EDV
07/07/26
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Endeavour Group Limited (ASX:EDV) has faced recent financial strain characterized by flat revenue, falling net profits, and a high debt load since its 2021 spin-off. The company trades around $3.35 per share, reflecting a roughly 48% decline from its all-time highs and underperforming the broader market. [1, 2, 3, 4, 5, 6]
Key financial highlights include:
- Profitability: The company has remained profitable but is in a decline. Net profit recently fell by about 17.1% in its latest half-year report, yielding an annual net profit margin of around 3.09%. Overall 5-year average annual earnings growth sits at about 7%, though the past year's trajectory has been heavily negative. [1, 2, 3, 4, 5]
- Debt: The company carries a substantial debt load. Total debt stands around $5.8 billion, yielding a debt-to-equity ratio of roughly 134% in 2026 (though it has come down over the last few years). This high leverage remains a primary concern for Endeavour Group (ASX:EDV) Balance Sheet & Financial Health Metrics analysts. [1, 2, 3, 4]
These are its recent D/E ratios
2026 - 1.34
2025 - 1.43
2024 - 1.61
2023 - 1.66
2022 - 1.50
2021 - 1.62
- Return on Equity (ROE): The trailing twelve months (2026) ROE is 9.44%, while its return on assets is 4.47%. [1, 2]
- Dividends: Yield is roughly 5.1%; however, dividend policy revisions were announced alongside cost-cutting strategies as the company pivots to long-term investment. [1, 2, 3]
- Recent Momentum: The stock has seen extreme short-term volatility following the announcement of a three-year transformation plan targeting $300 million in cost savings. You can track the Endeavour Group Limited (ASX:EDV) - Share Price in real-time. [1, 2]
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Endeavour Group Limited (ASX: EDV) does not have a 10-year standalone trading history because it was demerged from Woolworths Group and listed on the ASX in June 2021. Its historical Price-to-Earnings (P/E) ratios are only available from 2021 onward, with the current trailing P/E ratio sitting at approximately 16.0x. [1, 2, 3, 4, 5]
The available historical fiscal year-end P/E ratios and the current valuation details break down as follows:
Track Historical P/E Ratios (2021–2026)
| Year / Period [1, 2, 3, 4, 5, 6, 7] | P/E Ratio | Valuation Context & Driver |
|---|---|---|
| Current (July 2026) | 16.0x | Lowered share price (~$3.37) offset by a compressed EPS environment. |
| June 2025 | 13.8x – 16.2x | Market compression pushed the stock to its lowest valuation multiples since listing. |
| June 2024 | 17.7x | Stabilization phase as retail drinks and hospitality metrics flattened. |
| June 2023 | 21.0x | Moderation from post-listing highs as interest rates cooled consumer demand. |
| June 2022 | 25.5x – 27.6x | Higher multiple sustained by strong post-pandemic hospitality sector recovery. |
| June 2021 | 63.8x | Initial listing spike driven by high market excitement and a temporary low supply of shares. |
Analyze Key Trends & Blind Spots
- Demerged Limitations: For any long-term valuation modeling (like a Shiller PE10), you cannot calculate a true 10-year historical average for EDV because its financials before 2021 were integrated into Woolworths. [1]
- Compression Cycle: Over its 5-year public lifespan, EDV’s P/E ratio has continually compressed from a peak of over 60x down to a historically stable range of 14x to 18x. [1, 2]
- Peer Comparison: At a ~16x multiple, EDV trades roughly in line with the broader S&P/ASX 200 consumer sector average and its direct grocery-adjacent peers like Metcash. [1]
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ROIC vs WACC
Endeavour Group (ASX:EDV) has a recent Return on Invested Capital (ROIC) of approximately 0.70% to 2.14%, which tracks well below its Weighted Average Cost of Capital (WACC) of around 6.05% (with a 10-year WACC median of 5.21%). [1, 2]
Because Endeavour Group was only demerged from Woolworths Group and listed on the ASX in June 2021, a full independent 10-year history of distinct ROIC versus WACC data does not exist. [1]
Capital Returns and Cost of Capital
- Current ROIC: Ranging between 0.70% (trailing twelve months) and 2.14% (annualized metrics), indicating low relative efficiency in generating operating profits on the pool of capital deployed. [1, 2]
- Current WACC: Sits at 6.05%, which is roughly 16% above its historical 10-year blended median of 5.21%. [1]
- Economic Spread: The spread (ROIC minus WACC) is negative. An ROIC below WACC indicates that recent operational returns have lagged behind the theoretical minimum return required by debt and equity holders
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