George Weston
Market Cap
CA$15.0b
Last Updated
2020/06/06 02:43 UTC
Data Sources
Company Financials +
Executive Summary
George Weston Limited engages in the food processing and distribution business in Canada and Internationally.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -12.8% per year for the next 3 years
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
| WN | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.0% | -1.0% | 4.1% |
| 30 Day | 0.9% | 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 Year | 6.7%-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
2 months ago | Simply Wall St
Have Insiders Sold George Weston Limited (TSE:WN) Shares Recently?2 months ago | Simply Wall St
Is It Worth Considering George Weston Limited (TSE:WN) For Its Upcoming Dividend?5 months ago | Simply Wall St
Chairman Emeritus Willard Weston Just Bought Shares In George Weston Limited (TSE:WN)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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 3.42yrs | CA$9.32m | 0.075% CA$11.2m | |
| President & CFO | 2.42yrs | CA$4.94m | 0.0039% CA$578.8k | |
| Executive VP & Chief Legal Officer | no data | CA$3.71m | 0.017% CA$2.6m | |
| President of Loblaw | 3.42yrs | CA$6.71m | 0.00092% CA$137.6k | |
| Senior Director of Investor Relations | no data | no data | no data | |
| Executive VP & Chief Talent Officer | no data | no data | 0.0072% CA$1.1m | |
| Chief Strategy Officer | 4.08yrs | no data | no data | |
| Group Head of Tax | 4.08yrs | no data | no data | |
| Group Head of Pensions & Benefits | 1.42yrs | no data | no data | |
| VP & Chief Risk Officer | 0.83yr | no data | no data |
3.4yrs
Average Tenure
51yo
Average Age
Experienced Management: WN's management team is considered experienced (3.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 3.42yrs | CA$9.32m | 0.075% CA$11.2m | |
| Independent Director | 5.58yrs | CA$246.65k | 0.0033% CA$487.6k | |
| Independent Director | 4.08yrs | CA$240.00k | 0.00065% CA$97.2k | |
| Lead Independent Director | 8.08yrs | CA$312.50k | 0.0013% CA$194.4k | |
| Chairman Emeritus | no data | CA$3.15m | 2.74% CA$409.8m | |
| Independent Director | 7.08yrs | CA$237.15k | 0.0023% CA$341.0k | |
| Independent Director | 2.08yrs | CA$249.23k | no data | |
| Independent Director | 3.75yrs | CA$236.93k | 0.0028% CA$415.8k | |
| Non-Independent Director | 1.08yrs | CA$294.75k | 0.055% CA$8.2m | |
| Independent Director | 9.42yrs | CA$321.78k | 0.0013% 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
| 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) | PFD 4.75% V | CA | CAD | Apr 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/06 02:43 |
| End of Day Share Price | 2020/06/05 00:00 |
| Earnings | 2020/03/21 |
| 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.