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Market Cap

AU$64.9b

Last Updated

2021/09/18 08:03 UTC

Data Sources

Company Financials +

Executive Summary

Wesfarmers Limited primarily engages in the retail business in Australia, New Zealand, the United Kingdom, and internationally. More Details


Snowflake Analysis

Flawless balance sheet with outstanding track record and pays a dividend.


Similar Companies

Share Price & News

How has Wesfarmers's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WES is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: WES's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.7%

WES

0.7%

AU Multiline Retail

-0.02%

AU Market


1 Year Return

29.9%

WES

29.4%

AU Multiline Retail

27.0%

AU Market

Return vs Industry: WES matched the Australian Multiline Retail industry which returned 29.4% over the past year.

Return vs Market: WES exceeded the Australian Market which returned 27% over the past year.


Shareholder returns

WESIndustryMarket
7 Day0.7%0.7%-0.02%
30 Day-13.2%-12.7%-0.5%
90 Day-0.8%-0.5%0.7%
1 Year34.2%29.9%34.1%29.4%32.4%27.0%
3 Year85.4%14.9%84.9%17.8%35.9%19.3%
5 Year132.0%30.1%113.2%24.6%65.4%32.7%

Long-Term Price Volatility Vs. Market

How volatile is Wesfarmers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wesfarmers undervalued compared to its fair value and its price relative to the market?

27.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WES (A$57.28) is trading above our estimate of fair value (A$53.23)

Significantly Below Fair Value: WES is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WES is poor value based on its PE Ratio (27.3x) compared to the Oceanic Multiline Retail industry average (18.9x).

PE vs Market: WES is poor value based on its PE Ratio (27.3x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: WES is poor value based on its PEG Ratio (6.7x)


Price to Book Ratio

PB vs Industry: WES is overvalued based on its PB Ratio (6.7x) compared to the XO Multiline Retail industry average (2x).


Future Growth

How is Wesfarmers forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WES's forecast earnings growth (4.1% per year) is above the savings rate (1.9%).

Earnings vs Market: WES's earnings (4.1% per year) are forecast to grow slower than the Australian market (11.5% per year).

High Growth Earnings: WES's earnings are forecast to grow, but not significantly.

Revenue vs Market: WES's revenue (3.1% per year) is forecast to grow slower than the Australian market (5.3% per year).

High Growth Revenue: WES's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WES's Return on Equity is forecast to be high in 3 years time (28.5%)


Past Performance

How has Wesfarmers performed over the past 5 years?

11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WES has high quality earnings.

Growing Profit Margin: WES's current net profit margins (7%) are higher than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: WES's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: WES's earnings growth over the past year (46.7%) exceeds its 5-year average (11.7% per year).

Earnings vs Industry: WES earnings growth over the past year (46.7%) exceeded the Multiline Retail industry 32.6%.


Return on Equity

High ROE: WES's Return on Equity (24.5%) is considered high.


Financial Health

How is Wesfarmers's financial position?


Financial Position Analysis

Short Term Liabilities: WES's short term assets (A$9.1B) exceed its short term liabilities (A$7.9B).

Long Term Liabilities: WES's short term assets (A$9.1B) exceed its long term liabilities (A$8.6B).


Debt to Equity History and Analysis

Debt Level: WES's debt to equity ratio (31.1%) is considered satisfactory.

Reducing Debt: WES's debt to equity ratio has reduced from 31.8% to 31.1% over the past 5 years.

Debt Coverage: WES's debt is well covered by operating cash flow (111.9%).

Interest Coverage: WES's interest payments on its debt are well covered by EBIT (11.1x coverage).


Balance Sheet


Dividend

What is Wesfarmers's current dividend yield, its reliability and sustainability?

3.14%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 19 2021Ex Dividend DateNov 18 2021Dividend Pay DateDec 02 202114 days from Ex DividendBuy in the next 60 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: WES's dividend (3.14%) is higher than the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: WES's dividend (3.14%) is low compared to the top 25% of dividend payers in the Australian market (5.41%).


Stability and Growth of Payments

Stable Dividend: WES's dividend payments have been volatile in the past 10 years.

Growing Dividend: WES's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.6%), WES's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WES's dividends in 3 years are forecast to be covered by earnings (87.7% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Rob Scott (51 yo)

3.83yrs

Tenure

AU$6,934,049

Compensation

Mr. Robert G. Scott, also known as Rob, has been Managing Director, Chief Executive Officer and Executive Director of Wesfarmers Limited since November 16, 2017. Mr. Scott served as Deputy Chief Executive...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD5.04M) is above average for companies of similar size in the Australian market ($USD3.56M).

Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: WES's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: WES's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

Wesfarmers Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wesfarmers Limited
  • Ticker: WES
  • Exchange: ASX
  • Founded: 1914
  • Industry: General Merchandise Stores
  • Sector: Retail
  • Market Cap: AU$64.946b
  • Shares outstanding: 1.13b
  • Website: https://www.wesfarmers.com.au

Number of Employees


Location

  • Wesfarmers Limited
  • Brookfield Place Tower 2
  • Level 14
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings


Biography

Wesfarmers Limited primarily engages in the retail business in Australia, New Zealand, the United Kingdom, and internationally. The company is involved in the retail sale of building materials, home and ga...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 08:03
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.