TSX:WN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Moderate growth potential with mediocre balance sheet.


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


Market Performance


7 Day Return

-1.1%

WN

-1.6%

CA Consumer Retailing

0.3%

CA Market


1 Year Return

20.8%

WN

25.6%

CA Consumer Retailing

0.1%

CA Market

Return vs Industry: WN underperformed the Canadian Consumer Retailing industry which returned 25.6% over the past year.

Return vs Market: WN exceeded the Canadian Market which returned 0.1% over the past year.


Shareholder returns

WNIndustryMarket
7 Day-1.1%-1.6%0.3%
30 Day-0.4%-2.4%-2.5%
90 Day8.9%3.8%-1.4%
1 Year23.4%20.8%34.1%25.6%3.6%0.1%
3 Year5.5%-0.2%28.3%17.3%14.3%4.1%
5 Year34.9%23.6%85.6%63.7%25.0%6.9%

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?

19.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: WN (CA$109.3) is trading below our estimate of fair value (CA$135.08)

Significantly Undervalued: WN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WN is poor value based on its PE Ratio (878.3x) compared to the Consumer Retailing industry average (20.9x).

PE vs Market: WN is poor value based on its PE Ratio (878.3x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: WN is poor value based on its PEG Ratio (11x)


Price to Book Ratio

PB vs Industry: WN is overvalued based on its PB Ratio (2.6x) compared to the CA Consumer Retailing industry average (2.1x).


Next Steps

Future Growth

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

79.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WN's forecast earnings growth (79.7% per year) is above the savings rate (1.9%).

Earnings vs Market: WN's earnings (79.7% per year) are forecast to grow faster than the Canadian market (13.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WN's revenue (3.4% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: WN's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

8.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WN's earnings have grown by 8.1% per year over the past 5 years.

Accelerating Growth: WN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WN had negative earnings growth (-97.3%) over the past year, making it difficult to compare to the Consumer Retailing industry average (8.9%).


Return on Equity

High ROE: WN's Return on Equity (4%) is considered low.


Return on Assets

ROA vs Industry: WN's Return on Assets is below or equal to the Consumer Retailing industry average last year.


Return on Capital Employed

ROCE Improving: WN has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is George Weston's financial position?


Financial Position Analysis

Short Term Liabilities: WN's short term assets (CA$11.8B) exceeds its short term liabilities (CA$9.3B)

Long Term Liabilities: WN's short term assets (11.8B) do not cover its long term liabilities (24.6B)


Debt to Equity History and Analysis

Debt Level: WN's debt to equity ratio (125.5%) is considered high

Reducing Debt: WN's debt to equity ratio has increased from 100.7% to 125.5% over the past 5 years.

Debt Coverage: WN's debt is well covered by operating cash flow (23.7%).

Interest Coverage: WN's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet

Inventory Level: WN has a high level of physical assets or inventory.

Debt Coverage by Assets: WN's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

1.92%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%2.0%markettop25%6.0%industryaverage1.3%forecastin3Years1.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WN's dividend (1.92%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: WN's dividend (1.92%) is low compared to the top 25% of dividend payers in the Canadian market (5.99%).

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 high payout ratio (1643.3%), WN's dividend payments are not 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

What is the CEO of George Weston's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Galen Weston (46yo)

2.8yrs

Tenure

CA$7,928,555

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 ($USD6.00M) is about average for companies of similar size in the Canadian market ($USD6.88M).

Compensation vs Earnings: Galen's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.8yrs

Average Tenure

51.5yo

Average Age

Experienced Management: WN's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.4yrs

Average Tenure

62yo

Average Age

Experienced Board: WN's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

Insider Buying: WN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$221,18813 Sep 19
Robert Sawyer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceCA$110.59
SellCA$103,24306 Jun 19
Robert Vaux
EntityIndividual
Shares1,000
Max PriceCA$103.24
BuyCA$91,12631 May 19
Rashid Wasti
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief Talent Officer
Shares900
Max PriceCA$101.59
BuyCA$61,17830 May 19
Rashid Wasti
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief Talent Officer
Shares600
Max PriceCA$101.96
SellCA$9,47729 May 19
Rashid Wasti
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief Talent Officer
Shares100
Max PriceCA$94.77
BuyCA$117,05629 May 19
Rashid Wasti
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief Talent Officer
Shares1,150
Max PriceCA$111.48
BuyCA$111,92523 May 19
Rashid Wasti
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief Talent Officer
Shares1,100
Max PriceCA$101.75
BuyCA$101,39016 May 19
Rashid Wasti
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief Talent Officer
Shares1,000
Max PriceCA$101.39
SellCA$487,72813 May 19
Rashid Wasti
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief Talent Officer
Shares4,800
Max PriceCA$101.61
SellCA$14,02422 Mar 19
Rashid Wasti
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief Talent Officer
Shares150
Max PriceCA$93.50
BuyCA$280,01401 Mar 19
Anthony Fell
EntityIndividual
Shares3,000
Max PriceCA$93.34
BuyCA$35,13201 Jan 19
Rashid Wasti
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief Talent Officer
Shares400
Max PriceCA$87.88
SellCA$17,85221 Dec 18
Rashid Wasti
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief Talent Officer
Shares200
Max PriceCA$89.26
BuyCA$36,84712 Dec 18
Rashid Wasti
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief Talent Officer
Shares400
Max PriceCA$92.12
BuyCA$19,36205 Dec 18
Rashid Wasti
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief Talent Officer
Shares200
Max PriceCA$96.81
BuyCA$43,18230 Nov 18
William Downe
EntityIndividual
Shares450
Max PriceCA$95.96
BuyCA$143,29530 Nov 18
Rashid Wasti
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief Talent Officer
Shares1,500
Max PriceCA$96.25
BuyCA$118,96722 Nov 18
Rashid Wasti
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief Talent Officer
Shares1,250
Max PriceCA$104.93

Ownership Breakdown


Management Team

  • Geoff Wilson (63yo)

    Senior Vice President of Financial Control & Investor Relations

    • Tenure: 0yrs
  • Galen Weston (46yo)

    Chairman & CEO

    • Tenure: 2.8yrs
    • Compensation: CA$7.93m
  • Gordon Andrew Currie (60yo)

    Executive VP & Chief Legal Officer

    • Tenure: 0yrs
  • Lina Taglieri (50yo)

    Group Controller

    • Tenure: 0.8yrs
  • Richard Dufresne

    President & CFO

    • Tenure: 1.8yrs
    • Compensation: CA$4.81m
  • Khush Dadyburjor (52yo)

    Chief Strategy Officer

    • Tenure: 3.4yrs
  • Rashid Wasti (51yo)

    Executive VP & Chief Talent Officer

    • Tenure: 0yrs
  • Peter Effer

    Group Head of Tax

    • Tenure: 3.4yrs
  • Wendy Mizuno

    Group Head

    • Tenure: 0.8yrs
  • Anemona Turcu

    VP & Chief Risk Officer

    • Tenure: 0.2yrs

Board Members

  • Gord Nixon (62yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: CA$199.50k
  • Christi Strauss (57yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: CA$190.00k
  • Rob Prichard (70yo)

    Lead Independent Director

    • Tenure: 7.4yrs
    • Compensation: CA$257.50k
  • Willard Weston (78yo)

    Chairman Emeritus

    • Tenure: 0yrs
    • Compensation: CA$3.15m
  • Sabi Marwah (68yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: CA$189.85k
  • Robert Sawyer (65yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: CA$190.00k
  • Pavi Binning (58yo)

    Director

    • Tenure: 0.4yrs
    • Compensation: CA$140.31k
  • Barbara Stymiest (62yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: CA$273.88k
  • Galen Weston (46yo)

    Chairman & CEO

    • Tenure: 2.8yrs
    • Compensation: CA$7.93m
  • Alannah Weston (47yo)

    Non-Independent Director

    • Tenure: 3.4yrs
    • Compensation: CA$182.50k

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$16.776b
  • Shares outstanding: 153.49m
  • Website: https://www.weston.ca

Number of Employees


Location

  • George Weston Limited
  • 22 Street Clair Avenue East
  • Suite 800
  • 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 W ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 23:47
End of Day Share Price2019/10/15 00:00
Earnings2019/06/15
Annual Earnings2018/12/31


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.