Westpac Banking Corporation Fundamental Analysis (ASX: WBCPL.AX)
Westpac Banking Corporation Fundamental Analysis (ASX: WBCPL.AX)
Westpac Banking Corporation (ASX: WBCPL.AX) shows weak financial fundamentals with a PE ratio of 16.54, profit margin of 12.46%, and ROE of 9.77%. The company generates $0.2B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WBCPL.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakWBCPL.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateWBCPL.AX shows balanced valuation metrics.
Growth Score
ModerateWBCPL.AX shows steady but slowing expansion.
Financial Health Score
WeakWBCPL.AX carries high financial risk with limited liquidity.
Profitability Score
WeakWBCPL.AX struggles to sustain strong margins.
Key Financial Metrics
Is WBCPL.AX Expensive or Cheap?
P/E Ratio
WBCPL.AX trades at 16.54 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WBCPL.AX's PEG of 16.78 indicates potential overvaluation.
Price to Book
The market values Westpac Banking Corporation at 1.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -5.32 times EBITDA. This is generally considered low.
How Well Does WBCPL.AX Make Money?
Net Profit Margin
For every $100 in sales, Westpac Banking Corporation keeps $12.46 as profit after all expenses.
Operating Margin
Core operations generate 18.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.77 in profit for every $100 of shareholder equity.
ROA
Westpac Banking Corporation generates $0.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Westpac Banking Corporation generates strong operating cash flow of $82.11M, reflecting robust business health.
Free Cash Flow
Westpac Banking Corporation generates strong free cash flow of $80.59M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.34 in free cash annually.
FCF Yield
WBCPL.AX converts 15.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
16.78
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How WBCPL.AX Stacks Against Its Sector Peers
| Metric | WBCPL.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.54 | 21.07 | Better (Cheaper) |
| ROE | 9.77% | 659.00% | Weak |
| Net Margin | 12.46% | -1620.00% (disorted) | Strong |
| Debt/Equity | 3.19 | 0.91 | Weak (High Leverage) |
| Current Ratio | 0.07 | 928.89 | Weak Liquidity |
| ROA | 0.60% | -588.00% (disorted) | Weak |
WBCPL.AX outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Westpac Banking Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical