The Warehouse Group Limited

WHS.NZ

Department Stores · Consumer Cyclical

Price

NZ$0.58

+0.01 (+0.87%)

Market Cap

NZ$201.2M

Exchange

New Zealand Exchange

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 9, 2026 · filings through Jan 31, 2026

The Warehouse Group is New Zealand's largest general merchandise retailer. It operates several store brands, including The Warehouse (a discount department store selling clothing, electronics, toys, and homewares), Warehouse Stationery, and Noel Leeming (electronics and appliances). Its main customers are everyday New Zealand shoppers looking for affordable goods across a wide range of categories.

The company makes money primarily through in-store and online product sales across its retail banners. It operates almost entirely within New Zealand, giving it strong local brand recognition but also making it heavily dependent on a single small economy. With a gross margin of just over 10% and a negative return on invested capital, the business is under significant financial pressure. The key risks include ongoing competition from global online retailers like Amazon and Temu, rising operating costs, and weak consumer spending in New Zealand — all of which make improving profitability the central challenge facing the business.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+0.3% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+33.7% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

21.7%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$63M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

The Warehouse Group Limited is growing revenue at 0% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.1% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 345.3M (2021) → 345.5M (2025)

Score breakdown

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Quality

Gross Margin

11.1%

Thin — 11.1% gross margin

Operating Margin

2.4%

Thin — 2.4% operating margin

ROCE

7.1%

Weak — 7.1% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+2.6%

Nearly flat sales (+2.6% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

446%

Turns 446% of profit into real cash

FCF Margin

-0.3%

Burning cash (-0.3%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

0.73

Moderate — manageable debt (0.73)

Interest Cover

0.63x

Dangerous — barely covers interest (0.6x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

P/E Ratio (TTM)

126.1x

Expensive — P/E 126.1

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+118.7

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (126.1 → 7.4)

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Dividends

Not applicable for this business.

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