Coles Group (COL) share price forecast & analysis

Learn how to easily invest in Coles Group shares.

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Coles Group overview

Coles Group Limited operates as a retailer in Australia. It operates through Supermarkets, Liquor, and Express segments. The company provides fresh produce and groceries through 831 supermarkets; 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 924 stores under the Liquorland, First Choice, First Choice Liquor, and Vintage Cellars brand names, including online liquor delivery services through Coles Online and Liquor Direct. In addition, it operates 721 fuel and convenience stores; and offers lifestyle services, as well as operates as the participating partner in the flybuys loyalty program. The company was formerly known as Coles Myer Ltd. and changed its name to Coles Group Limited. Coles Group Limited was founded in 1914 and is based in Hawthorn East, Australia.

Coles Group shares at a glance

Information last updated 2022-01-15.
52-week range$15.0369 - $18.6448
50-day moving average $17.672
200-day moving average $17.2001
Target price$18.35
PE ratio 21.7131
Dividend yield $0.61 (3.73%)
Earnings per share (TTM) $0.753

Price chart for Coles Group (ASX:COL)

The advanced price chart for COL displays price movement in different formats like candle sticks, bars, lines and few more. On top of this you can map many technical indicators like Moving average, Bollinger bands and Moving average convergence divergence (MACD). You have options to view these over different time frames as well as compare COL with any other cryptocurrency of your choice.

Is Coles Group under- or over-valued?

Valuing Coles Group stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Coles Group's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Coles Group's P/E ratio

Coles Group's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 22x. In other words, Coles Group shares trade at around 22x recent earnings.

That's relatively low compared to, say, the P/E ratio for the ASX over the 12 months to December 2019 (32.14). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Coles Group's EBITDA

Coles Group's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $2.3 billion (£1.2 billion).

The EBITDA is a measure of a Coles Group's overall financial performance and is widely used to measure a its profitability.

Coles Group share dividends

81%

Dividend payout ratio: 81.33% of net profits

Recently Coles Group has paid out, on average, around 81.33% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.73% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Coles Group shareholders could enjoy a 3.73% return on their shares, in the form of dividend payments. In Coles Group's case, that would currently equate to about A$0.61 per share.

Coles Group's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

The latest dividend was paid out to all shareholders who bought their shares by 25 August 2021 (the "ex-dividend date").

Coles Group share price volatility

Over the last 12 months, Coles Group's shares have ranged in value from as little as $15.0369 up to $18.6448. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (AU average) beta is 1, while Coles Group's is 0.1065. This would suggest that Coles Group's shares are less volatile than average (for this exchange).

Coles Group financials

Revenue TTM $38.9 billion
Operating margin TTM 4.53%
Gross profit TTM $10.2 billion
Return on assets TTM 6.05%
Return on equity TTM 37.03%
Profit margin 2.58%
Book value 2.109
Market capitalisation $21.8 billion

TTM: trailing 12 months

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