Wesfarmers Limited is an Australian Conglomerate which is headquartered in Perth, Australia. The company is primarily engaged in retail, chemical, mining of coal, fertilisers, products related to safety and industry. It is also engaged in Supermarkets, liquor, hotel etc. The company is largest Australian entity marking its presence in Australia and New Zealand. Wesfarmers is bigger than BHP Billiton and Woolworths. The company has a diverse portfolio with an employee strength of 223000 0employees. The price of the share is AUD 49.48 and has a market capitalisation of about $ 55 Billion.
The business of the company includes
- Bunnings: It is the leading retailer of home improvement and l outdoor living products in New Zealand and Australia. The company is also major supplier of project builders, housing industry and commercial trade’s people.
- Coles: The company is engaged in service of providing fresh foods, groceries, liquor, fuel and financial service through its online space and brick and mortar enterprises;
- Kmart: The company operates in retail sector and deals in clothing and general merchandise with its operation both locally and globally;
- TARGET: It is a brand store and is characterised by strong heritage of brand and designs.
Location of Business Activities
The giant conglomerate has its business activities in Australia, New Zealand, and Bangladesh, Ireland and United Kingdom with a revenue of $68.44 Billion (2017) and net income of $2.87 Billion. Further, the company has various subsidiaries pan globe which manage the affair of the Australian Resident Wesfarmers Limited.
The company has a market cap of near about $55 Billion (Reuters.com, 2018) . The market Capitalisation has grown over the years from $ 45.490 Billion in 2017 and $45.15 Billion in 2016
Michael Chaney AO –Non executive Chairman (WESFARMERS LIMITED) : He joined the company in June 2015. He holds degree in Bachelor of Science and Master of Business Administration from the University of Australia. He has a wide range of experience as a corporate Finance Executive at Industry Development Corporation to Chairman of Wesfarmers. He was also the chairman of Woodside Petroleum Limited and National Australia Bank. He was also chancellor of The University of Western Australia
Rob Scott-Managing Director: He started with Wesfarmers in 1993 and later on moved on to challenging roles in Finance, merger and acquisition in Australia and Asia. He holds degree of Master of Applied Finance degree from Macquarie University and a Bachelor of Commerce degree from the Australian National University.
Paul Bassat-Non –executive Director (WESFARMERS LIMITED) : He joined Wesfarmers in 2012 and hold degree in Bachelor of Laws and a Bachelor of Commerce from the University of Melbourne.
The Right Honourable Bill English KNZM-non executive Director (WESFARMERS LIMITED) : He joined the company in April, 2018 and hold degree in Bachelor of Commerce from the University of Otago and a Bachelor of Arts with honours in English Literature from Victoria University of Wellington
Tony Howarth AO- non executive Director: He joined the company in 2007 and is Life Fellow of the Financial Services Institute of Australasia. He is an adroit with more than 30 years of experience in banking and finance industry
Wayne Osborn-non executive Director (WESFARMERS LIMITED): He is in the board since 2010 and has done his Diploma of Engineering (Electrical) from the Gordon Institute of Technology and his MBA from Deakin University
Diane Smith-Gander- non executive Director: She has been with the board since 2009 and has degree in Bachelor of Economics from University of Western Australia and has done MBA from the University of Sydney;
Vanessa Wallace- non executive Director (WESFARMERS LIMITED) : She is in the board since 2010 and has degree in commerce from University of New South Wales and has done MBA from IMD Switzerland
Jennifer Westacott AO- non executive Director: She is in the board since 2013 and has done her Bachelor in Arts from University of New South Wales and was a bright scholar at London School of Economics.
Latest PE Ratio
PE ratio is the relationship between the stock price of the company and the earning per share. Through the PE ratio the investor can easily find the value of the company and can test whether the company is worth investing, or the company is undervalued or overvalued.PE ratio is very valuable to compute when we are analysing the company stock how profitable the company is running and how it will run in future.
Dividend is an amount paid to the shareholders of the company typically annually out of its reserves or profit of the company. It can be distributed in any form either as cash or as shares or as property of the company. The pay-out distribution of dividend varies over the time frame and depends on the directors of the company. ( Bennett, Coleman & Co. Ltd, 2018)
The company west farmers Limited has got the following capital structure:
Market Cap (Mil):$55,354.08 (Reuters.com, 2018)
Shares Outstanding (Mil):1,133.84 (Reuters.com, 2018)
Dividend: 1.20 (Reuters.com, 2018)
Yield (%):4.57 (Reuters.com, 2018)
Environmental Impact and Policy:
Every company has got its policy in order to protect the environment from harmful gas and hazardous activity.Wesfarmers limited also has its own principles, as one has to comply with the law of environment and the environment license policies.
Properly identifying the material usage to which environment risk is associated with and reporting the same to the committee formed.
Planning to reduce the environmental risk such as waste water management,green house gas emission and reduction of waste.
Where necessary protecting the biodiversity and ecosystem.
Where possible use materials which can be reused,recycle and are safe to the environment and have low energy emission and low impact on depletion of resources.
Compliance by the suppliers to environment laws and rules. (Wesfarmers Limited)
Beta is a value in numbers that shows the changes in the stock value with relation to the changes in the overall stock market. For instance: if the company stock beta is 1:4 it means that the stock is 40% more volatile than the market beta .The calculation of it is done through regression. In case of Wesfarmers Limited current Beta stands at 0.92.
Bennett, Coleman & Co. Ltd. (2018). Definition of 'Dividend. Retrieved October 4, 2018, from economictimes.indiatimes.com: https://economictimes.indiatimes.com/definition/dividend
Reuters.com. (2018). Wesfarmers Ltd (WES.AX). Retrieved October 4, 2018, from www.reuters.com: https://www.reuters.com/finance/stocks/overview/WES.AX
WESFARMERS LIMITED. (n.d.). DIRECTORS. Retrieved October 4, 2018, from www.wesfarmers.com.au: https://www.wesfarmers.com.au/who-we-are/directors
Wesfarmers Limited. (n.d.). Environment Policy. Retrieved October 4, 2018, from www.wesfarmers.com.au: https://www.wesfarmers.com.au/docs/default-source/corporate-governance/environment-policy-august-2016-external-for-website.pdf?sfvrsn=2