The Woolworths Group Ltd (ASX: WOW) share price has been seeing red of late but the future remains bright. Here’s why I like the future of the Woolworths share price.
WOW share price
Backing plastic recycling disrupter
We’re already seeing the benefits of the Endeavour Group Ltd (ASX: EDV) demerger, as Woolworths focuses its energy towards environmental, social and corporate governance projects.
As reported in the Australian Financial Review, Woolworths holds 25% in Samsara, which developed an enzyme that is used to break existing plastic bottles or other items into a form that can be reused in the plastics production process.
This technology essentially enables infinite recycling as described by Samsara founder and chief executive, Paul Riley.
Samsara is still undergoing research to scale the technology with the next step being to build a larger facility.
As a result, Samsara has flagged it will be requesting more funds to execute its future plans later this year. At this stage, Woolworth is yet to decide on whether it will participate in the planned fundraising round.
My take
Although Woolworths is still mulling over whether to provide capital in the next funding round, it still acknowledged the importance of this initiative.
A key figure within Woolworths said it backed Samsara because the practical applications in the marketplace were clearly evident.
I think the most durable and highest quality businesses are those that improve outcomes for all stakeholders. This includes the community.
It will be interesting to monitor whether or not Woolworths commits more capital towards Samsara, if it does, it signals strong intentions of producing positive outcomes for everyone.
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