Australia Stock Alert

AUSTR

CLOSING UPDATE: Woolworths Group increases 0.9%, led S&P/ASX 200 Consumer Staples index higher September 21, 2018 16:00:00 AEST

NEWS BITES - AUSTRALIA

This is an end of day Alert, produced after today's Australian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Woolworths Group, Australia's 2nd largest food & staples retailing company by market capitalisation, has increased 0.9% to trade at $A27.55 vs. the S&P/ASX 200 Consumer Staples index which strengthened 63.1 points (or 0.6%) to 11,061.5. Representing a weighting of about 26.9% of the index, the stock accounted for 43.5% of today's gain. Trading volume was 2.2 times average at the end of the day. Compared with the All Ordinaries Index which rose 28.6 points (or 0.5%) in the day, this represented a relative price increase of 0.5%.

Technical indicators complementing today's significant uptrend:

+ In the last three months the stock has hit a new 52-week high nine times, pointing to a significant uptrend.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Price/Earnings of 23.1 [35.8]

+ Return on Equity 16.2% [7.8%]

+ Return on Assets 6.5% [4.2%]

+ Return on Capital Employed 16.5% [14.8%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 12 times.

+ Tobin's Q Ratio is 1.6. Compared with the rest of the market the stock is undervalued.

+ The Brand Value represents an impressive 29.0% of the estimated Enterprise Value of $A41.3 billion.

+ As per the Du Pont analysis, Return on Equity of 16.2% is better than sector average of 7.8%.

Note

Woolworths Group today is at a discount of 10.6% to the 12-month high of $A30.82 on 12 Jul, 2018. It is at a premium of 16.9% to the 12-month low of $A23.56 on 04 Oct, 2017.

Bearish Signals:

The negative 0.3 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

The price decreased 1.9% in the last month.

Net profit margin has averaged 2.7% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Dividend yield of 3.7% [6.3%]

TODAY'S ALERT

Morning Alert: Woolworths Group increases 0.7%

September 21, 2018 11:00:00 AEST

Woolworths Group Limited (ASX:WOW) has increased 19.0c (or 0.7%) to trade at $A27.49.

RECENT ALERTS

CLOSING UPDATE: Woolworths Group decreases further 0.4% on high volume

September 20, 2018 16:00:00 AEST

Woolworths Group, Australia's 2nd largest food & staples retailing company by market capitalisation, traded on heavy volume of 2.0 times average today while the price decreased 40.0c (or 1.4%) to trade at $A27.30. Compared with the All Ordinaries Index which fell 20.2 points (or 0.3%) in the day, this represented a relative price change of -1.1%.

Morning Alert: Woolworths Group decreases 1.0%

September 20, 2018 11:00:00 AEST

Woolworths Group Limited (ASX:WOW) has decreased 28.0c (or 1.0%) to trade at $A27.42.

Woolworths Group Limited (AU:WOW; ASX:WOW; AX:WOW)

ISIN: AU000000WOW2

PermID: 4295856585

Source: www.BuySellSignals.com