Coles: A Steady Grocery Player In Post-Hike Australia, Though Fully Priced

Bernard Zambonin
1.07K Followers
(12min)

Summary

  • Coles is a strong player in Australia’s concentrated grocery market, second only to Woolworths.
  • Margins and revenues have recovered post-pandemic, supported by supply chain investments.
  • Supermarket sales remain solid, though liquor sales face ongoing structural challenges.
  • The company generates consistent cash flow and pays reliable dividends.
  • Valuation looks full, making Coles a stable 'hold' rather than a clear 'buy.'

Coles supermarket store in Melbourne, Australia

NilsBV/iStock Editorial via Getty Images

In the highly concentrated grocery retail market "Down Under", the Hawthorn East, Australia-based chain Coles Group (OTCPK:CLEGF) holds the second-largest market share in the country (28%), just behind Woolworths (OTCPK:WOLWF) with

This article was written by

1.07K Followers
As a researcher and operations manager at DM Martins Research, I leverage my deep understanding of global markets to provide valuable and actionable insights. Previously, I contributed to TheStreet and currently write for platforms such as TipRanks and GuruFocus. At Seeking Alpha, my focus is on delivering in-depth analysis of foreign equities, particularly in emerging markets. My goal is to offer readers unique, hard-to-find insights and detailed coverage of equities often overlooked by US-centric market reports. By doing so, I aim to empower investors with the knowledge needed to make informed decisions in dynamic and complex markets.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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