Fact based stock research
Woodside Petroleum (ASX:WPL)

AU0000224040

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Woodside Petroleum stock research in summary

woodside.com.au

ANALYSIS: With an Obermatt Combined Rank of 42 (worse than 58% compared with investment alternatives), Woodside Petroleum (Oil & Gas Production, Australia) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Woodside Petroleum are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives) and show below-average growth (Growth Rank of 21) but are safely financed (Safety Rank of 85), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 42, is a hold recommendation based on Woodside Petroleum's financial characteristics. As the company Woodside Petroleum's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 45) and low growth (Obermatt Growth Rank of 21), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 85) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	45
Growth Rank	21
Safety Rank	85
Combined Rank	42

Country	Australia
Industry	Oil & Gas Production
Index	ASX 100, ASX 200, ASX 300, ASX 50, Energy Efficient
Size class	XX-Large

This stock has achievements: Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Woodside Petroleum

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	61	60	27	45
GROWTH
GROWTH	79	85	7	21
SAFETY
SAFETY	25	44	72	85
SENTIMENT
SENTIMENT	n/a	64	12	^new
360° VIEW
360° VIEW	n/a	82	8	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Woodside Petroleum is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	61	60	27	45
GROWTH
GROWTH	79	85	7	21
SAFETY
SAFETY	25	44	72	85
COMBINED
COMBINED	24	78	20	42

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Woodside Petroleum the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 45 (worse than 55% compared with alternatives), Woodside Petroleum shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Woodside Petroleum. Expected dividend yields are higher than for 83% of comparable companies (a Dividend Yield rank of 83), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 76, which means that the stock price is lower compared with invested capital than for 76% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 23 which means that the stock price compared with what market professionals expect for future profits is higher than for 77% of comparable companies, indicating a low value concerning Woodside Petroleum's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Woodside Petroleum with a rank of 28. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 72% of comparable companies, indicating a low value concerning Woodside Petroleum's profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 45, is a hold recommendation based on Woodside Petroleum's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Woodside Petroleum may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	28	42	20	23
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	36	59	28	28
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	59	59	49	76
DIVIDEND YIELD
DIVIDEND YIELD	70	90	82	83
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	61	60	27	45

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Woodside Petroleum; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 21 (better than 21% compared with alternatives), Woodside Petroleum shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Woodside Petroleum. Only Capital Growth has a good rank of 55, which means that currently professionals expect the company to grow its invested capital more than 44% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 18 which means that currently professionals expect the company to grow less than 82% of its competitors. Profit Growth with a rank of 44 and Stock Returns with a rank of 19 are also low (below 81% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 21, is a sell recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Woodside Petroleum is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	86	89	17	18
PROFIT GROWTH
PROFIT GROWTH	37	71	22	44
CAPITAL GROWTH
CAPITAL GROWTH	n/a	100	40	55
STOCK RETURNS
STOCK RETURNS	36	23	25	19
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	79	85	7	21

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Woodside Petroleum.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 85 (better than 85% compared with alternatives) for 2024, the company Woodside Petroleum has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Woodside Petroleum is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Woodside Petroleum. Leverage is at a rank of 70, meaning the company has a below-average debt-to-equity ratio. It has less debt than 70% of its competitors. Liquidity is also good at a rank of 98, meaning the company generates more profit to service its debt than 98% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 25, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 75% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 85 (better than 85% compared with alternatives), Woodside Petroleum has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Woodside Petroleum. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Woodside Petroleum and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	55	39	68	70
REFINANCING
REFINANCING	45	57	13	25
LIQUIDITY
LIQUIDITY	40	20	96	98
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	25	44	72	85

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Woodside Petroleum and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	37	15	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	75	24	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	24	29	^new
MARKET PULSE
MARKET PULSE	n/a	80	64	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	64	12	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Woodside Petroleum.
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