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WES

WesfarmersASX:WES Stock Report

Market Cap

AU$65.2b

7D

0.2%

1Y

25.9%

Updated

27 Sep, 2021

Data

Company Financials +
WES fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance6/6
Financial Health6/6
Dividends4/6

WES Overview

Wesfarmers Limited primarily 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$57.48
52 Week HighAU$44.33
52 Week LowAU$67.20
Beta0.54
1 Month Change-7.59%
3 Month Change-2.74%
1 Year Change25.89%
3 Year Change17.74%
5 Year Change28.99%
Change since IPO1,038.49%

Recent News & Updates

Shareholder Returns

WESAU Multiline RetailAU Market
7D0.2%0.04%-0.8%
1Y25.9%24.7%25.3%

Return vs Industry: WES exceeded the Australian Multiline Retail industry which returned 24.7% over the past year.

Return vs Market: WES matched the Australian Market which returned 25.3% over the past year.

Price Volatility

Is WES's price volatile compared to industry and market?
WES volatility
WES Beta0.54
Industry Beta0.57
Market Beta1

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
1914114,000Rob Scotthttps://www.wesfarmers.com.au

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 garden improvement, and outdoor living products through its Bunnings stores; apparel, homewares, and general merchandise, including toys, leisure, entertainment, home, consumables, electrical products, and accessories; and office products and solutions, such as office supplies, technology, furniture, art supplies, education resources, and helpful services, including print and copy and on-site tech support 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 through Geeks2U.

Wesfarmers Fundamentals Summary

How do Wesfarmers's earnings and revenue compare to its market cap?
WES fundamental statistics
Market CapAU$65.17b
Earnings (TTM)AU$2.38b
Revenue (TTM)AU$33.94b

27.4x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WES income statement (TTM)
RevenueAU$33.94b
Cost of RevenueAU$21.12b
Gross ProfitAU$12.82b
ExpensesAU$10.44b
EarningsAU$2.38b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.10
Gross Margin37.76%
Net Profit Margin7.01%
Debt/Equity Ratio31.1%

How did WES perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

85%

Payout Ratio

Does WES pay a reliable dividends?

See WES dividend history and benchmarks
When do you need to buy WES by to receive an upcoming dividend?
Wesfarmers dividend dates
Ex Dividend DateNov 18 2021
Dividend Pay DateDec 02 2021
Days until Ex dividend51 days
Days until Dividend pay date65 days

Does WES pay a reliable dividends?

See WES dividend history and benchmarks

Valuation

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

27.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WES (A$57.48) is trading above our estimate of fair value (A$53.16)

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 (27.4x) compared to the Oceanic Multiline Retail industry average (19x).

PE vs Market: WES is poor value based on its PE Ratio (27.4x) compared to the Australian market (19.1x).


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 (2.3x).


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 (11.9% 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 (5.7% 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?

3.13%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 27 2021Ex Dividend DateNov 18 2021Dividend Pay DateDec 02 202114 days from Ex DividendBuy in the next 51 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: WES's dividend (3.13%) is higher than the bottom 25% of dividend payers in the Australian market (2.31%).

High Dividend: WES's dividend (3.13%) is low compared to the top 25% of dividend payers in the Australian market (5.45%).


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 ($USD5.03M) is above average for companies of similar size in the Australian market ($USD3.55M).

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: WES 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 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$65.173b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 15:32
End of Day Share Price2021/09/27 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.