TSX:AW.UN

Stock Analysis Report

A&W Revenue Royalties Income Fund

Executive Summary

A&W Revenue Royalties Income Fund, a limited purpose trust, holds investment in A&W Trade Marks Inc., which through its ownership interest in A&W Trade Marks Limited Partnership owns the A&W trade-marks used in the A&W quick service restaurant business in Canada.

Snowflake

Risks

  • A&W Revenue Royalties Income Fund is a fund or ETF! Currently our data availability for these is poor, we only recommend using them as part of a portfolio.

Similar Companies

Share Price & News

How has A&W Revenue Royalties Income Fund's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.5%

AW.UN

-1.3%

CA Hospitality

1.3%

CA Market


1 Year Return

8.4%

AW.UN

-18.9%

CA Hospitality

-0.1%

CA Market

AW.UN outperformed the Hospitality industry which returned -18.9% over the past year.

AW.UN outperformed the Market in Canada which returned -0.1% over the past year.


Share holder returns

AW.UNIndustryMarket
7 Day4.5%-1.3%1.3%
30 Day-5.5%5.7%4.2%
90 Day-7.9%-4.2%1.6%
1 Year13.5%8.4%-18.3%-18.9%3.4%-0.1%
3 Year27.0%10.5%20.2%17.0%19.1%8.4%
5 Year107.3%62.7%-2.1%-4.9%23.2%5.7%

Price Volatility Vs. Market

How volatile is A&W Revenue Royalties Income Fund's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 year ago | Simply Wall St

Best Services Dividend Paying Stock in July

Valuation

Is A&W Revenue Royalties Income Fund undervalued based on future cash flows and its price relative to the stock market?

27%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

A&W Revenue Royalties Income Fund's share price is below the future cash flow value, and at a moderate discount (> 20%).

A&W Revenue Royalties Income Fund's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

A&W Revenue Royalties Income Fund is good value based on earnings compared to the CA Hospitality industry average.

A&W Revenue Royalties Income Fund is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for A&W Revenue Royalties Income Fund, we can't assess if its growth is good value.


Price Based on Value of Assets

A&W Revenue Royalties Income Fund is overvalued based on assets compared to the CA Hospitality industry average.

Future Growth

How is A&W Revenue Royalties Income Fund expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

7.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

A&W Revenue Royalties Income Fund's revenue is expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).

Unable to determine if A&W Revenue Royalties Income Fund is high growth as no earnings estimate data is available.

A&W Revenue Royalties Income Fund's revenue growth is expected to exceed the Canada market average.

Unable to compare A&W Revenue Royalties Income Fund's earnings growth to the Canada market average as no estimate data is available.

Unable to compare A&W Revenue Royalties Income Fund's earnings growth to the low risk savings rate as no estimate data is available.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if A&W Revenue Royalties Income Fund will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Past Performance

How has A&W Revenue Royalties Income Fund performed over the past 5 years?

10.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

A&W Revenue Royalties Income Fund's year on year earnings growth rate has been positive over the past 5 years.

A&W Revenue Royalties Income Fund's 1-year earnings growth is less than its 5-year average (0.8% vs 10.4%)

A&W Revenue Royalties Income Fund's earnings growth has exceeded the CA Hospitality industry average in the past year (0.8% vs -12.2%).


Return on Equity

A&W Revenue Royalties Income Fund has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

A&W Revenue Royalties Income Fund used its assets more efficiently than the CA Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

A&W Revenue Royalties Income Fund's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

Financial Health

How is A&W Revenue Royalties Income Fund's financial position?


Financial Position Analysis

A&W Revenue Royalties Income Fund is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

A&W Revenue Royalties Income Fund's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

A&W Revenue Royalties Income Fund's level of debt (26.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (48.3% vs 26.5% today).

Debt is well covered by operating cash flow (54.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.6x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.2x debt.

Dividend

What is A&W Revenue Royalties Income Fund's current dividend yield, its reliability and sustainability?

4.87%

Expected Dividend Yield


Dividend Yield and Payments Analysis

A&W Revenue Royalties Income Fund's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.95%).

A&W Revenue Royalties Income Fund's dividend is below the markets top 25% of dividend payers in Canada (5.77%).

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

Dividends paid are not well covered by earnings (1x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.

Management

What is the CEO of A&W Revenue Royalties Income Fund's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Susan Senecal 0

1.6yrs

Tenure

0

Ms. Susan D. Senecal serves as Chief Executive Officer at A&W Trade Marks Inc., since February 16, 2018. Ms. Senecal has been Chief Executive Officer of A&W Revenue Royalties Income Fund and A&W Food Servi ...


Management Age and Tenure

4.8yrs

Average Tenure

The tenure for the A&W Revenue Royalties Income Fund management team is about average.


Insider Trading

More shares have been bought than sold by A&W Revenue Royalties Income Fund individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyCA$6,70303 Sep 19
David Mindell
EntityIndividual
Shares163
Max PriceCA$41.12
BuyCA$6,47601 Aug 19
David Mindell
EntityIndividual
Shares148
Max PriceCA$43.76
BuyCA$6,43902 Jul 19
David Mindell
EntityIndividual
Shares152
Max PriceCA$42.36
BuyCA$6,40003 Jun 19
David Mindell
EntityIndividual
Shares148
Max PriceCA$43.24
BuyCA$6,09702 May 19
David Mindell
EntityIndividual
Shares149
Max PriceCA$40.92
BuyCA$6,08203 Apr 19
David Mindell
EntityIndividual
Shares157
Max PriceCA$38.74
BuyCA$5,88406 Mar 19
David Mindell
EntityIndividual
Shares151
Max PriceCA$38.97
BuyCA$5,85104 Feb 19
David Mindell
EntityIndividual
Shares161
Max PriceCA$36.34
BuyCA$5,82602 Jan 19
David Mindell
EntityIndividual
Shares172
Max PriceCA$33.87
BuyCA$5,83003 Dec 18
David Mindell
EntityIndividual
Shares169
Max PriceCA$34.50
BuyCA$5,68601 Oct 18
David Mindell
EntityIndividual
Shares158
Max PriceCA$35.99

Ownership Breakdown


Management Team

  • Hugh Smythe

    Secretary & Trustee

    • Tenure: 8.3yrs
    • Compensation: CA$40.00k
  • Don Leslie

    Chief Financial Officer

    • Tenure: 0yrs
  • Terry Taciuk

    Vice President of Information & Business Analytics

    • Tenure: 4.8yrs
  • Susan Senecal

    President & CEO

    • Tenure: 1.6yrs
  • Trish Sahlstrom

    Senior VP & Chief Commercial Officer

    • Tenure: 18.7yrs

Board Members

  • Hugh Smythe

    Secretary & Trustee

    • Tenure: 8.3yrs
    • Compensation: CA$40.00k
  • John McLernon (78yo)

    Chairman & Trustee

    • Tenure: 0yrs
    • Compensation: CA$40.00k
  • Rich McKerracher

    • Tenure: 7.3yrs
    • Compensation: CA$40.00k

Company Information

A&W Revenue Royalties Income Fund's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: A&W Revenue Royalties Income Fund
  • Ticker: AW.UN
  • Exchange: TSX
  • Founded: 2001
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: CA$554.992m
  • Shares outstanding: 14.06m
  • Website: https://www.awincomefund.ca

Location

  • A&W Revenue Royalties Income Fund
  • 171 West Esplanade
  • Suite 300
  • North Vancouver
  • British Columbia
  • V7M 3K9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AW.UNTSX (The Toronto Stock Exchange)YesUnitsCACADFeb 2002
AWRR.FOTCPK (Pink Sheets LLC)YesUnitsUSUSDFeb 2002

Biography

A&W Revenue Royalties Income Fund, a limited purpose trust, holds investment in A&W Trade Marks Inc., which through its ownership interest in A&W Trade Marks Limited Partnership owns the A&W trade-marks us ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 23:30
End of Day Share Price2019/09/20 00:00
Earnings2019/06/16
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.