Wesfarmers Ltd Narrows FY Net Capital Expenditure Forecast: Analyzing Earnings

• Wesfarmers has narrowed its forecast for FY net capital expenditure to between A$1.10 billion and A$1.20 billion.
• The company has the financial and organisational capacity to consider value-accretive opportunities.
• Wesfarmers is investing in technology and automation across its divisions.
• The company is introducing flexibility in store remuneration models and progressing new enterprise agreements to deliver productivity outcomes.
• Catch.com.au has seen a 37% reduction in headcount to lower costs, and is clearing unprofitable 1P range and unhealthy stock.
• Wesfarmers is commercially managing Target to maintain profitability and differentiate on apparel and soft home.
• Analysts have 5 buys, 7 holds, and 6 sells for the company.

A look at Wesfarmers Ltd‘s Smart Scores

Wesfarmers Ltd., a diversified conglomerate with retail, mining, insurance, manufacturing and distribution operations, has a long-term outlook that is optimistic. According to the Smartkarma Smart Scores, the company scores highly on Growth and Momentum, with a score of 4 in each category. This indicates that Wesfarmers Ltd. is likely to continue expanding its operations and increasing its market share in the future. The company also has a respectable score of 3 for Dividend, suggesting that it is likely to continue paying a steady dividend to shareholders in the long-term. Although the company has a lower score of 2 for Value, this is still relatively positive for a diversified conglomerate.

Overall, Wesfarmers Ltd. is a well-diversified conglomerate with a long-term outlook that is optimistic. With a score of 4 for Growth and Momentum, the company is likely to continue expanding its operations and increasing its market share. It also has a respectable score of 3 for Dividend, indicating that it is likely to continue paying a steady dividend to shareholders in the long-term. The company has a lower score of 2 for Value, but this is still relatively positive for a diversified conglomerate.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.

💡 Before it’s here, it’s on Smartkarma