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Woolworths Group Limited

WOW.AX
27
Grocery Stores · Consumer Defensive
Also trades as: WOLWF
Price
A$38.86
-0.13 (-0.33%)
Market Cap
A$47.47B
Exchange
Australian Securities Exchange
Winston Score
27
Winston is worried
Below-average fundamentals — multiple weak pillars.
Data as of Aug 23, 2026 · filings through Dec 31, 2025
How the score breaks down
Quality
Weak
Growth
Weak
Cash Flow
Strong
Stability
Weak
Valuation
Good
Dividends
Strong

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)

Winston Score History

The full picture

Woolworths Group is one of Australia's two dominant supermarket chains, selling groceries, fresh food, and everyday household products to millions of Australian and New Zealand shoppers each week. Its core banner is the Woolworths supermarket, but the group also operates Big W discount department stores. Together with rival Coles, Woolworths controls roughly two-thirds of Australia's grocery market, making it one of the most powerful retailers in the country.

The company earns most of its revenue from in-store and online product sales, with a small but growing contribution from its loyalty program and data business. It operates hundreds of supermarkets across Australia and New Zealand, generating over $60 billion in annual sales. Its scale gives it strong supplier bargaining power, but thin operating margins leave little room for error. The key risk facing Woolworths is ongoing regulatory and political scrutiny over grocery pricing and market concentration, which could lead to forced structural changes or reputational damage with cost-conscious consumers.

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

A$0/ year

0.0% of revenue

Below sector average (2%)

Research and development spending

Insider Activity

0.2%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

A$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

Profit per sale
Gross Margin
23.8%
Thin — 23.8% gross margin
Profit after running costs
Operating Margin
2.3%
Thin — 2.3% operating margin
Return on the money invested
ROCE
6.6%
Weak — 6.6% 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 growth
Sales YoY
+1.5%
Nearly flat sales (+1.5% YoY)
Profit growth
EPS YoY
-63.2%
Earnings shrinking (-63.2% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
3/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
828%
Turns 828% of profit into real cash
Spare cash per sale
FCF Margin
3.3%
Thin free cash flow (3.3%)

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

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Stability

What it owes vs what it owns
Debt / Equity
3.71
Heavy debt load (3.71)
Covers its interest
Interest Cover
1.71x
Dangerous — barely covers interest (1.7x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit
P/E Ratio (TTM)
79.3x
Expensive — P/E 79.3

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

Cheaper or dearer next year
P/E vs Forward
+55.1
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (79.3 → 24.2)

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Dividends

Dividend
Dividend Yield
2.32%
Moderate income — 2.32% yield

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

Dividend record
Dividend Growth
+10.8%
Dividend growing fast (10.8% YoY)

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