Why Fundamental Investors Love Woolworths Group Limited (ASX:WOW)

Woolworths Group Limited (ASX:WOW) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of WOW, it is a notable dividend-paying company that has been able to sustain great financial health over the past. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Woolworths Group here.

Excellent balance sheet average dividend payer

With a debt-to-equity ratio of 27.00%, WOW’s debt level is reasonable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future. WOW’s has produced operating cash levels of 1.04x total debt over the past year, which implies that WOW’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

ASX:WOW Historical Debt June 21st 18

WOW is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

ASX:WOW Historical Dividend Yield June 21st 18

Next Steps:

For Woolworths Group, I’ve put together three essential aspects you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for WOW’s future growth? Take a look at our free research report of analyst consensus for WOW’s outlook.

2. Historical Performance: What has WOW’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of WOW? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.