WesfarmersWFAFF +5.57%80 3-Year ROIIC % is 74.98 as of Jun. 2025, which is 900% above its 10-year median of 7.50. GuruFocus rates WFAFF with a GF Score™ of 80/100 and a GF Value™ of $48.38 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 1,057 Retail - Cyclical companies, Wesfarmers ranks better than 90.07% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Wesfarmers's 3-Year ROIIC % for the quarter that ended in Jun. 2025 was 74.98%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Wesfarmers's 3-Year ROIIC % or its related term are showing as below:
WFAFF's 3-Year ROIIC % is ranked better than 90.07% of 1057
companies
in the Retail - Cyclical industry
Industry Median: 4.63
vs WFAFF: 74.98
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Wesfarmers 3-Year ROIIC % Related Terms
Wesfarmers 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Wesfarmers's 3-Year ROIIC % 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.
For the Home Improvement Retail subindustry, Wesfarmers's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Wesfarmers's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Wesfarmers's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Wesfarmers (WFAFF) has a 3-Year ROIIC % of 74.98 as of Jun. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Wesfarmers and its competitors. This is 900% above median its historical median of 7.50. According to the industry distribution chart, Wesfarmers ranks #105 out of 1057 companies in the Retail - Cyclical industry, placing it in the top 9.9%.
Is Wesfarmers' 3-Year ROIIC % too high?
Wesfarmers' current 3-Year ROIIC % of 74.98 is 900% above median its 10-year median of 7.50. The Retail - Cyclical industry median 3-Year ROIIC % is 4.63. Wesfarmers' value of 74.98 is 1519.4% above this industry median. Based on the distribution chart, Wesfarmers ranks #105 out of 1057 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Wesfarmers has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Wesfarmers' 3-Year ROIIC % compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, Wesfarmers ranks #105 out of 1057 companies for 3-Year ROIIC %. This places Wesfarmers in the top 10% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 4.63. Wesfarmers' value of 74.98 is 1519.4% above this benchmark. While the company's 10-year median is 7.50 vs. the industry median of 4.63, Wesfarmers has consistently been above 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 3-Year ROIIC % for a Retail - Cyclical company?
The median 3-Year ROIIC % among Retail - Cyclical companies is 4.63, based on 1,057 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Wesfarmers's current 3-Year ROIIC % of 74.98 is 1519.4% above 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Wesfarmers and its competitors. For the Retail - Cyclical industry, the median 3-Year ROIIC % is 4.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wesfarmers's current 3-Year ROIIC % is 74.98, which is 900% above median its own 10-year median of 7.50. 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?
Based on GuruFocus' analysis, Wesfarmers (WFAFF) is currently considered Modestly Overvalued. The stock's GF Value™ is $48.38, compared to a current price of $59.12 — trading 22.2% above its estimated fair value. The current 3-Year ROIIC % is 74.98, which is 900% above median its 10-year median of 7.50 and 1519.4% above the Retail - Cyclical industry median of 4.63. Wesfarmers' overall GF Score™ is 80/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Wesfarmers (WFAFF), the current 3-Year ROIIC % is 74.98 as of Jun. 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 (WFAFF) Overvalued in 2026?
Based on GuruFocus' analysis, Wesfarmers stock appears to be overvalued.
The current stock price of $59.12 is trading 22.2% above its estimated GF Value™ of $48.38.
GuruFocus considers Wesfarmers to be Modestly Overvalued.
Key valuation signals for WFAFF:
3-Year ROIIC %: 74.98 (900% above median its 10-year median of 7.50)
GF Value™: $48.38 vs. price of $59.12 (22.2% above fair value)
Industry Position: 1519.4% above the Retail - Cyclical median (#105 of 1057)
No single metric tells the full story. See the WFAFF 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.
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