the positive operational momentum, profitable e-commerce scale-up, and disciplined capital/cost delivery outweigh the lowlights.Positive Updates
Group Sales and Earnings Growth
Group sales increased 3.6% to $71.5 billion and group EBIT before significant items rose 12.7% to $3.1 billion; EBIT margin improved by 35 basis points to 4.3%.
Negative Updates
Significant Items and Remediation Costs
Group reported significant items after tax of $461 million largely related to remediation of award-covered salary team members; associated legal/interest costs add uncertainty and potential future cash outflows.
Read all updates
Q4-2026 Updates
Positive
Negative
Group Sales and Earnings Growth
Group sales increased 3.6% to $71.5 billion and group EBIT before significant items rose 12.7% to $3.1 billion; EBIT margin improved by 35 basis points to 4.3%.
Read all positive updates
Company Guidance
Management's guidance for F'27: operating capital expenditure is expected to be $1.9–$2.0 billion, with a modest reduction in supply‑chain commissioning, transition and dual‑running costs in F'27 (benefits to materially offset those costs and a net benefit expected by F'28); early trading shows Woolworths Food Retail sales up ~7.6% in the first eight weeks (with the Disney Ooshies campaign estimated to have added ~1.5–2.0 percentage points), e‑commerce momentum continuing after FY'26 e‑commerce growth of 15.9% (delivery <2hrs now 47% of delivery sales, +7pp YoY; >850 On Demand stores), wage headwinds remain (including a cited 4.75% wage increase) requiring productivity gains, and the group expects to maintain strong balance‑sheet settings (net debt/EBITDA ~2.5x) while returning capital (final dividend $0.52, total ordinary dividend $0.97, +15.5%, payout ratio 74.1%) and pursuing its medium‑term aim of mid‑ to upper‑single‑digit earnings growth.Woolworths Group Ltd Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
44
Neutral
Cash Flow
71
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 71.54B | 69.08B | 67.92B | 64.29B | 60.85B |
| Gross Profit | 17.00B | 18.82B | 18.55B | 17.18B | 18.04B |
| EBITDA | 5.84B | 4.57B | 3.53B | 5.36B | 4.51B |
| Net Income | 1.14B | 963.00M | 108.00M | 1.62B | 1.55B |
Balance Sheet | |||||
| Total Assets | 34.06B | 33.83B | 33.94B | 37.18B | 33.27B |
| Cash, Cash Equivalents and Short-Term Investments | 1.50B | 1.27B | 1.30B | 1.14B | 1.03B |
| Total Debt | 16.48B | 17.39B | 16.72B | 15.73B | 16.76B |
| Total Liabilities | 29.16B | 28.87B | 28.37B | 30.61B | 27.17B |
| Stockholders Equity | 4.79B | 4.86B | 5.41B | 6.42B | 5.98B |
Cash Flow | |||||
| Free Cash Flow | 2.52B | 2.02B | 1.81B | 2.28B | 1.01B |
| Operating Cash Flow | 4.95B | 4.55B | 4.36B | 4.80B | 3.43B |
| Investing Cash Flow | -2.11B | -1.93B | -2.31B | -1.89B | -2.51B |
| Financing Cash Flow | -2.61B | -2.65B | -1.92B | -2.81B | -1.34B |
Woolworths Group Ltd Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | AU$3.28B | 11.92 | 16.56% | 6.04% | 0.18% | -1.74% | |
63 Neutral | AU$31.81B | 29.23 | 27.85% | 3.29% | 2.78% | 0.88% | |
63 Neutral | AU$1.86B | 34.57 | 5.46% | 2.38% | 6.66% | ― | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
57 Neutral | AU$49.05B | 42.89 | 24.14% | 2.41% | 3.56% | 18.13% | |
57 Neutral | AU$4.48B | -4.17 | -29.99% | 3.61% | -12.18% | -347.47% | |
49 Neutral | AU$5.85B | 108.67 | 1.37% | 3.68% | 1.28% | -87.89% |
* Consumer Defensive Sector Average
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Woolworths Group Ltd Corporate Events
Woolworths Files 2026 Corporate Governance Statement with ASX
Aug 25, 2026
Woolworths Group Limited has lodged its Appendix 4G and 2026 Corporate Governance Statement with the Australian Securities Exchange, fulfilling key ASX listing requirements. The governance statement, approved by the board and current as of 26 Augu...
Woolworths Group Publishes 2026 Nature Report on Sustainable Food Systems
Aug 25, 2026
Woolworths Group has released its 2026 Nature Report, outlining the company’s activities and performance related to nature and sustainability. The publication reinforces Woolworths’ focus on supporting sustainable food systems and sign...
Woolworths lifts profit and dividends as Australian Food and eCommerce drive growth
Aug 25, 2026
Woolworths Group Limited is a major Australian retail and consumer staples company, operating supermarkets, discount department stores and specialty businesses across food, B2B services and pet care. The group focuses on Australian and New Zealand...
Woolworths Declares AUD 0.52 Interim Dividend and Sets DRP Timetable
Aug 25, 2026
Woolworths Group Limited has declared an ordinary dividend of AUD 0.52 per share for the six‑month period ended 28 June 2026, to be paid on 25 September 2026 to shareholders on the record as of 2 September. The timetable sets an ex‑div...
Woolworths lifts profit, boosts dividend as annual report shows stronger balance sheet
Aug 25, 2026
Woolworths Group has released its Appendix 4E and 2026 Annual Report for the year ended 28 June 2026, showing revenue of $71.54 billion, up 3.6 per cent on the prior year. Profit after tax attributable to equity holders before significant items ro...
Woolworths Group Sets Out Key Shareholder Dates for 2026–2027
Aug 17, 2026
Woolworths Group has outlined a detailed schedule of key corporate dates for shareholders across its 2026 and 2027 financial years, including full-year and half-year results announcements, quarterly sales updates, and record and payment dates for ...
Woolworths Details New Share Rights Allocation to Director Under US NED Plan
Jun 19, 2026
Woolworths Group Limited has disclosed a change in director Jonathan Alferness’s interests under ASX listing rules, relating to his participation in the company’s US Non-Executive Director (NED) Share Rights Plan. The filing records th...
Woolworths Issues New Unquoted Equity for Employee Incentive Schemes
Jun 18, 2026
Woolworths Group Limited has notified the market of the issue of new unquoted equity securities under its employee incentive schemes. The company will issue 218,463 performance rights and 43,106 share rights, both dated 11 June 2026, which are sub...
Woolworths Director Scott Perkins Increases Shareholding via On‑Market Purchase
Jun 5, 2026
Woolworths Group has disclosed a change in the interests of director Scott Perkins, who increased his holding in the company through an on‑market share purchase. Perkins acquired 4,027 ordinary shares for about $140,542, boosting the number ...
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.