NYSE:WBK

Stock Analysis Report

Executive Summary

Westpac Banking Corporation provides various banking and financial services in Australia, New Zealand, Asia, the Pacific region, and internationally.

Snowflake

Fundamentals

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.2%

NYSE:WBK

2.4%

US Banks

2.9%

US Market


1 Year Return

-12.6%

NYSE:WBK

-14.8%

US Banks

0.2%

US Market

WBK outperformed the Banks industry which returned -15.3% over the past year.

WBK underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

WBKIndustryMarket
7 Day-0.2%2.4%2.9%
30 Day-4.5%-6.3%-2.3%
90 Day-2.5%-2.1%3.1%
1 Year-6.4%-12.6%-12.4%-14.8%2.4%0.2%
3 Year-2.9%-19.4%41.7%32.0%41.7%32.4%
5 Year-22.2%-42.7%52.2%35.7%55.1%37.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Westpac Banking undervalued based on future cash flows and its price relative to the stock market?

13.35x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Westpac Banking's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Westpac Banking's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Westpac Banking is overvalued based on earnings compared to the US Banks industry average.

Westpac Banking is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Westpac Banking is poor value based on expected growth next year.


Price Based on Value of Assets

Westpac Banking is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Westpac Banking expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Westpac Banking's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).

Westpac Banking's earnings are expected to grow by 8.6% yearly, however this is not considered high growth (20% yearly).

Westpac Banking's revenue growth is positive but not above the United States of America market average.

Westpac Banking's earnings growth is positive but not above the United States of America market average.

Westpac Banking's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Westpac Banking is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Westpac Banking performed over the past 5 years?

1.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Westpac Banking's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Westpac Banking's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Westpac Banking's 1-year earnings growth is negative, it can't be compared to the US Banks industry average.


Return on Equity

Westpac Banking has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Westpac Banking used its assets less efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Westpac Banking improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Westpac Banking's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Information is not available.

Information is not available.


Financial Institutions Analysis

Westpac Banking has an acceptable proportion of non-loan assets held.

Westpac Banking has a sufficient allowance for bad loans.

Westpac Banking's liabilities are made up of primarily low risk sources of funding.

Westpac Banking's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Westpac Banking has advanced significantly more loans than the customer deposits it holds (i.e. bank has borrowed additional funds to lend).

Westpac Banking has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

6.68%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Westpac Banking's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Westpac Banking's dividend is above the markets top 25% of dividend payers in United States of America (3.85%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.3x coverage).


Next Steps

Management

What is the CEO of Westpac Banking's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Brian Hartzer (52yo)

4.5yrs

Tenure

AU$6,572,180

Compensation

Mr. Brian Charles Hartzer, BA, CFA, is Managing Director & Chief Executive Officer of Westpac Banking Corporation since February 2, 2015 and serves as Director. Mr. Hartzer joined Westpac as Chief Executiv ...


CEO Compensation Analysis

Brian's remuneration is lower than average for companies of similar size in United States of America.

Brian's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.0yrs

Average Tenure

54yo

Average Age

The tenure for the Westpac Banking management team is about average.


Board Age and Tenure

4.9yrs

Average Tenure

57.5yo

Average Age

The tenure for the Westpac Banking board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Brian Hartzer (52yo)

    MD, CEO & Director

    • Tenure: 4.5yrs
    • Compensation: AU$6.57m
  • David McLean (61yo)

    Chief Executive Officer of Westpac New Zealand Limited

    • Tenure: 4.5yrs
    • Compensation: AU$2.27m
  • Gary Thursby (57yo)

    Chief Operating Officer

    • Tenure: 0.3yrs
    • Compensation: AU$2.03m
  • Christine Parker (59yo)

    Group Executive of Human Resources

    • Tenure: 7.8yrs
    • Compensation: AU$2.21m
  • Lyn Cobley (56yo)

    Chief Executive of Westpac Institutional Bank

    • Tenure: 3.9yrs
    • Compensation: AU$2.75m
  • David Lees (49yo)

    Deputy Chief Financial Officer

    • Tenure: 0.0yrs
    • Compensation: AU$1.45m
  • Andrew Bowden

    Head of Investor Relations

    • Tenure: 0.0yrs
  • Peter King (49yo)

    Chief Financial Officer

    • Tenure: 0.8yrs
    • Compensation: AU$2.99m
  • David Lindberg (44yo)

    Chief Executive of Consumer

    • Tenure: 4.2yrs
    • Compensation: AU$2.50m
  • Craig Bright

    Chief Information Officer

    • Tenure: 0.7yrs

Board Members

  • Peter Marriott (62yo)

    Independent Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: AU$367.58k
  • Brian Hartzer (52yo)

    MD, CEO & Director

    • Tenure: 4.5yrs
    • Compensation: AU$6.57m
  • Craig Dunn (56yo)

    Independent Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: AU$340.98k
  • Catriona Deans (52yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: AU$333.15k
  • Ewen Graham Crouch (63yo)

    Independent Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: AU$344.58k
  • Lindsay Maxsted (65yo)

    Chairman of the Board

    • Tenure: 7.7yrs
    • Compensation: AU$830.18k
  • Nerida Caesar (55yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: AU$297.18k
  • Anita Fung (59yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
  • Jon Nicholson (63yo)

    Chairman of Westpac Foundation

    • Tenure: 6.6yrs
  • Peter Nash (56yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: AU$176.43k

Company Information

Westpac Banking Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Westpac Banking Corporation
  • Ticker: WBK
  • Exchange: NYSE
  • Founded: 1817
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: AU$94.689b
  • Listing Market Cap: AU$64.288b
  • Shares outstanding: 3.44b
  • Website: https://www.westpac.com.au

Number of Employees


Location

  • Westpac Banking Corporation
  • 275 Kent Street
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WBKNYSE (New York Stock Exchange)ADR(EACH REP 1 ORD NPV)USUSDMar 1989
WBCCDB (Deutsche Boerse AG)ADR(EACH REP 1 ORD NPV)DEEURMar 1989
WEBN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
WBCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
WBCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
WBCNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJan 1992
WBKBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 1/3 ADR(REP 5 ORD NPV)ARARSDec 2007
WBCPEASX (Australian Securities Exchange)FRN CNV PERP AUD1000AUAUDMay 2014
WBCPHASX (Australian Securities Exchange)FRN RVCV 09/2025 AUD1000AUAUDMar 2018
WBCPIASX (Australian Securities Exchange)FRN SUB MTN PERP AUD1000 '6'AUAUDDec 2018

Biography

Westpac Banking Corporation provides various banking and financial services in Australia, New Zealand, Asia, the Pacific region, and internationally. It operates through five divisions: Consumer Bank, Busi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 23:47
End of Day Share Price2019/08/21 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


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.