WesfarmersMEX:WESN 85 Gross Margin % is 34.25% as of Dec. 2025, which is 1% below its 10-year median of 34.43. GuruFocus rates MEX:WESN with a GF Score™ of 85/100 and a GF Value™ of MXN813.29. The stock has 7 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Wesfarmers ranks worse than 54.07% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Wesfarmers's Gross Profit for the
six
months ended in Dec. 2025 was MXN98,942 Mil. Wesfarmers's Revenue for the
six
months ended in Dec. 2025 was MXN288,845 Mil. Therefore, Wesfarmers's Gross Margin % for the quarter that ended in Dec. 2025 was 34.25%.
Warning Sign:
Wesfarmers Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.2%.
The historical rank and industry rank for Wesfarmers's Gross Margin % or its related term are showing as below:
MEX:WESN'
s Gross Margin % Range Over the Past 10 Years
Min: 30.51 Med: 34.43 Max: 38.23
Current: 34.14
During the past 13 years, the highestGross Margin % of Wesfarmers was 38.23%. The lowest was 30.51%. And the median was 34.43%.
MEX:WESN's Gross Margin % is ranked worse than 54.07% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.23
vs MEX:WESN: 34.14
Wesfarmers had a gross margin of 34.25% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Wesfarmers was -2.20% per year.
Wesfarmers (MEX:WESN) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Wesfarmers had a gross margin of 34.25% for the quarter that ended in Dec. 2025 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Wesfarmers Gross Margin % Related Terms
Wesfarmers Gross Margin % Historical Data
* Premium members only.
The historical data trend for Wesfarmers's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:WESN vs HD, LOW, FND: Gross Margin % Comparison
For the Home Improvement Retail subindustry, Wesfarmers's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Wesfarmers Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Wesfarmers's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Wesfarmers's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Wesfarmers (MEX:WESN) has a Gross Margin % of 34.25% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Wesfarmers and its competitors. This is near median its historical median of 34.43. Over the past decade, Wesfarmers' Gross Margin % has ranged from 30.51 to 38.23. According to the industry distribution chart, Wesfarmers ranks #604 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 54.1%.
Is Wesfarmers' Gross Margin % too high?
Wesfarmers' current Gross Margin % of 34.25% is near median its 10-year median of 34.43. Over the past 10 years, this metric has ranged from a low of 30.51 to a high of 38.23. The Retail - Cyclical industry median Gross Margin % is 36.23. Wesfarmers' value of 34.25% is 5.5% below this industry median. Based on the distribution chart, Wesfarmers ranks #604 out of 1117 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Wesfarmers has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Wesfarmers' Gross Margin % compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, Wesfarmers ranks #604 out of 1117 companies for Gross Margin %. This places Wesfarmers in the lower half of its industry. The industry median Gross Margin % is 36.23. Wesfarmers' value of 34.25% is 5.5% below this benchmark. Historically, Wesfarmers' own Gross Margin % has ranged from 30.51 to 38.23 over the past decade. While the company's 10-year median is 34.43 vs. the industry median of 36.23, Wesfarmers has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Wesfarmers's current Gross Margin % of 34.25% is 5.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Wesfarmers and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wesfarmers's current Gross Margin % is 34.25%, which is near median its own 10-year median of 34.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wesfarmers stock overvalued right now?
Wesfarmers (MEX:WESN) has a current Gross Margin % of 34.25%. The stock's GF Value™ is MXN813.29, compared to a current price of MXN940.00 — trading 15.6% above its estimated fair value. The current Gross Margin % is 34.25%, which is near median its 10-year median of 34.43 and 5.5% below the Retail - Cyclical industry median of 36.23. Wesfarmers' overall GF Score™ is 85/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Wesfarmers (MEX:WESN), the current Gross Margin % is 34.25% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Wesfarmers (MEX:WESN) Overvalued in 2026?
Based on GuruFocus' analysis, Wesfarmers stock appears to be overvalued.
The current stock price of MXN940.00 is trading 15.6% above its estimated GF Value™ of MXN813.29.
Key valuation signals for MEX:WESN:
Gross Margin %: 34.25% (near median its 10-year median of 34.43)
GF Value™: MXN813.29 vs. price of MXN940.00 (15.6% above fair value)
Industry Position: 5.5% below the Retail - Cyclical median (#604 of 1117)
No single metric tells the full story. See the MEX:WESN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wesfarmers is Australia's largest conglomerate. Its retail operations include the Bunnings hardware chain (number one in market share), discount department stores Kmart and Target (number one and three), and Officeworks in office supplies (number one). These activities account for the vast majority of group earnings before taxes. Other operations include chemicals and fertilizers, lithium mining, industrial and safety supplies, and health. Management is focused on generating cash and creating shareholder wealth in the long term.
85GF Score
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