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.

Is a Share Advisor

right for you?

CPI Explained: Why One Number Drives Markets, Rates and Portfolios

March 19, 2026
CPI moves markets, rates and portfolios every month. Understand how the transmission works and what investors should focus on beyond the headline number.

Gold Is Holding Near $5,000: Why the Fed Will Decide What Happens Next

March 18, 2026
Despite an escalating Middle East conflict, gold is stalling near $5,000. Find out why policy clarity, and not geopolitics, will determine the next big move.

RBA Hikes to 4.10%: Why the Latest Move Is Sending Mixed Signals Across Markets

March 18, 2026
The RBA raised the cash rate to 4.10% in in a divided 5–4 decision. We break down market reactions, policy signals and investment positioning implications.

The VIX in a Crisis: What the Market’s Fear Gauge Reveals

March 13, 2026
What does the VIX reveal during market turmoil? Learn how the market’s fear gauge measures volatility, investor sentiment, and what it means for investors.

ASX Loses $90bn as Iran Conflict Escalates — What It Means for Retirement Savings

March 12, 2026
As geopolitical tensions wiped $90bn from the ASX, investors are asking what it means for super. Here’s how market volatility can impact retirement savings.

Asia on the Brink as the Oil Shock Hits Hard

March 11, 2026
An escalating oil shock is testing Asia’s energy dependence, raising inflation risks, pressuring currencies and increasing volatility across global equity markets.

Playing the Long Game: Why Time in the Market Beats Timing the Market

March 6, 2026
Explore why time in the market consistently outperforms market timing and how disciplined, long-term investing helps build wealth through compounding.

Stock Spotlight: oOh!media Limited (ASX:OML)

March 5, 2026
This week's Stock Spotlight is ASX-listed oOh!media Limited. About oOh!media Limited. oOh!media Limited engages in the outdoor media, and production and advertising businesses in Australia and New Zealand. It offers large format digital and classic roadside screens; large and small format digital and classic signs located in retail precincts, such as shopping centres, airport terminals, lounges and in flight; digital and classic street furniture signs; digital and classic format advertising in public transport corridors, including rail; and digital and classic signs in high dwell time environments, such as universities and office buildings. The company also provides advertising creative and printing services. oOh!media Limited was founded in 1989 and is based in North Sydney, Australia. Source: EODHD Key Stats

Stock Spotlight: Goodman Group (ASX:GMG)

March 5, 2026
Get the latest news on Goodman Group (ASX:GMG), including stock performance, technical analysis, forecasts & key insights. See if GMG supports your goals.

The New Energy Paradox: Why the Gulf Crisis Is Supporting Both Oil and Renewables

March 5, 2026
Gulf tensions are accelerating oil investment and the energy transition. Analyse how the conflict is influencing oil markets, renewables and ASX opportunities.