Wesfarmers Limited: History, Industry, Market Share, Directors, PE Ratio, Dividend Policy, Environmental Impact and Beta

Wesfarmers Limited is an Australian conglomerate with a diverse portfolio in retail, chemical, mining, safety products, and more. It is the largest Australian entity with a market cap of $55 billion. The company has a rich history, starting as a co-operative for Western Australian farmers in 1914. The article covers the company's market share, directors, PE ratio, dividend policy, environmental impact, and beta.

WESFARMERS
LIMITED

TABLE OF CONTENT
HISTORY.................................................................................................................................................3
INTRODUCTION (Industry and Product/ services).................................................................................3
Location of Business Activities...............................................................................................................3
Market Share of Wesfarmers................................................................................................................3
Directors................................................................................................................................................3
Latest PE Ratio.......................................................................................................................................4
Dividend Policy:.....................................................................................................................................4
Environmental Impact and Policy:.........................................................................................................4
Beta:......................................................................................................................................................5
References:............................................................................................................................................5

HISTORY
Wesfarmers is an Australian Conglomerate which was founded in 1914 as a co-operative for the
purpose of providing services and merchandise to Western Australian Farmers. The company was
listed on Australian Stock exchange on 1984 and later on grew into a giant conglomerate with
diverse portfolio and biggest Australian Company in terms of revenue.
The humble beginning of the company was made by Farmers and the Settlers Association of Western
Australia. The company grew at a rampant pace and there were near about 65 local co-operatives
companies who acted as agent to the company by 1919.
The company was driven by the need for supporting the local and rural community under the able
guidance of Mr. Walter Harper. Walter worked with a belief that worker should coordinated with the
produce for trading and do not mix with the produce for political activities.
The Western Farmers Limited was formally registered under the Companies Act of Australia on 27 th
June, 1914 and started its trading business with two miniature rooms at 13, Howard Street, Perth
Australia. In 1924, company established its first public radio station. By 1940, company expanded its
foot print in wheat and general merchant, oil, woods, skin and other products.
By 1949, the company has set its foot in transport by acquiring Ashburton Transport and later
purchased the competitor company Gascoyne Trading.
In 1994, the company further expanded its operation and got listed on Australian Stock Exchange as
public company.
The company at present has its headquarter in 40, The Esplanade Perth, Western Australia,
Australia.
INTRODUCTION (Industry and Product/ services)
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
(a) 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.
(b) 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;
(c) Kmart: The company operates in retail sector and deals in clothing and general merchandise
with its operation both locally and globally;
(d) TARGET: It is a brand store and is characterised by strong heritage of brand and designs.
(e) Others.

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.
Market Share of Wesfarmers
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
Directors
The directors of Wesfarmers include: (WESFARMERS LIMITED)
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.
The latest PE ratio of Wesfarmers:
PE Ratio: 21.24 (Reuters.com, 2018)
PE Ratio (Industry):70.68 (Reuters.com, 2018)
PE Ratio (Sector):17.97 (Reuters.com, 2018)
Dividend Policy:
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:
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.
References:
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: http://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