Latest news with #WestpacBanking
Yahoo
4 days ago
- Business
- Yahoo
Westpac Banking's (ASX:WBC) earnings growth rate lags the 20% CAGR delivered to shareholders
Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the market average. And the truth is, you can make significant gains if you buy good quality businesses at the right price. To wit, the Westpac Banking share price has climbed 93% in five years, easily topping the market return of 45% (ignoring dividends). On the other hand, the more recent gains haven't been so impressive, with shareholders gaining just 21%, including dividends. While the stock has fallen 3.7% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). During five years of share price growth, Westpac Banking achieved compound earnings per share (EPS) growth of 8.4% per year. This EPS growth is lower than the 14% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free interactive report on Westpac Banking's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. What About Dividends? It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Westpac Banking the TSR over the last 5 years was 152%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return. A Different Perspective We're pleased to report that Westpac Banking shareholders have received a total shareholder return of 21% over one year. And that does include the dividend. That's better than the annualised return of 20% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Westpac Banking (at least 1 which can't be ignored) , and understanding them should be part of your investment process. There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary 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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Straits Times
15-07-2025
- Business
- Straits Times
Australia's consumer sentiment edges up despite central bank rate shock: Survey
Find out what's new on ST website and app. Sentiment advanced by 0.6 per cent to 93.1 points, a Westpac Banking survey showed July 15. Australia's consumer confidence edged higher in July as households' assessment of their financial position improved even after the Reserve Bank shocked markets by keeping interest rates unchanged. Sentiment advanced by 0.6 per cent to 93.1 points, a Westpac Banking survey showed July 15, meaning pessimists persist in outweighing optimists with a dividing line of 100. 'Australia's consumer sentiment recovery experienced another 'false start',' said Westpac's head of Australian macro forecasting Matthew Hassan. 'While the mood improved a touch for the month as a whole, responses over the survey week show a clear disappointment following the RBA's surprise move.' Households polled before the rate decision reported an index reading of 95.6 while those surveyed after it reported an index read of 92, Westpac said. The RBA has lowered borrowing costs twice in 2025 and wrong-footed investors a week ago when it kept the cash rate at a two-year low of 3.85 per cent, rather than cut. Governor Michele Bullock said the difference with the market was one of timing rather than direction, suggesting further easing is likely. Traders are currently pricing two more rate cuts in 2025 with a slight chance of a third. 'Assessments of family finances improved for the survey overall but showed a sharper pull-back following the RBA decision,' Westpac's Hassan said. 'Indeed, even with the RBA's July surprise, consumers have become slightly more confident that interest rates will continue to move lower over the next year.' Top stories Swipe. Select. Stay informed. Business 'Some cannot source outside China': S'pore firms' challenges and support needed amid US tariffs Multimedia From local to global: What made top news in Singapore over the last 180 years? World Trump arms Ukraine and threatens sanctions on countries that buy Russian oil Singapore Turning tragedy into advocacy: Woman finds new purpose after paralysis Opinion Sumiko at 61: Everything goes south when you age, changing your face from a triangle to a rectangle Sport World Aquatics C'ship women's 10km open water swimming event delayed by a day due to water quality Singapore HSA intensifies crackdown on vapes; young suspected Kpod peddlers nabbed in Bishan, Yishun Singapore Ex-cop charged after he allegedly went on MHA portal, unlawfully shared info with man In Australia, where consumption accounts for about half of the economy, households' attitudes toward purchases are closely monitored by policymakers. Other key data points: The family finances vs a year ago sub-index climbed 5 per cent The 'family finances next 12 months sub-index posted a milder 2.6 per cent gain to 101.4, nudging back into net positive The time to buy a major item sub-index declined 2.6 per cent to 97.6, partly unwinding last month's 7.5 per cent surge The Westpac–Melbourne Institute Unemployment Expectations Index rose 1.1 per cent to 128.7 in July – a higher reading means more consumers expect unemployment to increase over the year ahead Westpac noted that while consumers are not fearful of job losses, the reading is broadly consistent with a flat rather than firming labour market BLOOMBERG
Business Insider
30-05-2025
- Business
- Business Insider
Westpac Banking (WEBNF) Gets a Sell from J.P. Morgan
J.P. Morgan analyst Andrew Triggs maintained a Sell rating on Westpac Banking (WEBNF – Research Report) today and set a price target of A$28.50. The company's shares closed yesterday at $20.20. Confident Investing Starts Here: Triggs covers the Financial sector, focusing on stocks such as Macquarie Group Limited, ANZ Group Holdings, and National Australia Bank Limited. According to TipRanks, Triggs has an average return of 3.1% and a 51.58% success rate on recommended stocks. The word on The Street in general, suggests a Moderate Sell analyst consensus rating for Westpac Banking with a $18.59 average price target, which is a -7.97% downside from current levels. In a report released on May 26, Jarden also maintained a Sell rating on the stock with a A$30.00 price target.
Business Insider
29-05-2025
- Business
- Business Insider
Jarden Keeps Their Sell Rating on Westpac Banking (WEBNF)
Jarden analyst Matthew Wilson maintained a Sell rating on Westpac Banking (WEBNF – Research Report) on May 26 and set a price target of A$30.00. The company's shares closed yesterday at $20.50. Confident Investing Starts Here: Wilson covers the Financial sector, focusing on stocks such as ANZ Group Holdings, National Australia Bank Limited, and Westpac Banking. According to TipRanks, Wilson has an average return of -5.0% and a 43.48% success rate on recommended stocks. Westpac Banking has an analyst consensus of Moderate Sell, with a price target consensus of $18.66, representing a -8.98% downside. In a report released on May 16, Macquarie also maintained a Sell rating on the stock with a A$27.50 price target. The company has a one-year high of $23.28 and a one-year low of $16.30. Currently, Westpac Banking has an average volume of 2,694.
Straits Times
22-05-2025
- Business
- Straits Times
South Korean won touches seven-month high on report of currency talks with US
SEOUL – The South Korean won climbed to a seven-month high late on May 21 after local media reported the direction of the currency was discussed during trade talks with the US. The currency rallied after newspaper Korea Economic Daily cited an unnamed government official as saying the US believes a relatively weak won is a fundamental cause of the Asian nation's trade surplus. The talks are ongoing and nothing has been decided yet, Korea's finance ministry said in a statement. The won advanced as much as almost 2 per cent to 1,368.50 per dollar on May 21, the strongest level since October 2024. The currency unwound some of those gains on May 22, weakening 0.6 per cent. 'The idea of currency accords was always mostly the cherry on top for what was already a compelling medium bullish case for Asia FX,' said Mr Richard Franulovich, head of foreign-exchange strategy at Westpac Banking in Sydney. The won's volatility comes amid concern the US is using the threat of higher tariffs to convince its trading partners to allow their currencies to strengthen. US President Donald Trump and other officials in his administration have long argued weakness in Asian currencies is handing exporters in the countries an unfair advantage. The won sunk to the weakest level in a decade in April as rising trade tensions following Mr Trump's 'liberation day' tariff threats sapped demand for emerging-market assets. While strengthening in recent weeks, the won is still one of the world's most undervalued currencies, based on its real effective exchange rate. The yen briefly weakened earlier on May 22 after US Treasury Secretary Scott Bessent and Japanese Finance Minister Katsunobu Kato reaffirmed that markets should dictate currency levels. Korea's currency has strengthened almost 7 per cent against the greenback this quarter, the best performer in Asia after the Taiwan dollar, according to data compiled by Bloomberg. The won closed 0.9 per cent higher on May 14 after a media report said officials from Korea and the US discussed currency policy at a meeting in Milan. 'I foresee challenges with putting exchange-rate clauses that target certain levels in any trade agreement, so would not necessarily think a trade-related catalyst is pending,' said Mr Brendan McKenna, a strategist at Wells Fargo in New York. Still, 'the won could certainly strengthen more if local officials agree to certain FX sticking points,' he said. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
