Stock Spotlight: Wesfarmers Limited (ASX:WES)
This week's Stock Spotlight is ASX-listed Wesfarmers Limited.
About Wesfarmers Limited.
Wesfarmers Limited engages in the retail business in Australia, New Zealand, and internationally. It 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, it manufactures and supplies ammonia, ammonium nitrate, and industrial chemicals; manufactures, imports, and distributes phosphate, nitrogen, and potassium-based fertilisers, as well as LPG; supplies polyvinyl chloride resins; produces wood-plastic composite products; and manufactures and distributes sodium cyanide and lithium hydroxide. Further, It produces and distributes liquefied petroleum gas and liquefied natural gas; supplies and distributes maintenance, repair, operating products, and industrial safety products and services; manufactures and markets industrial, medical, and specialty gases and equipment; supplies tools, safety gear, personal protective equipment, electricals, work wear, and industrial supplies; and provides risk and compliance management services, as well as footwear; safety products, uniforms, engineering supplies, and packaging services; and engages in other businesses. Additionally, it provides health, beauty, and wellbeing products and services; clinical cosmetic and skin care treatments; retail support services; distributes pharmaceutical goods; and operates online marketplace and data sharing platform. The company was founded in 1914 and is headquartered in Perth, Australia.
Source: Yahoo Finance
Key Stats
Key Stats
Source: Yahoo Finance, ASX. Data as of 08/10/24.
Price Performance
Growth Potential
- Diversified asset base with core assets continuing to grow (Bunnings; Kmart and WesCEF).
- Expect improving performance from Officeworks.
- On-going focus on shareholder return including solid yield.
- Strong management team.
- Strong balance provides flexibility to take advantage of opportunities as they arise.
- Potential capital management initiatives.
Key Risks
- Expect ongoing issues with Catch.
- Margin erosion due to competitive pressures.
- Disappointing earnings performance in Bunnings.
- Deterioration in the macro picture leading to lower retail sales activity and volumes.
- Deterioration in balance sheet metrics.
- Adverse movements in AUD/USD.
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Disclaimer: This article does not constitute financial advice nor a recommendation to invest in the securities listed. The information presented is intended to be of a factual nature only. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking financial, legal and taxation advice before investing.
