Wesfarmers Limited primarily engages in the retail business in Australia, New Zealand, the United Kingdom, and internationally. More Details
Flawless balance sheet second-rate dividend payer.
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 +/- 2% a week.
Volatility Over Time: WES's weekly volatility (2%) has been stable over the past year.
7 Day Return
AU Multiline Retail
1 Year Return
AU Multiline Retail
Return vs Industry: WES underperformed the Australian Multiline Retail industry which returned 35.3% over the past year.
Return vs Market: WES exceeded the Australian Market which returned 28.5% over the past year.
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
1 week ago | Simply Wall StHas Wesfarmers Limited (ASX:WES) Stock's Recent Performance Got Anything to Do With Its Financial Health?
1 month ago | Simply Wall StCalculating The Fair Value Of Wesfarmers Limited (ASX:WES)
1 month ago | Simply Wall StWe Think Wesfarmers (ASX:WES) Can Manage Its Debt With Ease
Is Wesfarmers undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: WES (A$57.49) is trading above our estimate of fair value (A$52.35)
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 (34.5x) compared to the Global Multiline Retail industry average (20.4x).
PE vs Market: WES is poor value based on its PE Ratio (34.5x) compared to the Australian market (20.5x).
Price to Earnings Growth Ratio
PEG Ratio: WES is poor value based on its PEG Ratio (8x)
Price to Book Ratio
PB vs Industry: WES is overvalued based on its PB Ratio (6.8x) compared to the XO Multiline Retail industry average (1.7x).
How is Wesfarmers forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WES's forecast earnings growth (4.3% per year) is above the savings rate (1.9%).
Earnings vs Market: WES's earnings (4.3% per year) are forecast to grow slower than the Australian market (13.6% per year).
High Growth Earnings: WES's earnings are forecast to grow, but not significantly.
Revenue vs Market: WES's revenue (2.3% per year) is forecast to grow slower than the Australian market (5.2% per year).
High Growth Revenue: WES's revenue (2.3% 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 (24.7%)
How has Wesfarmers performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WES has high quality earnings.
Growing Profit Margin: WES's current net profit margins (5.6%) are lower than last year (6.9%).
Past Earnings Growth Analysis
Earnings Trend: WES's earnings have grown by 6.4% 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 (-5%) over the past year, making it difficult to compare to the Multiline Retail industry average (15.5%).
Return on Equity
High ROE: WES's Return on Equity (19.6%) is considered low.
How is Wesfarmers's financial position?
Financial Position Analysis
Short Term Liabilities: WES's short term assets (A$8.3B) exceed its short term liabilities (A$8.2B).
Long Term Liabilities: WES's short term assets (A$8.3B) exceed its long term liabilities (A$7.7B).
Debt to Equity History and Analysis
Debt Level: WES's debt to equity ratio (20.7%) is considered satisfactory.
Reducing Debt: WES's debt to equity ratio has reduced from 25.3% to 20.7% over the past 5 years.
Debt Coverage: WES's debt is well covered by operating cash flow (232.6%).
Interest Coverage: WES's interest payments on its debt are well covered by EBIT (9.9x coverage).
What is Wesfarmers's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WES's dividend (2.87%) is higher than the bottom 25% of dividend payers in the Australian market (1.96%).
High Dividend: WES's dividend (2.87%) is low compared to the top 25% of dividend payers in the Australian market (5.01%).
Stability and Growth of Payments
Stable Dividend: WES's dividend payments have been volatile in the past 10 years.
Growing Dividend: WES's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (99%), WES's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WES's dividends in 3 years are forecast to be covered by earnings (88.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Rob Scott (51 yo)
Mr. Robert G. Scott, also known as Rob, has been Managing Director, Chief Executive Officer and Executive Director of Wesfarmers Limited since November 16, 2017. Mr. Scott served as Deputy Chief Executive ...
CEO Compensation Analysis
Compensation vs Market: Rob's total compensation ($USD5.98M) is above average for companies of similar size in the Australian market ($USD3.44M).
Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.
Experienced Management: WES's management team is considered experienced (3.6 years average tenure).
Experienced Board: WES's board of directors are considered experienced (3.6 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Wesfarmers Limited's company bio, employee growth, exchange listings and data sources
- Name: Wesfarmers Limited
- Ticker: WES
- Exchange: ASX
- Founded: 1914
- Industry: General Merchandise Stores
- Sector: Retail
- Market Cap: AU$65.184b
- Shares outstanding: 1.13b
- Website: https://www.wesfarmers.com.au
Number of Employees
- Wesfarmers Limited
- Brookfield Place Tower 2
- Level 14
- Western Australia
Wesfarmers Limited primarily engages in the retail business in Australia, New Zealand, the United Kingdom, and internationally. It is involved in the retail sale of building materials, and home and garden ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/17 15:27|
|End of Day Share Price||2021/06/17 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.