George Weston
Market Cap
CA$14.9b
Last Updated
2021/01/19 23:46 UTC
Data Sources
Company Financials +
Executive Summary
George Weston Limited engages in the food processing and distribution business in Canada and Internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with solid track record and pays a dividend.
Similar Companies
Share Price & News
How has George Weston's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WN is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: WN's weekly volatility (2%) has been stable over the past year.
Market Performance
7 Day Return
-2.2%
WN
-4.2%
CA Consumer Retailing
0.2%
CA Market
1 Year Return
-10.3%
WN
-8.0%
CA Consumer Retailing
2.0%
CA Market
Return vs Industry: WN underperformed the Canadian Consumer Retailing industry which returned -6.6% over the past year.
Return vs Market: WN underperformed the Canadian Market which returned 1.5% over the past year.
Shareholder returns
| WN | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.2% | -4.2% | 0.2% |
| 30 Day | -2.8% | -7.6% | 3.8% |
| 90 Day | -1.2% | -9.1% | 13.4% |
| 1 Year | -8.3%-10.3% | -6.7%-8.0% | 5.7%2.0% |
| 3 Year | -7.6%-13.2% | 17.4%7.2% | 13.5%2.7% |
| 5 Year | -0.006%-9.0% | 27.8%13.9% | 67.8%42.1% |
Long-Term Price Volatility Vs. Market
How volatile is George Weston's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 weeks ago | Simply Wall St
How Much Does George Weston's (TSE:WN) CEO Make?1 month ago | Simply Wall St
Is George Weston Limited (TSE:WN) Trading At A 43% Discount?1 month ago | Simply Wall St
How Did George Weston Limited's (TSE:WN) 12% ROE Fare Against The Industry?Valuation
Is George Weston undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WN (CA$95.42) is trading below our estimate of fair value (CA$201.79)
Significantly Below Fair Value: WN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WN is good value based on its PE Ratio (13.8x) compared to the CA Consumer Retailing industry average (14.4x).
PE vs Market: WN is good value based on its PE Ratio (13.8x) compared to the Canadian market (16.7x).
Price to Earnings Growth Ratio
PEG Ratio: WN is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: WN is good value based on its PB Ratio (2.1x) compared to the CA Consumer Retailing industry average (2.3x).
Next Steps
Future Growth
How is George Weston forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
6.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WN's forecast earnings growth (6.9% per year) is above the savings rate (1.5%).
Earnings vs Market: WN's earnings (6.9% per year) are forecast to grow slower than the Canadian market (26.2% per year).
High Growth Earnings: WN's earnings are forecast to grow, but not significantly.
Revenue vs Market: WN's revenue (1.4% per year) is forecast to grow slower than the Canadian market (7.9% per year).
High Growth Revenue: WN's revenue (1.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if WN's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has George Weston performed over the past 5 years?
4.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WN has high quality earnings.
Growing Profit Margin: WN's current net profit margins (2%) are higher than last year (0.07%).
Past Earnings Growth Analysis
Earnings Trend: WN's earnings have grown by 4.8% per year over the past 5 years.
Accelerating Growth: WN's earnings growth over the past year (2866%) exceeds its 5-year average (4.8% per year).
Earnings vs Industry: WN earnings growth over the past year (2866%) exceeded the Consumer Retailing industry 24.4%.
Return on Equity
High ROE: WN's Return on Equity (12.2%) is considered low.
Next Steps
Financial Health
How is George Weston's financial position?
Financial Position Analysis
Short Term Liabilities: WN's short term assets (CA$13.2B) exceed its short term liabilities (CA$9.8B).
Long Term Liabilities: WN's short term assets (CA$13.2B) do not cover its long term liabilities (CA$24.5B).
Debt to Equity History and Analysis
Debt Level: WN's debt to equity ratio (119.2%) is considered high.
Reducing Debt: WN's debt to equity ratio has increased from 91.7% to 119.2% over the past 5 years.
Debt Coverage: WN's debt is well covered by operating cash flow (32.4%).
Interest Coverage: WN's interest payments on its debt are not well covered by EBIT (2.5x coverage).
Balance Sheet
Next Steps
Dividend
What is George Weston current dividend yield, its reliability and sustainability?
2.31%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WN's dividend (2.31%) is higher than the bottom 25% of dividend payers in the Canadian market (1.54%).
High Dividend: WN's dividend (2.31%) is low compared to the top 25% of dividend payers in the Canadian market (5%).
Stability and Growth of Payments
Stable Dividend: WN's dividends per share have been stable in the past 10 years.
Growing Dividend: WN's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (30.3%), WN's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Galen Weston (47 yo)
4yrs
Tenure
CA$9,320,611
Compensation
Mr. Galen G. Weston, B.A., M.B.A., has been Chief Executive Officer of George Weston Limited since January 18, 2017 and has been the Chairman since September 2016. He served as a Non-Independent Director o...
CEO Compensation Analysis
Compensation vs Market: Galen's total compensation ($USD7.32M) is about average for companies of similar size in the Canadian market ($USD6.58M).
Compensation vs Earnings: Galen's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 4yrs | CA$9.32m | 0.075% CA$ 11.1m | |
| President & CFO | 3yrs | CA$4.94m | 0.0039% CA$ 575.2k | |
| Executive Vice President & Chief Legal Officer | no data | CA$3.71m | 0.017% CA$ 2.6m | |
| President of Loblaw | 4yrs | CA$6.71m | 0.00092% CA$ 136.7k | |
| Senior Director of Investor Relations | no data | no data | no data | |
| Executive VP & Chief Talent Officer | no data | no data | 0.0075% CA$ 1.1m | |
| Chief Strategy Officer | 4.67yrs | no data | no data | |
| Group Head of Pensions & Benefits | 2yrs | no data | no data | |
| VP & Chief Risk Officer | 1.42yrs | no data | no data | |
| Group Head of Tax | 0.50yr | no data | no data | |
| Group Controller | 2yrs | no data | no data | |
| Treasurer | 4.67yrs | no data | no data |
3.0yrs
Average Tenure
52yo
Average Age
Experienced Management: WN's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 4yrs | CA$9.32m | 0.075% CA$ 11.1m | |
| Independent Director | 6.17yrs | CA$246.65k | 0.0033% CA$ 484.5k | |
| Independent Director | 4.67yrs | CA$240.00k | 0.00065% CA$ 96.6k | |
| Lead Independent Director | 8.67yrs | CA$312.50k | 0.0013% CA$ 193.2k | |
| Chairman Emeritus | no data | CA$3.15m | 0.0089% CA$ 1.3m | |
| Independent Director | 7.67yrs | CA$237.15k | 0.0023% CA$ 338.9k | |
| Independent Director | 2.67yrs | CA$249.23k | no data | |
| Independent Director | 4.33yrs | CA$236.93k | 0.0028% CA$ 413.2k | |
| Non-Independent Director | 1.67yrs | CA$294.75k | 0.055% CA$ 8.2m | |
| Independent Director | 10yrs | CA$321.78k | 0.0013% CA$ 193.2k | |
| Independent Director | 1.67yrs | CA$315.90k | 0.0013% CA$ 190.2k |
4.5yrs
Average Tenure
63yo
Average Age
Experienced Board: WN's board of directors are considered experienced (4.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WN insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
George Weston Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: George Weston Limited
- Ticker: WN
- Exchange: TSX
- Founded: 1882
- Industry: Food Retail
- Sector: Consumer Retailing
- Market Cap: CA$14.863b
- Shares outstanding: 153.41m
- Website: https://www.weston.ca
Number of Employees
Location
- George Weston Limited
- 22 St. Clair Avenue East
- Toronto
- Ontario
- M4T 2S7
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WN | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Nov 1972 |
| WX5 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Nov 1972 |
| WNGR.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Nov 1972 |
| WN.PRA | TSX (The Toronto Stock Exchange) | PFD 1 5.8% | CA | CAD | Dec 2001 | |
| WN.PRC | TSX (The Toronto Stock Exchange) | PFD SHS III | CA | CAD | Apr 2005 | |
| WN.PRD | TSX (The Toronto Stock Exchange) | PFD IV 5.20% | CA | CAD | Aug 2005 | |
| WN.PRE | TSX (The Toronto Stock Exchange) | 4.75% PFD SR V | CA | CAD | Apr 2006 |
Biography
George Weston Limited engages in the food processing and distribution business in Canada and Internationally. The Loblaw segment provides grocery, pharmacy, health and beauty, apparel, general merchandise,...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/19 23:46 |
| End of Day Share Price | 2021/01/19 00:00 |
| Earnings | 2020/10/03 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.