WBK Stock Overview
Westpac Banking Corporation provides various banking and financial services in Australia, New Zealand, the Americas, Asia, Europe, and internationally.
Westpac Banking Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||AU$15.54|
|52 Week High||AU$20.82|
|52 Week Low||AU$14.09|
|1 Month Change||4.44%|
|3 Month Change||-17.87%|
|1 Year Change||-4.95%|
|3 Year Change||-17.95%|
|5 Year Change||-35.84%|
|Change since IPO||265.65%|
Recent News & Updates
Westpac Banking Corp: Opportunity In Rebuilding A Bank
CEO Peter King has led Westpac with excellent progress across its 3 key strategies of Fix, Simplify and Perform. A 17% price rout since the annual report was an over-reaction to slightly softer than expected results, despite an underlying growing business amidst regulatory action. A mispricing of the firm has occurred thanks to an overreaction to the annual report. Westpac's current price significantly undervalues the residential mortgage business, offering access to the Australian property market at a fraction of the cost compared to other lenders. Westpac's forecast revenues may be lower next year; however, EPS has excellent forecast growth of 12% CAGR thanks to increased profitability.
Westpac Banking: Capital Return And Divestments Draw Attention
I have a mixed view of Westpac Banking's recent quarterly update; the bank's Australian mortgages business maintained similar growth as the market, but it also took a A$300 million provision. Westpac Banking might announce significant share buyback plans in November 2021, which is supported by its healthy CET-1 ratio that could be further increased by potential divestments. The market currently values Westpac Banking at 1.33 times trailing P/B and 14.4 times FY 2022 P/E, and the stock also offers a forward FY 2022 dividend yield of 4.8%.
|WBK||US Banks||US Market|
Return vs Industry: WBK underperformed the US Banks industry which returned 32.9% over the past year.
Return vs Market: WBK underperformed the US Market which returned 13.7% over the past year.
|WBK Average Weekly Movement||3.9%|
|Banks Industry Average Movement||3.7%|
|Market Average Movement||6.6%|
|10% most volatile stocks in US Market||15.9%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: WBK is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: WBK's weekly volatility (4%) has been stable over the past year.
About the Company
Westpac Banking Corporation provides various banking and financial services in Australia, New Zealand, the Americas, Asia, Europe, and internationally. It offers everyday banking, savings, term deposit, business transaction, foreign currency, and specialized accounts; home, personal, and business loans; credit cards; international and travel services; share trading services; investment; and home, car, travel, life, and business insurance products. The company also provides merchant and payment, corporate and institutional, transaction banking, financial market, corporate and structured finance, trade and supply chain financing, and industry specific banking and treasury services, as well as online banking services.
Westpac Banking Fundamentals Summary
|WBK fundamental statistics|
Is WBK overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|WBK income statement (TTM)|
|Cost of Revenue||AU$0|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 03, 2022
|Earnings per share (EPS)||1.49|
|Net Profit Margin||25.01%|
How did WBK perform over the long term?See historical performance and comparison
5.6%Current Dividend Yield
Is Westpac Banking 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: WBK ($15.54) is trading above our estimate of fair value ($14.9)
Significantly Below Fair Value: WBK is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: WBK is poor value based on its PE Ratio (14.4x) compared to the US Banks industry average (11.3x).
PE vs Market: WBK is good value based on its PE Ratio (14.4x) compared to the US market (17.4x).
Price to Earnings Growth Ratio
PEG Ratio: WBK is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: WBK is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).
How is Westpac Banking forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WBK's forecast earnings growth (9.7% per year) is above the savings rate (2%).
Earnings vs Market: WBK's earnings (9.7% per year) are forecast to grow slower than the US market (13% per year).
High Growth Earnings: WBK's earnings are forecast to grow, but not significantly.
Revenue vs Market: WBK's revenue (0.7% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: WBK's revenue (0.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WBK's Return on Equity is forecast to be low in 3 years time (10.4%).
How has Westpac Banking performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WBK has high quality earnings.
Growing Profit Margin: WBK's current net profit margins (25%) are higher than last year (13.5%).
Past Earnings Growth Analysis
Earnings Trend: WBK's earnings have declined by 14.6% per year over the past 5 years.
Accelerating Growth: WBK's earnings growth over the past year (138.5%) exceeds its 5-year average (-14.6% per year).
Earnings vs Industry: WBK earnings growth over the past year (138.5%) exceeded the Banks industry 43.7%.
Return on Equity
High ROE: WBK's Return on Equity (7.6%) is considered low.
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
Financial Institutions Analysis
Asset Level: WBK's Assets to Equity ratio (13x) is moderate.
Allowance for Bad Loans: WBK has a low allowance for bad loans (48%).
Low Risk Liabilities: 73% of WBK's liabilities are made up of primarily low risk sources of funding.
Loan Level: WBK has an appropriate level of Loans to Assets ratio (76%).
Low Risk Deposits: WBK's Loans to Deposits ratio (113%) is appropriate.
Level of Bad Loans: WBK has an appropriate level of bad loans (1.3%).
What is Westpac Banking current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WBK's dividend (5.59%) is higher than the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: WBK's dividend (5.59%) is in the top 25% of dividend payers in the US market (3.44%)
Stability and Growth of Payments
Stable Dividend: WBK's dividend payments have been volatile in the past 10 years.
Growing Dividend: WBK's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (79%), WBK's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WBK's dividends in 3 years are forecast to be covered by earnings (71.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Peter King (51 yo)
Mr. Peter Francis King, BEc, FCA, has been the Chief Executive Officer & Managing Director of Westpac Banking Corporation since April 02, 2020 and served as its Acting Managing Director & Chief Executive O...
CEO Compensation Analysis
Compensation vs Market: Peter's total compensation ($USD3.04M) is below average for companies of similar size in the US market ($USD11.18M).
Compensation vs Earnings: Peter's compensation has increased by more than 20% in the past year.
Experienced Management: WBK's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Experienced Board: WBK's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Westpac Banking Corporation's employee growth, exchange listings and data sources
- Name: Westpac Banking Corporation
- Ticker: WBK
- Exchange: NYSE
- Founded: 1817
- Industry: Diversified Banks
- Sector: Banks
- Implied Market Cap: AU$78.598b
- Listing Market Cap: AU$56.786b
- Shares outstanding: 3.66b
- Website: https://www.westpac.com.au
Number of Employees
- Westpac Banking Corporation
- 275 Kent Street
- Level 18
- New South Wales
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/16 23:28|
|End of Day Share Price||2022/01/14 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.