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WN

George Weston TSX:WN Stock Report

Last Price

CA$153.58

Market Cap

CA$22.4b

7D

4.1%

1Y

29.7%

Updated

05 Jul, 2022

Data

Company Financials +
WN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance5/6
Financial Health3/6
Dividends4/6

WN Stock Overview

George Weston Limited provides food and drug retailing, and financial services in Canada and internationally.

George Weston Competitors

Price History & Performance

Summary of all time highs, changes and price drops for George Weston
Historical stock prices
Current Share PriceCA$153.58
52 Week HighCA$162.51
52 Week LowCA$117.70
Beta0.35
1 Month Change-0.32%
3 Month Change-3.34%
1 Year Change29.71%
3 Year Change53.40%
5 Year Change33.26%
Change since IPO965.30%

Recent News & Updates

Jul 04
George Weston (TSE:WN) Seems To Use Debt Quite Sensibly

George Weston (TSE:WN) Seems To Use Debt Quite Sensibly

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

May 27
George Weston's (TSE:WN) Shareholders Will Receive A Bigger Dividend Than Last Year

George Weston's (TSE:WN) Shareholders Will Receive A Bigger Dividend Than Last Year

The board of George Weston Limited ( TSE:WN ) has announced that it will be increasing its dividend on the 1st of July...

May 25
George Weston Limited's (TSE:WN) Intrinsic Value Is Potentially 45% Above Its Share Price

George Weston Limited's (TSE:WN) Intrinsic Value Is Potentially 45% Above Its Share Price

Does the May share price for George Weston Limited ( TSE:WN ) reflect what it's really worth? Today, we will estimate...

Shareholder Returns

WNCA Consumer RetailingCA Market
7D4.1%-1.4%-1.2%
1Y29.7%21.0%-4.5%

Return vs Industry: WN exceeded the Canadian Consumer Retailing industry which returned 21% over the past year.

Return vs Market: WN exceeded the Canadian Market which returned -4.5% over the past year.

Price Volatility

Is WN's price volatile compared to industry and market?
WN volatility
WN Average Weekly Movement3.1%
Consumer Retailing Industry Average Movement4.0%
Market Average Movement10.1%
10% most volatile stocks in CA Market17.5%
10% least volatile stocks in CA Market4.4%

Stable Share Price: WN is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: WN's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1882215,298Galen Westonhttps://www.weston.ca

George Weston Limited provides food and drug retailing, and financial services in Canada and internationally. The company operates through two segments, Loblaw Companies Limited (Loblaw) and Choice Properties Real Estate Investment Trust (Choice Properties). The Loblaw segment provides grocery, pharmacy, health and beauty, apparel, general merchandise, and financial services.

George Weston Fundamentals Summary

How do George Weston's earnings and revenue compare to its market cap?
WN fundamental statistics
Market CapCA$22.44b
Earnings (TTM)CA$1.13b
Revenue (TTM)CA$54.14b

19.8x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WN income statement (TTM)
RevenueCA$54.14b
Cost of RevenueCA$36.59b
Gross ProfitCA$17.54b
Other ExpensesCA$16.41b
EarningsCA$1.13b

Last Reported Earnings

Mar 26, 2022

Next Earnings Date

Jul 29, 2022

Earnings per share (EPS)7.76
Gross Margin32.41%
Net Profit Margin2.09%
Debt/Equity Ratio110.7%

How did WN perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

31%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is WN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WN?

Other financial metrics that can be useful for relative valuation.

WN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.8x
Enterprise Value/EBITDA7.7x
PEG Ratio8.7x

Price to Earnings Ratio vs Peers

How does WN's PE Ratio compare to its peers?

WN PE Ratio vs Peers
The above table shows the PE ratio for WN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.1x
MRU Metro
19.7x4.2%CA$16.8b
L Loblaw Companies
19.6x-5.9%CA$38.9b
EMP.A Empire
14xn/aCA$10.4b
ATD Alimentation Couche-Tard
14.9x8.0%CA$52.3b
WN George Weston
19.8x2.3%CA$22.4b

Price-To-Earnings vs Peers: WN is expensive based on its Price-To-Earnings Ratio (19.8x) compared to the peer average (17.1x).


Price to Earnings Ratio vs Industry

How does WN's PE Ratio compare vs other companies in the North American Consumer Retailing Industry?

Price-To-Earnings vs Industry: WN is expensive based on its Price-To-Earnings Ratio (19.8x) compared to the Canadian Consumer Retailing industry average (14x)


Price to Earnings Ratio vs Fair Ratio

What is WN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.8x
Fair PE Ratio16.2x

Price-To-Earnings vs Fair Ratio: WN is expensive based on its Price-To-Earnings Ratio (19.8x) compared to the estimated Fair Price-To-Earnings Ratio (16.2x).


Share Price vs Fair Value

What is the Fair Price of WN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WN (CA$153.58) is trading below our estimate of fair value (CA$333.01)

Significantly Below Fair Value: WN is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: WN is poor value based on its PEG Ratio (8.7x)


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Future Growth

How is George Weston forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


2.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WN's forecast earnings growth (2.3% per year) is above the savings rate (1.6%).

Earnings vs Market: WN's earnings (2.3% per year) are forecast to grow slower than the Canadian market (7% per year).

High Growth Earnings: WN's earnings are forecast to grow, but not significantly.

Revenue vs Market: WN's revenue (2.5% per year) is forecast to grow slower than the Canadian market (6.5% per year).

High Growth Revenue: WN's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WN's Return on Equity is forecast to be high in 3 years time (25%)


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Past Performance

How has George Weston performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


7.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WN has high quality earnings.

Growing Profit Margin: WN's current net profit margins (2.1%) are higher than last year (0.5%).


Past Earnings Growth Analysis

Earnings Trend: WN's earnings have grown by 7.9% per year over the past 5 years.

Accelerating Growth: WN's earnings growth over the past year (310.1%) exceeds its 5-year average (7.9% per year).

Earnings vs Industry: WN earnings growth over the past year (310.1%) exceeded the Consumer Retailing industry 6.3%.


Return on Equity

High ROE: WN's Return on Equity (17%) is considered low.


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Financial Health

How is George Weston's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: WN's short term assets (CA$14.9B) exceed its short term liabilities (CA$10.1B).

Long Term Liabilities: WN's short term assets (CA$14.9B) do not cover its long term liabilities (CA$23.9B).


Debt to Equity History and Analysis

Debt Level: WN's net debt to equity ratio (81.7%) is considered high.

Reducing Debt: WN's debt to equity ratio has increased from 85.7% to 110.7% over the past 5 years.

Debt Coverage: WN's debt is well covered by operating cash flow (34%).

Interest Coverage: WN's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.56%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: WN's dividend (1.56%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: WN's dividend (1.56%) is low compared to the top 25% of dividend payers in the Canadian market (5.36%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (30.8%), WN's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (9.9%), WN's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure


CEO

Galen Weston (49 yo)

5.5yrs

Tenure

CA$10,606,389

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 its Chairman since September 2016. He served as a Non-Independent Director o...


CEO Compensation Analysis

Compensation vs Market: Galen's total compensation ($USD8.12M) is about average for companies of similar size in the Canadian market ($USD8.23M).

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


Leadership Team

Experienced Management: WN's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: WN's board of directors are considered experienced (7 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 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
  • Implied Market Cap: CA$22.438b
  • Shares outstanding: 146.10m
  • Website: https://www.weston.ca

Number of Employees


Location

  • George Weston Limited
  • 22 St. Clair Avenue East
  • Suite 700
  • Toronto
  • Ontario
  • M4T 2S5
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/05 00:00
End of Day Share Price2022/07/05 00:00
Earnings2022/03/26
Annual Earnings2021/12/31


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.