WES 0.49% $68.69 wesfarmers limited

Strong cash flow reducing debt by .8B. However I see few issues...

  1. 861 Posts.
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    Strong cash flow reducing debt by .8B. However I see few issues with future earnings growth. Fertiliser price decline is still to play out on full year basis, lithium price reduction is going to pressure on the profitability of Mt.Holland project. Consolidation of Healthcare sector should pay dividends as years go bye. That leaves Bunnings and Kmart to do the heavy lifting, which are mature business on its own.
    Is the current PE of 26 bit too high for WES? Is the strong cash flow backs the higher PE?
    It is a very strong organisation.
 
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