Wesfarmers Ltd (ASX: WES) shares are edging lower today.
Shares in the diversified S&P/ASX 200 Index (ASX: XJO) conglomerate – whose retail subsidiaries include Bunnings Warehouse, Kmart Australia, Officeworks and Priceline – closed yesterday trading for $75.46. During the Wednesday lunch hour, shares are swapping hands for $75.25 apiece, down 0.3%.
For some context, the ASX 200 is up 0.4% at this same time.
Taking a step back, Wesfarmers shares have gained 5.3% over the past 12 months, underperforming the 10.7% one-year gains posted by the benchmark index.
But that doesn't include the passive income Wesfarmers delivered to shareholders during this time.
Over the past full year, the company paid out $2.53 a share in fully franked dividends. This sees Wesfarmers stock trading at a fully franked trailing dividend yield of 3.4%.
Which brings us back to our headline question.
With the ASX 200 stock achieving 9% half year profit growth, is the company a good buy today?
Image source: Getty Images
Should you buy Wesfarmers shares today?
Investor Pulse's Mark Elzayed recently ran his slide rule over the stock (courtesy of The Bull).
Elzayed currently has a hold recommendation on Wesfarmers shares.
"Despite the recent market turbulence, we continue to hold this industrial conglomerate, reflecting group resilience amid consistency among its core retail divisions," he said.
As for that $1.6 billion half year NPAT growth, Elzayed noted:
The recent first half result for fiscal year 2026 reinforced our view, with statutory net profit after tax of $1.603 billion up 9.3% on the prior corresponding period. Bunnings and Kmart Group sustained sales momentum by leaning into their low price positioning at a time when household budgets remain under pressure.
And, as you may be aware, Wesfarmers shares have exposure to far more than just the retail holdings.
According to Elzayed:
Wesfarmers chemicals, energy and fertiliser division has also become a more meaningful contributor, helped by firmer lithium prices and the ramp up of the Covalent Lithium refinery, which is now producing battery grade lithium hydroxide.
What's the latest from the ASX 200 conglomerate?
Wesfarmers reported its half-year results on 19 February.
Atop the profit growth Elzayed mentioned up top, the company achieved a 3.1% year-on-year increase in revenue to $24.21 billion.
And earnings before interest and tax (EBIT) increased by 8.4% to $2.49 billion.
"Wesfarmers' increase in profit was supported by strong earnings contributions from our largest divisions – Bunnings, Kmart Group and WesCEF," Wesfarmers managing director Rob Scott said.
Despite those solid results, Wesfarmers shares closed down 5.6% on the day of the release.
