TSX:WN

Stock Analysis Report

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Executive Summary

George Weston Limited engages in the food processing and distribution business in Canada and Internationally.


Snowflake Analysis

Good value average dividend payer.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.0%

WN

-1.0%

CA Consumer Retailing

4.1%

CA Market


1 Year Return

-5.3%

WN

-0.7%

CA Consumer Retailing

-8.6%

CA Market

Return vs Industry: WN underperformed the Canadian Consumer Retailing industry which returned -0.6% over the past year.

Return vs Market: WN exceeded the Canadian Market which returned -10.1% over the past year.


Shareholder returns

WNIndustryMarket
7 Day-2.0%-1.0%4.1%
30 Day0.9%3.2%7.9%
90 Day-8.5%-2.3%-3.4%
1 Year-3.4%-5.3%0.6%-0.7%-5.5%-8.6%
3 Year-14.5%-19.3%23.1%11.7%3.6%-6.1%
5 Year6.7%-2.0%45.8%29.6%21.4%3.5%

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

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$97.5) is trading below our estimate of fair value (CA$202.31)

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 (11.8x) compared to the Consumer Retailing industry average (15.4x).

PE vs Market: WN is good value based on its PE Ratio (11.8x) compared to the Canadian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: WN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WN is overvalued based on its PB Ratio (2x) compared to the CA Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

How is George Weston forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WN's earnings are forecast to decline over the next 3 years (-12.8% per year).

Earnings vs Market: WN's earnings are forecast to decline over the next 3 years (-12.8% per year).

High Growth Earnings: WN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WN's revenue (0.03% per year) is forecast to grow slower than the Canadian market (5.5% per year).

High Growth Revenue: WN's revenue (0.03% 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?

0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WN has high quality earnings.

Growing Profit Margin: WN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WN's earnings have grown by 0.4% per year over the past 5 years.

Accelerating Growth: WN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: WN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (36.3%).


Return on Equity

High ROE: WN's Return on Equity (14.1%) 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$12.7B) exceed its short term liabilities (CA$10.0B).

Long Term Liabilities: WN's short term assets (CA$12.7B) do not cover its long term liabilities (CA$24.0B).


Debt to Equity History and Analysis

Debt Level: WN's debt to equity ratio (118.2%) is considered high.

Reducing Debt: WN's debt to equity ratio has increased from 95.1% to 118.2% over the past 5 years.

Debt Coverage: WN's debt is well covered by operating cash flow (32%).

Interest Coverage: WN's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Next Steps

Dividend

What is George Weston's current dividend yield, its reliability and sustainability?

2.15%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: WN's dividend (2.15%) is higher than the bottom 25% of dividend payers in the Canadian market (1.94%).

High Dividend: WN's dividend (2.15%) is low compared to the top 25% of dividend payers in the Canadian market (6.08%).


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 (25.4%), 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?

3.4yrs

Average management tenure


CEO

Galen Weston (46yo)

3.42yrs

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 ($USD6.95M) is about average for companies of similar size in the Canadian market ($USD6.83M).

Compensation vs Earnings: Galen's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Galen Weston
Chairman & CEO3.42yrsCA$9.32m0.075% CA$11.2m
Richard Dufresne
President & CFO2.42yrsCA$4.94m0.0039% CA$578.8k
Gordon Andrew Currie
Executive VP & Chief Legal Officerno dataCA$3.71m0.017% CA$2.6m
Sarah Davis
President of Loblaw3.42yrsCA$6.71m0.00092% CA$137.6k
Tara Speers
Senior Director of Investor Relationsno datano datano data
Rashid Wasti
Executive VP & Chief Talent Officerno datano data0.0072% CA$1.1m
Khush Dadyburjor
Chief Strategy Officer4.08yrsno datano data
Peter Effer
Group Head of Tax4.08yrsno datano data
Wendy Mizuno
Group Head of Pensions & Benefits1.42yrsno datano data
Anemona Turcu
VP & Chief Risk Officer0.83yrno datano data

3.4yrs

Average Tenure

51yo

Average Age

Experienced Management: WN's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Galen Weston
Chairman & CEO3.42yrsCA$9.32m0.075% CA$11.2m
Gordon Nixon
Independent Director5.58yrsCA$246.65k0.0033% CA$487.6k
Christianne Strauss
Independent Director4.08yrsCA$240.00k0.00065% CA$97.2k
J. Robert Prichard
Lead Independent Director8.08yrsCA$312.50k0.0013% CA$194.4k
Willard Weston
Chairman Emeritusno dataCA$3.15m2.74% CA$409.8m
Sarabjit Marwah
Independent Director7.08yrsCA$237.15k0.0023% CA$341.0k
Andrew Ferrier
Independent Director2.08yrsCA$249.23kno data
Robert Sawyer
Independent Director3.75yrsCA$236.93k0.0028% CA$415.8k
Paviter Binning
Non-Independent Director1.08yrsCA$294.75k0.055% CA$8.2m
Barbara Stymiest
Independent Director9.42yrsCA$321.78k0.0013% CA$194.4k

4.1yrs

Average Tenure

62yo

Average Age

Experienced Board: WN's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WN insiders have only sold shares 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$14.957b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WNTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 1972
WX5DB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1972
WNGR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 1972
WN.PRATSX (The Toronto Stock Exchange)PFD 1 5.8%CACADDec 2001
WN.PRCTSX (The Toronto Stock Exchange)PFD SHS IIICACADApr 2005
WN.PRDTSX (The Toronto Stock Exchange)PFD IV 5.20%CACADAug 2005
WN.PRETSX (The Toronto Stock Exchange)PFD 4.75% VCACADApr 2006

Biography

George Weston Limited engages in the food processing and distribution business in Canada and Internationally. The company operates through three segments: Weston Foods, Loblaw, and Choice Properties. The Weston Foods segment offers foodservice and retail, making bread, rolls, cupcakes, donuts, biscuits, cakes, pies, cones and wafers, artisan baked goods, and more. The Loblaw segment provides grocery, pharmacy, health and beauty, apparel, general merchandise, and financial services. It operates retail drug stores under the Shoppers Drug Mart, and President's Choice Bank. This segment also provides merchandisers, warehouse clubs, online retailers, mail order prescription drug distributors, limited assortment stores, discount stores, convenience stores, and specialty stores. The Choice Properties segment owns, develops, and manages retail and commercial real estate consisting of 700 properties portfolio is comprising of retail properties, leased, tenants, industrial, office, residential assets. The company was founded in 1882 and is based in Toronto, Canada. George Weston Limited is a subsidiary of Wittington Investments, Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 02:43
End of Day Share Price2020/06/05 00:00
Earnings2020/03/21
Annual Earnings2019/12/31


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.