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WBC

Westpac Banking ASX:WBC Stock Report

Last Price

AU$19.42

Market Cap

AU$67.9b

7D

-0.3%

1Y

-24.3%

Updated

02 Jul, 2022

Data

Company Financials +
WBC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance3/6
Financial Health5/6
Dividends3/6

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

Summary of all time highs, changes and price drops for Westpac Banking
Historical stock prices
Current Share PriceAU$19.42
52 Week HighAU$26.44
52 Week LowAU$18.80
Beta0.81
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 IPO335.43%

Recent News & Updates

Shareholder Returns

WBCAU BanksAU Market
7D-0.3%0.7%-0.5%
1Y-24.3%-12.2%-12.2%

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.

Price Volatility

Is WBC's price volatile compared to industry and market?
WBC volatility
WBC Average Weekly Movement3.6%
Banks Industry Average Movement3.5%
Market Average Movement9.9%
10% most volatile stocks in AU Market16.6%
10% least volatile stocks in AU Market4.4%

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

FoundedEmployeesCEOWebsite
181734,637Peter Kinghttps://www.westpac.com.au

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

How do Westpac Banking's earnings and revenue compare to its market cap?
WBC fundamental statistics
Market CapAU$67.89b
Earnings (TTM)AU$5.29b
Revenue (TTM)AU$20.85b

12.8x

P/E Ratio

1.0x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WBC income statement (TTM)
RevenueAU$20.85b
Cost of RevenueAU$0
Gross ProfitAU$20.85b
Other ExpensesAU$15.55b
EarningsAU$5.29b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Nov 07, 2022

Earnings per share (EPS)1.51
Gross Margin100.00%
Net Profit Margin25.39%
Debt/Equity Ratio267.3%

How did WBC perform over the long term?

See historical performance and comparison

Dividends

6.3%

Current Dividend Yield

83%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is WBC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

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

  • PEG Ratio

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.

WBC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio2.6x

Price to Earnings Ratio vs Peers

How does WBC's PE Ratio compare to its peers?

WBC PE Ratio vs Peers
The above table shows the PE ratio for WBC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.7x
ANZ Australia and New Zealand Banking Group
9.1x2.7%AU$61.4b
NAB National Australia Bank
12.9x4.7%AU$87.6b
CBA Commonwealth Bank of Australia
15.7x0.8%AU$154.2b
BFL BSP Financial Group
5.1xn/aAU$2.3b
WBC Westpac Banking
12.8x4.9%AU$67.9b

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.

WBC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.8x
Fair PE Ratio13.2x

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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Future Growth

How is Westpac Banking forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


4.9%

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%).


Discover growth companies

Past Performance

How has Westpac Banking performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-14.7%

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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Financial Health

How is Westpac Banking's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

5/6

Financial Health Score 5/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


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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Dividend

What is Westpac Banking current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


6.28%

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).


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Peter King (52 yo)

2.58yrs

Tenure

AU$4,202,453

Compensation

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.


Leadership Team

Experienced Management: WBC's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: WBC's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Westpac Banking Corporation's employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Westpac Banking Corporation
  • 275 Kent Street
  • Level 18
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/02 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2021/09/30


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.