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Wesfarmers Limited
(Sydney:WES)
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Rating:64Neutral
Price Target:
AU$85.00
â–²(2.79% Upside)
Action:Downgraded
Date:08/28/26
The score is driven primarily by solid financial performance and a positive earnings update (profit/dividend growth and strong free cash flow). These strengths are tempered by notably weak technicals (price below key moving averages with bearish momentum) and a relatively high P/E, while the dividend yield provides partial valuation support.
Positive Factors
Diversified earnings growth
Broad-based earnings growth across retail, health and industrial operations reduces dependence on one business. Wesfarmers’ portfolio diversification and scale can support resilient profits through differing consumer and industry cycles.
Negative Factors
Rising leverage and finance costs
Higher debt and borrowing costs reduce financial flexibility and increase the earnings sensitivity of future investment decisions. Management expects further finance-cost pressure in FY27, which may constrain returns from expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified earnings growth
Broad-based earnings growth across retail, health and industrial operations reduces dependence on one business. Wesfarmers’ portfolio diversification and scale can support resilient profits through differing consumer and industry cycles.
Read all positive factors
Wesfarmers Limited (WES) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$87.31B
Dividend Yield4.79%
Average Volume (3M)1.58M
Price to Earnings (P/E)30.7
Beta (1Y)0.98
Revenue Growth3.43%
EPS Growth-1.78%
CountryAU
Employees100,000
SectorConsumer Cyclical
Sector Strength84
IndustryHome Improvement
Share Statistics
EPS (TTM)2.53
Shares Outstanding1,135,282,700
10 Day Avg. Volume1,924,250
30 Day Avg. Volume1,581,014
Financial Highlights & Ratios
PEG Ratio-18.44
Price to Book (P/B)12.85
Price to Sales (P/S)2.17
P/FCF Ratio33.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$78.59Price Target Upside-4.96% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering11
EPS Forecast (FY)2.73
Revenue Forecast (FY)AU$49.50B
Wesfarmers Limited Business Overview & Revenue Model
Company Description
Wesfarmers Limited is a diversified conglomerate operating retail and industrial businesses across Australia, New Zealand, the United Kingdom, and globally. Its extensive retail footprint includes Bunnings, offering building materials, home and ga...
How the Company Makes Money
Wesfarmers makes money primarily by operating large-scale retail businesses and earning revenue from the sale of goods and related services across its portfolio. The largest revenue streams come from: (1) Bunnings, which generates sales from home ...
Wesfarmers Limited Earnings Call Summary
Earnings Call Date:Aug 26, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 17, 2027
Earnings Call Sentiment Positive
Overall the call conveyed solid operational and financial momentum: group profit and divisional earnings grew, free cash flow rose materially and strategic initiatives (marketplace, retail media, lithium expansion, health and new store formats) are progressing. Management acknowledged near‑term headwinds — Officeworks transformation costs, working capital investments, rising finance costs, raw‑material inflation and lithium refinery execution risks — but presented these as largely manageable within a resilient portfolio and disciplined capital allocation approach. On balance the positive financial outcomes, portfolio progress and strong cash generation outweigh the challenges called out.Positive Updates
Group Profit Growth and Dividend Increase
Reported net profit after tax of $2.9 billion, an increase of 8.3% (ex‑prior significant items). Final dividend of $1.20 per share; total dividend $2.22 per share, a 7.8% increase year‑on‑year, fully franked.
Negative Updates
Officeworks Earnings Decline
Officeworks sales increased 3.7% but earnings fell 22.2% to $165 million, impacted by approximately $40 million of one‑off transformation and ERP‑related costs; program remains on track but reduced near‑term profitability.
Read all updates
Q4-2026 Updates
Positive
Negative
Group Profit Growth and Dividend Increase
Reported net profit after tax of $2.9 billion, an increase of 8.3% (ex‑prior significant items). Final dividend of $1.20 per share; total dividend $2.22 per share, a 7.8% increase year‑on‑year, fully franked.
Read all positive updates
Company Guidance
Wesfarmers guided that FY26 delivered NPAT of $2.9bn (up 8.3% excluding prior significant items) and a fully‑franked final dividend of $1.20 (total $2.22/sh, +7.8%); divisional earnings rose 6.2% with Bunnings sales +3.9% and EBIT ex‑property $2.45bn (+5%), Kmart Group EBIT $1.1bn (+6%), WesCEF EBIT $473m (+18.5%, lithium profit $40m), Officeworks sales +3.7% with EBIT $165m (‑22.2%, ~$40m one‑offs), Health EBIT $92m (+12.2%) and Industrial & Safety ex‑Coregas EBIT $76m (+16.9%); group TRIFR improved to 9.1 (WesCEF 0.6), 4% of Australian team identify as Aboriginal/Torres Strait Islander, Scope 1&2 market‑based emissions fell >20% and retail divisions hit 100% renewable electricity in CY2025; marketplaces/retail media are scaling (Bunnings+Kmart marketplace GMV now >$250m, Bunnings marketplace +25%, combined marketplace growth ~70% YoY), operating cash flow was down 6.5% while free cash flow rose to $4.0bn (+15.8%), cash realization 99%; gross CapEx $1.2bn (+4.1%), net CapEx $779m (‑29%) with FY27 net CapEx guidance $1.3–$1.5bn (including ~ $200m for Mt Holland), net financial debt $5.3bn (debt/EBITDA 1.9x from 1.7x), finance costs $202m (+8%) and higher borrowing costs expected in FY27, committed unused facilities ~ $1.7bn, associates/JV profit $106m (+$42m), $73m invested in OneDigital/AI/retail media, and management expects FY27 earnings growth (aspiring to grow earnings ahead of sales) but flagged FY27 operating‑leverage will be partly offset by one‑off dual‑running commissioning costs.Wesfarmers Limited Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
70
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 47.14B | 45.58B | 44.05B | 43.42B | 36.68B |
| Gross Profit | 7.27B | 15.64B | 15.22B | 6.48B | 5.83B |
| EBITDA | 5.93B | 6.04B | 5.55B | 5.55B | 5.04B |
| Net Income | 2.87B | 2.93B | 2.56B | 2.46B | 2.35B |
Balance Sheet | |||||
| Total Assets | 31.32B | 27.98B | 27.31B | 27.14B | 28.05B |
| Cash, Cash Equivalents and Short-Term Investments | 530.00M | 638.00M | 835.00M | 673.00M | 705.00M |
| Total Debt | 12.72B | 11.17B | 11.28B | 11.17B | 12.08B |
| Total Liabilities | 23.34B | 18.79B | 18.72B | 18.86B | 20.07B |
| Stockholders Equity | 7.98B | 9.19B | 8.59B | 8.28B | 7.98B |
Cash Flow | |||||
| Free Cash Flow | 3.08B | 3.42B | 3.52B | 2.89B | 1.16B |
| Operating Cash Flow | 4.27B | 4.57B | 4.59B | 4.18B | 2.30B |
| Investing Cash Flow | -280.00M | -1.12B | -1.37B | -552.00M | -1.19B |
| Financing Cash Flow | -4.10B | -3.64B | -3.06B | -3.66B | -3.43B |
Wesfarmers Limited Technical Analysis
Negative
82.69
Price Trends
86.32
Negative
81.27
Negative
79.79
Negative
Market Momentum
-2.69
Positive
22.75
Positive
12.86
Positive
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 82.69 is above the 20-day moving average (MA) of 82.60, below the 50-day MA of 86.32, and above the 200-day MA of 79.79, indicating a bearish trend. The MACD of -2.69 indicates Positive momentum. The RSI at 22.75 is Positive, neither overbought nor oversold. The STOCH value of 12.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:WES.
Wesfarmers Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Neutral | AU$2.99B | 14.75 | 16.02% | 7.83% | 3.19% | -7.17% | |
68 Neutral | AU$7.27B | 15.02 | 29.54% | 5.46% | 4.82% | 5.95% | |
64 Neutral | AU$87.31B | 30.72 | 36.30% | 4.11% | 3.43% | -1.78% | |
64 Neutral | AU$1.84B | 12.33 | 31.92% | 3.52% | -30.67% | -24.10% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | AU$5.26B | 10.05 | 10.78% | 6.00% | 4.65% | 2.02% | |
45 Neutral | AU$345.55M | -1.16 | -22.14% | 6.38% | 30.31% | -737.99% |
* Consumer Cyclical Sector Average
AU:WES
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Wesfarmers Limited Corporate Events
Wesfarmers Updates Director Robert Scott’s Equity Holdings Under Incentive Plans
Aug 28, 2026
Wesfarmers Limited has reported an update to director Robert Geoffrey Scott’s equity holdings in the company, covering both direct and indirect interests. The disclosure shows his exposure through Wesfarmers’ long‑term incentive ...
Wesfarmers Files 2026 Corporate Governance Statement and Appendix 4G with ASX
Aug 26, 2026
Wesfarmers has lodged its corporate governance statement for the year to 30 June 2026 with the ASX, confirming that the document is current as of 26 August 2026 and has been approved by the board. The statement, available on the company’s we...
Wesfarmers Declares AUD 1.20 Interim Dividend for June 2026 Half
Aug 26, 2026
Wesfarmers Limited has declared an ordinary dividend of AUD 1.20 per share for the six-month period ended 30 June 2026, payable on 7 October 2026 to shareholders on the register as of 2 September 2026. The ex-dividend date is set for 1 September 2...
Wesfarmers Files 2026 Annual Report and Full-Year Results With ASX
Aug 26, 2026
Wesfarmers Limited has lodged its 2026 Annual Report with the Australian Securities Exchange, fulfilling listing rule requirements and providing investors with a comprehensive update on the group’s performance and governance over the past fi...
Wesfarmers Elevates Rachael McVitty to Lead Bunnings as Michael Schneider Retires
Aug 26, 2026
Wesfarmers has announced that Bunnings Group Managing Director Michael Schneider will retire in February 2027, with current Chief Customer Officer Rachael McVitty appointed Deputy Managing Director effective 27 August 2026 and set to assume the to...
Wesfarmers Sets Date for 2026 Full-Year Results and Analyst Briefing
Jul 29, 2026
Wesfarmers has advised the market that it will release its full-year results for the 2026 financial year on 27 August, setting expectations for investors ahead of the key earnings update. The timing signals when shareholders and analysts will gain...
Wesfarmers to Double Output at Mt Holland Lithium Project
Jul 21, 2026
Wesfarmers and SQM have approved a major expansion of the Mt Holland lithium project in Western Australia, doubling nameplate spodumene concentrate output from about 380,000 to 760,000 tonnes per year. The plan includes a new ore sorting facility ...
Wesfarmers to Outline Future Direction at 2026 Strategy Briefing Day
Jun 9, 2026
Wesfarmers Limited has announced that it will hold its 2026 Strategy Briefing Day in Sydney on 10 June 2026, with proceedings commencing at 6:30am AWST and 8:30am AEST. The briefing, which will be webcast via the company’s website, will incl...
Wesfarmers Names Kenneth MacKenzie as Future Director, Discloses Indirect Shareholding
Jun 5, 2026
Wesfarmers Limited has announced the appointment of Kenneth Norman MacKenzie as a director effective 1 June 2026, with the filing detailing his initial interests in the company’s securities. The notice confirms that MacKenzie holds no shares...
Wesfarmers folds Industrial and Safety units into Bunnings to boost commercial growth
Jun 1, 2026
Wesfarmers will transfer its Industrial and Safety businesses, Blackwoods and Workwear Group, into the Bunnings Group to align complementary customer bases and strengthen commercial capabilities. The move is aimed at enhancing customer value propo...
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.