George Weston (WN) AI Stock Analysis

• Market Cap: C$36.64B
• Dividend Yield: 1.23%
• Average Volume (3M): 312.76K
• Price to Earnings (P/E): 31.9
• Beta (1Y): 0.41
• Revenue Growth: 4.15%
• EPS Growth: 149.50%
• Country: CA
• Employees: 220,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 1.21
• Shares Outstanding: 379,506,160
• 10 Day Avg. Volume: 269,994
• 30 Day Avg. Volume: 312,762
• PEG Ratio: -0.45
• Price to Book (P/B): 6.90
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 11.29
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$112.20
• Price Target Upside: 17.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 4.97
• Revenue Forecast (FY): C$67.18B

• Rating: 65 Neutral
• Price Target: C$102.00 ▲(6.58% Upside)
• Action: Downgraded Date: 03/05/26
• Date: Action: Downgraded 03/05/26

The score is driven primarily by stable operating performance and strong cash generation, tempered by elevated and rising leverage that increases financial risk. Valuation is a meaningful positive due to the very low P/E, while near-term technicals are weak with the stock trading below key short-term moving averages and momentum indicators near oversold.

Positive Factors

Strong cash generation

Consistent and sizable operating and free cash flow provides durable funding to support capital expenditures, dividend payments, and share repurchases without relying on new financing. Over a 2–6 month horizon this strengthens financial flexibility and underpins the holding company’s ability to allocate capital to Loblaw, Choice Properties, or shareholder returns.

Control of Loblaw provides core earnings

The controlling stake in Loblaw anchors George Weston with exposure to grocery, pharmacy, loyalty and financial services, offering diversified, necessity-driven revenue streams. This ownership model produces recurring earnings and dividends that are structurally resilient across economic cycles, supporting steady parent-level cash inflows over months ahead.

Stable revenue & solid margins

Sustained single-digit revenue growth combined with stable gross margins and improving EBITDA indicates operational resilience and some operating leverage. For a grocery/food platform this suggests durable core profitability and the capacity to absorb input cost variability, supporting consistent operating performance over the coming months.

Negative Factors

High and rising leverage

A materially higher debt burden increases refinancing and interest-rate sensitivity for a defensive retailer/holding company. Elevated leverage constrains financial flexibility, raises funding costs if markets tighten, and magnifies downside risk to equity returns if operating cash flow softens over the next several months.

Thin net profitability

Despite healthy gross and EBITDA margins, thin net margins leave limited buffer against higher interest, taxes or unexpected costs. Below-the-line pressures have driven net income below prior peaks, making reported earnings more volatile and reducing retained earnings available to delever or invest in strategic initiatives over the medium term.

Moderate cash conversion & coverage

Free cash flow running well below net income and modest coverage metrics imply less headroom to absorb shocks or accelerate debt reduction. If operating conditions or interest costs deteriorate, the limited conversion and coverage reduce the company’s ability to rapidly rebuild liquidity or sustain aggressive capital returns without increasing leverage.

George Weston Business Overview & Revenue Model

Company Description

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. It operates retail drug stores under the Shoppers Drug Mart name. This segment also provides credit card services, insurance brokerage services, guaranteed investment certificates, and wireless mobile products and services. The Choice Properties segment owns, operates, and manages commercial, residential, tenant, industrial, and office properties. It provides products under the President's Choice, Life Brand, and Farmer's Market brands. The company was founded in 1882 and is based in Toronto, Canada. George Weston Limited is a subsidiary of Wittington Investments, Limited.

How the Company Makes Money

George Weston generates revenue primarily through the sale of food products in its Grocery segment. This includes baked goods, snacks, and other grocery items sold through its retail operations, particularly Loblaw Companies. Additionally, the company earns income from its Real Estate segment through leasing properties and managing real estate investments. Key revenue streams include wholesale and retail sales, as well as rental income from commercial real estate. Strategic partnerships with suppliers and retailers enhance its market presence, while efficiencies in production and supply chain management contribute to cost savings and profitability.

George Weston Financial Statement Overview

Summary

Income statement and cash flow are supportive (steady revenue growth, solid gross margin ~32–33%, improved EBITDA margin ~12% in TTM, consistently strong operating and free cash flow). The major offset is balance-sheet risk: leverage is high and rising (debt-to-equity ~4.0x TTM) with reduced equity, pressuring flexibility and contributing to thinner net profitability (~2–3%) and net income below prior peaks.

Income Statement

Revenue shows steady, low-to-mid single-digit growth across the annual periods and remains positive in TTM (Trailing-Twelve-Months). Profitability is solid for the sector, with gross margin holding near ~32–33% and EBITDA margin improving into ~12% in TTM. The key weakness is earnings pressure: net margin is thin (~2–3%) and net income has trended down from 2022 levels, with TTM net income below recent annual peaks—suggesting higher costs, interest, or other below-the-line headwinds.

Balance Sheet

The balance sheet is the main constraint. Leverage is high and rising, with debt-to-equity moving from ~2.7x (2020) to ~4.0x in TTM (Trailing-Twelve-Months), while equity has stepped down versus prior years. Returns on equity are strong in recent periods (TTM elevated), but that strength is amplified by leverage, increasing sensitivity to rate and refinancing risk. Overall asset base is stable to modestly growing, but the capital structure is aggressive for a defensive industry profile.

Cash Flow

Cash generation is a clear positive: operating cash flow is consistently strong and improved in TTM (Trailing-Twelve-Months), and free cash flow is sizable with strong TTM growth. That said, cash flow conversion versus reported earnings is only moderate (free cash flow running well below net income), and cash flow coverage metrics are not particularly high, leaving less cushion if operating conditions soften or financing costs rise.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	64.51B	61.61B	60.12B	57.05B	53.75B
Gross Profit	20.64B	20.31B	19.61B	18.52B	17.31B
EBITDA	8.29B	6.32B	5.84B	6.01B	5.52B
Net Income	1.14B	1.36B	1.54B	1.82B	431.00M
Balance Sheet
Total Assets	52.17B	51.44B	49.77B	48.96B	47.08B
Cash, Cash Equivalents and Short-Term Investments	1.49B	2.70B	2.92B	2.82B	3.86B
Total Debt	19.58B	22.21B	21.30B	20.65B	19.50B
Total Liabilities	39.56B	38.30B	36.31B	35.78B	33.95B
Stockholders Equity	5.28B	6.24B	6.67B	6.84B	6.96B
Cash Flow
Free Cash Flow	3.23B	3.10B	3.01B	2.60B	3.21B
Operating Cash Flow	5.29B	5.11B	4.95B	4.07B	4.26B
Investing Cash Flow	-2.15B	-2.31B	-1.68B	-2.55B	-289.00M
Financing Cash Flow	-3.34B	-3.22B	-3.13B	-2.19B	-3.57B

George Weston Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 95.70
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WN, the sentiment is Neutral. The current price of 95.7 is below the 20-day moving average (MA) of 99.80, below the 50-day MA of 97.95, and above the 200-day MA of 91.18, indicating a neutral trend. The MACD of -0.78 indicates Positive momentum. The RSI at 44.23 is Neutral, neither overbought nor oversold. The STOCH value of 31.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:WN.

George Weston Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFI	73 Outperform	C$3.48B	5.72	11.72%	4.95%	-0.03%	497.79%
EMP.A	68 Neutral	C$11.17B	17.29	12.66%	1.78%	2.58%	7.85%
MRU	66 Neutral	C$20.06B	23.42	14.48%	1.50%	3.71%	12.40%
WN	65 Neutral	C$36.64B	31.90	21.94%	1.23%	4.15%	149.50%
L	64 Neutral	$73.99B	27.64	24.03%	1.52%	4.21%	14.03%
DOL	64 Neutral	C$53.61B	38.95	99.41%	0.20%	14.02%	20.11%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

George Weston Corporate Events

George Weston posts strong Q4 on Loblaw and Choice Properties growth

George Weston reported solid fourth-quarter and full-year 2025 results, supported by an extra week of operations and strong performance at Loblaw and Choice Properties. Revenue in the quarter rose 11.2% to $16.54 billion, adjusted EBITDA increased 10.7% to $1.89 billion, and adjusted diluted earnings per share climbed 15.2%, while reported net earnings fell due to an unfavourable fair value adjustment to its trust unit liability.

Loblaw gained market share as customer visits increased, e-commerce sales grew, and food retail same-store sales strengthened alongside robust beauty, OTC, specialty pharmacy, and healthcare services. Choice Properties delivered higher occupancy and cash flow from its grocery-anchored and industrial portfolio, executed $801 million of real estate transactions, expanded its leasable area, and signalled continued confidence with a fourth consecutive annual distribution increase, underscoring stable long-term value creation for investors.

The most recent analyst rating on (TSE:WN) stock is a Buy with a C$121.00 price target. To see the full list of analyst forecasts on George Weston stock, see the TSE:WN Stock Forecast page.