Wesfarmers Ltd WES

Morningstar Rating
A$76.22 +0.49 (0.65%)
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Company Report

Price vs Fair Value

WES is trading at a LOCK|J^^cYj premium.
Price
A$75.73
Fair Value
h$P
Uncertainty
LOCK|nH
1-Star Price
LOCK|.PH
5-Star Price
LOCK|.PL
Economic Moat
LOCK|w#V
Capital Allocation
LOCK|<vFZ@@C

Bulls Say, Bears Say

Bulls

Bunnings is the undisputed leader in Australian home improvement retailing. Based on its market position, Bunnings could start giving up some volume growth and improve profitability by increasing prices.

Bears

Wesfarmers' retailing businesses are procyclical. Consumer discretionary spending could be significantly softer during a severe economic downturn.

News

Trading Information

Previous Close Price
A$75.73
Day Range
A$75.58–76.41
52-Week Range
A$70.80–94.70
Bid/Ask
A$76.21 / A$76.32
Shares Outstanding
1.14B
Market Cap
A$86.53B
Volume/Avg
2M / 2M

Key Statistics

Price/Earnings (Normalized)
28.83
Price/Sales
1.82
Dividend Yield (Trailing)
2.93%
Dividend Yield (Forward)
2.93%
Dividend Payment Schedule
Mar, Oct
Total Yield
4.38%

Company Profile

Wesfarmers is Australia's largest conglomerate. Its retail operations include the Bunnings hardware chain (number one in market share), discount department stores Kmart and Target (number one and three), and Officeworks in office supplies (number one). These activities account for the vast majority of group earnings before taxes. Other operations include chemicals and fertilizers, lithium mining, industrial and safety supplies, and health. Management is focused on generating cash and creating shareholder wealth in the long term.
Sector
Consumer Cyclical
Industry
Home Improvement Retail
Stock Style Box
Large Core
Total Number of Employees
217,000

Competitors

Valuation

Metric
WES
MTS
SUL
Price/Earnings (Normalized)
28.8311.9313.30
Price/Book Value
10.781.842.21
Price/Sales
1.820.180.69
Price/Cash Flow
20.105.655.62
Price/Earnings
WES
MTS
SUL

Financial Strength

Metric
WES
MTS
SUL
Quick Ratio
0.340.640.04
Current Ratio
1.121.071.04
Interest Coverage
9.384.054.34
Quick Ratio
WES
MTS
SUL

Profitability

Metric
WES
MTS
SUL
Return on Assets (Normalized)
10.36%3.83%6.57%
Return on Equity (Normalized)
35.50%16.14%17.41%
Return on Invested Capital (Normalized)
15.94%10.00%11.12%
Return on Assets
WES
MTS
SUL

Home Improvement Retail Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
The Home Depot Inc
HD
LOCK|X>>j%qqcLOCK|%$$282B
Lowe's Companies Inc
LOW
LOCK|Q<D#qjYLOCK|?W#$102B
Wesfarmers Ltd ADR
WFAFY
—LOCK|?<z$60B
Wesfarmers Ltd
WFAFF
—LOCK|&&$60B
Kingfisher PLC ADR
KGFHY
LOCK|xN^#^%LOCK|&!$7B
Kingfisher PLC
KGFHF
—LOCK|Y%$7B
Floor & Decor Holdings Inc Class A
FND
—LOCK|SV$5B
Home Product Center PCL Shs Foreign registered
HPCRF
—LOCK|<LKk>$2B
Haverty Furniture Companies Inc Class A
HVT.A
—LOCK|$lY$428M
Haverty Furniture Companies Inc
HVT
—LOCK|#r$428M

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