WESFARMERS LIMITED (WES)
Share Price Analysis and Chart

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WES - WESFARMERS LIMITED

FNArena Sector : Consumer Products & Services
Year End: June
GICS Industry Group : Food & Staples Retailing
Debt/EBITDA: 1.97
Index: ASX20 | ASX50 | ASX100 | ASX200 | ASX300 | ALL-ORDS

Wesfarmer is an Australian conglomerate with interests predominantly in Australian and New Zealand retail companies. It owns Bunnings, Kmart, Officeworks and Target, amongst others. Founded as the Westralian Farmers Co-operative in 1914 it became a listed entity in November 1984.

LAST PRICE CHANGE +/- CHANGE % VOLUME

$66.62

01 Nov
2024

-0.660

OPEN

$66.80

-0.98%

HIGH

$66.94

1,165,172

LOW

$66.25

TARGET
$65.00

-0.17 change from previous day

 -2.4% downside
Franking for last dividend paid out: 100%
OTHER COMPANIES IN THE SAME SECTOR
ALD . PFP .
FNARENA'S MARKET CONSENSUS FORECASTS
WES: 1
Title FY23
Actual		 FY24
Actual		 FY25
Forecast		 FY26
Forecast
EPS (cps) xxx 225.7 237.9 xxx
DPS (cps) xxx 198.0 207.6 xxx
EPS Growth xxx 3.6% 5.4% xxx
DPS Growth xxx 3.7% 4.8% xxx
PE Ratio xxx N/A 28.0 xxx
Dividend Yield xxx N/A 3.1% xxx
Div Pay Ratio(%) xxx 87.7% 87.2% xxx

Dividend yield today if purchased 3 years ago: 3.40%

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

 2.97

Estimated Dividend Growth
(Average Of Past Three Years)

  %

Amount Invested

 $ 

Tell Me The Dividend After This Many Years
Past performance is no guarantee for the future. Investors should take into account that heavy swings in share price or exceptional circumstances (a la 2009) can have a significant impact on short term calculations and averages

Last ex-div: 03/09 - ex-div 107c (franking 100%)

HISTORICAL DATA ARE ALL IN AUD
Copyright © 2024 FactSet UK Limited. All rights reserved
Title 201920202021202220232024
EPS Basic xxxxxxxxxxxxxxx225.7
DPS All xxxxxxxxxxxxxxx198.0
Sales/Revenue xxxxxxxxxxxxxxx44,047.0 M
Book Value Per Share xxxxxxxxxxxxxxx756.5
Net Operating Cash Flow xxxxxxxxxxxxxxx4,594.0 M
Net Profit Margin xxxxxxxxxxxxxxx5.81 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title 201920202021202220232024
Return on Capital Employed xxxxxxxxxxxxxxx30.32 %
Return on Invested Capital xxxxxxxxxxxxxxx13.82 %
Return on Assets xxxxxxxxxxxxxxx9.02 %
Return on Equity xxxxxxxxxxxxxxx30.32 %
Return on Total Capital xxxxxxxxxxxxxxx20.04 %
Free Cash Flow ex dividends xxxxxxxxxxxxxxx1,318.0 M

Return on Capital Employed

Return on Invested Capital

Return on Assets

Return on Equity

Return on Total Capital

Free Cash Flow ex dividends

Title 201920202021202220232024
Short-Term Debt xxxxxxxxxxxxxxx1,165 M
Long Term Debt xxxxxxxxxxxxxxx10,113 M
Total Debt xxxxxxxxxxxxxxx11,278 M
Goodwill - Gross xxxxxxxxxxxxxxx4,082 M
Cash & Equivalents - Generic xxxxxxxxxxxxxxx835 M
Price To Book Value xxxxxxxxxxxxxxx8.62

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title 201920202021202220232024
Capex xxxxxxxxxxxxxxx1,076.0 M
Capex % of Sales xxxxxxxxxxxxxxx2.44 %
Cost of Goods Sold xxxxxxxxxxxxxxx37,267 M
Selling, General & Admin. Exp & Other xxxxxxxxxxxxxxx2,841 M
Research & Development xxxxxxxxxxxxxxx-
Investments - Total xxxxxxxxxxxxxxx960 M

Capex

Capex % of Sales

Cost of Goods Sold

Selling, General & Admin. Exp & Other

Research & Development

Investments - Total

EXPERT VIEWS
Display All Commentary

Sentiment Indicator

-0.6

No. Of Recommendations

6
BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Ord Minnett

xx/xx/xxxx

4

xxxxxxx xx xxxxxxx xxxx xxxx

$xx.xx

xx.xx%

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Citi

xx/xx/xxxx

5

xxxx

$xx.xx

xx.xx%

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Morgan Stanley

xx/xx/xxxx

5

xxxxxxxxxxx

$xx.xx

xx.xx%

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UBS

04/09/2024

5

Sell

$66.00

-0.93%

UBS continues to thump the table on Wesfarmers, believing investors are paying "too much" for Bunnings at a forward 34x multiple and the stock is trading at historically high valuations.

The broker also stresses the downgraded lithium price outlook with UBS resources reducing price forecasts by -3% to -26% from 2025 to 2028 on the back of African and Chinese supply.

UBS points to lithium as a future earnings support for Wesfarmers which has now been deferred until the late 2020s at a time when there are increasing challenges for its chemicals/fertiliser and energy business from changing consumer demand and gas costs.

UBS revises FY26 EPS by -1%, FY25 is unchanged. Sell rating and $66 target price retained.

FORECAST
UBS forecasts a full year FY25 dividend of 204.00 cents and EPS of 232.00 cents.
UBS forecasts a full year FY26 dividend of 221.00 cents and EPS of 250.00 cents.

Morgans

xx/xx/xxxx

3

xxxx

$xx.xx

xx.xx%

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Macquarie

xx/xx/xxxx

3

xxxxxxx

$xx.xx

xx.xx%

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Access Stockbroker Research History >
EXTRA COVERAGE
Display All Commentary

No. Of Recommendations

2

Please note: unlike Broker Call Report, BC Extra is not updated daily. The info you see might not be the latest. FNArena does its best to update ASAP.

BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Jarden

xx/xx/xxxx

3

xxxxxxx

$xx.xx

xx.xx%

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Goldman Sachs

04/09/2024

3

Neutral

$66.60

-0.03%

Wesfarmers' FY24 results revealed group sales from the second half that were ahead of estimates while EBIT was slightly softer.

Goldman Sachs notes the first eight weeks of the first half of FY25 show muted store growth for Bunnings, yet management expects space optimisation and sales productivity in higher turnover categories will deliver strong FY25 growth.

Kmart stood out with the EBIT margin expanding 140 basis points to 9.4%. Goldman Sachs was also impressed with the growth and margin resilience in Officeworks in the first eight weeks of FY25. Neutral rating reiterated. Target is reduced to $66.60 from $69.20.

FORECAST
Goldman Sachs forecasts a full year FY25 dividend of 210.00 cents and EPS of 239.00 cents.
Goldman Sachs forecasts a full year FY26 dividend of 234.00 cents and EPS of 266.00 cents.
Access Extra Coverage Research History >

WES STOCK CHART

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