Woodside Energy Group Ltd (WDS) AI Stock Analysis
WDS AI stock analysis summary
AI ResearchWoodside Energy Group Ltd (WDS) is an international energy producer engaged in the exploration, production, and marketing of hydrocarbons, primarily LNG and crude oil. For the trailing twelve months, the company generated $13.84B in revenue with a profit margin of 22.2% while offering a dividend yield of 4.91%. Over the past year, the stock returned 71.1%, significantly outpacing the broader market.
- Market cap
- $42.00B
- Revenue (TTM)
- $13.84B
- P/E
- 14.8x fwd 11.8x
- 1Y return
- 71.1% S&P 500 16.8%
- Avg. target
- $24.53 3.8% vs last close
Bull case
- Woodside has generated strong market momentum, delivering a 1-year return of 71.1% compared to 16.8% for the S&P 500.
- The stock trades at an EV/EBITDA of 5.5x and forward P/E of 11.8x, which are both lower than the US-listed Energy peer medians of 8.0x and 12.7x.
- Shareholders benefit from a forward dividend yield of 4.91% backed by 30 consecutive years of dividend distributions.
Bear case
- In FY2025, free cash flow was -$782.0M as capital expenditures reached $7.97B.
- Annual revenue has contracted in three consecutive fiscal years, sliding from $16.82B in FY2022 to $12.98B in FY2025.
- The company carries $13.67B in total debt, leading to net debt of $9.33B as of June 30, 2026.
What Woodside Energy does
Woodside Energy Group Ltd is actively engaged in all facets of the hydrocarbon industry, spanning exploration, evaluation, development, production, and global marketing and sales. Operating across Oceania, Asia, Canada, Africa, and beyond, the company produces liquefied natural gas (LNG), pipeline natural gas, condensate, liquefied petroleum gas (LPG), and crude oil. Its major asset interests include Greater Browse, Greater Sunrise, Greater Pluto, and North West Shelf. Headquartered in Perth, Australia, Woodside was founded in 1954 and focuses on meeting global energy demand through sustainable and efficient resource management.
Growth and profitability
Between FY2020 and FY2025, Woodside delivered a 5-year revenue CAGR of 29.2%. Annual revenue grew from $6.96B in FY2021 to a peak of $16.82B in FY2022, before moderating to $13.99B in FY2023, $13.18B in FY2024, and $12.98B in FY2025. Over the same period, net income fell from $6.50B in FY2022 to $2.72B in FY2025, with gross margin contracting to 34.9% and operating margin to 29.8%. For the trailing twelve months ended June 30, 2026, revenue stood at $13.84B with EPS of $1.60 and an operating margin of 23.9%. In the quarter ended June 30, 2026, revenue rose 13.0% year-over-year while earnings expanded 26.9%.
Balance sheet and cash flow
As of June 30, 2026, Woodside held $4.34B in cash and short-term investments against total debt of $13.67B, resulting in net debt of $9.33B. Total assets stood at $67.68B and shareholders' equity was $36.05B, supporting a current ratio of 1.39 and a debt-to-equity ratio of 0.38. In FY2025, operating cash flow reached $7.19B, but free cash flow declined to -$782.0M due to capital expenditures of $7.97B. The company distributed $2.01B in dividends and spent $53.0M on share buybacks in FY2025.
Valuation and performance
At $23.64 per share, Woodside has a market cap of $42.00B and an enterprise value of $51.30B. The stock trades at a trailing P/E of 14.8x and a forward P/E of 11.8x, both below the median of its US-listed Energy peers at 15.0x and 12.7x, respectively. Its EV/EBITDA of 5.5x also trades below the peer median of 8.0x, though its price-to-sales ratio of 3.1x stands higher than the peer median of 1.8x. Over the past 12 months, Woodside shares gained 71.1%, compared to a 16.8% return for the S&P 500 (SPY).
WDS dividend
Woodside pays an annual forward dividend of $1.16 per share, providing a 4.91% dividend yield with a payout ratio of 69.8%. Dividends are distributed on a Semiannual basis. The company has paid dividends for 30 consecutive years, achieving an annualized 5-year dividend growth rate of 5.5%. Its most recent ex-dividend date was September 4, 2026.
What analysts expect
Wall Street coverage consists of 1 Hold rating, with 0 Strong Buy, 0 Buy, 0 Sell, and 0 Strong Sell ratings. The mean price target is $24.53, implying a 3.8% premium above the last close of $23.64. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $15.90B and EPS of $2.00, following 2 EPS beats over the last 4 quarters. For the following fiscal year, 1 analyst estimates revenue of $16.16B and EPS of $1.90.
Key risks and what to watch
- Elevated capital expenditures of $7.97B in FY2025 pulled annual free cash flow into negative territory at -$782.0M.
- Analysts project next fiscal year EPS to decline by 5.3% to $1.90.
- Operating margins have dropped from 54.6% in FY2022 to 29.8% in FY2025 and 23.9% over the trailing twelve months.
- The share count increased by 94.9% over the past 5 years, creating potential dilution concerns.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this WDS AI stock analysis
This page is an AI-written research summary of Woodside Energy Group Ltd (WDS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: WDS income statement, WDS balance sheet, WDS key metrics, WDS analyst forecast, WDS chart. See the WDS stock overview for the latest quote and news.
WDS AI stock analysis FAQ
What is Woodside Energy Group Ltd's dividend yield and payment schedule?
Woodside offers a forward dividend yield of 4.91% based on an annual dividend of $1.16 per share. The company pays dividends on a Semiannual schedule and has paid dividends for 30 consecutive years.
What are analysts' price targets for WDS?
The sole analyst tracking the stock maintains a Hold rating with a mean price target of $24.53, representing an upside of 3.8% over the last close of $23.64.
How does Woodside's valuation compare to its energy peers?
Woodside trades at a trailing P/E of 14.8x and an EV/EBITDA of 5.5x, below the median of its US-listed Energy peers at 15.0x and 8.0x. However, its price-to-sales multiple of 3.1x is higher than the peer median of 1.8x.
What is Woodside's current financial leverage?
As of June 30, 2026, Woodside had $4.34B in cash and short-term investments alongside $13.67B in total debt, producing net debt of $9.33B and a debt-to-equity ratio of 0.38.