Woodside (ASX:WDS) Valuation After Surprise CEO Exit and Leadership Change to Liz Westcott
Woodside Energy Group (ASX:WDS) is back in the spotlight after CEO and Managing Director Meg O’Neill unexpectedly resigned to take the top job at bp, with Liz Westcott stepping in as Acting CEO.
See our latest analysis for Woodside Energy Group.
The leadership shake-up has landed just as Woodside finds itself in a broader downtrend, with a 1 month share price return of negative 11.52 percent and a year to date share price return of negative 6.17 percent. However, the 1 year total shareholder return of 6.29 percent and 5 year total shareholder return of 47.91 percent suggest longer term holders have still done reasonably well. Near term momentum is clearly fading as investors reassess both execution risk and growth optionality around major LNG projects.
If you are weighing how this fits into the energy landscape, it could be worth exploring aerospace and defense stocks to see what else is drawing attention in capital intensive, policy sensitive sectors.
With earnings growth flat, a double digit pullback, and analysts still seeing upside versus the current share price, investors now face a key question: is Woodside quietly undervalued, or is the market already pricing in its next growth leg?
Most Popular Narrative: 15% Undervalued
With Woodside closing at A$23.42 against a narrative fair value near A$27.42, the gap rests on how investors see LNG cash flows compounding.
The analysts have a consensus price target of A$26.999 for Woodside Energy Group based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of A$42.16, and the most bearish reporting a price target of just A$22.76.
Want to see why slower top line expectations still support a richer earnings multiple? The narrative leans on resilient margins, deliberate discounting, and surprisingly robust long run cash flows.
Result: Fair Value of A$27.42 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this narrative could unravel if decarbonization accelerates faster than expected, or if major LNG projects face regulatory delays and cost overruns.
Find out about the key risks to this Woodside Energy Group narrative.
Build Your Own Woodside Energy Group Narrative
If you see the story differently, or would rather stress test the numbers yourself, you can shape a fresh view in minutes: Do it your way.
A great starting point for your Woodside Energy Group research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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