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George Weston

TSX:WN
Snowflake Description

Moderate growth potential with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WN
TSX
CA$16B
Market Cap
  1. Home
  2. CA
  3. Consumer Retailing
Company description

George Weston Limited engages in the food processing and distribution business in Canada and internationally. The last earnings update was 69 days ago. More info.


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WN Share Price and Events
7 Day Returns
1.8%
TSX:WN
0.4%
CA Consumer Retailing
-0.4%
CA Market
1 Year Returns
-8.5%
TSX:WN
12.9%
CA Consumer Retailing
-3.1%
CA Market
WN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
George Weston (WN) 1.8% -0.2% -0.8% -8.5% -11.8% 24.2%
CA Consumer Retailing 0.4% -1.7% 2.3% 12.9% 16% 80.2%
CA Market -0.4% 0.8% -1.7% -3.1% 8.2% 0.9%
1 Year Return vs Industry and Market
  • WN underperformed the Consumer Retailing industry which returned 12.9% over the past year.
  • WN underperformed the Market in Canada which returned -3.1% over the past year.
Price Volatility
WN
Industry
5yr Volatility vs Market

WN Value

 Is George Weston undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of George Weston to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for George Weston.

TSX:WN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:WN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Consumer Retailing Unlevered Beta Simply Wall St/ S&P Global 0.5
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.502 (1 + (1- 26.5%) (137.07%))
1.005
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.01
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.005 * 5.96%)
7.94%

Discounted Cash Flow Calculation for TSX:WN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for George Weston is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:WN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 7.94%)
2020 1,385.50 Analyst x2 1,283.59
2021 1,235.06 Est @ -10.86% 1,060.05
2022 1,148.40 Est @ -7.02% 913.17
2023 1,098.71 Est @ -4.33% 809.39
2024 1,071.84 Est @ -2.45% 731.52
2025 1,059.76 Est @ -1.13% 670.07
2026 1,057.58 Est @ -0.21% 619.51
2027 1,062.24 Est @ 0.44% 576.47
2028 1,071.72 Est @ 0.89% 538.84
2029 1,084.68 Est @ 1.21% 505.24
Present value of next 10 years cash flows CA$7,707.87
TSX:WN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$1,084.68 × (1 + 1.95%) ÷ (7.94% – 1.95%)
CA$18,452.94
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$18,452.94 ÷ (1 + 7.94%)10
CA$8,595.30
TSX:WN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$7,707.87 + CA$8,595.30
CA$16,303.17
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$16,303.17 / 153.48
CA$106.22
TSX:WN Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$106.22
Current discount Discount to share price of CA$101.23
= -1 x (CA$101.23 - CA$106.22) / CA$106.22
4.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price George Weston is available for.
Intrinsic value
5%
Share price is CA$101.23 vs Future cash flow value of CA$106.22
Current Discount Checks
For George Weston to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • George Weston's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • George Weston's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for George Weston's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are George Weston's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:WN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-23) in CAD CA$-1.00
TSX:WN Share Price ** TSX (2019-07-15) in CAD CA$101.23
Canada Consumer Retailing Industry PE Ratio Median Figure of 6 Publicly-Listed Consumer Retailing Companies 21.66x
Canada Market PE Ratio Median Figure of 539 Publicly-Listed Companies 15x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of George Weston.

TSX:WN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:WN Share Price ÷ EPS (both in CAD)

= 101.23 ÷ -1.00

-101.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • George Weston is loss making, we can't compare its value to the CA Consumer Retailing industry average.
  • George Weston is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does George Weston's expected growth come at a high price?
Raw Data
TSX:WN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -101.4x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
85.4%per year
North America Consumer Retailing Industry PEG Ratio Median Figure of 17 Publicly-Listed Consumer Retailing Companies 2.83x
Canada Market PEG Ratio Median Figure of 249 Publicly-Listed Companies 1.16x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for George Weston, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on George Weston's assets?
Raw Data
TSX:WN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-23) in CAD CA$42.45
TSX:WN Share Price * TSX (2019-07-15) in CAD CA$101.23
Canada Consumer Retailing Industry PB Ratio Median Figure of 12 Publicly-Listed Consumer Retailing Companies 2.21x
Canada Market PB Ratio Median Figure of 2,436 Publicly-Listed Companies 1.42x
TSX:WN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:WN Share Price ÷ Book Value per Share (both in CAD)

= 101.23 ÷ 42.45

2.38x

* Primary Listing of George Weston.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • George Weston is overvalued based on assets compared to the CA Consumer Retailing industry average.
X
Value checks
We assess George Weston's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Retailing industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Retailing industry average (and greater than 0)? (1 check)
  5. George Weston has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

WN Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
85.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is George Weston expected to grow at an attractive rate?
  • George Weston's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • George Weston's earnings growth is expected to exceed the Canada market average.
  • George Weston's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:WN Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:WN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 85.4%
TSX:WN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 3.3%
Canada Consumer Retailing Industry Earnings Growth Rate Market Cap Weighted Average 20.1%
Canada Consumer Retailing Industry Revenue Growth Rate Market Cap Weighted Average 2.8%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:WN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:WN Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 51,910 2,939 734 4
2019-12-31 50,198 2,987 765 5
TSX:WN Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-03-23 48,997 3,368 -138
2018-12-31 48,568 2,719 530
2018-10-06 48,253 3,477 293
2018-06-16 48,039 3,184 662
2018-03-24 48,230 3,499 794
2017-12-31 48,289 3,425 722
2017-10-07 48,406 3,188 770
2017-06-17 48,363 3,443 604
2017-03-25 48,002 3,304 577
2016-12-31 47,999 3,760 506
2016-10-08 47,728 3,468 546
2016-06-18 47,509 3,433 439
2016-03-26 47,285 3,690 347

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • George Weston's earnings are expected to grow significantly at over 20% yearly.
  • George Weston's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:WN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from George Weston Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:WN Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 4.76 4.76 4.76 1.00
2019-12-31 4.90 4.90 4.90 1.00
TSX:WN Past Financials Data
Date (Data in CAD Millions) EPS *
2019-03-23 -1.00
2018-12-31 4.02
2018-10-06 2.29
2018-06-16 5.18
2018-03-24 6.22
2017-12-31 5.65
2017-10-07 6.03
2017-06-17 4.73
2017-03-25 4.52
2016-12-31 3.96
2016-10-08 4.28
2016-06-18 3.44
2016-03-26 2.72

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if George Weston will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess George Weston's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
George Weston has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

WN Past Performance

  How has George Weston performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare George Weston's growth in the last year to its industry (Consumer Retailing).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • George Weston does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare George Weston's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare George Weston's 1-year growth to the CA Consumer Retailing industry average as it is not currently profitable.
Earnings and Revenue History
George Weston's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from George Weston Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:WN Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-23 48,997.00 -138.00 12,553.00
2018-12-31 48,568.00 530.00 12,407.00
2018-10-06 48,253.00 293.00 12,744.00
2018-06-16 48,039.00 662.00 12,539.00
2018-03-24 48,230.00 794.00 12,417.00
2017-12-31 48,289.00 722.00 12,307.00
2017-10-07 48,406.00 770.00 11,771.00
2017-06-17 48,363.00 604.00 11,587.00
2017-03-25 48,002.00 577.00 11,503.00
2016-12-31 47,999.00 506.00 11,495.00
2016-10-08 47,728.00 546.00 11,545.00
2016-06-18 47,509.00 439.00 11,421.00
2016-03-26 47,285.00 347.00 11,401.00
2015-12-31 46,894.00 467.00 11,161.00
2015-10-10 47,380.00 496.00 11,082.00
2015-06-20 46,968.00 388.00 11,149.00
2015-03-28 46,715.00 129.00 11,124.00
2014-12-31 43,918.00 82.00 10,225.00
2014-10-04 40,103.00 98.00 9,104.00
2014-06-14 36,506.00 213.00 7,824.00
2014-03-22 33,700.00 518.00 6,760.00
2013-12-31 33,582.00 570.00 6,684.00
2013-10-05 33,390.00 456.00 6,644.00
2013-06-15 33,177.00 444.00 6,632.00
2013-03-23 33,012.00 482.00 6,637.00
2012-12-31 32,742.00 431.00 6,681.00
2012-10-06 32,651.00 477.00 6,630.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • George Weston has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • George Weston used its assets less efficiently than the CA Consumer Retailing industry average last year based on Return on Assets.
  • It is difficult to establish if George Weston improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess George Weston's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Retailing industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
George Weston has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

WN Health

 How is George Weston's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up George Weston's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • George Weston is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • George Weston's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of George Weston's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from George Weston Company Filings, last reported 3 months ago.

TSX:WN Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-23 13,056.00 16,293.00 1,696.00
2018-12-31 14,204.00 16,418.00 1,802.00
2018-10-06 14,181.00 16,641.00 2,093.00
2018-06-16 14,201.00 16,467.00 2,326.00
2018-03-24 14,429.00 14,161.00 2,512.00
2017-12-31 14,795.00 12,892.00 3,147.00
2017-10-07 14,900.00 12,696.00 2,630.00
2017-06-17 14,631.00 12,717.00 2,564.00
2017-03-25 14,661.00 12,560.00 2,301.00
2016-12-31 14,790.00 12,534.00 2,571.00
2016-10-08 14,781.00 12,663.00 2,778.00
2016-06-18 14,477.00 12,656.00 2,556.00
2016-03-26 14,545.00 12,901.00 2,718.00
2015-12-31 14,890.00 12,876.00 2,579.00
2015-10-10 14,906.00 13,667.00 2,689.00
2015-06-20 14,844.00 13,578.00 2,710.00
2015-03-28 14,632.00 13,942.00 2,443.00
2014-12-31 14,474.00 13,951.00 2,405.00
2014-10-04 14,206.00 14,297.00 2,321.00
2014-06-14 14,258.00 14,351.00 2,349.00
2014-03-22 9,185.00 10,192.00 4,230.00
2013-12-31 9,125.00 10,004.00 4,359.00
2013-10-05 8,907.00 10,708.00 4,060.00
2013-06-15 8,549.00 8,116.00 3,485.00
2013-03-23 8,424.00 8,272.00 3,390.00
2012-12-31 8,295.00 8,257.00 3,727.00
2012-10-06 8,219.00 8,166.00 3,474.00
  • George Weston's level of debt (124.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (110.6% vs 124.8% today).
  • Debt is well covered by operating cash flow (20.7%, greater than 20% of total debt).
  • George Weston is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess George Weston's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. George Weston has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

WN Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.03%
Current annual income from George Weston dividends. Estimated to be 2.04% next year.
If you bought CA$2,000 of George Weston shares you are expected to receive CA$41 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • George Weston's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.08%).
  • George Weston's dividend is below the markets top 25% of dividend payers in Canada (5.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:WN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Canada Consumer Retailing Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 1.3%
Canada Market Average Dividend Yield Market Cap Weighted Average of 336 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:WN Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 2.11 2.00
2019-12-31 2.03 2.00
TSX:WN Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-02-26 2.060 2.082
2018-11-20 2.060 2.191
2018-05-08 1.960 1.942
2018-03-02 1.820 1.749
2017-11-21 1.820 1.688
2017-07-28 1.820 1.672
2017-05-09 1.820 1.529
2017-03-02 1.760 1.513
2016-11-22 1.760 1.573
2016-05-10 1.760 1.576
2016-03-03 1.700 1.512
2015-11-24 1.700 1.597
2015-07-31 1.700 1.549
2015-05-12 1.700 1.662
2014-11-18 1.680 1.668
2014-07-29 1.680 1.897
2014-05-06 1.680 2.084
2014-03-12 1.660 2.036
2013-11-19 1.660 2.118
2013-07-30 1.660 1.987
2013-05-07 1.660 1.991
2013-02-28 1.520 2.025
2012-11-20 1.520 2.178
2012-07-31 1.440 2.293
2012-05-08 1.440 2.447
2012-03-01 1.440 2.310
2011-11-21 1.440 2.198
2011-07-29 1.440 2.136
2011-05-09 1.440 2.066
2010-12-15 1.440 2.029
2010-07-30 1.440 1.812
2010-05-10 1.440 1.934
2009-11-23 1.440 2.100
2009-07-31 1.440 2.526
2009-05-11 1.440 2.397
2009-02-23 1.440 2.429
2008-11-17 1.440 2.395
2008-08-26 1.440 2.688

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of George Weston's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess George Weston's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can George Weston afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. George Weston has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

WN Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Galen Weston
COMPENSATION CA$7,928,555
AGE 46
TENURE AS CEO 2.5 years
CEO Bio

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 of George Weston Ltd. from 2003 to September 19, 2006. Mr. Weston served as Non-Executive Deputy Chairman at George Weston Limited since March 2016 until September 2016 and has been its Non-Independent Director since March 02, 2016. He serves as Chief Executive Officer at Loblaw Companies Limited since January 18, 2017 and serves its Member of Management Board. He served as President at Loblaw Companies Limited since July 17, 2014. He served as a Senior Vice President of Corporate Development at the firm. He served as a Vice President of No Frills division at Loblaw Companies Limited and also its Senior Director of e-Commerce Development. He has been the Executive Chairman of Loblaw Companies Limited since September 19, 2006 and has been its Director since 2006. He is Founder of Selfridges Group Limited and serves as its Chairman. Mr. Weston serves as Chairman of President’s Choice Bank. Mr. Weston served as a Non-Executive Chairman of Choice Properties Real Estate Investment Trust since 2013 until April 25, 2017. He serves as Trustee at Choice Properties Real Estate Investment Trust since May 3, 2019 and He has been its Chairman since 2019. He serves as a Director for Wittington Investments Limited and Oxford Acquisitions Limited. He serves as Trustee of The W. Garfield Weston Foundation and Rita Lila Howard Foundation and Governor of Shaw Festival. Mr. Weston holds M.B.A. from Columbia University and a B.A. from Harvard University.

CEO Compensation
  • Galen's compensation has increased whilst company is loss making.
  • Galen's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the George Weston management team in years:

2.5
Average Tenure
52
Average Age
  • The tenure for the George Weston management team is about average.
Management Team

Galen Weston

TITLE
Chairman & CEO
COMPENSATION
CA$8M
AGE
46
TENURE
2.5 yrs

Richard Dufresne

TITLE
President & CFO
COMPENSATION
CA$5M
TENURE
1.5 yrs

Sarah Davis

TITLE
President of Loblaw
COMPENSATION
CA$6M
TENURE
2.5 yrs

Geoff Wilson

TITLE
Senior Vice President of Financial Control & Investor Relations
AGE
63

Gordon Andrew Currie

TITLE
Executive VP & Chief Legal Officer
AGE
60

Rashid Wasti

TITLE
Executive VP & Chief Talent Officer
AGE
51

Khush Dadyburjor

TITLE
Chief Strategy Officer
AGE
52
TENURE
3.2 yrs

Peter Effer

TITLE
Group Head of Tax
TENURE
3.2 yrs

Allan Bifield

TITLE
Deputy Chief Financial Officer
TENURE
3 yrs

Wendy Mizuno

TITLE
Group Head
TENURE
0.5 yrs
Board of Directors Tenure

Average tenure and age of the George Weston board of directors in years:

3.2
Average Tenure
62
Average Age
  • The tenure for the George Weston board of directors is about average.
Board of Directors

Galen Weston

TITLE
Chairman & CEO
COMPENSATION
CA$8M
AGE
46
TENURE
2.8 yrs

Willard Weston

TITLE
Chairman Emeritus
COMPENSATION
CA$3M
AGE
78

Rob Prichard

TITLE
Lead Independent Director
COMPENSATION
CA$258K
AGE
70
TENURE
7.2 yrs

Barbara Stymiest

TITLE
Independent Director
COMPENSATION
CA$274K
AGE
62
TENURE
8.5 yrs

Pavi Binning

TITLE
Director
COMPENSATION
CA$140K
AGE
58
TENURE
0.2 yrs

Sabi Marwah

TITLE
Independent Director
COMPENSATION
CA$190K
AGE
68
TENURE
6.2 yrs

Gord Nixon

TITLE
Independent Director
COMPENSATION
CA$200K
AGE
62
TENURE
4.7 yrs

Alannah Weston

TITLE
Non-Independent Director
COMPENSATION
CA$183K
AGE
47
TENURE
3.2 yrs

Christi Strauss

TITLE
Independent Director
COMPENSATION
CA$190K
AGE
57
TENURE
3.2 yrs

Robert Sawyer

TITLE
Independent Director
COMPENSATION
CA$190K
AGE
65
TENURE
2.8 yrs
Who owns this company?
Recent Insider Trading
  • George Weston individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
06. Jun 19 Sell Robert Vaux Individual 05. Jun 19 05. Jun 19 -1,000 CA$103.24 CA$-103,243
31. May 19 Buy Rashid Wasti Individual 30. May 19 31. May 19 900 CA$101.59 CA$91,126
30. May 19 Buy Rashid Wasti Individual 29. May 19 29. May 19 600 CA$101.96 CA$61,178
29. May 19 Sell Rashid Wasti Individual 22. Mar 19 22. Mar 19 -100 CA$94.77 CA$-9,477
29. May 19 Buy Rashid Wasti Individual 10. Dec 15 16. May 19 1,150 CA$111.48 CA$117,056
23. May 19 Buy Rashid Wasti Individual 21. May 19 21. May 19 1,100 CA$101.75 CA$111,925
16. May 19 Buy Rashid Wasti Individual 15. May 19 15. May 19 1,000 CA$101.39 CA$101,390
13. May 19 Sell Rashid Wasti Individual 08. May 19 08. May 19 -4,800 CA$101.61 CA$-487,728
22. Mar 19 Sell Rashid Wasti Individual 21. Mar 19 21. Mar 19 -150 CA$93.50 CA$-14,024
01. Mar 19 Buy Anthony Fell Individual 28. Feb 19 28. Feb 19 3,000 CA$93.34 CA$280,014
01. Jan 19 Buy Rashid Wasti Individual 27. Dec 18 27. Dec 18 400 CA$87.88 CA$35,132
21. Dec 18 Sell Rashid Wasti Individual 21. Dec 18 21. Dec 18 -200 CA$89.26 CA$-17,852
12. Dec 18 Buy Rashid Wasti Individual 12. Dec 18 12. Dec 18 400 CA$92.12 CA$36,847
05. Dec 18 Buy Rashid Wasti Individual 04. Dec 18 04. Dec 18 200 CA$96.81 CA$19,362
30. Nov 18 Buy Rashid Wasti Individual 28. Nov 18 30. Nov 18 1,500 CA$96.25 CA$143,295
30. Nov 18 Buy William Downe Individual 29. Nov 18 29. Nov 18 450 CA$95.96 CA$43,182
22. Nov 18 Buy Rashid Wasti Individual 23. Mar 18 22. Nov 18 1,250 CA$104.93 CA$118,967
11. Sep 18 Buy Rashid Wasti Individual 11. Sep 18 11. Sep 18 150 CA$98.64 CA$14,796
07. Sep 18 Sell Rashid Wasti Individual 06. Sep 18 06. Sep 18 -500 CA$99.85 CA$-49,925
07. Sep 18 Buy Rashid Wasti Individual 06. Sep 18 06. Sep 18 2,000 CA$100.47 CA$200,271
07. Sep 18 Buy Robert Sawyer Individual 06. Sep 18 06. Sep 18 2,000 CA$99.91 CA$199,820
X
Management checks
We assess George Weston's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. George Weston has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

WN News

Simply Wall St News

Calculating The Intrinsic Value Of George Weston Limited (TSE:WN)

Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (CA$, Millions) CA$1.4b CA$1.2b CA$1.1b CA$1.1b CA$1.1b CA$1.1b CA$1.1b CA$1.1b CA$1.1b CA$1.1b Growth Rate Estimate Source Analyst x2 Est @ -10.86% Est @ -7.02% Est @ -4.33% Est @ -2.45% Est @ -1.13% Est @ -0.21% Est @ 0.44% Est @ 0.89% Est @ 1.21% Present Value (CA$, Millions) Discounted @ 7.69% CA$1.3k CA$1.1k CA$919.5 CA$816.9 CA$740.0 CA$679.4 CA$629.6 CA$587.2 CA$550.1 CA$517.0 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= CA$7.8b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = CA$1.1b × (1 + 1.9%) ÷ (7.7% – 1.9%) = CA$19b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = CA$CA$19b ÷ ( 1 + 7.7%)10 = CA$9.18b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is CA$16.97b. … TSX:WN Intrinsic value, July 2nd 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Does George Weston Limited's (TSE:WN) Debt Level Pose A Problem?

Check out our latest analysis for George Weston WN’s Debt (And Cash Flows) WN's debt levels surged from CA$15b to CA$21b over the last 12 months , which accounts for long term debt. … On top of this, WN has produced CA$3.4b in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 16%, indicating that WN’s debt is not covered by operating cash. … With total debt exceeding equities, George Weston is considered a highly levered company.

Simply Wall St -

Are George Weston Limited’s (TSE:WN) Returns On Investment Worth Your While?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Did George Weston Limited (TSE:WN) Insiders Buy Up More Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in George Weston Limited (TSE:WN). … The Last 12 Months Of Insider Transactions At George Weston. … The good news for George Weston share holders is that insiders were buying at near the current price.

Simply Wall St -

Did Changing Sentiment Drive George Weston's (TSE:WN) Share Price Down By 19%?

We regret to report that long term George Weston Limited (TSE:WN) shareholders have had that experience, with the share price dropping 19% in three years, versus a market return of about 27%. … During the unfortunate three years of share price decline, George Weston actually saw its earnings per share (EPS) improve by 3.2% per year. … However, taking a look at other business metrics might shed a bit more light on the share price action.

Simply Wall St -

George Weston Limited (TSE:WN): The Best Of Both Worlds

I've been keeping an eye on George Weston Limited (TSE:WN) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe WN has a lot to offer. … that has been a rockstar for income investors, currently trading at an attractive share price

Simply Wall St -

What You Must Know About George Weston Limited's (TSE:WN) Financial Strength

the key to their continued success lies in its financial health. … This article will examine George Weston’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

Is George Weston Limited's (TSE:WN) High P/E Ratio A Problem For Investors?

To keep it practical, we'll show how George Weston Limited's (TSE:WN) P/E ratio could help you assess the value on offer. … How Do I Calculate George Weston's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Should George Weston Limited (TSE:WN) Focus On Improving This Fundamental Metric?

George Weston has a ROE of 4.6%, based on the last twelve months. … That means that for every CA$1 worth of shareholders' equity, it generated CA$0.046 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should George Weston Limited (TSE:WN) Be Your Next Stock Pick?

George Weston Limited (TSE:WN) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … that has been a rockstar for income investors, currently trading at an attractive share price

Simply Wall St -

WN Company Info

Description

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 produces fresh, frozen, and specialty bakery products, such as breads, rolls, bagels, tortillas, cakes, donuts, pies, cookies, crackers, and other baked goods through national and regional supermarkets, wholesale and club stores, dollar stores, convenience store chains, food service distributors, and outlets. This segment also supplies control brand products to retailers and consumer food companies; ice cream cones and sandwich wafers to manufacturers in the frozen novelty category; and Girl Scout cookies. The Loblaw segment provides grocery, pharmacy, health and beauty, apparel, general merchandise, credit card, insurance brokerage, gift cards, and telecommunication services in approximately 2,300 corporate, franchised, and associate-owned locations. It operates retail drug stores under the Shoppers Drug Mart and Pharmaprix names that offer over-the-counter medications, health and beauty aids, cosmetics and fragrances, seasonal products, and household essentials; and Shoppers Home Health Care stores, which sells and services assisted-living devices, medical equipment, home-care products, and durable mobility equipment to institutional and retail customers. This segment also provides specialty drug distribution, pharmacy, and patient support services, as well as pharmaceutical products and services to long-term care facilities. The Choice Properties segment owns, develops, and manages retail and commercial real estate consisting of 435 properties primarily focusing on supermarket-anchored shopping centers, supermarkets, and other commercial properties; and industrial, office, and residential properties. The company was founded in 1882 and is headquartered in Toronto, Canada. George Weston Limited is a subsidiary of Wittington Investments, Ltd.

Details
Name: George Weston Limited
WN
Exchange: TSX
Founded: 1882
CA$15,537,079,939
153,482,959
Website: http://www.weston.ca
Address: George Weston Limited
22 Street Clair Avenue East,
Suite 800,
Toronto,
Ontario, M4T 2S7,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX WN Common Shares The Toronto Stock Exchange CA CAD 16. Nov 1972
OTCPK WNGR.F Common Shares Pink Sheets LLC US USD 16. Nov 1972
DB WX5 Common Shares Deutsche Boerse AG DE EUR 16. Nov 1972
TSX WN.PRA PFD 1 5.8% The Toronto Stock Exchange CA CAD 04. Dec 2001
TSX WN.PRC PFD SHS III The Toronto Stock Exchange CA CAD 18. Apr 2005
TSX WN.PRD PFD IV 5.20% The Toronto Stock Exchange CA CAD 02. Aug 2005
TSX WN.PRE PFD 4.75% V The Toronto Stock Exchange CA CAD 19. Apr 2006
Number of employees
Current staff
Staff numbers
203,238
George Weston employees.
Industry
Food Retail
Consumer Retailing
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 23:48
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/05/14
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/23
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.