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Wesfarmers Limited (AU:WES)
:WES
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Wesfarmers Limited (WES) AI Stock Analysis

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AU:WES

Wesfarmers Limited

(OTC:WES)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
AU$99.00
▲(8.00% Upside)
Wesfarmers Limited's overall stock score reflects strong financial performance and a balanced earnings call sentiment. However, technical indicators suggest short-term bearish momentum, and the high valuation may limit upside potential. The company's sustainability achievements and capital management initiatives are positive factors.
Positive Factors
Negative Factors

Wesfarmers Limited (WES) vs. iShares MSCI Australia ETF (EWA)

Wesfarmers Limited Business Overview & Revenue Model

Company DescriptionWesfarmers 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 MoneyWesfarmers 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 Earnings Call Summary

Earnings Call Date:Aug 27, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Feb 18, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and challenging aspects. While the company reported strong profit growth, successful portfolio management, and sustainability achievements, certain segments like WesCEF faced profitability challenges. Retail divisions performed robustly, but there were pressures in the industrial and health sectors. Overall, the sentiment leans towards a balanced outlook.
Q4-2025 Updates
Positive Updates
Strong Financial Performance
Wesfarmers' net profit after tax increased by 14.4%, and excluding significant items, profit increased by 3.8% despite challenging trading conditions.
Capital Management Initiatives
Proposed capital management distribution of $1.50 per share, including a capital return of $1.10 per share and a fully franked special dividend of $0.40, subject to shareholder approval.
Retail Division Performance
Bunnings and Kmart Group continued strong performance. Bunnings earnings before property contributions increased by 4%, while Kmart Group's earnings rose by 9.2%.
Sustainability Achievements
Wesfarmers delivered a 9.3% reduction in Scope 1 and Scope 2 market-based emissions. Bunnings and Officeworks achieved 100% renewable energy targets.
Successful Portfolio Actions
Completion of the sale of Coregas for $770 million and the wind-down of Catch to improve future earnings.
Negative Updates
WesCEF Earnings Decline
WesCEF's earnings declined by 9.3% to just under $400 million, impacted by increased losses in Covalent and lower global commodity prices.
Industrial and Safety Segment Challenges
Revenue declined by 1.2%, and earnings decreased by 4.6% due to challenging economic conditions and restructuring costs.
Higher Fulfillment Costs in Health Segment
The Wholesale segment of Wesfarmers Health faced higher fulfillment costs and increased competitive intensity despite higher sales.
Company Guidance
During the Wesfarmers 2025 Full Year Results Briefing, significant financial metrics were highlighted. Wesfarmers achieved a 14.4% increase in net profit after tax, with an underlying profit growth of 3.8% excluding significant items. The company's capital management strategy includes a proposed distribution of $1.50 per share, comprising a $1.10 capital return and a $0.40 fully franked special dividend, pending shareholder approval. Total dividends for the year reached $2.06 per share, bringing the total shareholder distribution to $3.56 per share. On the operational front, Bunnings' earnings before property contributions rose by 4% to $2.34 billion, while Kmart Group reported a 9.2% increase in earnings, reaching just over $1 billion. WesCEF's earnings, however, declined by 9.3% to just under $400 million due to increased losses in Covalent and lower global commodity prices. The group's total reportable injury frequency rate improved from 11 to 9.5, and there was a 9.3% reduction in Scope 1 and Scope 2 emissions, showcasing a commitment to sustainability.

Wesfarmers Limited Financial Statement Overview

Summary
Wesfarmers Limited shows strong financial health with consistent revenue and profit growth, efficient operations, and effective cash flow management. The income statement and cash flow are particularly strong, though the balance sheet indicates a reliance on debt.
Income Statement
85
Very Positive
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
78
Positive
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
80
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue45.63B45.58B44.05B43.42B36.68B33.80B
Gross Profit11.24B15.64B15.22B6.48B5.83B5.91B
EBITDA5.49B6.04B5.55B5.55B5.04B5.12B
Net Income2.93B2.93B2.56B2.46B2.35B2.38B
Balance Sheet
Total Assets27.98B27.98B27.31B27.14B28.05B26.88B
Cash, Cash Equivalents and Short-Term Investments638.00M638.00M835.00M673.00M705.00M3.02B
Total Debt11.17B11.17B11.28B11.17B12.08B10.13B
Total Liabilities18.79B18.79B18.72B18.86B20.07B17.17B
Stockholders Equity9.19B9.19B8.59B8.28B7.98B9.71B
Cash Flow
Free Cash Flow3.47B3.42B3.52B2.89B1.16B2.51B
Operating Cash Flow4.57B4.57B4.59B4.18B2.30B3.38B
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
Positive
Last Price91.67
Price Trends
50DMA
91.14
Positive
100DMA
87.51
Positive
200DMA
81.17
Positive
Market Momentum
MACD
0.07
Negative
RSI
56.20
Neutral
STOCH
84.65
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WES, the sentiment is Positive. The current price of 91.67 is above the 20-day moving average (MA) of 90.19, above the 50-day MA of 91.14, and above the 200-day MA of 81.17, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 56.20 is Neutral, neither overbought nor oversold. The STOCH value of 84.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:WES.

Wesfarmers Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AU$3.78B17.0516.46%6.83%4.83%-7.62%
AU$106.91B36.5132.24%2.19%3.47%14.36%
AU$9.10B17.5610.92%3.63%5.09%46.94%
AU$12.27B26.5429.12%2.14%10.03%5.38%
$18.38B12.79-2.54%3.03%1.52%-15.83%
AU$2.85B17.1610.29%5.59%-48.80%-35.88%
€734.30M-36.66%7.32%13.78%-413.50%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:WES
Wesfarmers Limited
94.21
26.56
39.27%
AU:HVN
Harvey Norman Holdings Ltd
7.30
2.87
64.64%
AU:MYR
Myer Holdings Limited
0.42
-0.52
-55.38%
AU:JBH
JB Hi-Fi Limited
115.00
37.89
49.14%
AU:SUL
Super Retail Group Limited
16.83
2.86
20.47%
AU:PMV
Premier Investments Limited
18.05
-7.18
-28.46%

Wesfarmers Limited Corporate Events

Wesfarmers Director Increases Shareholding
Oct 10, 2025

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.

The most recent analyst rating on (AU:WES) stock is a Hold with a A$85.50 price target. To see the full list of analyst forecasts on Wesfarmers Limited stock, see the AU:WES Stock Forecast page.

Wesfarmers Updates Dividend Distribution Details
Oct 1, 2025

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.

The most recent analyst rating on (AU:WES) stock is a Hold with a A$85.50 price target. To see the full list of analyst forecasts on Wesfarmers Limited stock, see the AU:WES Stock Forecast page.

Wesfarmers Announces 2025 AGM Details
Sep 5, 2025

Wesfarmers Limited has announced its 2025 Annual General Meeting (AGM) scheduled for October 30, 2025, which will be held both in person and online. Shareholders will receive various documents, including the Notice of Meeting and 2025 Annual Report, and will have the opportunity to vote from September 26, 2025. This AGM is a significant event for stakeholders, providing insights into the company’s strategic direction and operational performance.

The most recent analyst rating on (AU:WES) stock is a Buy with a A$100.00 price target. To see the full list of analyst forecasts on Wesfarmers Limited stock, see the AU:WES Stock Forecast page.

Wesfarmers Updates Dividend Distribution Details
Sep 4, 2025

Wesfarmers Limited announced an update to its previous dividend distribution announcement, specifically regarding currency information. The payment date for the dividend is set for October 7, 2025, except for shares under the Key Executive Equity Performance Plan, which will be deferred until vesting and quotation. This update reflects the company’s ongoing commitment to transparency and timely communication with its stakeholders, potentially impacting investor relations and market perception.

The most recent analyst rating on (AU:WES) stock is a Buy with a A$100.00 price target. To see the full list of analyst forecasts on Wesfarmers Limited stock, see the AU:WES Stock Forecast page.

Wesfarmers Limited Earnings Call: Balanced Outlook with Strong Retail Gains
Sep 1, 2025

Wesfarmers Limited’s recent earnings call revealed a balanced sentiment, highlighting both positive achievements and challenges. The company reported strong profit growth and successful portfolio management, alongside notable sustainability accomplishments. However, certain segments like WesCEF faced profitability issues, and pressures were evident in the industrial and health sectors. Overall, the sentiment suggests a cautiously optimistic outlook.

Wesfarmers Reports Strong Profit Growth Amid Strategic Shifts
Aug 28, 2025

Wesfarmers Limited, one of Australia’s largest listed companies, operates across diverse sectors including home improvement, general merchandise, office products, health and wellness, chemicals, and industrial safety. The company is a significant employer with over 118,000 team members and is owned by more than 480,000 shareholders.

Wesfarmers Releases 2025 Corporate Governance Statement
Aug 27, 2025

Wesfarmers Limited has released its Corporate Governance Statement for the financial year ending June 30, 2025, which is available on their website. The statement confirms the company’s adherence to the ASX Corporate Governance Council’s recommendations, detailing the roles and responsibilities within the board and management, and ensuring transparency in director appointments and executive agreements. This release underscores Wesfarmers’ commitment to maintaining high governance standards, which is crucial for its stakeholders and enhances its industry positioning.

The most recent analyst rating on (AU:WES) stock is a Hold with a A$84.00 price target. To see the full list of analyst forecasts on Wesfarmers Limited stock, see the AU:WES Stock Forecast page.

Wesfarmers Proposes $1.50 Per Share Capital Distribution
Aug 27, 2025

Wesfarmers Limited announced a proposed capital management initiative, offering a distribution of $1.50 per share, subject to shareholder approval at the 2025 Annual General Meeting. The initiative, resulting from asset sales, reflects the company’s strong balance sheet and commitment to shareholder returns, with an expected total distribution of approximately $1.7 billion.

The most recent analyst rating on (AU:WES) stock is a Hold with a A$84.00 price target. To see the full list of analyst forecasts on Wesfarmers Limited stock, see the AU:WES Stock Forecast page.

Wesfarmers Reports 2025 Full-Year Financial Results
Aug 27, 2025

Wesfarmers Limited has announced its full-year results for 2025, highlighting the company’s performance across its various divisions including Bunnings, Kmart, Chemicals, Energy and Fertilisers, Officeworks, Industrial and Safety, and Health. The presentation, led by Managing Director Rob Scott and Chief Financial Officer Anthony Gianotti, provided insights into the financial performance and future outlook of the company, indicating a strategic focus on strengthening its market position and enhancing shareholder value.

The most recent analyst rating on (AU:WES) stock is a Hold with a A$84.00 price target. To see the full list of analyst forecasts on Wesfarmers Limited stock, see the AU:WES Stock Forecast page.

Wesfarmers Reports Strong Profit Growth and Strategic Milestones in 2025
Aug 27, 2025

Wesfarmers Limited reported a 14.4% increase in statutory net profit after tax to $2,926 million for the year ending 30 June 2025, highlighting strong performance across its divisions despite challenging trading conditions. The company achieved significant growth in its retail divisions, particularly Bunnings and Kmart, through strategic initiatives and productivity improvements. The completion of the Kwinana lithium hydroxide refinery marks a key milestone, while sustainability efforts resulted in reduced emissions and improved safety metrics. The Board has proposed a capital management distribution of $1.50 per share, reflecting a focus on shareholder returns and efficient capital management.

The most recent analyst rating on (AU:WES) stock is a Hold with a A$84.00 price target. To see the full list of analyst forecasts on Wesfarmers Limited stock, see the AU:WES Stock Forecast page.

Wesfarmers Announces Dividend Distribution for Shareholders
Aug 27, 2025

Wesfarmers Limited has announced a dividend distribution of AUD 1.11 per ordinary fully paid share, with an ex-date of September 2, 2025, and a payment date of October 7, 2025. This announcement reflects the company’s financial performance for the six-month period ending June 30, 2025, and indicates a stable return for shareholders, reinforcing its position in the market.

The most recent analyst rating on (AU:WES) stock is a Hold with a A$84.00 price target. To see the full list of analyst forecasts on Wesfarmers Limited stock, see the AU:WES Stock Forecast page.

Wesfarmers Reports Strong Financial Performance and Announces Capital Management Initiatives
Aug 27, 2025

Wesfarmers Limited reported a 3.4% increase in revenue to $45.7 billion and a 14.4% rise in net profit to $2.926 billion for the financial year ending June 30, 2025. The company also announced a total dividend of $2.06 per share for FY2025, reflecting its strong financial performance. The proposed capital management initiatives include a return of capital and a fully-franked special dividend, subject to shareholder approval, indicating a strategic focus on rewarding shareholders and maintaining robust capital management.

The most recent analyst rating on (AU:WES) stock is a Hold with a A$84.00 price target. To see the full list of analyst forecasts on Wesfarmers Limited stock, see the AU:WES Stock Forecast page.

Wesfarmers Announces Chairman Succession Plan
Aug 27, 2025

Wesfarmers Limited has announced the succession of its Chairman, with Ken MacKenzie set to succeed Michael Chaney following the 2026 Annual General Meeting. MacKenzie, who brings extensive experience from his previous roles at BHP Group Limited and Amcor Limited, is expected to continue Wesfarmers’ legacy of disciplined capital allocation and shareholder value creation. Chaney’s retirement marks the end of a distinguished career at Wesfarmers, where he played a pivotal role in transforming the company into a major player in the Australian market.

The most recent analyst rating on (AU:WES) stock is a Hold with a A$84.00 price target. To see the full list of analyst forecasts on Wesfarmers Limited stock, see the AU:WES Stock Forecast page.

Wesfarmers to Announce 2025 Full-Year Results on August 28
Jul 30, 2025

Wesfarmers Limited has announced that it will release its 2025 full-year financial results on August 28, 2025. The announcement will be followed by an analyst briefing, which will be webcast for stakeholders, indicating the company’s commitment to transparency and engagement with the financial community.

The most recent analyst rating on (AU:WES) stock is a Hold with a A$69.00 price target. To see the full list of analyst forecasts on Wesfarmers Limited stock, see the AU:WES Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 17, 2025