Coles Group (COL.AX)
Consumer · ASX · Australia
Fundamentals
Valuation and ratings
Coles Group trades at A$23.13, which is 59% above the A$9.42 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 40 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 31.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Coles Group
Coles Group Limited operates as a retailer in Australia. It operates through Supermarkets and Liquor segments. The company operates various supermarkets, which offers fresh food, groceries, general merchandise, and liquor; and coles.com.au, which offers a choice of home delivery, including same-day, overnight drop and go services, and pick up from click and collect locations. Its Coles Financial Services provides insurance, credit cards, and personal loans to Australian families. The company is also involved in the retailing of liquor through its various stores under the Liquorland, First Choice Liquor Market, and Vintage Cellars brand names, as well as retail media services through its store network and online platforms. In addition, it operates as flybuys loyalty program. The company was formerly known as Coles Myer Ltd. and changed its name to Coles Group Limited in November 2006. Coles Group Limited was founded in 1914 and is based in Hawthorn East, Australia.
COL.AX passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Coles Group (COL.AX) undervalued?
Against our discounted cash flow estimate of A$9.42, COL.AX at A$23.13 is 59% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is COL.AX's P/E ratio?
COL.AX trades at 31.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.