WDSWoodside Energy Group Ltd
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (2.3×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Margin-driven, fat margins on slower asset turns. ROE 8% = margin × turnover × leverage.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is WDS?
Woodside Energy Group Ltd earns 7.3% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 1.7 points below what the capital costs: growth destroys value
- Operating margin
- 30%
Operating margin · Oil & Gas E&P median 25% · fiscal year to FY2025
- Cash conversion
- 2.31×
Cash conversion · 1.59× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.08%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | −144% |
| FY2021 | 50% |
| FY2022 | 55% |
| FY2023 | 24% |
| FY2024 | 34% |
| FY2025 | 30% |
Details›
- Gross marginfiscal year to FY2025
- 35%
- Operating marginfiscal year to FY2025
- 30%
- Net marginfiscal year to FY2025
- 21%
- Revenue, trailing twelve months
- $13.0B
- Net income, trailing twelve months
- $2.72B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.