Woodside Energy Group Ltd (WDS.AX) stock analysis

In our weekly check, Woodside Energy Group Ltd is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 6, red flags: 6.

About Woodside Energy Group Ltd

Woodside Energy Group Ltd is an Energy company (Oil & Gas Exploration & Production) based in Australia, listed on ASX as WDS.AX.

What our checks show for WDS.AX

Red flags

• The net margin fell by 7.5 points over 5 years, to 21%: the company keeps less of each sale as profit.
• The gross margin fell by 15.1 points, to 29.6%: costs are rising faster than prices.
• Revenue fell 7.3% a year over the last 3 years.
• Free cash flow is negative (-10.8% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 77% from a peak. Would you have held through that?
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Analysts expect only about 3.1% a year of growth in revenue.
• Analysts expect the net margin to shrink by 0.4 points from today's 21%.
• Earnings per share fell 29.9% a year over the last 3 years.
• Net profit fell 24.4% a year over the last 3 years.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 5.8%.

Strengths

• Net debt is only 1.3x a year of EBITDA: the balance sheet has room.
• Operating profit covers interest 306 times over.
• Operating cash flow is 2.39x net profit: the profit arrives as real cash.
• The company keeps 21% of its revenue as net profit.
• A large company: market value $43.86 billion.
• Beta -0.23: the stock usually moves less than the market.

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Questions

What grade does Woodside Energy Group Ltd (WDS.AX) have?

In our weekly check, Woodside Energy Group Ltd is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 6, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of WDS.AX stock?

This week's biggest flags for Woodside Energy Group Ltd: Margins falling, Gross margin falling, Weak revenue growth. In total 12 of 25 checks show a warning or a red flag.

What does Woodside Energy Group Ltd do?

Woodside Energy Group Ltd is an Energy company (Oil & Gas Exploration & Production) based in Australia, listed on ASX as WDS.AX.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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