Woolworths Group WOW.AX
Woolworths Group is one of Australia's largest supermarket chains, with a business model focused on food retail and everyday consumer goods. Woolworths shows strong momentum (9.17) and solid quality (ROE 23.34%), but its financial health is fragile (ND/EBITDA 4.30, current ratio 0.56) and the 239% earnings growth is not sustainable; the price-gouging ban adds regulatory pressure on an already thin operating margin of 3.83%.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Woolworths Group is one of Australia's largest supermarket chains, with a business model focused on food retail and everyday consumer goods. Woolworths shows strong momentum (9.17) and solid quality (ROE 23.34%), but its financial health is fragile (ND/EBITDA 4.30, current ratio 0.56) and the 239% earnings growth is not sustainable; the price-gouging ban adds regulatory pressure on an already thin operating margin of 3.83%.
Score by category
| Category | Score |
|---|---|
| Financial health | 2.1 |
| Quality / Moat | 6.2 |
| Valuation | 4.2 |
| Growth | 6.9 |
| Dividend | 4.1 |
| Momentum | 9.2 |
| Risk & Context | 8.7 |
OVERALL SCORE: 5.6/10
Context and risks
Regulatory risk in Australia: price-gouging ban since July and political scrutiny over the market power of major chains. Woolworths' operating margin (3.83%) is thin, amplifying the impact of any pricing restrictions.
News considered in the analysis
- Woolworths Group (ASX:WOW) Could Be 2% Below Fair Value After Supply Chain Focus — Análisis de valoración de terceros sin información nueva material.
- Construction starts on $568m Aura Tower at Southbank’s Melbourne Square — Proyecto inmobiliario no relacionado con el negocio principal de supermercados.
- Woolworths Group Ltd (WOLWF) (FY 2026) Earnings Call Highlights: Strong Sales Growth and Profit ... — Resultados con fuerte crecimiento de beneficios (239%) y ventas, aunque el mercado ya lo ha descontado parcialmente.
- Coles and Woolworths test facial recognition to address store crime – report — Prueba de tecnología para reducir hurtos; impacto incierto y limitado.
- Australia bans supermarket price-gouging from July — Prohibición de sobreprecios: riesgo regulatorio directo sobre el margen operativo (3.83%), ya anunciado y parcialmente descontado.
Verdict: Hold; business quality and momentum are attractive, but leverage and regulatory risk limit upside at these valuation levels.
Main risk: High leverage (Net Debt/EBITDA 4.30) combined with Australia's regulatory ban on price-gouging, which could further compress the 3.83% operating margin.
Other Consumer Defensive companies
Neighbours in the sector ranking, to compare without going back to the index.
See all 1,000+ companies in the index →