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Current Price Data+
Current Price
Open
High
Low
Last Close
Volume
Price Movement
$ 28.360
$ 28.350
$ 28.460
$ 28.230
$ 28.200
3,596,320
$ 0.160 0.567 %
Current Broker Consensus Recommendation
Recommendation :
Hold
Recommendation Date :
10th Mar 2010
12 Month Target Price (average) :
$30.069
Brokers Surveyed :
10
Market Statistics
% of Market:
3.0500
% of Sector:
34.2317
Sector:
Consumer Staple
Industry Group:
Food & Staples Retailing
Industry:
Food & Staples Retailing
Company Overview
Company Overview
WOW is an Australian retail company with more than 2,400 stores in Australia, plus 200 Progressive supermarkets in New Zealand. Major brands are Woolworths, Safeway, Woolworths Metro, Dick Smith Electronics and PowerHouse, Tandy Electronics, Woolworths Liquor, BWS, First Estate, Dan Murphy's, Plus Petrol, BIG W, Woolworths Ezy Banking, Woolworths HomeShop and GreenGrocer.com.au. Supermarkets generate 80% of total annual sales.
Company History
WOW has grown organically and through acquisitions since early this century. The business base focuses on supermarkets (over 80% of sales and trading profits). Discount department stores provide over 10% of sales and profits. The balance is mostly generated by Dick Smith Electronics. WOW has also entered petrol retailing. The group has placed an increased emphasis on capital management, the benefits of which are being realised through improved shareholder returns.
Differentiating Factor
WOW has a strong market share, 30% of the Australian food, liquor and grocery market, and resultant substantial buying power. Big W has a clear market position and its "everyday low prices" approach has been well received by value-conscious customers.
Major Customers & Competitors
WOW’s supermarkets target a broad spectrum of Australian consumers. Through its "everyday low prices" strategy, Big W appeals to price-conscious customers. Dick Smith Electronics targets the middle-income segment of the market. The major competitor is CML, an independent retailer (serviced by MTS). Competition in grocery retailing has increased through the expansion of Action and the entry of foreigners Aldi and Pick 'n Pay. HVN is a major competitor in a fragmented electronic retailing market.
Financial Summary
Year to Jun
NPAT Rep $M
NPAT1 Adj $M
EPS c
EPS chg %
PER x
PER rel All Ords x
PER rel Sector x
DPS c
Yield %
Franking %
ROE %
2007A
1,236
1,236
105.1
16.0
27.0
1.4
0.7
74.0
2.6
100
25.4
2008A
1,627
1,595
132.3
25.9
21.4
1.1
0.8
92.0
3.2
100
27.5
2009A
1,836
1,836
149.6
13.1
19.0
1.0
0.9
104.0
3.7
100
28.4
1NPAT is normalised by removing non-recurring items and goodwill. All the above statistics are derived from normalised earnings.
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$ 28.360
