Wesfarmers Ltd

WES: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$57.40	Xzb	Drhjlrnbj

Wesfarmers’ Profits To Return to Growth in Fiscal 2023 Despite Rising Cost of Living Pressures

Johannes Faul

Aug 29, 2022

We maintain our fair value estimate at AUD 41 per share on wide-moat-rated Wesfarmers. As expected, the conglomerate’s earnings declined in fiscal 2022. However, the 3% reduction in underlying earnings to AUD 2.35 billion, or AUD 2.08, was less pronounced than our expectation of an 8% drop. Bunnings' stronger-than-expected sales, and WesCEF, buoyed by higher commodity prices, delivered the result.

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