Stock Spotlight: Woolworths Group Ltd (ASX:WOW)

About Woolworths Group Ltd


Woolworths Group Limited operates retail stores in Australia and New Zealand. It operates through Australian Food, Australian B2B, New Zealand Food, BIG W, and Other segments. The Australian Food segment procures and resells food and related products; and provides services to customers in Australia. The Australian B2B segment engages in procurement and distribution of food and related products for resale to other businesses, as well as provision of supply chain services to business customers in Australia. The New Zealand Food segment is involved in the procurement of food and drinks, and provides services to retail customers in New Zealand. BIG W segment procures discount general merchandise products to customers in Australia. The Other segment operates Quantium, Petstock, and MyDeal retail stores. The company was formerly known as Woolworths Limited and changed its name to Woolworths Group Limited in December 2017. Woolworths Group Limited was incorporated in 1924 and is based in Bella Vista, Australia.



Key Stats

Source: Yahoo Finance. Data as of 10/09/25.

Price Performance

Growth Potential

  • WOW has materially underperformed its competitor in LFL food sales over the past 12+ months and may need to increase the level of price investment to arrest the underperformance.
  • Our blended valuation $28.28 is made up of our DCF ($30.65) and PE-multiple ($25.90) valuations, with the latter ascribing an appropriate discount to peer COL.
  • High quality assets, business model and management team.
  • Leading market positions with key sites in higher population growth areas.
  • Increasing digitisation to remove more costs and increase the efficiency of the supply chain.
  • Margins could improve on the back of operating efficiency gains and higher penetration of privates.


Key Risks

  • Low economic growth drives lower consumer confidence and spending.
  • Pricing competition with key competitors such as Coles (COL) which leads to more investment in shelf prices.
  • Margin pressure in the Food & Big W driven by lower price put throughs and inflationary pressures on cost of doing business (CODB).
  • Changing consumer preference and consumption trends
  • Deterioration in balance sheet metrics due to earnings decline.
  • Adverse movements in AUD/USD (international sourcing). 

Subscribe to our newsletter

Disclaimer: This article does not constitute financial advice nor a recommendation to invest in the securities listed. The information presented is intended to be of a factual nature only. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking financial, legal and taxation advice before investing.

Speak to an Advisor

The AI Trade Just Hit an Uncomfortable Question: What If Progress Slows?

September 15, 2026
The AI trade is being forced to rethink the pace of progress. Here is what investors should watch across Nvidia, chips, AI spending, software and adoption.

Copper Just Hit an All-Time High. But Where Is All the Copper?

September 9, 2026
Copper is at a record high, yet the global market still has a surplus. So where is all the copper, and why is it becoming harder to find?

AI Infrastructure, Not AI Hype: Alex Perry on Sharewise's Global Playbook

By Lavender Wong • September 1, 2026
Sharewise CEO Alex Perry sat down with ausbiz to unpack how the platform approached FY26, a year in which it reported an ASX return of almost 11% and a US return above 32%. The conversation ranged from the AI infrastructure theme to specific names on Perry's radar in resources and quantum computing. Here's a rundown of the key points.

Jackson Hole 2026: Warsh Sets Out the Fed’s New Policy Framework

August 31, 2026
Warsh gave markets a framework, not a forecast. What his first Jackson Hole keynote means for inflation, rates, forward guidance and the outlook for equities.

Stock Spotlight: Impact Minerals Limited​ (ASX: IPT)

August 26, 2026
Get the latest on Impact Minerals (ASX: IPT), including stock performance, technical analysis, forecasts & key insights. See if IPO supports your goals.

Stock Spotlight: Valiant Gold (ASX: VAL)

August 26, 2026
Get the latest on Valiant Gold (ASX: VAL) with our share price, technical analysis, forecasts & key insights. See if this ASX gold stock fits your investment goals.

Stock Spotlight: Percheron Therapeutics (ASX: PER)

August 26, 2026
Learn about Percheron Therapeutics (ASX: PER). Offering share price, technical analysis, forecasts & insights. See if this ASX biotech stock fits your goals.

Oil Is Back Above US$90 As Strait of Hormuz Risks Mount

August 19, 2026
Brent crude hits US$91 as US-Iran talks stall and Strait of Hormuz disruption persists. What's driving the move and what comes next for oil

Hawkish Hold: What the RBA's August Pause Really Signals

August 13, 2026
The RBA holds rates at 4.35% as inflation remains elevated. Here’s what the August decision means for the Australian economy, markets and key sectors.

From Compute to Cost: How AI's Next Phase Could Reshape Investment Winners

August 6, 2026
As AI becomes cheaper to deploy, could the next investment winners shift beyond chipmakers? Explore how the AI cost race is redefining future tech leaders.