Wesfarmers Limited (WES) AI Stock Analysis

• Market Cap: $96.42B
• Dividend Yield: 2.38%
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 37.1
• Beta (1Y): 1.12
• Revenue Growth: 3.04%
• EPS Growth: 3.65%
• Country: AU
• Employees: 120,000
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Home Improvement
• EPS (TTM): 1.29
• Shares Outstanding: 1,134,780,800
• 10 Day Avg. Volume: 1,373,173
• 30 Day Avg. Volume: 1,153,733
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 2.04
• Enterprise Value/Gross Profit: 8.18
• Enterprise Value/Ebitda: 17.37
• 1Y Price Target: $74.92
• Price Target Upside: -14.40% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 11

• Rating: 75 Outperform
• Price Target: AU$95.00 ▲(8.55% Upside)

Wesfarmers Limited's overall stock score is driven by its strong financial performance and positive earnings call highlights. Despite a stretched valuation and some technical indicators suggesting an overbought condition, the company’s strategic initiatives and robust operational performance across key segments provide a solid growth outlook.

Positive Factors

Earnings Performance

WES reported strong 2H24/FY24 results with FY24 group revenue of A$44.2B +1.5% YoY and group EBIT of A$4.0B +3.3% YoY.

Market Position

Wesfarmers continues to gain market share and maintain resilient margins.

Negative Factors

Growth Outlook

The Bunnings segment has shown a softer outlook with a first 8-week run-rate below expected growth.

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 Limited generates revenue through several key streams. The retail division is a primary contributor, with Bunnings Warehouse, Kmart, Target, and Officeworks forming the backbone of its retail operations, offering a wide range of consumer goods from home improvement products to apparel and office supplies. The company's industrial division provides chemicals, energy, and fertilizers, catering to various industries. Additionally, Wesfarmers' industrial and safety segment supplies products and services related to workplace safety and industrial applications. Strategic partnerships, efficient supply chain management, and a strong brand presence further bolster earnings, while the company continually seeks growth opportunities through acquisitions and expansion into new markets.

Wesfarmers Limited Financial Statement Overview

Summary

Wesfarmers Limited demonstrates strong financial health with consistent revenue growth, solid profitability, and effective cash flow management. The company shows robust cash conversion capabilities and impressive returns on equity, though it maintains moderate leverage.

Income Statement

Wesfarmers Limited has shown a steady growth in revenue, with a revenue growth rate of approximately 1.45% from 2023 to 2024. The gross profit margin is strong at 34.56%, and the net profit margin is healthy at 5.80%. The EBIT and EBITDA margins are 8.42% and 12.61%, respectively, indicating solid core profitability and operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 1.31, highlighting a balanced approach to leveraging equity with debt. The return on equity stands at 29.79%, reflecting strong profitability relative to shareholder equity. However, the equity ratio is 31.44%, indicating a moderate reliance on external financing.

Cash Flow

Wesfarmers has demonstrated positive cash flow generation with a free cash flow growth rate of 21.68% from 2023 to 2024. The operating cash flow to net income ratio is 1.80, signifying robust cash generation relative to net income. The free cash flow to net income ratio is 1.38, underscoring the company's strong cash conversion capabilities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.05B	43.42B	36.68B	33.80B	30.75B
Gross Profit	15.22B	6.48B	5.83B	5.91B	4.93B
EBITDA	5.55B	5.55B	5.04B	5.12B	4.06B
Net Income	2.56B	2.46B	2.35B	2.38B	1.70B
Balance Sheet
Total Assets	27.31B	27.14B	28.05B	26.88B	26.02B
Cash, Cash Equivalents and Short-Term Investments	835.00M	673.00M	705.00M	3.02B	2.91B
Total Debt	11.28B	11.17B	12.08B	10.13B	9.90B
Total Liabilities	18.72B	18.86B	20.07B	17.17B	16.67B
Stockholders Equity	8.59B	8.28B	7.98B	9.71B	9.34B
Cash Flow
Free Cash Flow	3.52B	2.89B	1.16B	2.51B	3.68B
Operating Cash Flow	4.59B	4.18B	2.30B	3.38B	4.55B
Investing Cash Flow	-1.37B	-552.00M	-1.19B	-642.00M	642.00M
Financing Cash Flow	-3.06B	-3.66B	-3.43B	-2.63B	-3.07B

Wesfarmers Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 87.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 87.52 is above the 20-day moving average (MA) of 83.70, above the 50-day MA of 83.91, and above the 200-day MA of 75.82, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 69.03 is Neutral, neither overbought nor oversold. The STOCH value of 85.38 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WES	75 Outperform	$96.42B	37.09	30.35%	2.38%	3.04%	3.65%
Sector *	61 Neutral	$16.48B	10.03	-9.00%	3.34%	1.42%	-22.40%
HNORF	―	$4.78B	15.52	9.58%	4.30%	―	―
30M	―	€584.52M	18.58	8.55%	5.29%	―	―
SUL	77 Outperform	AU$3.42B	15.10	17.52%	7.85%	2.56%	-13.62%
JBH	75 Outperform	$12.31B	26.77	29.07%	2.22%	6.21%	0.20%
PMV	73 Outperform	AU$3.37B	17.03	14.01%	4.78%	-27.48%	-27.96%

Wesfarmers Limited Corporate Events

Wesfarmers to Announce 2025 Full-Year Results on August 28

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.

Wesfarmers Completes Sale of Coregas for $770 Million

Wesfarmers Limited has completed the sale of its subsidiary, Coregas, to Nippon Sanso Holdings Corporation for $770 million. This transaction is expected to result in a pre-tax profit of approximately $230 million to $260 million for Wesfarmers, which will be reflected in their 2025 financial year results, potentially impacting the company’s financial performance and market positioning positively.

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.

Wesfarmers Sells BWP Management, Resets Bunnings Leases

Wesfarmers announced the internalization of BWP Trust’s management by selling its 100% interest in BWP Management Limited to BWP for $142.6 million. This transaction includes a lease reset for Bunnings, extending the tenure of 62 sites and allowing for capital investment to enhance and expand select locations. The internalization allows BWP to operate as an independently managed trust, while Wesfarmers’ stake in BWP will increase to 23.5%. This strategic move is expected to provide greater certainty and support long-term growth for Bunnings.

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.

Wesfarmers Proposes Strategic Changes for BWP Trust

Wesfarmers Limited has announced a proposal involving the internalization of management functions of BWP Trust, restructuring of Bunnings leases, and commitments to capital expenditure for store expansion and network upgrades. This proposed transaction requires approval from investors and aims to impact the company’s operations and stakeholder interests, with a focus on enhancing the BWP property portfolio’s value and efficiency.

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.

BWP Trust Announces Strategic Internalization and Lease Reset

BWP Management Limited, as the responsible entity of the BWP Trust, has announced a significant transaction involving the internalization of BWP and a lease reset and capital investment with Bunnings. This move is aimed at enhancing the growth platform for the BWP Trust and BWP Property Group, although the presentation notes that the information provided is not exhaustive and should be read alongside other financial documents and disclosures. The announcement is expected to impact the company’s operations and industry positioning, with potential implications for stakeholders, although these are subject to uncertainties and risks.

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.

Wesfarmers Proposes Strategic Overhaul for BWP Trust

Wesfarmers Limited has announced a significant proposal involving the BWP Trust, which includes internalizing management functions, resetting Bunnings leases, and committing to capital investments. This move is expected to enhance tenant retention, income certainty, and lease expiries, while also reducing operating costs and aligning BWP with market standards for REIT management. The proposal is anticipated to improve BWP’s market position, offering potential valuation uplift and distribution accretion, thereby providing a platform for future growth and diversified income streams.

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.

Wesfarmers Finalizes Sale of Coregas to Nippon Sanso

Wesfarmers Limited has announced the unconditional sale of its subsidiary, Coregas, to Nippon Sanso Holdings Corporation for $770 million, with the transaction expected to complete in July 2025. This sale is anticipated to result in a pre-tax profit of approximately $230 million to $260 million, impacting the company’s financial results for the 2025 fiscal year.

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.

Wesfarmers Raises EUR600 Million in Oversubscribed Eurobond Issuance

Wesfarmers Limited has successfully priced EUR600 million in seven-year senior unsecured notes, which will mature in June 2032. The issuance, under the company’s EUR 3 billion Euro Medium Term Note Programme, was heavily oversubscribed, reflecting strong investor demand in European and Asian markets. The proceeds, to be swapped into Australian dollars, will be used for general corporate purposes, taking advantage of favorable market conditions and diversifying the company’s debt maturity profile. The notes will be listed on the Singapore Exchange but not offered to retail investors in Australia.

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.

Leadership Transition at Officeworks: John Gualtieri to Succeed Sarah Hunter

Wesfarmers Limited announced a leadership transition at Officeworks, with Sarah Hunter stepping down as Managing Director in August 2025, to be succeeded by John Gualtieri, the current CEO of Kmart and Target. This transition is seen as a strategic move to leverage Gualtieri’s extensive retail experience to drive Officeworks’ next phase of growth, focusing on strengthening omnichannel customer experiences and expanding technology and business-to-business operations.

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.

Wesfarmers Unveils Strategic Vision at 2025 Briefing Day

Wesfarmers Limited announced its 2025 Strategy Briefing Day presentation, scheduled for 22 May 2025, which will be webcasted for broader accessibility. This event is expected to provide insights into the company’s strategic direction and operational plans, potentially impacting its market positioning and stakeholder engagement.

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.