Wesfarmers Ltd
ASX: WES · Consumer Cyclical · Home Improvement Retail
- Market cap
- A$98.9B
- P/E (trailing)
- 33.8
- EPS (FY25)
- $2.58
- Dividend / share
- $2.02
- 52-week range
- –
- Intrinsic value
- A$60.12
Share price
ASX: WES · AUD
Valuation
Full valuation analysis →Fair-value estimate per share, updated 26 Jul 2026
A$60.12 The median of our 3 model estimates
45.1% above fair value Against the A$87.25 price.
- Discounted cash flow
- A$22.85
- EPS growth model
- A$60.12
- P/E multiple
- A$64.32
Revenue
As reported · financial years
Earnings per share
Diluted · as reported
Profit margins
Gross, operating and net margin by financial year
Mediocre Net margin of 6.4% in FY25: thin margins leave little room for shocks.
Shares outstanding
Diluted · falling means buybacks, rising means dilution
Stable +0.1% year-on-year, +0.0% a year over 10 years: share count has been stable over the long run.
Working-capital days
Days of revenue sitting in receivables (DSO) and days of cost sitting in inventory (DIO)
Slowing collections DSO of 24 days vs a 13-day norm: customers are taking longer to pay than the historical norm.
Financial health
Latest financial year (FY25)
- Return on equity
- 31.8%
- Excellent
- Current ratio
- 1.19
- Comfortable
- Debt to equity
- 1.22
- Moderate
- Interest coverage
- 9.3×
- Strong
Verdicts are graded against what's normal for the sector (Consumer Cyclical), not a one-size-fits-all bar. Hover a tile for the reasoning.
Dividends per share
Full dividend history →Per financial year, as reported in the accounts
Typical for the ASX 78% of FY25 earnings paid out: in line with the franking-driven payout culture of large Australian companies.
Free cash flow
Cash from operations minus capital spending: what the DCF model projects from
Excellent 117% of FY25 net profit became free cash: free cash flow exceeds reported profit.
Net debt
Borrowings and leases minus cash: the line shows how many years of operating profit (EBIT) would clear it
Moderate Net debt of $10.5B is 2.8× FY25 operating profit: normal for a retailer, whose store leases count toward net debt.
Five-year snapshot
Figures as reported in the company's filings
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $33.8B | $36.7B | $43.4B | $44.0B | $45.6B |
| Net profit | $2.4B | $2.4B | $2.5B | $2.6B | $2.9B |
| EPS (diluted) | $2.10 | $2.08 | $2.18 | $2.26 | $2.58 |
| Dividend / share | $1.83 | $1.70 | $1.88 | $1.94 | $2.02 |
| Net margin | 7.0% | 6.4% | 5.7% | 5.8% | 6.4% |
What does Wesfarmers (WES) do?
Wesfarmers is a diversified group founded in 1914 and headquartered in Perth, listed on the ASX since 1988, with operations spanning retail and industrial sectors in the United Kingdom, New Zealand, Australia and other markets. Its best-known consumer arm runs large hardware and home-improvement stores, while separate chains sell apparel, toys, entertainment goods and everyday household items. A 168-store office-products retailer rounds out the consumer side, stocking stationery, computing gear, furniture and art and education supplies, and backing this with printing, repair and IT support services covering networking, security and data recovery.
Beyond retail, the group produces nitrogen-based industrial chemicals and cyanide compounds, PVC resin and wood-based composite materials, and imports potassium, nitrogen and phosphate fertilisers alongside LPG and LNG. An industrial-services arm supplies safety gear, protective wear, tools and specialty gases to workplaces, plus compliance and risk-management support. A smaller health and wellness business sells beauty and personal-care products, offers cosmetic skin treatments, distributes pharmaceuticals and runs an online marketplace. Robert Geoffrey Scott serves as chief executive, and the company employs roughly 120,000 full-time staff.
Common questions about WES
Is WES undervalued right now? +–
The median of our 3 model estimates puts Wesfarmers Ltd's fair value at A$60.12 per share against a price of A$87.25, 45.1% above the estimate as at 26 Jul 2026. Model estimates are a starting point, not advice. See the full valuation breakdown.
Does WES pay a dividend? +–
Wesfarmers Ltd paid $2.02 per share in its most recent financial year with a recorded dividend. The dividend history chart above shows the full payout record.
How fast is WES growing? +–
Revenue has compounded at 8.2% a year over the last five financial years, and -3.1% a year over ten.
What is WES's P/E ratio? +–
Wesfarmers Ltd trades on a trailing price-to-earnings ratio of 33.8, based on diluted earnings of $2.58 per share in FY25.
Compare WES with peers
How has Wesfarmers (WES) performed financially over the past decade?
Wesfarmers' reported revenue has moved from $66.0B in FY2016 to $45.6B in FY2025, with a large step down from $64.9B in FY2017 to $26.8B in FY2018. Since that reset, revenue has risen every year, climbing from $26.8B in FY2018 to $43.4B in FY2023, $44.0B in FY2024 and $45.6B in FY2025. Net income over the same span has grown from $407M in FY2016 (EPS of $0.36) to $2.9B in FY2025 (EPS of $2.58), with net margin at 6.4% in FY2025 versus just 0.6% in FY2016.
Profitability has been uneven at the gross level: gross margin sat around 30-38% between FY2016 and FY2019, fell sharply to 16.0% in FY2020 and stayed in the 15-17% range through FY2023, before rebounding to 34.6% in FY2024 and 34.3% in FY2025. Operating margin has been steadier, ranging from 4.8% in FY2016 up to 10.7% in FY2021, and standing at 8.4% in FY2025 on operating income of $3.8B.
Against reported results, Wesfarmers shares closed at $88.25 on 3 July 2026. As of 5 July 2026, the valuation models place fair value well below that level: the DCF model estimates $22.85, a P/E-ratio based model estimates $63.78, and an EPS-growth based model estimates $59.61 per share, with the current P/E ratio of 34.21 sitting above the company's own five-year median P/E of 24.72.
AI-assisted analysis generated from Craytheon's verified financial data · Updated 4 Jul 2026 · How this works
Data is general information only, not financial advice. Figures are as reported in company filings (some ASX companies report in USD); share prices are AUD.