Woodside Energy Group (ASX:WDS) Financial Strength: 4 (As of Jun. 2026) — 20% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ASX:WDS Woodside Energy Group Ltd ASX:WDS
70 GF Score
Price A$32.27
GF Value A$26.36
Valuation Modestly Overvalued
! 8 Warning Signs
View Full Analysis

What is Woodside Energy Group Financial Strength?

Woodside Energy Group ASX:WDS +0.84% 70 Financial Strength is 4 as of Jun. 2026, which is 20% below its 10-year median of 5.00. GuruFocus rates ASX:WDS with a GF Score™ of 70/100 and a GF Value™ of A$26.36 (Modestly Overvalued). The stock has 8 warning signs investors should review.

Woodside Energy Group has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Woodside Energy Group's Interest Coverage for the quarter that ended in Jun. 2026 was 12.46. Woodside Energy Group's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.92. As of today, Woodside Energy Group's Altman Z-Score is 1.38.


Woodside Energy Group  (ASX:WDS) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Woodside Energy Group has the Financial Strength Rank of 4.


Woodside Energy Group Financial Strength Related Terms


ASX:WDS vs COP, EOG, FANG: Financial Strength Comparison

For the Oil & Gas E&P subindustry, Woodside Energy Group's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Woodside Energy Group Financial Strength vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Woodside Energy Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where Woodside Energy Group's Financial Strength falls into.


ASX:WDS
70GF Score
Woodside Energy Group Ltd ASX:WDS
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Woodside Energy Group Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Woodside Energy Group's Interest Expense for the months ended in Jun. 2026 was A$-324 Mil. Its Operating Income for the months ended in Jun. 2026 was A$4,044 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was A$17,620 Mil.

Woodside Energy Group's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*4044.166/-324.444
=12.46

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Woodside Energy Group's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1835.67 + 17619.586) / 21191.316
=0.92

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Woodside Energy Group has a Z-score of 1.38, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.38 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 4 mean?
Woodside Energy Group (ASX:WDS) has a Financial Strength of 4 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Woodside Energy Group and its competitors. This is 20% below median its historical median of 5.00. Over the past decade, Woodside Energy Group's Financial Strength has ranged from 3.00 to 7.00.
Is Woodside Energy Group's Financial Strength too high?
Woodside Energy Group's current Financial Strength of 4 is 20% below median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 7.00. Overall, Woodside Energy Group has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Woodside Energy Group's Financial Strength compare to COP and EOG?
Woodside Energy Group's Financial Strength of 4 can be compared against companies in the Oil & Gas industry. Historically, Woodside Energy Group's own Financial Strength has ranged from 3.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Oil & Gas company?
A good Financial Strength depends on the Oil & Gas industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Woodside Energy Group and its competitors. Woodside Energy Group's current Financial Strength is 4, which is 20% below median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Woodside Energy Group stock overvalued right now?
Based on GuruFocus' analysis, Woodside Energy Group (ASX:WDS) is currently considered Modestly Overvalued. The stock's GF Value™ is A$26.36, compared to a current price of A$32.27 — trading 22.4% above its estimated fair value. The current Financial Strength is 4, which is 20% below median its 10-year median of 5.00. Woodside Energy Group's overall GF Score™ is 70/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Woodside Energy Group (ASX:WDS), the current Financial Strength is 4 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Woodside Energy Group (ASX:WDS) Overvalued in 2026?

Based on GuruFocus' analysis, Woodside Energy Group stock appears to be overvalued. The current stock price of A$32.27 is trading 22.4% above its estimated GF Value™ of A$26.36. GuruFocus considers Woodside Energy Group to be Modestly Overvalued.

Key valuation signals for ASX:WDS:

  • Financial Strength: 4 (20% below median its 10-year median of 5.00)
  • GF Value™: A$26.36 vs. price of A$32.27 (22.4% above fair value)
  • GF Score™: 70/100 with 8 warning signs

No single metric tells the full story. See the ASX:WDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Woodside Energy Group Business Description

Industry EnergyOil & Gas
Address 11 Mount Street, Mia Yellagonga, Perth, WA, AUS, 6000
Incorporated in 1954 and named after the small Victorian town of Woodside, Woodside's early exploration focus moved from Victoria's Gippsland Basin to Western Australia's Carnarvon Basin. First LNG production from the North West Shelf came in 1984. BHP Billiton and Shell each had 40% shareholdings before BHP sold out in 1994 and Shell sold down to 34%. In 2017 Shell sold its entire shareholding. Woodside is one of the most LNG-leveraged companies globally.
70GF Score

Get the complete analysis for ASX:WDS

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$32.27
Price
A$26.36
GF Value