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WES

Wesfarmers ASX:WES Stock Report

Last Price

AU$43.28

Market Cap

AU$49.1b

7D

-3.9%

1Y

-24.5%

Updated

24 Sep, 2022

Data

Company Financials +
WES fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance3/6
Financial Health3/6
Dividends3/6

WES Stock Overview

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

Wesfarmers Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Wesfarmers
Historical stock prices
Current Share PriceAU$43.28
52 Week HighAU$61.34
52 Week LowAU$40.03
Beta0.68
1 Month Change-9.15%
3 Month Change-1.21%
1 Year Change-24.55%
3 Year Change7.26%
5 Year Change4.72%
Change since IPO757.23%

Recent News & Updates

Sep 21
Estimating The Intrinsic Value Of Wesfarmers Limited (ASX:WES)

Estimating The Intrinsic Value Of Wesfarmers Limited (ASX:WES)

Does the September share price for Wesfarmers Limited ( ASX:WES ) reflect what it's really worth? Today, we will...

Aug 30
Wesfarmers' (ASX:WES) Upcoming Dividend Will Be Larger Than Last Year's

Wesfarmers' (ASX:WES) Upcoming Dividend Will Be Larger Than Last Year's

The board of Wesfarmers Limited ( ASX:WES ) has announced that it will be paying its dividend of A$1.00 on the 6th of...

Shareholder Returns

WESAU Multiline RetailAU Market
7D-3.9%-3.9%-2.7%
1Y-24.5%-23.6%-11.0%

Return vs Industry: WES matched the Australian Multiline Retail industry which returned -23.6% over the past year.

Return vs Market: WES underperformed the Australian Market which returned -11% over the past year.

Price Volatility

Is WES's price volatile compared to industry and market?
WES volatility
WES Average Weekly Movement3.3%
Multiline Retail Industry Average Movement3.9%
Market Average Movement9.6%
10% most volatile stocks in AU Market16.9%
10% least volatile stocks in AU Market4.3%

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.

About the Company

FoundedEmployeesCEOWebsite
1914120,000Rob Scotthttps://www.wesfarmers.com.au

Wesfarmers Limited 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 garden improvement, and outdoor living products through its Bunnings stores; apparel and general merchandise, including toys, leisure, entertainment, home, and consumables; and office products and solutions, such as stationery, technology, furniture, art supplies, and learning and development resources, as well as print and create, and technical support services through its 168 Officeworks stores. It also provides hardware and software repairs, system security solutions, wireless and wired networking services, virus and spyware prevention and removal, and data backup and recovery solutions.

Wesfarmers Fundamentals Summary

How do Wesfarmers's earnings and revenue compare to its market cap?
WES fundamental statistics
Market CapAU$49.09b
Earnings (TTM)AU$2.35b
Revenue (TTM)AU$36.84b

20.9x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WES income statement (TTM)
RevenueAU$36.84b
Cost of RevenueAU$23.71b
Gross ProfitAU$13.13b
Other ExpensesAU$10.78b
EarningsAU$2.35b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.07
Gross Margin35.65%
Net Profit Margin6.38%
Debt/Equity Ratio62.1%

How did WES perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

87%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WES?

Other financial metrics that can be useful for relative valuation.

WES 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/Revenue1.6x
Enterprise Value/EBITDA15.9x
PEG Ratio3.4x

Price to Earnings Ratio vs Peers

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

WES PE Ratio vs Peers
The above table shows the PE ratio for WES vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.3x
HVN Harvey Norman Holdings
6.3x-10.6%AU$5.1b
TRS Reject Shop
19.2x26.9%AU$151.7m
DLTR Dollar Tree
20.2x9.1%US$31.6b
DG Dollar General
23.5x8.0%US$54.5b
WES Wesfarmers
20.9x6.1%AU$49.1b

Price-To-Earnings vs Peers: WES is expensive based on its Price-To-Earnings Ratio (20.9x) compared to the peer average (17.3x).


Price to Earnings Ratio vs Industry

How does WES's PE Ratio compare vs other companies in the Global Multiline Retail Industry?

Price-To-Earnings vs Industry: WES is expensive based on its Price-To-Earnings Ratio (20.9x) compared to the Global Multiline Retail industry average (16.7x)


Price to Earnings Ratio vs Fair Ratio

What is WES'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.

WES PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.9x
Fair PE Ratio22.1x

Price-To-Earnings vs Fair Ratio: WES is good value based on its Price-To-Earnings Ratio (20.9x) compared to the estimated Fair Price-To-Earnings Ratio (22.1x).


Share Price vs Fair Value

What is the Fair Price of WES when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WES (A$43.28) is trading below our estimate of fair value (A$48.3)

Significantly Below Fair Value: WES is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Future Growth

How is Wesfarmers forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WES's forecast earnings growth (6.1% per year) is above the savings rate (1.8%).

Earnings vs Market: WES's earnings (6.1% per year) are forecast to grow slower than the Australian market (6.6% per year).

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

Revenue vs Market: WES's revenue (4.7% per year) is forecast to grow faster than the Australian market (3.7% per year).

High Growth Revenue: WES's revenue (4.7% 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 (30.6%)


Discover growth companies

Past Performance

How has Wesfarmers 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


2.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WES has high quality earnings.

Growing Profit Margin: WES's current net profit margins (6.4%) are lower than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: WES's earnings have grown by 2.2% per year over the past 5 years.

Accelerating Growth: WES's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WES had negative earnings growth (-1.2%) over the past year, making it difficult to compare to the Multiline Retail industry average (-1.2%).


Return on Equity

High ROE: WES's Return on Equity (29.5%) is considered high.


Discover strong past performing companies

Financial Health

How is Wesfarmers's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: WES's short term assets (A$9.6B) exceed its short term liabilities (A$8.9B).

Long Term Liabilities: WES's short term assets (A$9.6B) do not cover its long term liabilities (A$10.4B).


Debt to Equity History and Analysis

Debt Level: WES's net debt to equity ratio (53.3%) is considered high.

Reducing Debt: WES's debt to equity ratio has increased from 22.6% to 62.1% over the past 5 years.

Debt Coverage: WES's debt is well covered by operating cash flow (46.4%).

Interest Coverage: WES's interest payments on its debt are well covered by EBIT (11.3x coverage).


Balance Sheet


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Dividend

What is Wesfarmers's 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

  • Cash Flow Coverage


4.16%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: WES's dividend (4.16%) is higher than the bottom 25% of dividend payers in the Australian market (2.78%).

High Dividend: WES's dividend (4.16%) is low compared to the top 25% of dividend payers in the Australian market (7.03%).


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.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (86.6%), WES's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (176.4%), WES's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

6.2yrs

Average management tenure


CEO

Rob Scott (52 yo)

4.83yrs

Tenure

AU$7,950,537

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 ($USD5.20M) is above average for companies of similar size in the Australian market ($USD3.94M).

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 seasoned and experienced (6.2 years average tenure).


Board Members

Experienced Board: WES's board of directors are considered experienced (4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WES insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

ASX:WES Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
02 Sep 22BuyAU$53,167Simon EnglishIndividual1,130AU$47.05
21 Jun 22BuyAU$31,888,867State Street Global Advisors, Inc.Company767,155AU$45.25
09 Jun 22BuyAU$0State Street Global Advisors, Inc.Company12,930AU$45.89
09 Jun 22SellAU$46,303State Street Global Advisors, Inc.Company21,230AU$47.04
02 Jun 22BuyAU$133,695State Street Global Advisors, Inc.Company2,834AU$47.31
31 May 22BuyAU$8,834,345State Street Global Advisors, Inc.Company243,189AU$47.73
31 May 22SellAU$7,267State Street Global Advisors, Inc.Company69,567AU$47.65
26 May 22BuyAU$5,610State Street Global Advisors, Inc.Company22,537AU$46.83
26 May 22SellAU$3,346,052State Street Global Advisors, Inc.Company72,674AU$46.82
24 May 22BuyAU$478,058State Street Global Advisors, Inc.Company10,323AU$46.31
20 May 22BuyAU$615,781State Street Global Advisors, Inc.Company13,189AU$46.75
19 May 22BuyAU$351,406State Street Global Advisors, Inc.Company15,280AU$49.78
19 May 22SellAU$0State Street Global Advisors, Inc.Company102,506AU$49.79
13 May 22BuyAU$476,676State Street Global Advisors, Inc.Company61,815AU$50.01
09 May 22BuyAU$12,335State Street Global Advisors, Inc.Company3,667AU$50.55
09 May 22SellAU$1,091State Street Global Advisors, Inc.Company22AU$49.60
05 May 22BuyAU$17,573State Street Global Advisors, Inc.Company301,422AU$50.94
18 Mar 22BuyAU$28,151Michael RocheIndividual560AU$50.27
18 Mar 22BuyAU$22,635Sally Foundation, Endowment ArmCompany450AU$50.30
08 Mar 22BuyAU$244,050Anil SabharwalIndividual5,000AU$48.81
28 Feb 22BuyAU$24,080Sharon WarburtonIndividual500AU$48.16
25 Feb 22BuyAU$48,650Sally Foundation, Endowment ArmCompany1,000AU$48.65
22 Feb 22BuyAU$79,908Alan CransbergIndividual1,573AU$50.80
10 Dec 21BuyAU$40,007Alan CransbergIndividual666AU$60.07
10 Dec 21BuyAU$40,007Alan CransbergIndividual666AU$60.07
12 Nov 21BuyAU$30,110Sally Foundation, Endowment ArmCompany500AU$60.22

Ownership Breakdown

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


Top Shareholders

Top 25 shareholders own 24.73% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
6.04%
BlackRock, Inc.
68,483,936A$3.0b0%0.05%
6%
The Vanguard Group, Inc.
68,081,095A$2.9b0%0.05%
5%
State Street Global Advisors, Inc.
56,749,072A$2.5b0%0.09%
1.51%
Norges Bank Investment Management
17,173,587A$743.3m0%0.07%
0.77%
Commonwealth Superannuation Corporation
8,748,310A$378.6m-3.61%5.62%
0.67%
CPU Share Plans Pty Limited
7,632,728A$330.3m-3.16%no data
0.65%
Australian Foundation Investment Company Limited
7,372,000A$319.1m-0.01%4.92%
0.57%
Geode Capital Management, LLC
6,409,859A$277.4m0.94%0.02%
0.44%
Argo Investments Limited
5,040,027A$218.1m0%4.29%
0.37%
Netwealth Investments Ltd.
4,171,444A$180.5m24.75%2.66%
0.31%
Charles Schwab Investment Management, Inc.
3,524,496A$152.5m2.26%0.03%
0.28%
J.P. Morgan Asset Management, Inc.
3,186,064A$137.9m-1.82%0.02%
0.27%
Washington H. Soul Pattinson and Company Limited
3,072,975A$133.0m0%no data
0.26%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
2,983,636A$129.1m0.45%0.03%
0.21%
Dimensional Fund Advisors LP
2,371,732A$102.6m2.27%0.02%
0.18%
BetaShares Capital Limited
2,025,050A$87.6m4.72%0.75%
0.17%
Mutual Trust Pty Ltd, Asset Management Arm
1,963,068A$85.0m4.2%5.03%
0.17%
United Funds Management Ltd.
1,877,122A$81.2m16.37%14.42%
0.15%
UBS Asset Management
1,751,738A$75.8m-16.48%0.01%
0.14%
Peter Brown
1,552,825A$67.2m0%no data
0.12%
MLC Investment Management Limited
1,384,952A$59.9m0%25.94%
0.11%
Goldman Sachs Asset Management, L.P.
1,296,368A$56.1m0.66%0.02%
0.11%
Franklin Resources, Inc.
1,255,672A$54.3m-0.47%0.02%
0.11%
BKI Investment Company Limited
1,212,510A$52.5m7.39%4.53%
0.098%
Credit Suisse Asset Management (Switzerland)
1,108,485A$48.0m1.07%0.03%

Company Information

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


Key Information

  • Name: Wesfarmers Limited
  • Ticker: WES
  • Exchange: ASX
  • Founded: 1914
  • Industry: General Merchandise Stores
  • Sector: Retail
  • Implied Market Cap: AU$49.086b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WFAF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
WESASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
WF3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
WESCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
WFAF.YOTCPK (Pink Sheets LLC)ADR NEW 2014USUSDOct 2008

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


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.