WOW 0.38% $34.17 woolworths group limited

WOW...radical thought...stick to RETAILING, page-257

  1. 5,242 Posts.
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    debt increase is largely due to recognition of lease liabilities, merely accounting standard treatment change during your periods you selected. Overall cash flow is good. Balance sheet also doesn’t recognise its goodwill as internally generated, only recognises acquired businesses. Again, an accounting standard treatment.

    The business is growing with population growth and doing well. Your EPS decline is mainly due to EDV spin out. Yes it has the Masters disaster but that was 7-8 years ago.

    This stock hasn’t really traded at such a low PE in many many years. Average PE usually greater than 25 for this. Not saying 25 is cheap, but it traded as such due to quality defensive earnings. My view is this is a good buy at this level and the small discount between this and COL should be larger.
 
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