WBC Stock Overview
Westpac Banking Corporation provides various banking and financial services in Australia, New Zealand, the Americas, Asia, Europe, and internationally.
Westpac Banking Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||AU$19.42|
|52 Week High||AU$26.44|
|52 Week Low||AU$18.80|
|1 Month Change||-18.85%|
|3 Month Change||-18.91%|
|1 Year Change||-24.26%|
|3 Year Change||-31.50%|
|5 Year Change||-36.52%|
|Change since IPO||335.43%|
Recent News & Updates
|WBC||AU Banks||AU Market|
Return vs Industry: WBC underperformed the Australian Banks industry which returned -12.2% over the past year.
Return vs Market: WBC underperformed the Australian Market which returned -12.2% over the past year.
|WBC Average Weekly Movement||3.6%|
|Banks Industry Average Movement||3.5%|
|Market Average Movement||9.9%|
|10% most volatile stocks in AU Market||16.6%|
|10% least volatile stocks in AU Market||4.4%|
Stable Share Price: WBC is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: WBC's weekly volatility (4%) has been stable over the past year.
About the Company
Westpac Banking Corporation provides various banking and financial services in Australia, New Zealand, the Americas, Asia, Europe, and internationally. It offers everyday banking, savings, term deposit, business transaction, foreign currency, and specialized accounts; home, personal, and business loans; credit cards; international and travel services; share trading services; investment; and home, car, travel, life, and business insurance products. The company also provides merchant and payment, corporate and institutional, transaction banking, financial market, corporate and structured finance, trade and supply chain financing, and industry specific banking and treasury services, as well as online banking services.
Westpac Banking Fundamentals Summary
|WBC fundamental statistics|
Is WBC overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|WBC income statement (TTM)|
|Cost of Revenue||AU$0|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
Nov 07, 2022
|Earnings per share (EPS)||1.51|
|Net Profit Margin||25.39%|
How did WBC perform over the long term?See historical performance and comparison
6.3%Current Dividend Yield
Is WBC undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 3/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for WBC?
Other financial metrics that can be useful for relative valuation.
|What is WBC's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does WBC's PE Ratio compare to its peers?
|WBC PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
ANZ Australia and New Zealand Banking Group
NAB National Australia Bank
CBA Commonwealth Bank of Australia
BFL BSP Financial Group
WBC Westpac Banking
Price-To-Earnings vs Peers: WBC is expensive based on its Price-To-Earnings Ratio (12.8x) compared to the peer average (10.7x).
Price to Earnings Ratio vs Industry
How does WBC's PE Ratio compare vs other companies in the Global Banks Industry?
Price-To-Earnings vs Industry: WBC is expensive based on its Price-To-Earnings Ratio (12.8x) compared to the Global Banks industry average (9x)
Price to Earnings Ratio vs Fair Ratio
What is WBC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||12.8x|
|Fair PE Ratio||13.2x|
Price-To-Earnings vs Fair Ratio: WBC is good value based on its Price-To-Earnings Ratio (12.8x) compared to the estimated Fair Price-To-Earnings Ratio (13.2x).
Share Price vs Fair Value
What is the Fair Price of WBC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: WBC (A$19.42) is trading below our estimate of fair value (A$33.15)
Significantly Below Fair Value: WBC is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: WBC is poor value based on its PEG Ratio (2.6x)
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How is Westpac Banking forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WBC's forecast earnings growth (4.9% per year) is above the savings rate (1.8%).
Earnings vs Market: WBC's earnings (4.9% per year) are forecast to grow slower than the Australian market (5.7% per year).
High Growth Earnings: WBC's earnings are forecast to grow, but not significantly.
Revenue vs Market: WBC's revenue (4% per year) is forecast to grow slower than the Australian market (5.2% per year).
High Growth Revenue: WBC's revenue (4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WBC's Return on Equity is forecast to be low in 3 years time (10.1%).
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How has Westpac Banking performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WBC has high quality earnings.
Growing Profit Margin: WBC's current net profit margins (25.4%) are higher than last year (23.1%).
Past Earnings Growth Analysis
Earnings Trend: WBC's earnings have declined by 14.7% per year over the past 5 years.
Accelerating Growth: WBC's earnings growth over the past year (16.5%) exceeds its 5-year average (-14.7% per year).
Earnings vs Industry: WBC earnings growth over the past year (16.5%) underperformed the Banks industry 16.5%.
Return on Equity
High ROE: WBC's Return on Equity (7.5%) is considered low.
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How is Westpac Banking's financial position? (This company is analysed differently as a bank or financial institution)
Financial Health Score5/6
Financial Health Score 5/6
Allowance for Bad Loans
Low Risk Liabilities
Low Risk Deposits
Level of Bad Loans
Financial Position Analysis
Debt to Equity History and Analysis
Financial Institutions Analysis
Asset Level: WBC's Assets to Equity ratio (13.7x) is moderate.
Allowance for Bad Loans: WBC has a low allowance for bad loans (53%).
Low Risk Liabilities: 72% of WBC's liabilities are made up of primarily low risk sources of funding.
Loan Level: WBC has an appropriate level of Loans to Assets ratio (75%).
Low Risk Deposits: WBC's Loans to Deposits ratio (111%) is appropriate.
Level of Bad Loans: WBC has an appropriate level of bad loans (1.1%).
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What is Westpac Banking current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WBC's dividend (6.28%) is higher than the bottom 25% of dividend payers in the Australian market (2.75%).
High Dividend: WBC's dividend (6.28%) is low compared to the top 25% of dividend payers in the Australian market (6.87%).
Stability and Growth of Payments
Stable Dividend: WBC's dividend payments have been volatile in the past 10 years.
Growing Dividend: WBC's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Earnings Coverage: At its current payout ratio (83.3%), WBC's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WBC's dividends in 3 years are forecast to be covered by earnings (70.2% payout ratio).
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Peter King (52 yo)
Mr. Peter Francis King, BEc, FCA, has been the Chief Executive Officer & Managing Director of Westpac Banking Corporation since April 02, 2020 and served as its Acting Managing Director & Chief Executive O...
CEO Compensation Analysis
Compensation vs Market: Peter's total compensation ($USD2.85M) is about average for companies of similar size in the Australian market ($USD4.03M).
Compensation vs Earnings: Peter's compensation has increased by more than 20% in the past year.
Experienced Management: WBC's management team is considered experienced (2 years average tenure).
Experienced Board: WBC's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WBC insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Westpac Banking Corporation's employee growth, exchange listings and data sources
- Name: Westpac Banking Corporation
- Ticker: WBC
- Exchange: ASX
- Founded: 1817
- Industry: Diversified Banks
- Sector: Banks
- Implied Market Cap: AU$67.893b
- Shares outstanding: 3.50b
- Website: https://www.westpac.com.au
Number of Employees
- Westpac Banking Corporation
- 275 Kent Street
- Level 18
- New South Wales
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/07/02 00:00|
|End of Day Share Price||2022/07/01 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.