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Woolworths Group

WOLWF
33
Grocery Stores · Consumer Defensive
Price
$30.16
+0.00 (+0.00%)
Market Cap
$36.84B
Exchange
Other OTC
Winston Score
33
Winston is serious
Below-average fundamentals — multiple weak pillars.

Share count falling — buybacks

2.7% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.26B (2021) → 1.23B (2025)

Woolworths Group is one of Australia's two dominant supermarket chains. It runs hundreds of grocery stores across Australia and New Zealand under the Woolworths and Countdown banners, selling food, drinks, and everyday household items to ordinary consumers. The company also operates Big W, a discount department store chain selling clothing, toys, and general merchandise.

Woolworths makes most of its money from retail sales in its physical stores, with a growing online grocery delivery business adding to that revenue. It operates almost entirely in Australia and New Zealand, with annual revenues exceeding $60 billion AUD, making it one of the largest retailers in the region. Its main competitive advantage is scale — a massive store network, strong supplier relationships, and a loyalty program with millions of members. The biggest risk is its duopoly structure with rival Coles, which faces increasing pressure from discount competitors like Aldi and ongoing regulatory scrutiny over grocery pricing practices in Australia.

Winston Score History

Growth Profile

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

Revenue Growth

YoY Growth Rate

Revenue data limited

EPS Growth

YoY Growth Rate

EPS data limited

R&D Spend

$0/ year

0.0% of revenue

Below sector average (2%)

Research and development spending

Insider Activity

0.2%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$524M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

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

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.

Score breakdown

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Quality

Gross Margin
23.8%
Thin — 23.8% gross margin
Operating Margin
2.3%
Thin — 2.3% operating margin
ROCE
3.9%
Weak — 3.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+9.1%
Steady sales growth (9.1% YoY)
EPS YoY
+27.5%
Earnings growing fast (27.5% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
388%
Turns 388% of profit into real cash
FCF Margin
2.6%
Thin free cash flow (2.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
3.71
Heavy debt load (3.71)
Interest Cover
3.79x
Tight — interest eats into profit (3.8x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
16.7x
Fair value — P/E 16.7

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
-2.3
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield
2.26%
Moderate income — 2.26% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+11.6%
Dividend growing fast (11.6% YoY)

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