No-moat Woodside's shares are down 24% from September 2023 highs and, at about AUD 29, are materially undervalued, in 5-star territory. We think the share price is at odds with solid progress being made on growth projects.
Woodside is a beneficiary of continued increase in demand for energy. Behind coal, gas has been the fastest-growing primary energy segment globally. Woodside is favorably located on Asia's doorstep.
The global economy is cooling off and demand for energy will follow suit, particularly if Chinese growth rates taper.
|
Metric
|
WDS
|
BPT
|
SHELL
|
|---|---|---|---|
Price/Earnings (Normalized) | 9.84 | 8.85 | 8.81 |
Price/Book Value | 1.08 | 1.04 | 1.33 |
Price/Sales | 2.59 | 2.08 | 0.79 |
Price/Cash Flow | 5.14 | 4.15 | 5.98 |
|
Metric
|
WDS
|
BPT
|
SHELL
|
|---|---|---|---|
Quick Ratio | 0.72 | 0.86 | 0.90 |
Current Ratio | 1.03 | 1.16 | 1.40 |
Interest Coverage | 12.63 | −6.33 | 7.40 |
|
Metric
|
WDS
|
BPT
|
SHELL
|
|---|---|---|---|
Return on Assets (Normalized) | 5.81% | 6.27% | 6.70% |
Return on Equity (Normalized) | 9.38% | 9.66% | 14.92% |
Return on Invested Capital (Normalized) | 7.73% | 8.48% | 10.59% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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