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Coles Group

ASX:COL
Snowflake Description

Acceptable track record with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
COL
ASX
A$21B
Market Cap
  1. Home
  2. AU
  3. Consumer Retailing
Company description

Coles Group Limited operates as a retailer in Australia. The last earnings update was 53 days ago. More info.


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COL Share Price and Events
7 Day Returns
3%
ASX:COL
1.1%
Global Consumer Retailing
0.9%
AU Market
1 Year Returns
-
ASX:COL
9.2%
Global Consumer Retailing
11.6%
AU Market
COL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Coles Group (COL) 3% 0.5% 14.4% - - -
Global Consumer Retailing 1.1% 1.1% 7.7% 9.2% 27.4% 29.2%
AU Market 0.9% 1.4% 2.2% 11.6% 20.8% 18.3%
1 Year Return vs Industry and Market
  • No trading data on COL.
  • No trading data on COL.
Price Volatility
Industry
5yr Volatility vs Market

COL Value

 Is Coles Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Coles Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Coles Group.

ASX:COL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:COL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Consumer Retailing Unlevered Beta Simply Wall St/ S&P Global 0.49
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.486 (1 + (1- 30%) (7.09%))
0.672
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.8 * 5.96%)
7.08%

Discounted Cash Flow Calculation for ASX:COL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Coles Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

ASX:COL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 7.08%)
2020 801.90 Analyst x4 748.88
2021 804.05 Analyst x4 701.24
2022 1,130.80 Analyst x3 921.00
2023 1,037.93 Analyst x1 789.47
2024 987.85 Est @ -4.83% 701.70
2025 961.34 Est @ -2.68% 637.71
2026 949.95 Est @ -1.19% 588.49
2027 948.65 Est @ -0.14% 548.83
2028 954.33 Est @ 0.6% 515.61
2029 964.95 Est @ 1.11% 486.88
Present value of next 10 years cash flows A$6,639.00
ASX:COL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$964.95 × (1 + 2.31%) ÷ (7.08% – 2.31%)
A$20,705.90
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$20,705.90 ÷ (1 + 7.08%)10
A$10,447.45
ASX:COL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$6,639.00 + A$10,447.45
A$17,086.45
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$17,086.45 / 1,333.93
A$12.81
ASX:COL Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$12.81
Current discount Discount to share price of A$15.44
= -1 x (A$15.44 - A$12.81) / A$12.81
-20.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Coles Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Coles Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Coles Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:COL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$0.81
ASX:COL Share Price ** ASX (2019-11-11) in AUD A$15.44
Global Consumer Retailing Industry PE Ratio Median Figure of 222 Publicly-Listed Consumer Retailing Companies 20.65x
Australia Market PE Ratio Median Figure of 519 Publicly-Listed Companies 18.62x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Coles Group.

ASX:COL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:COL Share Price ÷ EPS (both in AUD)

= 15.44 ÷ 0.81

19.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Coles Group is good value based on earnings compared to the Global Consumer Retailing industry average.
  • Coles Group is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Coles Group's expected growth come at a high price?
Raw Data
ASX:COL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.1x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
-0.7%per year
Global Consumer Retailing Industry PEG Ratio Median Figure of 103 Publicly-Listed Consumer Retailing Companies 1.92x
Australia Market PEG Ratio Median Figure of 347 Publicly-Listed Companies 1.6x

*Line of best fit is calculated by linear regression .

ASX:COL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.1x ÷ -0.7%

-27.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Coles Group earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Coles Group's assets?
Raw Data
ASX:COL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$2.52
ASX:COL Share Price * ASX (2019-11-11) in AUD A$15.44
Global Consumer Retailing Industry PB Ratio Median Figure of 299 Publicly-Listed Consumer Retailing Companies 1.65x
Australia Market PB Ratio Median Figure of 1,584 Publicly-Listed Companies 1.76x
ASX:COL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:COL Share Price ÷ Book Value per Share (both in AUD)

= 15.44 ÷ 2.52

6.13x

* Primary Listing of Coles Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Coles Group is overvalued based on assets compared to the Global Consumer Retailing industry average.
X
Value checks
We assess Coles Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Retailing industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Retailing industry average (and greater than 0)? (1 check)
  5. Coles Group has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

COL Future Performance

 How is Coles Group expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-0.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Coles Group expected to grow at an attractive rate?
  • Coles Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Coles Group's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.
  • Coles Group's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:COL Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:COL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts -0.7%
ASX:COL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 0.9%
Global Consumer Retailing Industry Earnings Growth Rate Market Cap Weighted Average 9.5%
Global Consumer Retailing Industry Revenue Growth Rate Market Cap Weighted Average 5.1%
Australia Market Earnings Growth Rate Market Cap Weighted Average 9.6%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:COL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:COL Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 41,308 1
2022-06-30 38,633 1,861 1,040 10
2021-06-30 37,293 1,727 959 12
2020-06-30 36,086 1,595 901 12
2019-11-11
ASX:COL Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 38,327 2,275 1,078
2019-03-31 38,932 2,336 971
2018-12-30 39,536 2,397 864
2018-09-30 39,341 2,153 944
2018-06-30 39,145 1,910 1,023

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Coles Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Coles Group's revenue is expected to grow by 0.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:COL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Coles Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:COL Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 0.79 0.79 0.79 1.00
2022-06-30 0.77 0.91 0.65 10.00
2021-06-30 0.72 0.87 0.63 10.00
2020-06-30 0.67 0.84 0.62 10.00
2019-11-11
ASX:COL Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 0.81
2019-03-31 0.73
2018-12-30 0.65
2018-09-30 0.71
2018-06-30 0.77

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Coles Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Coles Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Global market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Coles Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

COL Past Performance

  How has Coles Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Coles Group's growth in the last year to its industry (Consumer Retailing).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Unable to establish if Coles Group's year on year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.
  • Unable to compare Coles Group's 1-year earnings growth to the 5-year average as it has been trading publicly for less than 3 years.
  • Coles Group's earnings growth has exceeded the Global Consumer Retailing industry average in the past year (5.4% vs 3.4%).
Earnings and Revenue History
Coles Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Coles Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:COL Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 38,327.20 1,078.20 8,031.00
2019-03-31 38,931.80 971.20 7,953.35
2018-12-30 39,536.40 864.20 7,875.70
2018-09-30 39,340.90 943.70 7,803.70
2018-06-30 39,145.40 1,023.20 7,731.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Coles Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Coles Group used its assets more efficiently than the Global Consumer Retailing industry average last year based on Return on Assets.
  • Unable to establish if Coles Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Coles Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Retailing industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Coles Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

COL Health

 How is Coles Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Coles Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Coles Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Coles Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Coles Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Coles Group Company Filings, last reported 4 months ago.

ASX:COL Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 3,357.10 1,460.00 940.40
2019-03-31 3,357.10 1,460.00 940.40
2018-12-30 2,672.00 1,630.00 484.00
2018-09-30 2,672.00 1,630.00 484.00
2018-06-30 3,249.60 0.00 686.10
  • Coles Group's level of debt (43.5%) compared to net worth is high (greater than 40%).
  • Unable to establish if Coles Group's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (155.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 35x coverage).
X
Financial health checks
We assess Coles Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Coles Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

COL Dividends

 What is Coles Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.55%
Current annual income from Coles Group dividends. Estimated to be 3.91% next year.
If you bought A$2,000 of Coles Group shares you are expected to receive A$31 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Coles Group's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.36%).
  • Coles Group's dividend is below the markets top 25% of dividend payers in Australia (5.53%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:COL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
Global Consumer Retailing Industry Average Dividend Yield Market Cap Weighted Average of 177 Stocks 2%
Australia Market Average Dividend Yield Market Cap Weighted Average of 391 Stocks 4.1%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.4%
Australia Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:COL Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 0.78 1.00
2022-06-30 0.65 12.00
2021-06-30 0.60 14.00
2020-06-30 0.56 14.00
2019-11-11
ASX:COL Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-09-19 0.240 1.590
2019-08-21 0.240 1.687

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Coles Group has stable dividend payments.
  • Coles Group only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Coles Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess Coles Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Coles Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Coles Group has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

COL Management

 What is the CEO of Coles Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
steve Cain
COMPENSATION A$4,611,902
AGE 54
TENURE AS CEO 1.2 years
CEO Bio

Mr. Steven Cain, also known as Steve, serves as Managing Director at Coles Group Ltd. (operates independently of Wesfarmers Limited) since September 28, 2018. He serves as Director at Coles Group Limited since November 2,2018 and serves as its CEO. Mr. Cain served as Chief Executive Officer Supermarkets and Convenience at Metcash Limited from March 18, 2016 to March 15, 2018. Mr. Cain served as the Chief Executive Officer of Supermarkets at Metcash Limited since August 1, 2015 until March 17, 2016. Mr. Cain served as Group Managing Director, Food, Liquor and Fuel at Coles Group Limited. (also called as Coles Myer Ltd.) since October 2003. He has a history of leading executive positions in the retail and consumer goods markets. He has extensive commercial and operational experience in supermarket leadership as an Executive of UK supermarket chain, Asda, during its performance turnaround. He Co-founded Going Green Limited in 2002. He was a Key Member of the leadership team put together by Asda Chief Executive Archie Norman when he was appointed to Coles Group Limited. in 1999. He worked for Mr. Norman in finance for three years at UK non-food retailer, Kingfisher PLC. Over the next seven years, he held the positions of Own Brand Marketing Controller, Grocery Trading Director, Deputy Trading Director, Store Development Director and Group Marketing Director. From 1987 to 1989, he served at Bain & Company Inc. as Consultant, from 1989 to 1992 at Kingfisher PLC as Group Development Executive role included leading the acquisition of Darty in France, from 1992 to 1999 at ASDA PLC Asda Own Brand Marketing Controller roles included overhauling the overall own brand strategy, re-launching the range and re-organising internal management of development. He served as the Chairman of REDgroup Retail PTY Ltd. since September 27, 2010. He served as Grocery Trading Director introduced a more partner based relationship with big suppliers and refocused the management of grocery areas within the store resulting in Asda's biggest ever floor change. He served as Deputy Trading Director, Store Development Director (Management Board) role included improving the pace of building and refurbishing stores, improving the management of suppliers and building and reducing expenditure, Group Marketing Director - (Group Board October 1997) achieved highest awareness figures while reducing expenditure and from 1999 to 2000 at Carlton PLC as Chief Executive Officer and youngest ever Chief Executive Officer of a FTSE 100 company. He has been a Non Executive Director of REDgroup Retail PTY Ltd since July 2007. He has been a Director of A&R Whitcoulls Group Holdings PTY Ltd. since July 31, 2007. He serves on the Board of Godfreys. He served as a Director of Going Green Limited. He is Member of the World Economic Forum's Young Global Leader program. He served as a Director of Pacific Equity Partners. Mr. Cain holds a first-class Master's degree in Chemical Engineering from Imperial College, London and has also attended Executive Programs at London and Harvard Business Schools. He is a Member of the World Economic Forum's Young Global Leader program.

CEO Compensation
  • Insufficient data for steve to compare compensation growth.
  • Insufficient data for steve to establish whether their remuneration is reasonable compared to companies of similar size in Australia.
Management Team Tenure

Average tenure of the Coles Group management team in years:

0.8
Average Tenure
  • The average tenure for the Coles Group management team is less than 2 years, this suggests a new team.
Management Team

steve Cain

TITLE
MD, CEO & Director
COMPENSATION
A$5M
AGE
54
TENURE
1.2 yrs

Leah Weckert

TITLE
Chief Financial Officer
TENURE
1.7 yrs

Matthew Swindells

TITLE
Chief Operations Officer
TENURE
0.8 yrs

Roger Sniezek

TITLE
Chief Information & Digital Officer

Mark Howell

TITLE
General Manager of Investor Relations

David Brewster

TITLE
Chief Legal Officer

Lisa Ronson

TITLE
Chief Marketing Officer
TENURE
0.8 yrs

Kris Webb

TITLE
Chief People Officer

Greg Davis

TITLE
Chief Executive - Commercial & Express
TENURE
0.8 yrs

Thinus Keeve

TITLE
Chief Property & Export Officer
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Coles Group board of directors in years:

1
Average Tenure
54
Average Age
  • The average tenure for the Coles Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

James Graham

TITLE
Chairman
AGE
71
TENURE
1 yrs

steve Cain

TITLE
MD, CEO & Director
COMPENSATION
A$5M
AGE
54
TENURE
1 yrs

Zlatko Todorcevski

TITLE
Non-Executive Director
AGE
51
TENURE
1 yrs

Dave Cheesewright

TITLE
Non Executive Director
AGE
57
TENURE
1 yrs

Jacqueline Chow

TITLE
Non Executive Director
TENURE
1 yrs

Richard Freudenstein

TITLE
Non-Executive Director
AGE
54
TENURE
1 yrs

Abi Cleland

TITLE
Non-Executive Director
AGE
45
TENURE
1 yrs

Wendy Stops

TITLE
Non-Executive Director
AGE
58
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Coles Group individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
10. Sep 19 Buy Abigail Cleland Individual 04. Sep 19 04. Sep 19 18,000 A$14.15 A$254,619
04. Sep 19 Buy David Cheesewright Individual 28. Aug 19 28. Aug 19 20,000 A$13.44 A$268,824
30. Aug 19 Buy Wendy Stops Individual 27. Aug 19 27. Aug 19 8,090 A$13.56 A$109,660
18. Mar 19 Buy Jacqueline Chow Individual 14. Mar 19 14. Mar 19 20,000 A$11.27 A$225,400
14. Mar 19 Sell James Graham Individual 08. Mar 19 08. Mar 19 -800 A$11.42 A$-9,136
12. Mar 19 Buy Steven Cain Individual 06. Mar 19 07. Mar 19 40,000 A$11.59 A$457,941
05. Dec 18 Buy Zlatko Todorcevski Individual 03. Dec 18 03. Dec 18 8,695 A$11.50 A$99,993
04. Dec 18 Buy James Graham Individual 29. Nov 18 29. Nov 18 800 A$12.38 A$9,904
03. Dec 18 Buy Wendy Stops Individual 29. Nov 18 29. Nov 18 5,000 A$12.62 A$63,100
30. Nov 18 Buy Richard Freudenstein Individual 26. Nov 18 26. Nov 18 19,000 A$12.98 A$246,656
28. Nov 18 Buy Zlatko Todorcevski Individual 22. Nov 18 22. Nov 18 8,000 A$12.50 A$100,000
X
Management checks
We assess Coles Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Coles Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

COL News

Simply Wall St News

Coles Group Limited (ASX:COL) Is Employing Capital Very Effectively

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Coles Group:0.19 = AU$1.0b ÷ (AU$9.8b - AU$4.3b) (Based on the trailing twelve months to June 2019.) Therefore, Coles Group has an ROCE of 19%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. … What We Can Learn From Coles Group's ROCE With a decent ROCE, the company could be interesting, but remember that the level of current liabilities make the ROCE look better.

Simply Wall St -

Have Insiders Been Buying Coles Group Limited (ASX:COL) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Coles Group Limited (ASX:COL). … See our latest analysis for Coles Group The Last 12 Months Of Insider Transactions At Coles Group In the last twelve months, the biggest single purchase by an insider was when MD, CEO & Director Steven Cain bought AU$458k worth of shares at a price of AU$11.59 per share. … In the last twelve months there was more buying than selling by Coles Group insiders.

Simply Wall St -

Can We See Significant Institutional Ownership On The Coles Group Limited (ASX:COL) Share Register?

See our latest analysis for Coles Group ASX:COL Ownership Summary, August 5th 2019 What Does The Institutional Ownership Tell Us About Coles Group? … Insider Ownership Of Coles Group While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. … General Public Ownership The general public, who are mostly retail investors, collectively hold 72% of Coles Group shares.

Simply Wall St -

Calculating The Fair Value Of Coles Group Limited (ASX:COL)

In this article we are going to estimate the intrinsic value of Coles Group Limited (ASX:COL) by projecting its future cash flows and then discounting them to today's value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (A$, Millions) A$1.09k A$703.86 A$790.84 A$918.50 A$953.00 A$984.22 A$1.01k A$1.04k A$1.07k A$1.10k Growth Rate Estimate Source Analyst x4 Analyst x5 Analyst x5 Analyst x2 Analyst x1 Est @ 3.28% Est @ 2.99% Est @ 2.78% Est @ 2.64% Est @ 2.54% Present Value (A$, Millions) Discounted @ 7.08% A$1.02k A$613.86 A$644.12 A$698.63 A$676.94 A$652.89 A$627.94 A$602.75 A$577.77 A$553.29 Present Value of 10-year Cash Flow (PVCF)= A$6.67b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … ASX:COL Intrinsic value, June 7th 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

What Type Of Shareholder Owns Coles Group Limited's (ASX:COL)?

The big shareholder groups in Coles Group Limited (ASX:COL) have power over the company. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Coles Group is a pretty big company.

Simply Wall St -

A Look At The Fair Value Of Coles Group Limited (ASX:COL)

by taking the expected future cash flows and discounting them to today's value. … discounted cash flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.

Simply Wall St -

COL Company Info

Description

Coles Group Limited operates as a retailer in Australia. The company operates through Supermarkets, Liquor, and Express segments. It provides fresh food, groceries, and general merchandise through 821 supermarkets, including Coles Online and Coles financial services. The company operates coles.com.au, which offers a choice of home delivery; and provides insurance, credit cards, and personal loans to Australian families. It is also involved in the retailing of liquor through its 910 Liquorland, First Choice, First Choice Liquor, and Vintage Cellars stores, including online liquor delivery services through Coles Online and Liquor Direct; and operation of 87 hotels in Queensland, Western Australia, South Australia, and New South Wales under the Spirit Hotels brand. In addition, the company operates 714 fuel and convenience stores that sell Shell fuels; and a range of everyday products, such as groceries, snacks, drinks, gas bottles, firewood, and Shell oils and lubricants, 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 in November 2006. Coles Group Limited was founded in 1914 and is based in Hawthorn East, Australia.

Details
Name: Coles Group Limited
COL
Exchange: ASX
Founded: 1914
A$20,595,874,506
1,333,929,696
Website: http://www.colesgroup.com.au
Address: Coles Group Limited
800 Toorak Road,
Hawthorn East,
Victoria, 3123,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX COL Ordinary Shares Australian Securities Exchange AU AUD 21. Nov 2018
OTCPK CLEG.F Ordinary Shares Pink Sheets LLC US USD 21. Nov 2018
DB 2OF Ordinary Shares Deutsche Boerse AG DE EUR 21. Nov 2018
CHIA COL Ordinary Shares Chi-X Australia AU AUD 21. Nov 2018
Number of employees
Current staff
Staff numbers
113,000
Coles Group employees.
Industry
Hypermarkets and Super Centers
Consumer Retailing
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/11 10:41
End of day share price update: 2019/11/11 00:00
Last estimates confirmation: 2019/11/03
Last earnings filing: 2019/09/19
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.