Operating Margin

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Price: 30.38 AUD -1.24% Market Closed

Market Cap: AU$37.1B

3.2%

Declining

by 0.5%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

3.2%

Operating Income

AU$2.2B

Revenue

AU$69.1B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

3.2%

Operating Income

AU$2.2B

Revenue

AU$69.1B

Peer Comparison

Country	Company	Market Cap	Operating Margin
AU	Woolworths Group Ltd ASX:WOW	37.1B AUD	Loading...
AU	Wesfarmers Ltd ASX:WES	94B AUD	Loading...
CA	Loblaw Companies Ltd TSX:L	75.8B CAD	Loading...
CA	Alimentation Couche-Tard Inc TSX:ATD	71.7B CAD	Loading...
US	Kroger Co NYSE:KR	41.2B USD	Loading...
UK	Tesco PLC LSE:TSCO	27.8B GBP	Loading...
NL	Koninklijke Ahold Delhaize NV AEX:AD	29.3B EUR	Loading...
JP	Seven & i Holdings Co Ltd TSE:3382	5.3T JPY	Loading...
CA	George Weston Ltd TSX:WN	37.8B CAD	Loading...
IN	Avenue Supermarts Ltd NSE:DMART	2.4T INR	Loading...
US	Caseys General Stores Inc NASDAQ:CASY	23.1B USD	Loading...

Market Distribution

Min	-14 949 200%
30th Percentile	-526.4%
Median	-25.2%
70th Percentile	6.1%
Max	145 596.9%

Other Profitability Ratios

Woolworths Group Ltd
Glance View

Economic Moat

None

Market Cap

37.1B AUD

Industry

Retail

Woolworths Group Ltd., a notable giant in the Australian retail landscape, paints a vivid picture of a conglomerate deeply rooted in the everyday lives of consumers. Established in 1924, this company has grown into a multifaceted empire with its primary operations standing firm in the sectors of supermarkets, liquor retailing, and hospitality. The core of its business revolves around the Woolworths Supermarkets, where aisles teem with everything from fresh produce and packaged goods to ready-to-eat meals. Each supermarket acts as a bustling hub, capturing the essence of consumer demands while seamlessly integrating the convenience of physical stores with digital platforms such as Woolworths Online, enhancing the shopping experience with home delivery and click-and-collect services. This blend of traditional and digital retail perfectly positions Woolworths in the dynamic market, enabling it to tap into diverse income streams while maintaining robust customer loyalty. Beyond the supermarkets, Woolworths extends its reach through Endeavour Group, managing a portfolio of well-known liquor outlets like Dan Murphy's and BWS. This segment leverages the company's expansive distribution networks and marketing strategies to provide a rich selection of wines, spirits, and craft beers, ensuring that the company captures the taste of the connoisseur and casual drinker alike. Furthermore, the hospitality sector, through gaming and bar establishments, diversifies Woolworths' revenue while creating synergistic opportunities across its business units. By embracing sustainability initiatives and embedding technology in its operations—from data-driven inventory systems to personalized customer interfaces—Woolworths ensures it remains resilient, effectively navigating the shifting tides of consumer behavior and economic conditions to maintain its leadership position.

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WOW Intrinsic Value

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Woolworths Group Ltd
ASX:WOW

Peer Comparison

Market Distribution

Other Profitability Ratios

Woolworths Group Ltd
Glance View

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Woolworths Group Ltd ASX:WOW