OTCPK:WEBN.F

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

-2.7%

WEBN.F

1.4%

US Banks

1.0%

US Market


1 Year Return

-1.2%

WEBN.F

0.2%

US Banks

6.7%

US Market

Return vs Industry: WEBN.F underperformed the US Banks industry which returned 0.2% over the past year.

Return vs Market: WEBN.F underperformed the US Market which returned 6.7% over the past year.


Share holder returns

WEBN.FIndustryMarket
7 Day-2.7%1.4%1.0%
30 Day-6.1%-2.6%-1.8%
90 Dayn/a0.8%-1.8%
1 Year-1.2%-1.2%3.1%0.2%9.1%6.7%
3 Year-15.3%-15.3%52.0%41.5%46.1%36.6%
5 Year-31.6%-31.6%69.7%51.2%66.9%48.6%

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

No news available

Valuation

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

13.95x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: WEBN.F ($19.05) is trading above our estimate of fair value ($15.86)

Significantly Undervalued: WEBN.F is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: WEBN.F is poor value based on its PE Ratio (13.9x) compared to the Banks industry average (12.5x).

PE vs Market: WEBN.F is good value based on its PE Ratio (13.9x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: WEBN.F is poor value based on its PEG Ratio (1.6x)


Price Based on Value of Assets

PB vs Industry: WEBN.F is overvalued based on its PB Ratio (1.5x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: WEBN.F's forecast earnings growth (8.5% per year) is above the savings rate (2.7%).

Earnings vs Market: WEBN.F's earnings (8.5% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: WEBN.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: WEBN.F's revenue (3.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: WEBN.F's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: WEBN.F's Return on Equity is forecast to be low in 3 years time (12%).


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

Earnings Trend: WEBN.F's earnings have grown by 1% per year over the past 5 years.

Accelerating Growth: WEBN.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WEBN.F had negative earnings growth (-14.6%) over the past year, making it difficult to compare to the Banks industry average (31.8%).


Return on Equity

High ROE: WEBN.F's Return on Equity (11.1%) is considered low.


Return on Assets

ROA vs Industry: WEBN.F's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate WEBN.F's Return on Capital Employed to determine if it has improved over the past 3 years.


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

Inventory Level: WEBN.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: WEBN.F's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: WEBN.F's level of assets compared to its equity is moderate.

Allowance for Bad Loans: WEBN.F has a sufficient allowance for bad loans.

Low Risk Liabilities: WEBN.F's liabilities are made up of primarily low risk sources of funding.

Loan Level: WEBN.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: WEBN.F has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: WEBN.F has an appropriate level of bad loans (0.18%)


Next Steps

Dividend

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

6.10%

Expected Dividend Yield


Dividend Yield vs Market

company6.5%marketbottom25%1.5%markettop25%3.8%industryaverage2.5%forecastin3Years6.1%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: WEBN.F's dividend (6.54%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: WEBN.F's dividend (6.54%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: WEBN.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: WEBN.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (91.2%), WEBN.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WEBN.F's dividends in 3 years are forecast to be covered by earnings (75.6% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Brian Hartzer (52yo)

4.7yrs

Tenure

AU$6,572,180

Compensation

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


CEO Compensation Analysis

Compensation vs. Market: Brian's total compensation ($USD4.47M) is about average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.2yrs

Average Tenure

54yo

Average Age

Experienced Management: WEBN.F's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

57.5yo

Average Age

Experienced Board: WEBN.F's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: WEBN.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$207,90230 Jul 19
Steven Harker
EntityIndividual
Shares10,365
Max PriceAU$20.06
BuyAU$21,03719 Jul 19
Margaret Seale
EntityIndividual
Shares1,068
Max PriceAU$19.70
BuyAU$769,55708 Jan 19
Brian Hartzer
EntityIndividual
Role
Chief Executive Officer
MD, Group CEO & Director
Shares43,914
Max PriceAU$17.52
SellAU$769,55708 Jan 19
Brian Hartzer
EntityIndividual
Role
Chief Executive Officer
MD, Group CEO & Director
Shares43,914
Max PriceAU$17.52
BuyAU$71,93414 Nov 18
Nerida Caesar
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares3,598
Max PriceAU$19.99

Ownership Breakdown


Management Team

  • Brian Hartzer (52yo)

    MD, Group CEO & Director

    • Tenure: 4.7yrs
    • Compensation: AU$6.57m
  • David McLean (61yo)

    Chief Executive Officer of Westpac New Zealand Limited

    • Tenure: 4.7yrs
    • Compensation: AU$2.27m
  • Gary Thursby (57yo)

    Chief Operating Officer

    • Tenure: 0.5yrs
    • Compensation: AU$2.03m
  • Christine Parker (59yo)

    Group Executive of Human Resources

    • Tenure: 8yrs
    • Compensation: AU$2.21m
  • Lyn Cobley (56yo)

    Chief Executive of Westpac Institutional Bank

    • Tenure: 4.1yrs
    • Compensation: AU$2.75m
  • David Lees (49yo)

    Deputy Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: AU$1.45m
  • Andrew Bowden

    Head of Investor Relations

    • Tenure: 0yrs
  • Peter King (49yo)

    Chief Financial Officer

    • Tenure: 1yrs
    • Compensation: AU$2.99m
  • David Lindberg (44yo)

    Chief Executive of Consumer

    • Tenure: 4.3yrs
    • Compensation: AU$2.50m
  • Craig Bright

    Chief Information Officer

    • Tenure: 0.8yrs

Board Members

  • Peter Marriott (62yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: AU$367.58k
  • Brian Hartzer (52yo)

    MD, Group CEO & Director

    • Tenure: 4.7yrs
    • Compensation: AU$6.57m
  • Craig Dunn (56yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$340.98k
  • Catriona Deans (52yo)

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: AU$333.15k
  • Ewen Graham Crouch (63yo)

    Independent Non-Executive Director

    • Tenure: 6.7yrs
    • Compensation: AU$344.58k
  • Lindsay Maxsted (65yo)

    Independent Chairman of the Board

    • Tenure: 7.8yrs
    • Compensation: AU$830.18k
  • Nerida Caesar (55yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$297.18k
  • Anita Fung (59yo)

    Independent Non-Executive Director

    • Tenure: 1yrs
  • Jon Nicholson (63yo)

    Chairman of Westpac Foundation

    • Tenure: 6.8yrs
  • Peter Nash (56yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • 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: WEBN.F
  • Exchange: OTCPK
  • Founded: 1817
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: AU$100.139b
  • Listing Market Cap: AU$68.182b
  • Shares outstanding: 3.48b
  • 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)SPONSORED ADRUSUSDMar 1989
WBCCDB (Deutsche Boerse AG)SPONSORED ADRDEEURMar 1989
WBCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
WBCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
WBCNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJan 1992
WEBN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
WBCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 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 Analysis2019/10/13 00:34
End of Day Share Price2019/10/09 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.

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