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How to buy Wesfarmers (WES) shares

Learn how to easily invest in Wesfarmers shares.

Wesfarmers Limited (WES) is a leading home improvement retail business based in Australia. It opened the day at AUDA$58.61 after a previous close of AUDA$59.09. During the day the price has varied from a low of AUDA$57.58 to a high of AUDA$58.85. The latest price was AUDA$58 (25 minute delay). Wesfarmers is listed on the Australian Securities Exchange (ASX) and employs 114,000 staff. All prices are listed in Australian Dollars.

How to buy shares in Wesfarmers

  1. Compare share trading platforms. Use our comparison table to help you find a platform that fits you.
  2. Open your brokerage account. Complete an application with your details.
  3. Confirm your payment details. Fund your account.
  4. Research the stock. Find the stock by name or ticker symbol – WES – and research it before deciding if it's a good investment for you.
  5. Purchase now or later. Buy your desired number of shares with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
  6. Check in on your investment. Optimize your portfolio by tracking your stock.

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How has Coronavirus impacted Wesfarmers's stock price?

Since the stock market crash in March caused by coronavirus, Wesfarmers's stock price has had significant positive movement.

Its last market close was A$54.77, which is 15.98% up on its pre-crash value of A$46.02 and 84.10% up on the lowest point reached during the March crash when the stocks fell as low as A$29.75.

If you had bought A$1,000 worth of Wesfarmers stocks at the start of February 2020, those stocks would have been worth A$688.02 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth A$1,214.80.

Wesfarmers shares at a glance

Information last updated 2021-07-09.
OpenA$58.61
HighA$58.85
LowA$57.58
CloseA$58.00
Previous closeA$59.09
Change A$-1.09
Change % -1.8446%
Volume 1,636,770
Information last updated 2021-10-09.
52-week rangeA$44.02 - A$66.19
50-day moving average A$58.03
200-day moving average A$57.37
Wall St. target priceA$57.66
PE ratio 26.1941
Dividend yield A$1.78 (3.28%)
Earnings per share (TTM) A$2.10

Wesfarmers stock price (Australian Securities Exchange (ASX): WES)

Use our graph to track the performance of WES stocks over time.

Wesfarmers price performance over time

Historical closes compared with the close of A$58 from 2021-10-15

1 week (2021-10-08) 5.34%
1 month (2021-09-16) 1.79%
3 months (2021-07-16) -1.89%
6 months (2021-04-16) 4.24%
1 year (2020-10-16) 20.33%
2 years (2019-10-16) 42.68%
3 years (2018-10-16) 71.90%
5 years (2016-10-14) 79.08%

Is Wesfarmers under- or over-valued?

Valuing Wesfarmers stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Wesfarmers's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Wesfarmers's P/E ratio

Wesfarmers's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 26x. In other words, Wesfarmers shares trade at around 26x recent earnings.

That's relatively low compared to, say, the P/E ratio for the ASX over the 12 months to December 2019 (32.14). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Wesfarmers's EBITDA

Wesfarmers's EBITDA (earnings before interest, taxes, depreciation and amortisation) is A$4.1 billion.

The EBITDA is a measure of a Wesfarmers's overall financial performance and is widely used to measure a its profitability.

Wesfarmers financials

Revenue TTM A$33.9 billion
Operating margin TTM 10.55%
Gross profit TTM A$12.8 billion
Return on assets TTM 8.67%
Return on equity TTM 24.98%
Profit margin 7.01%
Book value A$8.57
Market capitalisation A$62.4 billion

TTM: trailing 12 months

Wesfarmers's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Wesfarmers.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Wesfarmers's total ESG risk score

Total ESG risk: 15.98

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Wesfarmers's overall score of 15.98 (as at 12/31/2018) is excellent – landing it in it in the 11st percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Wesfarmers is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Wesfarmers's environmental score

Environmental score: 7.35/100

Wesfarmers's environmental score of 7.35 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that Wesfarmers is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Wesfarmers's social score

Social score: 8.36/100

Wesfarmers's social score of 8.36 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that Wesfarmers is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Wesfarmers's governance score

Governance score: 5.27/100

Wesfarmers's governance score puts it squarely in the 5th percentile of companies rated in the same sector. That could suggest that Wesfarmers is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Wesfarmers's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Wesfarmers scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Wesfarmers has, for the most part, managed to keep its nose clean.

Wesfarmers share dividends

85%

Dividend payout ratio: 84.76% of net profits

Recently Wesfarmers has paid out, on average, around 84.76% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 6.87% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Wesfarmers shareholders could enjoy a 6.87% return on their shares, in the form of dividend payments. In Wesfarmers's case, that would currently equate to about A$1.78 per share.

Wesfarmers's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

The latest dividend was paid out to all shareholders who bought their shares by 17 November 2021 (the "ex-dividend date").

Have Wesfarmers's shares ever split?

Wesfarmers's shares were split on a 9:10 basis on 25 November 2014. So if you had owned 10 shares the day before before the split, the next day you'd have owned 9 shares. This wouldn't directly have changed the overall worth of your Wesfarmers shares – just the quantity. However, indirectly, the new 11.1% higher share price could have impacted the market appetite for Wesfarmers shares which in turn could have impacted Wesfarmers's share price.

Wesfarmers share price volatility

Over the last 12 months, Wesfarmers's shares have ranged in value from as little as A$44.0192 up to A$66.1912. A popular way to gauge a stock's volatility is its "beta".

WES.AU volatility(beta: 0.56)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (AU average) beta is 1, while Wesfarmers's is 0.5594. This would suggest that Wesfarmers's shares are less volatile than average (for this exchange).

Wesfarmers overview

Wesfarmers Limited primarily engages in the retail business in Australia, New Zealand, the United Kingdom, and internationally. The company is involved in the retail sale of building materials, home and garden improvement, and outdoor living products through its Bunnings stores; apparel, homewares, and general merchandise, including toys, leisure, entertainment, home, consumables, electrical products, and accessories; and office products and solutions, such as office supplies, technology, furniture, art supplies, education resources, and helpful services, including print and copy and on-site tech support through its 168 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 through Geeks2U. In addition, the company manufactures and supplies ammonia, ammonium nitrate, and industrial chemicals; manufactures, imports, and distributes phosphate, nitrogen, and potassium-based fertilizers in blended, compound, and liquid form; supplies polyvinyl chloride resins used in various products comprising piping, cable insulation, floor coverings, building profiles, packaging, and compounds; produces wood-plastic composite products; and manufactures and distributes sodium cyanide for gold extraction in mining industry. Further, it extracts, markets, and distributes liquefied petroleum gas and liquefied natural gas; supplies and distributes maintenance, repair, operating products, and industrial safety products and services; manufacturers and markets industrial gases and equipment; distributes tools, safety gear, work wear, and industrial supplies; and provides risk management and compliance services, as well as offers property management services and other businesses. Additionally, the company sells its products online. Wesfarmers Limited was founded in 1914 and is headquartered in Perth, Australia.

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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