Shareholders Are Optimistic That Wesfarmers (ASX:WES) Will Multiply In Value
Dec 28
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Australian (ASX) General Merchandise and Department Stores Industry Analysis
UpdatedJan 20, 2025
DataAggregated Company Financials
Companies6
- 7D-2.3%
- 3M-0.2%
- 1Y22.9%
- YTD-0.8%
Over the last 7 days, the General Merchandise and Department Stores industry has dropped 2.3%, driven by a pullback from Wesfarmers of 2.1%. In the past year, the industry has gained 23%. As for the next few years, earnings are expected to grow by 8.5% per annum.
Industry Valuation and Performance
Has the Australian General Merchandise and Department Stores Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 20 Jan 2025 | AU$88.0b | AU$51.4b | AU$2.9b | 22.2x | 29.8x | 1.7x |
| Wed, 18 Dec 2024 | AU$92.2b | AU$51.4b | AU$2.9b | 23.1x | 31.3x | 1.8x |
| Fri, 15 Nov 2024 | AU$84.9b | AU$51.4b | AU$2.9b | 23.3x | 28.8x | 1.7x |
| Sun, 13 Oct 2024 | AU$86.6b | AU$51.4b | AU$2.9b | 25.5x | 29.4x | 1.7x |
| Tue, 10 Sep 2024 | AU$85.9b | AU$51.5b | AU$3.0b | 25.3x | 29.1x | 1.7x |
| Thu, 08 Aug 2024 | AU$87.8b | AU$51.0b | AU$2.9b | 15.2x | 30.1x | 1.7x |
| Sat, 06 Jul 2024 | AU$80.8b | AU$51.0b | AU$2.9b | 14.2x | 27.6x | 1.6x |
| Mon, 03 Jun 2024 | AU$80.4b | AU$51.0b | AU$2.9b | 15.5x | 27.5x | 1.6x |
| Wed, 01 May 2024 | AU$82.9b | AU$51.0b | AU$2.9b | 19x | 28.4x | 1.6x |
| Fri, 29 Mar 2024 | AU$85.8b | AU$51.0b | AU$2.9b | 20.3x | 29.4x | 1.7x |
| Sun, 25 Feb 2024 | AU$81.2b | AU$51.1b | AU$3.0b | 16.3x | 26.8x | 1.6x |
| Tue, 23 Jan 2024 | AU$72.8b | AU$51.0b | AU$3.0b | 15.1x | 24.3x | 1.4x |
| Thu, 21 Dec 2023 | AU$70.2b | AU$51.0b | AU$3.0b | 14.8x | 23.4x | 1.4x |
| Sat, 18 Nov 2023 | AU$66.1b | AU$51.0b | AU$3.0b | 14.4x | 22.1x | 1.3x |
| Mon, 16 Oct 2023 | AU$66.1b | AU$51.0b | AU$3.0b | 15x | 22.1x | 1.3x |
| Wed, 13 Sep 2023 | AU$67.2b | AU$51.0b | AU$3.0b | 15x | 22.3x | 1.3x |
| Fri, 11 Aug 2023 | AU$63.5b | AU$49.2b | AU$3.3b | 14.7x | 19.5x | 1.3x |
| Sun, 09 Jul 2023 | AU$59.1b | AU$49.2b | AU$3.3b | 13x | 18.1x | 1.2x |
| Tue, 06 Jun 2023 | AU$60.9b | AU$49.2b | AU$3.3b | 12.9x | 18.7x | 1.2x |
| Thu, 04 May 2023 | AU$64.3b | AU$49.2b | AU$3.3b | 14.2x | 19.7x | 1.3x |
| Sat, 01 Apr 2023 | AU$62.9b | AU$49.2b | AU$3.3b | 13.4x | 19.3x | 1.3x |
| Mon, 27 Feb 2023 | AU$61.4b | AU$47.8b | AU$3.4b | 16.6x | 18.1x | 1.3x |
| Wed, 25 Jan 2023 | AU$62.3b | AU$42.9b | AU$3.2b | 17.5x | 19.3x | 1.5x |
| Fri, 23 Dec 2022 | AU$58.6b | AU$42.9b | AU$3.2b | 15.3x | 18.2x | 1.4x |
| Sun, 20 Nov 2022 | AU$59.8b | AU$42.9b | AU$3.2b | 17x | 18.6x | 1.4x |
| Tue, 18 Oct 2022 | AU$56.5b | AU$42.9b | AU$3.2b | 15.2x | 17.5x | 1.3x |
| Thu, 15 Sep 2022 | AU$58.7b | AU$42.8b | AU$3.2b | 17.5x | 18.3x | 1.4x |
| Sat, 13 Aug 2022 | AU$59.8b | AU$39.8b | AU$3.1b | 18x | 19.6x | 1.5x |
| Mon, 11 Jul 2022 | AU$56.1b | AU$39.8b | AU$3.1b | 14.6x | 18.4x | 1.4x |
| Wed, 08 Jun 2022 | AU$57.5b | AU$39.8b | AU$3.1b | 14.6x | 18.8x | 1.4x |
| Fri, 06 May 2022 | AU$62.7b | AU$39.8b | AU$3.1b | 15.9x | 20.5x | 1.6x |
| Sun, 03 Apr 2022 | AU$63.4b | AU$39.8b | AU$3.1b | 18.9x | 20.7x | 1.6x |
| Tue, 01 Mar 2022 | AU$61.8b | AU$39.7b | AU$3.1b | 16.4x | 20.1x | 1.6x |
| Thu, 27 Jan 2022 | AU$66.1b | AU$39.7b | AU$3.3b | 16x | 20.2x | 1.7x |
Price to Earnings Ratio
20.2x
Current Industry PE
- Investors are optimistic on the Australian Multiline Retail industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 29.8x which is higher than its 3-year average PE of 22.8x.
- The 3-year average PS ratio of 1.5x is lower than the industry's current PS ratio of 1.7x.
Past Earnings Growth
- The earnings for companies in the Multiline Retail industry have declined 3.4% per year over the last three years.
- Meanwhile revenues for these companies have grown 9.0% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Australian Consumer Discretionary industry?
| AU Market | 0.10% | |
| Consumer Discretionary | -1.29% | |
| General Merchandise and Department Stores | -2.25% | |
| Department Stores | 0% | 0 |
| General Merchandise Stores | 0% | 0 |
| Broadline Retail | -2.25% | |
Industry PE
- Investors are most optimistic about the Broadline Retail industry which is trading above its 3-year average PE ratio of 25.1x.
- Analysts are expecting annual earnings growth of 8.5%, which is higher than its past year's earnings decline of 31.5% per year.
- Investors are most pessimistic about the Broadline Retail industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 25.1x.
Forecasted Growth
- Analysts are most optimistic on the Broadline Retail industry, expecting annual earnings growth of 8.5% over the next 5 years.
- This is better than its past earnings decline of 31% per year.
- In contrast, the Broadline Retail industry is expected to see its earnings grow by 8.5% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| WES Wesfarmers | AU$71.74 | 1.1% +AU$885.3m | 23.5% | PE31.8x | |
| HVN Harvey Norman Holdings | AU$4.68 | 1.1% +AU$62.3m | 6.6% | PE16.5x | |
| TRS Reject Shop | AU$2.95 | 5.4% +AU$5.6m | -45.4% | PE23.3x |
