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Woolworths Holdings (WLWHY) AI Stock Analysis
Woolworths Holdings
(Other OTC:WLWHY)
The overall score reflects a balance between a highly attractive valuation and robust debt reduction against ongoing margin compression and strong bearish price momentum. While the 4.5% dividend yield and deleveraged balance sheet are major strengths, the persistent downtrend in both technicals and net profitability severely limits the near-term upside.
Woolworths Holdings (WLWHY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $2.19B
- Dividend Yield
- 4.29%
- Average Volume (3M)
- 1,583
- Price to Earnings (P/E)
- 15.0
- Beta (1Y)
- 0.74
- Revenue Growth
- 12.05%
- EPS Growth
- 1.78%
- Country
- US
- Employees
- 37,499
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Department Stores
Woolworths Holdings Business Overview & Revenue Model
Company Description
Woolworths Holdings Limited is a prominent retail group with extensive operations, through its subsidiaries, across sub-Saharan Africa, Australia, and New Zealand. Its business is structured into seven primary divisions: Woolworths Fashion, Beauty an...
Woolworths Holdings Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
Woolworths Holdings presents a mixed financial profile. The company maintains steady revenue growth and a significantly deleveraged balance sheet, supported by a robust recovery in operating cash flows in 2026. However, it faces notable profitability pressures, evidenced by contracting gross and net profit margins leading to declining net income.
Income Statement
45NeutralBalance Sheet
72PositiveCash Flow
65Positive| Breakdown | TTM | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 82.27B | 82.84B | 79.54B | 76.53B | 72.27B | 80.07B |
| Gross Profit | 27.99B | 28.20B | 27.28B | 27.47B | 26.83B | 29.19B |
| EBITDA | 4.59B | 8.47B | 8.26B | 8.61B | 10.49B | 10.34B |
| Net Income | 2.28B | 2.32B | 2.44B | 2.59B | 5.07B | 3.71B |
Balance Sheet | ||||||
| Total Assets | 39.12B | 39.43B | 40.85B | 38.70B | 39.23B | 56.08B |
| Cash, Cash Equivalents and Short-Term Investments | 3.07B | 3.15B | 4.33B | 2.31B | 3.58B | 5.37B |
| Total Debt | 18.47B | 18.62B | 19.67B | 18.12B | 17.05B | 31.88B |
| Total Liabilities | 28.90B | 29.13B | 30.14B | 27.78B | 27.21B | 44.28B |
| Stockholders Equity | 10.15B | 10.24B | 10.64B | 10.86B | 11.99B | 11.78B |
Cash Flow | ||||||
| Free Cash Flow | 4.59B | 2.71B | -291.00M | 2.82B | 2.66B | 4.84B |
| Operating Cash Flow | 7.23B | 5.29B | 2.84B | 6.17B | 5.14B | 6.70B |
| Investing Cash Flow | -2.68B | -2.63B | -570.00M | -3.93B | -2.46B | -1.85B |
| Financing Cash Flow | -5.38B | -3.46B | 336.00M | -4.40B | -5.16B | -5.10B |
Woolworths Holdings Technical Analysis
Price Trends
Market Momentum
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 2.36 is above the 20-day moving average (MA) of 2.36, below the 50-day MA of 2.39, and below the 200-day MA of 2.90, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 48.59 is Neutral, neither overbought nor oversold. The STOCH value of 20.17 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
Overall Rating
DDS76Outperform
M76Outperform
CPRI68Neutral
KSS66Neutral
PVH62Neutral- WLWHY61Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| DDS | 76Outperform | $10.02B | 14.71 | 34.24% | 4.87% | 0.21% | 20.42% |
| M | 76Outperform | $6.30B | 8.64 | 15.81% | 3.14% | 0.34% | 58.61% |
| CPRI | 68Neutral | $2.12B | 10.46 | 214.43% | ― | -13.93% | ― |
| KSS | 66Neutral | $2.76B | 10.08 | 6.68% | 2.06% | -2.87% | 28.86% |
| PVH | 62Neutral | $4.16B | -25.32 | -3.49% | 0.17% | 1.64% | -140.84% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| WLWHY | 61Neutral | $2.11B | 14.98 | 22.59% | 4.29% | 12.05% | 1.78% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| WLWHY | Woolworths Holdings (OTC) | 2.36 | -0.56 | -19.21% | |
| DDS | Dillard's | 641.24 | 65.07 | 11.29% | |
| KSS | Kohl's Corporation | 24.31 | 8.39 | 52.72% | |
| M | Macy's | 24.11 | 4.85 | 25.21% | |
| CPRI | Capri Holdings | 18.68 | -2.04 | -9.85% | |
| PVH | PVH Corp | 90.19 | 13.66 | 17.85% |
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.
Date of analysis: Oct 01, 2026