Westpac Banking Corporation
Westpac Banking Corporation Fundamental Analysis
Westpac Banking Corporation (WBK) shows moderate financial fundamentals with a PE ratio of 9.96, profit margin of 32.58%, and ROE of 9.69%. The company generates N/A in annual revenue with weak year-over-year growth of 2.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 23.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WBK's fundamental strength across five key dimensions:
Efficiency Score
WeakWBK struggles to generate sufficient returns from assets.
Valuation Score
ModerateWBK shows balanced valuation metrics.
Growth Score
WeakWBK faces weak or negative growth trends.
Financial Health Score
WeakWBK carries high financial risk with limited liquidity.
Profitability Score
WeakWBK struggles to sustain strong margins.
Key Financial Metrics
Is WBK Expensive or Cheap?
P/E Ratio
WBK trades at 9.96 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WBK's PEG of 2.79 indicates potential overvaluation.
Price to Book
The market values Westpac Banking Corporation at 0.96 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -15.11 times EBITDA. This is generally considered low.
How Well Does WBK Make Money?
Net Profit Margin
For every $100 in sales, Westpac Banking Corporation keeps $32.58 as profit after all expenses.
Operating Margin
Core operations generate 48.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.69 in profit for every $100 of shareholder equity.
ROA
Westpac Banking Corporation generates $0.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $-2.65 in free cash annually.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.95
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
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
0.009
vs 25 benchmark
How WBK Stacks Against Its Sector Peers
| Metric | WBK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.96 | 18.86 | Better (Cheaper) |
| ROE | 9.69% | 847.00% | Weak |
| Net Margin | 32.58% | 4202.00% | Weak |
| Debt/Equity | 2.95 | 0.91 | Weak (High Leverage) |
| Current Ratio | 0.00 | 667.17 | Weak Liquidity |
| ROA | 0.63% | -21543.00% (disorted) | Weak |
WBK outperforms its industry in 1 out of 6 key metrics, 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
11.85%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
5.99%
Industry Style: Value, Dividend, Cyclical
GrowingFCF CAGR
-439.44%
Industry Style: Value, Dividend, Cyclical
Declining