Wesfarmers Limited (WES) AI Stock Analysis

• Market Cap: $91.49B
• Dividend Yield: 2.51%
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): 31.2
• Beta (1Y): 1.12
• Revenue Growth: 3.47%
• EPS Growth: 14.36%
• Country: AU
• Employees: 120,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): 1.05
• Shares Outstanding: 1,135,282,700
• 10 Day Avg. Volume: 1,455,317
• 30 Day Avg. Volume: 1,620,390
• PEG Ratio: 2.32
• Price to Book (P/B): 10.46
• Price to Sales (P/S): 2.11
• P/FCF Ratio: 28.09
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 2.34
• Enterprise Value/Gross Profit: 9.50
• Enterprise Value/Ebitda: 19.46
• 1Y Price Target: $84.43
• Price Target Upside: 4.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 2.47
• Revenue Forecast (FY): $47.33B

• Rating: 68 Neutral
• Price Target: AU$94.00 ▲(15.91% Upside)

Wesfarmers Limited's overall stock score is driven by its strong financial performance and positive earnings call highlights. However, technical analysis indicates bearish trends, and the high P/E ratio suggests potential overvaluation. The balanced sentiment from the earnings call and robust dividend yield provide some support.

Wesfarmers Limited Business Overview & Revenue Model

Company Description

Wesfarmers Limited engages in the retail business in Australia, New Zealand, the United Kingdom, and internationally. The company is involved in the retail sale of building materials, home and garden improvement, and outdoor living products through its Bunnings stores; apparel and general merchandise, including toys, leisure, entertainment, home, and consumables; and office products and solutions, such as stationery, technology, furniture, art supplies, and learning and development resources, as well as print and create, and technical support services through its 168 Officeworks stores. It also provides hardware and software repairs, system security solutions, wireless and wired networking services, virus and spyware prevention and removal, and data backup and recovery solutions. In addition, the company manufactures and supplies ammonia, ammonium nitrate, and industrial chemicals; manufactures, imports, and distributes phosphate, nitrogen, and potassium-based fertilizers; supplies polyvinyl chloride resins; produces wood-plastic composite products; and manufactures and distributes sodium cyanide. Further, it produces and distributes liquefied petroleum gas and liquefied natural gas; supplies and distributes maintenance, repair, operating products, and industrial safety products and services; manufacturers and markets industrial, medical, and specialty gases; supplies tools, safety gear, personal protective equipment, electricals, work wear, and industrial supplies; and provides risk management and compliance services, as well as footwear; safety products, uniforms, engineering supplies, and packaging services; and engages in other businesses. Additionally, the company provides health, beauty, and wellbeing products; clinical cosmetic and skin care treatments; retail support services; distributes pharmaceutical goods; and operates online marketplace and data sharing platform. Wesfarmers Limited was founded in 1914 and is headquartered in Perth, Australia.

How the Company Makes Money

Wesfarmers generates revenue primarily through its retail operations, which contribute the largest share to its overall earnings. The Bunnings division, known for its home and garden products, is a significant revenue driver due to its vast store network and strong customer loyalty. Kmart and Target also contribute to the retail segment by offering low-cost apparel and home goods. Beyond retail, Wesfarmers earns income from its industrial and safety divisions, which provide chemicals and safety products to various industries. Key partnerships with suppliers and manufacturers enhance product offerings and pricing strategies. Additionally, the company benefits from operational efficiencies and a focus on cost management, which help maintain healthy profit margins. Overall, Wesfarmers' diversified portfolio allows it to mitigate risks and leverage cross-segment synergies for sustained revenue growth.

Wesfarmers Limited Financial Statement Overview

Summary

Wesfarmers Limited exhibits strong financial health with consistent revenue and profit growth, efficient operations, and effective cash flow management. Despite a reliance on debt, the company's profitability and cash generation capabilities mitigate potential risks.

Income Statement

Wesfarmers Limited has demonstrated consistent revenue growth over the years, with a notable increase in revenue from 2024 to 2025. The company maintains strong gross and net profit margins, indicating effective cost management and profitability. EBIT and EBITDA margins are stable, reflecting operational efficiency. Overall, the income statement shows a positive growth trajectory and profitability.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, which has improved slightly over the years, indicating a balanced approach to leveraging. Return on equity is strong, showcasing the company's ability to generate profits from shareholders' investments. However, the equity ratio suggests a reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Wesfarmers Limited has shown positive free cash flow growth, particularly from 2024 to 2025, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting efficient conversion of income into cash. The free cash flow to net income ratio is also robust, reflecting the company's ability to generate cash relative to its net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	45.63B	45.58B	44.05B	43.42B	36.68B	33.80B
Gross Profit	11.24B	15.64B	15.22B	6.48B	5.83B	5.91B
EBITDA	5.49B	6.04B	5.55B	5.55B	5.04B	5.12B
Net Income	2.93B	2.93B	2.56B	2.46B	2.35B	2.38B
Balance Sheet
Total Assets	27.98B	27.98B	27.31B	27.14B	28.05B	26.88B
Cash, Cash Equivalents and Short-Term Investments	638.00M	638.00M	835.00M	673.00M	705.00M	3.02B
Total Debt	11.17B	11.17B	11.28B	11.17B	12.08B	10.13B
Total Liabilities	18.79B	18.79B	18.72B	18.86B	20.07B	17.17B
Stockholders Equity	9.19B	9.19B	8.59B	8.28B	7.98B	9.71B
Cash Flow
Free Cash Flow	3.47B	3.42B	3.52B	2.89B	1.16B	2.51B
Operating Cash Flow	4.57B	4.57B	4.59B	4.18B	2.30B	3.38B
Investing Cash Flow	-1.12B	-1.12B	-1.37B	-552.00M	-1.19B	-642.00M
Financing Cash Flow	-3.64B	-3.64B	-3.06B	-3.66B	-3.43B	-2.63B

Wesfarmers Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 81.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WES, the sentiment is Negative. The current price of 81.1 is above the 20-day moving average (MA) of 80.97, below the 50-day MA of 84.30, and below the 200-day MA of 81.29, indicating a neutral trend. The MACD of -0.79 indicates Negative momentum. The RSI at 43.80 is Neutral, neither overbought nor oversold. The STOCH value of 28.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:WES.

Wesfarmers Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUL	71 Outperform	AU$3.57B	16.11	16.46%	7.41%	4.83%	-7.62%
WES	68 Neutral	$91.49B	31.23	32.24%	2.51%	3.47%	14.36%
HVN	66 Neutral	$9.12B	17.61	10.92%	3.70%	5.09%	46.94%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PMV	60 Neutral	AU$2.82B	17.03	10.29%	6.54%	-48.80%	-35.88%
JBH	58 Neutral	AU$11.10B	23.99	29.12%	2.64%	10.03%	5.38%
MYR	42 Neutral	€682.46M	-2.40	-36.66%	7.06%	13.78%	-413.50%

Wesfarmers Limited Corporate Events

Wesfarmers Director Increases Shareholding

Wesfarmers Limited announced a change in the director’s interest, as Julie Ann Coates increased her indirect holding by acquiring 1,000 fully paid ordinary shares through an on-market trade. This change reflects a growing confidence in the company’s performance and potential, potentially impacting investor sentiment and stakeholder perspectives positively.

Wesfarmers Limited Issues Unquoted Equity Securities

Wesfarmers Limited announced the issuance of unquoted equity securities, including 268,600 ordinary fully paid shares and 1,939 non-executive director rights. This move is part of an employee incentive scheme, reflecting the company’s strategy to align employee interests with corporate goals, potentially enhancing operational performance and shareholder value.

Wesfarmers Launches New Equity Plan for Non-Executive Directors

Wesfarmers Limited has introduced a Non-executive Director Equity Plan (NED Plan) allowing its non-executive directors to acquire company shares by sacrificing their pre-tax fees. This initiative aims to align the interests of directors with shareholders and assist new directors in meeting shareholding qualifications. The plan includes specific terms regarding participation, vesting, and trading restrictions, potentially impacting the company’s governance structure by fostering a stronger alignment between directors and shareholders.

Wesfarmers Announces Special Dividend as Part of 2025 Capital Management Initiative

Wesfarmers Limited has announced an update regarding its special dividend, which is part of the 2025 capital management initiative. The capital return of $1.10 per share was approved at the Annual General Meeting and will be paid on December 4, 2025. Shareholders eligible for the Dividend Investment Plan can participate in the special dividend, but not in the capital return component. This update reflects the company’s strategic financial management and commitment to returning value to its shareholders.

Wesfarmers Sets Allocation Price for Dividend Investment Plan

Wesfarmers Limited announced the allocation price for shares issued through its Dividend Investment Plan as part of the 2025 Capital Management Initiative, set at $81.0055. This allocation price was determined based on the average daily volume weighted average price of Wesfarmers shares over a specified period in November 2025. Approximately 12.08% of shareholders elected to participate in the plan, with shares expected to be allocated on December 4, 2025. This initiative reflects Wesfarmers’ ongoing efforts to manage capital effectively and provide value to its shareholders.

Wesfarmers Announces Director’s Interest Change

Wesfarmers Limited has announced a change in the director’s interest, specifically for Robert Geoffrey Scott, involving both direct and indirect interests in securities. This change reflects adjustments in shares allocated under various incentive plans, impacting the director’s holdings but not indicating any immediate operational or strategic shifts for the company.

Wesfarmers Limited Announces Quotation of New Securities

Wesfarmers Limited announced the application for quotation of 115,555 fully paid ordinary securities on the Australian Securities Exchange (ASX). These securities are issued under an employee incentive scheme and are not subject to transfer restrictions. This move is part of Wesfarmers’ ongoing efforts to incentivize employees and align their interests with the company’s performance, potentially impacting the company’s market positioning by enhancing employee engagement and retention.

Wesfarmers Updates Special Dividend Details as Part of 2025 Capital Management Initiative

Wesfarmers Limited announced an update regarding its special dividend, which forms part of its 2025 capital management initiative. The special dividend, contingent on shareholder approval at the recent Annual General Meeting, will be paid on December 4, 2025. Eligible shareholders can participate in the Dividend Investment Plan for the special dividend, but not for the capital return component. This announcement reflects Wesfarmers’ commitment to returning value to its shareholders and could impact its financial strategy and stakeholder relations.

Wesfarmers Updates Capital Management Initiative with Cash Return

Wesfarmers Limited announced an update regarding its capital management initiative, which includes a cash return of capital and a special dividend of $0.40 per share. The update provides currency information and confirms that security holder approval for the cash return was received on October 30, 2025. This initiative reflects Wesfarmers’ strategy to optimize its capital structure and deliver value to shareholders.

Wesfarmers Announces Special Dividend as Part of Capital Management Initiative

Wesfarmers Limited announced an update regarding its special dividend, which is part of the 2025 capital management initiative. Shareholders approved the capital return component at the Annual General Meeting, with a payment of $1.10 scheduled for December 4, 2025. Eligible shareholders can participate in the Dividend Investment Plan for the special dividend, although this does not apply to the capital return component. The announcement highlights the company’s commitment to returning value to shareholders and maintaining a strategic focus on capital management.

Wesfarmers Announces Special Dividend as Part of Capital Management Initiative

Wesfarmers Limited announced a special dividend of AUD 0.40 per share as part of its 2025 capital management initiative, following shareholder approval at the recent Annual General Meeting. The capital return, amounting to $1.10 per share, will be paid on December 4, 2025, with the dividend contingent on this approval, highlighting the company’s commitment to returning value to its shareholders.

Wesfarmers Announces Cash Return of Capital to Shareholders

Wesfarmers Limited announced a cash return of capital amounting to AUD 1.10 per security as part of its capital management initiative. This move, which includes a previously announced special dividend of $0.40 per share, reflects Wesfarmers’ commitment to returning value to shareholders and optimizing its capital structure.

Wesfarmers 2025 AGM: All Resolutions Passed with Strong Shareholder Support

At the 2025 Annual General Meeting, Wesfarmers Limited successfully passed all resolutions, including the re-election and election of board members, adoption of the remuneration report, and the grant of deferred and performance shares to the Group Managing Director. The resolutions were overwhelmingly supported by shareholders, indicating strong confidence in the company’s leadership and strategic direction. The approval of a capital return to shareholders further underscores Wesfarmers’ commitment to delivering shareholder value.

Wesfarmers Achieves Record Profit and Announces Special Shareholder Distribution

Wesfarmers Limited reported a record net profit after tax of $2.7 billion, a 3.8% increase from the previous year, showcasing the strength of its diversified business model. The company announced increased dividends and a special distribution to shareholders, supported by recent divestments. Despite challenges in some divisions, Wesfarmers maintains a strong balance sheet, allowing for future investments and continued shareholder returns.

Wesfarmers Director Increases Shareholding

Wesfarmers Limited announced a change in the director’s interest, with Simon William (Bill) English acquiring 66 additional shares through the company’s Dividend Investment Plan. This change reflects a minor increase in the director’s holdings, indicating a continued investment in the company’s growth and stability.

Wesfarmers Updates Dividend Distribution Details

Wesfarmers Limited has announced an update regarding its dividend distribution, specifically adjusting the Dividend Reinvestment Plan (DRP) price and participation in the Dividend Investment Plan (DIP). The payment date for the dividend is set for October 7, 2025, with exceptions for shares under the Key Executive Equity Performance Plan, which will be deferred until vesting and quotation. This update reflects Wesfarmers’ ongoing commitment to providing returns to its shareholders and maintaining transparency in its financial operations.