# Wesfarmers (WES.AU)

Canonical: https://gigainvestors.com/s/WES.AU

Analysis as of: 2026-10-16T07:33:49.887Z. Financial observations: FY1997–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 78.50 per share; close as of 2026-10-15.

Estimated value: low AUD 20.36 per share, central AUD 23.17 per share, high AUD 26.91 per share. Buy at or below the central value AUD 23.17 per share. Valuation as of 2026-10-16T07:33:49.887Z; scenarios are not confidence intervals.

Expected annual return: 5.0% at the stated quote. About 5.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.13×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.06×

- FY2018: 0.10×

- FY2019: 0.09×

- FY2020: 0.09×

- FY2021: 0.11×

- FY2022: 0.09×

- FY2023: 0.09×

- FY2024: 0.08×

- FY2025: 0.08×

- FY2026: 0.09×

### moat: fail

- Recent gross margin fell 8.6pp below the typical margin (limit 4pp)

- ROIC, median of available years: 17.3%

- ROIC, second-lowest year: 13.2%

- Typical minus recent gross margin: 8.6 pp

- Typical gross margin (annual median): 24.1%

- Recent gross margin (lower of latest and 3-year median): 15.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.7%

- ROIC including acquisitions, ten-year median: 8.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 19.0%

- FY2018: 13.2%

- FY2019: 19.1%

- FY2020: 13.1%

- FY2021: 18.2%

- FY2022: 14.5%

- FY2023: 17.4%

- FY2024: 17.1%

- FY2025: 17.0%

- FY2026: 17.6%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.71×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 9.3B

- Net income, five-year total: AUD 13B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 2.8 pp

- Working capital / revenue, final three-year average: 7.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.58×

- FY2023: 0.62×

- FY2024: 0.77×

- FY2025: 0.79×

- FY2026: 0.74×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 19.0% vs 17.1%

- Per-share earnings: 1.06 to 2.53 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.1%

- Ordinary dilution, 5-year annual growth: 0.1%

- Market cap gain: AUD 70B

- Cumulative retained earnings: AUD -5.5B

- Diluted shares, 10-year annual growth: 0.1%

- Diluted shares, 5-year annual growth: 0.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 11.5%

- Per-share value change: AUD 1.48

- Per-share value, starting three-year median: AUD 1.06

- Per-share value, ending three-year median: AUD 2.53

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 3.0%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- Acquisition spending: AUD 4.0B

- Cumulative net income, 10 years: AUD 23B

- ROIC, first three-year median: 19.0%

- ROIC, last three-year median: 17.1%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD 2.54

- FY2018: AUD 1.06

- FY2019: AUD 1.71

- FY2020: AUD 1.50

- FY2021: AUD 2.10

- FY2022: AUD 2.08

- FY2023: AUD 2.18

- FY2024: AUD 2.25

- FY2025: AUD 2.58

- FY2026: AUD 2.53

### accounting: pass

- Sloan accruals: -4.5%

- Receivables to sales index (DSRI): 0.78×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.49×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.62×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -3.4%

- FY2018: -7.8%

- FY2019: -4.2%

- FY2020: -11.0%

- FY2021: -3.7%

- FY2022: 0.2%

- FY2023: -6.3%

- FY2024: -7.5%

- FY2025: -5.9%

- FY2026: -4.5%

## Holders

## Price story

Price needs cash profits to grow 16.4% a year for ten years · "Wesfarmers says Australian consumers starting to spend again, profit rises" (ca.finance.yahoo.com, Aug 2025) · sales +3.4%

Story as of 2026-10-16T09:59:57.924Z; price observation 2026-10-15.

Price needs cash profits to grow 16.4% a year for ten years

- 2025-08-27: Wesfarmers says Australian consumers starting to spend again, profit rises ([ca.finance.yahoo.com](https://ca.finance.yahoo.com/news/wesfarmers-posts-4-rise-annual-221923857.html))

- 2026-05-05: Wesfarmers flags price rises amid higher freight costs – report ([finance.yahoo.com](https://finance.yahoo.com/economy/policy/articles/wesfarmers-flags-price-rises-amid-144838493.html))

### Sales · FY2025–2026

sales +3.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 65B 

- FY2018: AUD 27B 

- FY2019: AUD 28B 

- FY2020: AUD 31B 

- FY2021: AUD 34B 

- FY2022: AUD 37B 

- FY2023: AUD 43B 

- FY2024: AUD 44B 

- FY2025: AUD 46B 

- FY2026: AUD 47B 

### Gross margin · FY2026

gross margin 15.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 30.6% 

- FY2018: 38.3% 

- FY2019: 37.5% 

- FY2020: 16.0% 

- FY2021: 17.5% 

- FY2022: 15.9% 

- FY2023: 14.9% 

- FY2024: 34.6% 

- FY2025: 34.3% 

- FY2026: 15.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in home improvement retail; annual sales are AUD 47.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:49.887Z); FY2026: revenue 47140000000; grossProfit 7272000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); WES.AU: Wesfarmers Limited engages in the retail business in Australia, New Zealand, and internationally. The company sells outdoor living and building materials, as well as home, garden, and lifestyle improvement products; apparel and general merchandise, including toys and consumables, as well as leisure, entertainment, and soft home products; 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 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, as well as soil and plant analysis service supported; supplies polyvinyl chloride resins; produces wood-plastic composite products; and manufactures and distributes sodium cyanide and lithium hydroxide. Further, it supplies and distributes maintenance, repair, operating, and industrial safety products and services; supplies tools, safety gear, personal protective equipment, electricals, work wear, and other industrial supplies; provides risk and compliance management services, as well as footwear; and offers safety products, uniforms, engineering supplies, and packaging services. Additionally, the company provides health, beauty, and wellbeing products and services; clinical cosmetic and skin care treatments; digital health services; and retail support services, as well as distributes pharmaceutical goods; operates an online marketplace; and manages retail subscription program and retail media network. Wesfarmers Limited was founded in 1914 and is headquartered in Perth, Australia.

### Why customers stay

Margins ranged from 15.4% to 34.6% during 2024–26; it earns 17.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:49.887Z); FY2024: grossProfit / revenue = 34.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:49.887Z); FY2025: grossProfit / revenue = 34.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:49.887Z); FY2026: grossProfit / revenue = 15.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:49.887Z); 10-year return on capital observations [[2017,0.19032629255108957],[2018,0.13221879655051122],[2019,0.19055626206130746],[2020,0.131446748938263],[2021,0.1816732323620343],[2022,0.1453965034967809],[2023,0.17405243806436674],[2024,0.171149108539617],[2025,0.1699977303075449],[2026,0.1755604599358676]]; median 0.17260077330199186. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back AUD 1.2 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:49.887Z); FY2017: growth capex 0; upkeep 1559000000; owner earnings 2489000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:49.887Z); FY2018: growth capex 0; upkeep 1582000000; owner earnings 136000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:49.887Z); FY2019: growth capex 210014989.11686683; upkeep 1087985010.8831332; owner earnings 1389014989.1168668. Growth capex / owner earnings = 0.1511970646554318.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:49.887Z); FY2020: growth capex 0; upkeep 867000000; owner earnings 909600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:49.887Z); FY2021: growth capex 0; upkeep 874000000; owner earnings 1594000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:49.887Z); FY2022: growth capex 0; upkeep 1144000000; owner earnings 1358400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:49.887Z); FY2023: growth capex 0; upkeep 1288000000; owner earnings 1530200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:49.887Z); FY2024: growth capex 0; upkeep 1076000000; owner earnings 1976600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:49.887Z); FY2025: growth capex 0; upkeep 1147000000; owner earnings 2322200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:49.887Z); FY2026: growth capex 0; upkeep 1189000000; owner earnings 2115000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:49.887Z); Dividend observations: [[2017,1998000000],[2018,2528000000],[2019,3628000000],[2020,1734000000],[2021,2074000000],[2022,1927000000],[2023,2132000000],[2024,2200000000],[2025,2291000000],[2026,2872000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:49.887Z); FY2026: cash repurchases 1249000000 AUD.

### Are managers owners

Insiders own 0.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); WES.AU SharesStats.PercentInsiders = 0.67 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 16.4% yearly over ten years; actual growth was 17.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:49.887Z); Ten-year compound average after fade. Initial solved rate 0.22417235276730063. Price 78.5; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.3611357586512866 → FY2026 1.8629716114836565. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 29.19 per share

- 2016-11: AUD 29.73 per share

- 2016-12: AUD 29.99 per share

- 2017-01: AUD 28.65 per share

- 2017-02: AUD 30.40 per share

- 2017-03: AUD 32.08 per share

- 2017-04: AUD 30.60 per share

- 2017-05: AUD 30.39 per share

- 2017-06: AUD 28.55 per share

- 2017-07: AUD 28.99 per share

- 2017-08: AUD 30.33 per share

- 2017-09: AUD 29.41 per share

- 2017-10: AUD 29.75 per share

- 2017-11: AUD 31.26 per share

- 2017-12: AUD 31.61 per share

- 2018-01: AUD 31.18 per share

- 2018-02: AUD 29.41 per share

- 2018-03: AUD 29.58 per share

- 2018-04: AUD 31.15 per share

- 2018-05: AUD 32.42 per share

- 2018-06: AUD 35.13 per share

- 2018-07: AUD 35.20 per share

- 2018-08: AUD 36.62 per share

- 2018-09: AUD 35.48 per share

- 2018-10: AUD 33.18 per share

- 2018-11: AUD 31.59 per share

- 2018-12: AUD 32.22 per share

- 2019-01: AUD 32.21 per share

- 2019-02: AUD 33.18 per share

- 2019-03: AUD 34.65 per share

- 2019-04: AUD 36.01 per share

- 2019-05: AUD 37.05 per share

- 2019-06: AUD 36.16 per share

- 2019-07: AUD 39.19 per share

- 2019-08: AUD 39.10 per share

- 2019-09: AUD 39.80 per share

- 2019-10: AUD 39.76 per share

- 2019-11: AUD 42.37 per share

- 2019-12: AUD 41.40 per share

- 2020-01: AUD 45.21 per share

- 2020-02: AUD 40.65 per share

- 2020-03: AUD 34.27 per share

- 2020-04: AUD 37.69 per share

- 2020-05: AUD 40.37 per share

- 2020-06: AUD 44.83 per share

- 2020-07: AUD 46.55 per share

- 2020-08: AUD 47.52 per share

- 2020-09: AUD 44.42 per share

- 2020-10: AUD 45.96 per share

- 2020-11: AUD 49.45 per share

- 2020-12: AUD 50.40 per share

- 2021-01: AUD 54.61 per share

- 2021-02: AUD 49.24 per share

- 2021-03: AUD 52.67 per share

- 2021-04: AUD 54.11 per share

- 2021-05: AUD 55.39 per share

- 2021-06: AUD 59.10 per share

- 2021-07: AUD 61.14 per share

- 2021-08: AUD 59.95 per share

- 2021-09: AUD 55.75 per share

- 2021-10: AUD 57.25 per share

- 2021-11: AUD 56.86 per share

- 2021-12: AUD 59.30 per share

- 2022-01: AUD 52.71 per share

- 2022-02: AUD 48.19 per share

- 2022-03: AUD 50.41 per share

- 2022-04: AUD 49.41 per share

- 2022-05: AUD 47.19 per share

- 2022-06: AUD 41.91 per share

- 2022-07: AUD 46.63 per share

- 2022-08: AUD 47.01 per share

- 2022-09: AUD 42.72 per share

- 2022-10: AUD 45.46 per share

- 2022-11: AUD 48.57 per share

- 2022-12: AUD 45.91 per share

- 2023-01: AUD 49.65 per share

- 2023-02: AUD 48.24 per share

- 2023-03: AUD 50.25 per share

- 2023-04: AUD 51.97 per share

- 2023-05: AUD 47.67 per share

- 2023-06: AUD 49.34 per share

- 2023-07: AUD 49.65 per share

- 2023-08: AUD 53.87 per share

- 2023-09: AUD 52.86 per share

- 2023-10: AUD 50.52 per share

- 2023-11: AUD 52.66 per share

- 2023-12: AUD 57.04 per share

- 2024-01: AUD 58.17 per share

- 2024-02: AUD 66.64 per share

- 2024-03: AUD 68.40 per share

- 2024-04: AUD 66.79 per share

- 2024-05: AUD 64.89 per share

- 2024-06: AUD 65.18 per share

- 2024-07: AUD 73.65 per share

- 2024-08: AUD 72.60 per share

- 2024-09: AUD 70.43 per share

- 2024-10: AUD 67.28 per share

- 2024-11: AUD 71.83 per share

- 2024-12: AUD 71.53 per share

- 2025-01: AUD 76.60 per share

- 2025-02: AUD 74.16 per share

- 2025-03: AUD 72.01 per share

- 2025-04: AUD 78.32 per share

- 2025-05: AUD 83.02 per share

- 2025-06: AUD 84.75 per share

- 2025-07: AUD 85.75 per share

- 2025-08: AUD 91.81 per share

- 2025-09: AUD 92.02 per share

- 2025-10: AUD 84.00 per share

- 2025-11: AUD 81.88 per share

- 2025-12: AUD 81.09 per share

- 2026-01: AUD 83.36 per share

- 2026-02: AUD 79.62 per share

- 2026-03: AUD 72.91 per share

- 2026-04: AUD 72.92 per share

- 2026-05: AUD 79.79 per share

- 2026-06: AUD 90.40 per share

- 2026-07: AUD 89.36 per share

- 2026-08: AUD 79.44 per share

- 2026-09: AUD 76.61 per share

- 2026-10: AUD 77.76 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 15.62 per share, central AUD 20.93 per share, high AUD 24.51 per share

- FY2018: low AUD 2.52 per share, central AUD 2.85 per share, high AUD 3.29 per share

- FY2019: low AUD 8.49 per share, central AUD 9.63 per share, high AUD 11.15 per share

- FY2020: low AUD 10.81 per share, central AUD 12.02 per share, high AUD 13.64 per share

- FY2021: low AUD 14.59 per share, central AUD 16.31 per share, high AUD 18.61 per share

- FY2022: low AUD 13.10 per share, central AUD 14.91 per share, high AUD 17.32 per share

- FY2023: low AUD 15.51 per share, central AUD 17.65 per share, high AUD 20.50 per share

- FY2024: low AUD 15.72 per share, central AUD 17.89 per share, high AUD 20.78 per share

- FY2025: low AUD 19.71 per share, central AUD 22.43 per share, high AUD 26.05 per share

- FY2026: low AUD 20.36 per share, central AUD 23.17 per share, high AUD 26.91 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:35.674Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.