Woolworths Holdings Limited (WHL.JO) stock analysis

In our weekly check, Woolworths Holdings Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 12 pass, warnings: 7, red flags: 5.

About Woolworths Holdings Limited

Woolworths Holdings Limited is a Consumer Cyclical company (Department Stores) based in South Africa, listed on JNB as WHL.JO.

What our checks show for WHL.JO

Red flags

• Operating profit does not cover the interest bill (0.2x): interest is paid from cash or new debt.
• The net margin fell by 1.8 points over 5 years, to 2.8%: the company keeps less of each sale as profit.
• The net margin is only 2.8%: little room if costs rise.
• A small company (market value $21 million): usually riskier and followed by fewer analysts.
• The stock has fallen as much as 76% from a peak. Would you have held through that?

Warning signs

• Net debt is 1.8x a year of EBITDA (debt/equity 1.82). That limits room in a downturn and raises refinancing risk.
• The gross margin fell by 2.4 points, to 34%: costs are rising faster than prices.
• Revenue grew only 4.7% a year over the last 3 years.
• Earnings per share fell 21.9% a year over the last 3 years.
• Net profit fell 23% a year over the last 3 years.
• Free cash flow is only 3.3% of revenue.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 2.28x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 19.1% a year over the next years.
• The price is 15 times earnings (P/E), reasonable for its growth.
• Beta 0.17: the stock usually moves less than the market.
• Actively traded: about 4.4 million shares a day.
• Return on capital (ROCE) is 16.7%: the business earns well on the money put into it.

Similar companies

JMT.WA · AXFO.ST · WN.TO · KR · DNP.WA · TSCO.L

Questions

What grade does Woolworths Holdings Limited (WHL.JO) have?

In our weekly check, Woolworths Holdings Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 12 pass, warnings: 7, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of WHL.JO stock?

This week's biggest flags for Woolworths Holdings Limited: Weak interest cover, Margins falling, Thin margins. In total 12 of 24 checks show a warning or a red flag.

What does Woolworths Holdings Limited do?

Woolworths Holdings Limited is a Consumer Cyclical company (Department Stores) based in South Africa, listed on JNB as WHL.JO.

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 2026-10-31

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