| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 4/6 |
| Past Performance | 6/6 |
| Financial Health | 3/6 |
| Dividends | 3/6 |
WES Stock Overview
Wesfarmers Limited primarily engages in the retail business in Australia, New Zealand, the United Kingdom, and internationally.
Wesfarmers Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | AU$43.21 |
| 52 Week High | AU$67.20 |
| 52 Week Low | AU$40.03 |
| Beta | 0.62 |
| 1 Month Change | -8.36% |
| 3 Month Change | -12.99% |
| 1 Year Change | -26.36% |
| 3 Year Change | 16.63% |
| 5 Year Change | 5.73% |
| Change since IPO | 755.84% |
Recent News & Updates
We Think Wesfarmers (ASX:WES) Can Stay On Top Of Its Debt
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Wesfarmers Limited's (ASX:WES) Intrinsic Value Is Potentially 64% Above Its Share Price
In this article we are going to estimate the intrinsic value of Wesfarmers Limited ( ASX:WES ) by estimating the...
If You Like EPS Growth Then Check Out Wesfarmers (ASX:WES) Before It's Too Late
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...
Shareholder Returns
| WES | AU Multiline Retail | AU Market | |
|---|---|---|---|
| 7D | -2.1% | -4.4% | -2.4% |
| 1Y | -26.4% | -28.2% | -12.0% |
Return vs Industry: WES exceeded the Australian Multiline Retail industry which returned -28.2% over the past year.
Return vs Market: WES underperformed the Australian Market which returned -12% over the past year.
Price Volatility
| WES volatility | |
|---|---|
| WES Average Weekly Movement | 3.8% |
| Multiline Retail Industry Average Movement | 5.1% |
| Market Average Movement | 9.9% |
| 10% most volatile stocks in AU Market | 16.5% |
| 10% least volatile stocks in AU Market | 4.4% |
Stable Share Price: WES is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: WES's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1914 | 122,000 | Rob Scott | https://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
| WES fundamental statistics | |
|---|---|
| Market Cap | AU$47.80b |
| Earnings (TTM) | AU$2.20b |
| Revenue (TTM) | AU$33.93b |
22.2x
P/E Ratio1.4x
P/S RatioIs WES overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| WES income statement (TTM) | |
|---|---|
| Revenue | AU$33.93b |
| Cost of Revenue | AU$21.25b |
| Gross Profit | AU$12.68b |
| Other Expenses | AU$10.47b |
| Earnings | AU$2.20b |
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
Aug 26, 2022
| Earnings per share (EPS) | 1.94 |
| Gross Margin | 37.36% |
| Net Profit Margin | 6.49% |
| Debt/Equity Ratio | 43.3% |
How did WES perform over the long term?
See historical performance and comparisonDividends
3.9%
Current Dividend Yield87%
Payout RatioValuation
Is WES undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
2/6Valuation 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
PEG Ratio
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.
| What is WES's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | AU$47.80b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.7x |
| Enterprise Value/EBITDA | 15.7x |
| PEG Ratio | 2.9x |
Price to Earnings Ratio vs Peers
How does WES's PE Ratio compare to its peers?
| WES PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 18.4x | ||
HVN Harvey Norman Holdings | 5.8x | -8.2% | AU$4.7b |
TRS Reject Shop | 19.7x | 43.3% | AU$123.8m |
DLTR Dollar Tree | 23.6x | 8.4% | US$35.1b |
DG Dollar General | 24.6x | 7.4% | US$55.9b |
WES Wesfarmers | 22.2x | 7.7% | AU$47.8b |
Price-To-Earnings vs Peers: WES is expensive based on its Price-To-Earnings Ratio (22.2x) compared to the peer average (18.4x).
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 (22.2x) compared to the Global Multiline Retail industry average (17x)
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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 22.2x |
| Fair PE Ratio | 22.7x |
Price-To-Earnings vs Fair Ratio: WES is good value based on its Price-To-Earnings Ratio (22.2x) compared to the estimated Fair Price-To-Earnings Ratio (22.7x).
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$43.21) is trading below our estimate of fair value (A$47.32)
Significantly Below Fair Value: WES is trading below fair value, but not by a significant amount.
Price to Earnings Growth Ratio
PEG Ratio: WES is poor value based on its PEG Ratio (2.9x)
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Future Growth
How is Wesfarmers forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
Future Growth Score
4/6Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
7.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WES's forecast earnings growth (7.7% per year) is above the savings rate (1.8%).
Earnings vs Market: WES's earnings (7.7% per year) are forecast to grow faster than the Australian market (5.6% per year).
High Growth Earnings: WES's earnings are forecast to grow, but not significantly.
Revenue vs Market: WES's revenue (5.9% per year) is forecast to grow faster than the Australian market (5.1% per year).
High Growth Revenue: WES's revenue (5.9% 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 (29.4%)
Discover growth companies
Past Performance
How has Wesfarmers performed over the past 5 years?
Past Performance Score
6/6Past Performance Score 6/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
5.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WES has high quality earnings.
Growing Profit Margin: WES's current net profit margins (6.5%) are higher than last year (5.6%).
Past Earnings Growth Analysis
Earnings Trend: WES's earnings have grown by 5.2% per year over the past 5 years.
Accelerating Growth: WES's earnings growth over the past year (16.9%) exceeds its 5-year average (5.2% per year).
Earnings vs Industry: WES earnings growth over the past year (16.9%) exceeded the Multiline Retail industry -2.1%.
Return on Equity
High ROE: WES's Return on Equity (28.5%) is considered high.
Discover strong past performing companies
Financial Health
How is Wesfarmers's financial position?
Financial Health Score
3/6Financial 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$7.8B) do not cover its short term liabilities (A$8.5B).
Long Term Liabilities: WES's short term assets (A$7.8B) do not cover its long term liabilities (A$8.9B).
Debt to Equity History and Analysis
Debt Level: WES's net debt to equity ratio (35.3%) is considered satisfactory.
Reducing Debt: WES's debt to equity ratio has increased from 25.5% to 43.3% over the past 5 years.
Debt Coverage: WES's debt is well covered by operating cash flow (81.2%).
Interest Coverage: WES's interest payments on its debt are well covered by EBIT (10.4x coverage).
Balance Sheet
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Dividend
What is Wesfarmers's current dividend yield, its reliability and sustainability?
Dividend Score
4/6Dividend Score 4/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
3.93%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WES's dividend (3.93%) is higher than the bottom 25% of dividend payers in the Australian market (2.75%).
High Dividend: WES's dividend (3.93%) is low compared to the top 25% of dividend payers in the Australian market (6.87%).
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 (87.3%), WES's payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (116.6%), 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?
4.7yrs
Average management tenure
CEO
Rob Scott (52 yo)
4.67yrs
Tenure
AU$6,934,049
Compensation
Mr. Robert G. Scott, also known as Rob, has been Managing Director, Chief Executive Officer and Executive Director of Wesfarmers Limited since November 16, 2017. Mr. Scott served as Deputy Chief Executive...
CEO Compensation Analysis
Compensation vs Market: Rob's total compensation ($USD4.71M) is about average for companies of similar size in the Australian market ($USD3.97M).
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 (4.7 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 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$47.804b
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/07/04 00:00 |
| End of Day Share Price | 2022/07/04 00:00 |
| Earnings | 2021/12/31 |
| Annual Earnings | 2021/06/30 |
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.