Wesfarmers WES.AX
Wesfarmers is a diversified Australian conglomerate with retail businesses such as Bunnings (home improvement), Kmart, and Officeworks, as well as operations in chemicals, fertilizers, and industrial. Wesfarmers shows solid quality (ROE 33.48%, ROIC 18.78%) and acceptable financial health (ND/EBITDA 2.53), but earnings growth is negative (-12.90%) and valuation is demanding (P/E 29.09), limiting short-term appeal.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Wesfarmers is a diversified Australian conglomerate with retail businesses such as Bunnings (home improvement), Kmart, and Officeworks, as well as operations in chemicals, fertilizers, and industrial. Wesfarmers shows solid quality (ROE 33.48%, ROIC 18.78%) and acceptable financial health (ND/EBITDA 2.53), but earnings growth is negative (-12.90%) and valuation is demanding (P/E 29.09), limiting short-term appeal.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.8 |
| Quality / Moat | 7.4 |
| Valuation | 5.2 |
| Growth | 3.5 |
| Dividend | 5.8 |
| Momentum | 4.1 |
| Risk & Context | 7.0 |
OVERALL SCORE: 5.6/10
Context and risks
Moderate regulatory risk in Australia, with a governance profile that justifies a slight penalty. Exposure to freight costs, aggravated by geopolitical tensions on shipping routes, adds pressure on margins.
News considered in the analysis
- Kmart eyes more homeware stores in Australia and Anko growth in Philippines — Expansión internacional de la marca Anko y crecimiento en el segmento de hogar, con potencial de impulsar ingresos futuros.
- Coles and Woolworths test facial recognition to address store crime – report — Noticia sobre competidores, sin impacto directo en Wesfarmers.
- Can a ‘garish’ Aussie discount chain handle Britain’s favourite pharmacy? — Artículo de opinión sobre la expansión de Kmart en Reino Unido, sin datos concretos sobre resultados.
- What Is Wesfarmers Limited's (ASX:WES) Share Price Doing? — Análisis genérico de la acción, sin información nueva.
- Wesfarmers flags price rises amid higher freight costs – report — El aumento de costes de flete presiona los márgenes, aunque la empresa planea trasladarlo a precios, lo que podría afectar la demanda.
Verdict: Hold; business quality is high, but the combination of negative growth and demanding valuation offers no margin of safety.
Main risk: The main risk is margin pressure from rising freight costs and a potential slowdown in Australian consumption, which could worsen the earnings decline (-12.90%).
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