Wesfarmers Limited (WFAFF)
NEUTRALFundamental
64
Price
$82.69
Market Cap
$93.49B
Part 1 · What the company is worth
Overview
Wesfarmers is an Australian conglomerate that owns a group of separately run retail and industrial businesses rather than making one product itself. Its best-known chains are Bunnings (hardware and home improvement), Kmart and Target (discount department stores) and Officeworks (office and stationery retail), alongside a health and pharmacy retail arm and a chemicals, energy and fertiliser manufacturing business, WesCEF. Each business keeps its own brand, stores and management, competing separately in its own market.
How it makes money
Revenue is largely ordinary retail sales — customers paying at the checkout in thousands of Bunnings, Kmart, Target and Officeworks stores and online across Australia and New Zealand — plus industrial sales of chemicals, explosives and fertiliser to mining and farming customers. Bunnings and Kmart Group are by far the largest contributors, each generating tens of billions of Australian dollars a year; Officeworks and WesCEF are considerably smaller. Profit depends mainly on how well each division executes in its own market, not a single group-wide driver.
Competitive moat
Brand · NarrowBunnings, by far the group's largest earner, is Australia's dominant home-improvement retailer, with a scale of stores and supplier relationships that a new entrant would take years to match, and a brand many Australian households default to without comparison shopping. That advantage is real for Bunnings but does not automatically extend to Wesfarmers' other, less dominant retail chains.
What drives demand
Moderately cyclicalThe group mixes defensive and discretionary demand: home-improvement and pharmacy spending tend to hold up reasonably well in a downturn, while discount department store sales at Kmart and Target and office-supplies sales at Officeworks are more sensitive to household budgets. WesCEF's chemicals and fertiliser business adds exposure to commodity prices and agricultural cycles that have little to do with Australian consumer spending at all.
The case for
Buyers argue that spreading across several leading retail brands and an industrial chemicals business smooths out a downturn in any single one, that Bunnings' scale advantage keeps compounding profit growth, and that FY2025's double-digit profit rise across most divisions shows the model still working.
The case against
Sellers worry that a conglomerate this size is hard to grow quickly from its current base, that WesCEF's earnings already fell as commodity prices weakened, and that discretionary chains like Kmart, Target and Officeworks remain exposed to a slowdown in Australian household spending.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$46.46B
Trailing 12 months to the last reported quarter — estimated from per-share metrics
Net Income
$3.06B
Trailing 12 months to the last reported quarter — estimated from per-share metrics
Free Cash Flow
$3.42B
Total Equity
$9.19B
Total Liabilities
$18.79B
Current Ratio
1.19
Interest Coverage
24.34
Debt/EBITDA
2.10
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$78.09
Current Price
$82.69
Margin of Safety
-5.9%
Fair Value Range
$65.12 - $91.07
Estimation Methods
Valuation Metrics
P/E Ratio
30.50
ROE
31.8%
P/B Ratio
11.90
P/FCF
27.32
Gross Margin
34.3%
ROIC
15.4%
Profitability Radar
Value Creation (Economic Moat)
ROIC
15.4%
WACC
7.6%
ROIC − WACC
+7.7 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (17)
- EPS shows upward trend
- EPS CAGR 7.48%
- Price CAGR 11.14%
- ROIC 15.4%
- Gross Margin 34.3%
- P/FCF 27.32
- Debt/Equity ratio
- Operating Margin 10.0%
- Positive Free Cash Flow
- Current Ratio
- Interest Coverage
- Debt/EBITDA
- ROE 35.9%
- Revenue Growth 5Y 8.2%
- Share Dilution 0.1%
- Net Margin Trend 6.4% vs 5.8%
- Piotroski F-Score 6/9
Failed (7)
- P/B Ratio 11.90
- CapEx intensity
- Price below Graham Number
- DCF valuation (Overvalued)
- Analyst Consensus 5% Buy
- Earnings Surprise avg 1.1%
- PEG Ratio 2.89
Unavailable (4)
- Dividend Payout NaN%
- Return on Tangible Assets
- Low reliance on intangibles
- Earnings Quality (OCF/Net Income)
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
Low quality: investigate accounting
Share Dilution
Share count is stable
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Robert Geoffrey Scott | MD, CEO & Director | 55 |
| Mr. Anthony Natale Gianotti | Chief Financial Officer | 56 |
| Ms. Aleksandra Spaseska | CFO & Managing Director of Kmart Group | - |
| Mr. Michael Schneider | MD of Bunnings Group and MD of Bunnings Australia & New Zealand | 54 |
| Dan Harloe | Investor Relations Manager | - |
| Ms. Maya vanden Driesen | Group General Counsel | - |
| Rebecca Keenan | Media & Public Affairs Manager | - |
| Ms. Jennifer Bryant | Chief Human Resources Officer | - |
| Ms. Marina Joanou | Managing Director of Target | - |
| Damian McGloughlin | Managing Director of BUKI | - |
Audit Risk
4
Board Risk
2
Compensation Risk
3
Shareholder Rights Risk
1
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for WFAFF, sourced from Markets Gazette.