Woolworths GroupWOLWF +0.28%74 ROA % is 2.22% as of Dec. 2025, which is 56% below its 10-year median of 5.09. GuruFocus rates WOLWF with a GF Score™ of 74/100 and a GF Value™ of $25.25 (Fairly Valued). The stock has 10 warning signs investors should review. Among 312 Retail - Defensive companies, Woolworths Group ranks worse than 66.99% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Woolworths Group's annualizedNet Income for the quarter that ended in Dec. 2025 was $497 Mil.
Woolworths Group's average Total Assets over the quarter that ended in Dec. 2025 was $22,436 Mil. Therefore, Woolworths Group's annualized ROA % for the quarter that ended in Dec. 2025 was 2.22%.
The historical rank and industry rank for Woolworths Group's ROA % or its related term are showing as below:
WOLWF'
s ROA % Range Over the Past 10 Years
Min: -5.06 Med: 5.09 Max: 21.88
Current: 1.75
During the past 13 years, Woolworths Group's highest ROA % was 21.88%. The lowest was -5.06%. And the median was 5.09%.
WOLWF's ROA % is ranked worse than 66.99% of 312
companies
in the Retail - Defensive industry
Industry Median: 3.545
vs WOLWF: 1.75
Woolworths Group (OTCPK:WOLWF) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Woolworths Group ROA % Related Terms
Woolworths Group ROA % Historical Data
* Premium members only.
The historical data trend for Woolworths Group's ROA % can be seen below:
* 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.
For the Grocery Stores subindustry, Woolworths Group's ROA %, along with its competitors' market caps and ROA % 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.
Woolworths Group ROA % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Woolworths Group's ROA % distribution charts can be found below:
* The bar in red indicates where Woolworths Group's ROA % falls into.
* 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Woolworths Group (WOLWF) has a ROA % of 2.22% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Woolworths Group and its competitors. This is 56% below median its historical median of 5.09. According to the industry distribution chart, Woolworths Group ranks #209 out of 312 companies in the Retail - Defensive industry, placing it in the top 67%.
Is Woolworths Group's ROA % too high?
Woolworths Group's current ROA % of 2.22% is 56% below median its 10-year median of 5.09. The Retail - Defensive industry median ROA % is 3.55. Woolworths Group's value of 2.22% is 37.4% below this industry median. Based on the distribution chart, Woolworths Group ranks #209 out of 312 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, Woolworths Group has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Woolworths Group's ROA % compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Woolworths Group ranks #209 out of 312 companies for ROA %. This places Woolworths Group in the lower half of its industry. The industry median ROA % is 3.55. Woolworths Group's value of 2.22% is 37.4% below this benchmark. While the company's 10-year median is 5.09 vs. the industry median of 3.55, Woolworths Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Retail - Defensive company?
The median ROA % among Retail - Defensive companies is 3.55, based on 312 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Woolworths Group's current ROA % of 2.22% is 37.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Woolworths Group and its competitors. For the Retail - Defensive industry, the median ROA % is 3.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Woolworths Group's current ROA % is 2.22%, which is 56% below median its own 10-year median of 5.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Woolworths Group stock overvalued right now?
Based on GuruFocus' analysis, Woolworths Group (WOLWF) is currently considered Fairly Valued. The stock's GF Value™ is $25.25, compared to a current price of $27.20 — trading 7.7% above its estimated fair value. The current ROA % is 2.22%, which is 56% below median its 10-year median of 5.09 and 37.4% below the Retail - Defensive industry median of 3.55. Woolworths Group's overall GF Score™ is 74/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Woolworths Group (WOLWF), the current ROA % is 2.22% as of Dec. 2025. 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 Woolworths Group (WOLWF) Overvalued in 2026?
Based on GuruFocus' analysis, Woolworths Group stock appears to be overvalued.
The current stock price of $27.20 is trading 7.7% above its estimated GF Value™ of $25.25.
GuruFocus considers Woolworths Group to be Fairly Valued.
Key valuation signals for WOLWF:
ROA %: 2.22% (56% below median its 10-year median of 5.09)
GF Value™: $25.25 vs. price of $27.20 (7.7% above fair value)
Industry Position: 37.4% below the Retail - Defensive median (#209 of 312)
No single metric tells the full story. See the WOLWF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Woolworths is Australia's largest retailer. Operations include supermarkets in Australia and New Zealand, and discount department and pet stores. Woolworths also supplies businesses, like restaurants and cafes, following the acquisition of PFD Food Services. The Australian food division with its supermarkets constitutes the majority of group EBIT, followed by New Zealand supermarkets and PFD, while Big W is a minor contributor.
74GF Score
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