Westpac Banking Corporation (WBC.AX) stock analysis

In our weekly check, Westpac Banking Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 0, red flags: 9.

About Westpac Banking Corporation

Westpac Banking Corporation is a Financial Services company (Banks - Diversified) based in Australia, listed on ASX as WBC.AX.

What our checks show for WBC.AX

Red flags

• The net margin fell by 13.1 points over 5 years, to 11.9%: the company keeps less of each sale as profit.
• The gross margin fell by 61.3 points, to 37.7%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 25.3% a year.
• The dividend takes 107% of profit: little cushion if profit falls.
• The stock has fallen as much as 64% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 5.5 years.
• Return on capital (ROCE) is only 2.7%.

Strengths

• Operating cash flow is 2.02x net profit: the profit arrives as real cash.
• Analysts expect the net margin to improve by 21.4 points from today's 11.9%.
• Revenue grew 44.3% a year over the last 3 years.
• Free cash flow is 23.4% of revenue: cash for dividends, buybacks or growth.
• A large company: market value $88.37 billion.
• The share count fell by 7.2% in 2 years: the company buys back its own shares.

Next earnings report: 2026-11-02

Similar companies

NAB.AX · ANZ.AX · BMO · BBVA · BNS · QNBK.QA

Questions

What grade does Westpac Banking Corporation (WBC.AX) have?

In our weekly check, Westpac Banking Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 0, red flags: 9. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of WBC.AX stock?

This week's biggest flags for Westpac Banking Corporation: Margins falling, Gross margin falling, Weak revenue forecast. In total 9 of 25 checks show a warning or a red flag.

What does Westpac Banking Corporation do?

Westpac Banking Corporation is a Financial Services company (Banks - Diversified) based in Australia, listed on ASX as WBC.AX.

When does Westpac Banking Corporation report earnings next?

The next earnings report is expected on 2026-11-02. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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