WesfarmersWFAFF +5.57%80 3-Year RORE % is 35.80 as of Dec. 2025. 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 1,051 Retail - Cyclical companies, Wesfarmers ranks better than 76.31% on this metric.
Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Wesfarmers's 3-Year RORE % for the quarter that ended in Dec. 2025 was 35.80%.
The industry rank for Wesfarmers's 3-Year RORE % or its related term are showing as below:
WFAFF's 3-Year RORE % is ranked better than 76.31% of 1051
companies
in the Retail - Cyclical industry
Industry Median: 4.8
vs WFAFF: 35.80
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Wesfarmers 3-Year RORE % Related Terms
Wesfarmers 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Wesfarmers's 3-Year RORE % 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 RORE %, along with its competitors' market caps and 3-Year RORE % 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 RORE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Wesfarmers's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Wesfarmers's 3-Year RORE % 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.
In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Dec. 2025 and 3-year before.
Wesfarmers (WFAFF) has a 3-Year RORE % of 35.80 as of Dec. 2025. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Wesfarmers and its competitors. According to the industry distribution chart, Wesfarmers ranks #249 out of 1051 companies in the Retail - Cyclical industry, placing it in the top 23.7%.
Is Wesfarmers' 3-Year RORE % too high?
Wesfarmers' current 3-Year RORE % is 35.80. The Retail - Cyclical industry median 3-Year RORE % is 4.80. Wesfarmers' value of 35.80 is 645.8% above this industry median. Based on the distribution chart, Wesfarmers ranks #249 out of 1051 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 RORE % compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, Wesfarmers ranks #249 out of 1051 companies for 3-Year RORE %. This places Wesfarmers in the top 24% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 4.80. Wesfarmers' value of 35.80 is 645.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Retail - Cyclical company?
The median 3-Year RORE % among Retail - Cyclical companies is 4.80, based on 1,051 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Wesfarmers's current 3-Year RORE % of 35.80 is 645.8% 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 RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Wesfarmers and its competitors. For the Retail - Cyclical industry, the median 3-Year RORE % is 4.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wesfarmers's current 3-Year RORE % is 35.80. 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 RORE % is 35.80 and 645.8% above the Retail - Cyclical industry median of 4.80. 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 RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Wesfarmers (WFAFF), the current 3-Year RORE % is 35.80 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 (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 RORE %: 35.80
GF Value™: $48.38 vs. price of $59.12 (22.2% above fair value)
Industry Position: 645.8% above the Retail - Cyclical median (#249 of 1051)
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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