Woolworths Current Valuation vs. Total Debt

WOW Stock   30.37  0.19  0.63%   
Based on Woolworths' profitability indicators, Woolworths may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Woolworths' ability to earn profits and add value for shareholders.
For Woolworths profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Woolworths to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Woolworths utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Woolworths's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Woolworths over time as well as its relative position and ranking within its peers.
  
Check out Your Current Watchlist.
Please note, there is a significant difference between Woolworths' value and its price as these two are different measures arrived at by different means. Investors typically determine if Woolworths is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Woolworths' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Woolworths Total Debt vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Woolworths's current stock value. Our valuation model uses many indicators to compare Woolworths value to that of its competitors to determine the firm's financial worth.
Woolworths is rated first in current valuation category among its peers. It is rated first in total debt category among its peers making up about  0.32  of Total Debt per Current Valuation. The ratio of Current Valuation to Total Debt for Woolworths is roughly  3.13 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Woolworths' earnings, one of the primary drivers of an investment's value.

Woolworths Current Valuation vs. Competition

Woolworths is rated first in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Consumer Staples industry is at this time estimated at about 736.62 Billion. Woolworths holds roughly 52.29 Billion in current valuation claiming about 7% of stocks in Consumer Staples industry.

Woolworths Total Debt vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Woolworths

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
52.29 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.

Woolworths

Total Debt

 = 

Bonds

+

Notes

 = 
16.72 B
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.

Woolworths Total Debt vs Competition

Woolworths is rated first in total debt category among its peers. Total debt of Consumer Staples industry is at this time estimated at about 3.07 Trillion. Woolworths maintains roughly 16.72 Billion in total debt contributing less than 1% to stocks in Consumer Staples industry.
Total debt  Capitalization  Valuation  Revenue  Workforce

Woolworths Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Woolworths, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Woolworths will eventually generate negative long term returns. The profitability progress is the general direction of Woolworths' change in net profit over the period of time. It can combine multiple indicators of Woolworths, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-7.6 B-7.2 B
Operating Income1.3 B2.2 B
Income Before Tax876 M1.7 B
Total Other Income Expense Net-430 M-451.5 M
Income Tax Expense759 M745.7 M
Net Income108 M102.6 M
Net Income Applicable To Common Shares1.9 B1.9 B
Net Income From Continuing Ops117 M111.2 M
Interest Income32 M30.4 M
Net Interest Income-740 M-703 M
Change To Netincome128.7 M135.1 M

Woolworths Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Woolworths. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Woolworths position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Woolworths' important profitability drivers and their relationship over time.

Use Woolworths in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Woolworths position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Woolworths will appreciate offsetting losses from the drop in the long position's value.

Woolworths Pair Trading

Woolworths Pair Trading Analysis

The ability to find closely correlated positions to Woolworths could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Woolworths when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Woolworths - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Woolworths to buy it.
The correlation of Woolworths is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Woolworths moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Woolworths moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Woolworths can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Woolworths position

In addition to having Woolworths in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Cryptocurrency ETFs Thematic Idea Now

Cryptocurrency ETFs
Cryptocurrency ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Cryptocurrency ETFs theme has 51 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Cryptocurrency ETFs Theme or any other thematic opportunities.
View All  Next Launch

Additional Tools for Woolworths Stock Analysis

When running Woolworths' price analysis, check to measure Woolworths' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Woolworths is operating at the current time. Most of Woolworths' value examination focuses on studying past and present price action to predict the probability of Woolworths' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Woolworths' price. Additionally, you may evaluate how the addition of Woolworths to your portfolios can decrease your overall portfolio volatility.