George Weston (WN) AI Stock Analysis

• Market Cap: C$34.02B
• Dividend Yield: 1.26%
• Average Volume (3M): 112.47K
• Price to Earnings (P/E): 33.2
• Beta (1Y): 0.55
• Revenue Growth: 3.21%
• EPS Growth: -12.20%
• Country: CA
• Employees: 220,000
• Sector: Consumer Defensive
• Sector Strength: 52
• Industry: Grocery Stores
• EPS (TTM): 3.06
• Shares Outstanding: 128,214,080
• 10 Day Avg. Volume: 102,138
• 30 Day Avg. Volume: 112,471
• PEG Ratio: -2.79
• Price to Book (P/B): 4.73
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 7.30
• 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$301.67
• Price Target Upside: 15.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 67 Neutral
• Price Target: C$288.00 ▲(10.59% Upside)

George Weston's overall stock score reflects stable financial performance with challenges in net income and leverage, neutral technical indicators, and a high valuation. The positive impact of corporate events, including a stock split and strong operational performance, enhances the score. Investors should consider the high P/E ratio and leverage risks when evaluating the stock.

Positive Factors

Earnings Growth

The company's adjusted net earnings are expected to increase, supported by results from its operating segments and planned stock buybacks.

Market Sentiment

Improved sentiment towards George Weston Limited's exposure to Choice Properties REIT is suggested following the Bank of Canada's rate cuts.

Stock Split

Weston announced a 3-for-1 stock split following Loblaw's 4-for-1 split, both expected to enhance shareholder value.

Negative Factors

Earnings Performance

Reported adjusted EPS was lower due to a combination of higher interest expense, tax, and non-controlling interest.

Market Rating

The Market Perform rating reflects a neutral stance on Loblaw shares, impacting the overall recommendation for George Weston Limited.

George Weston Business Overview & Revenue Model

Company Description

George Weston Limited (WN) is a Canadian public company with interests primarily in food processing and distribution. It operates through its subsidiaries in three main sectors: food retail, real estate, and consumer goods. Its food retail operations are conducted through Loblaw Companies Limited, Canada's largest food retailer. The company is also involved in the baking industry through Weston Foods, which produces a wide range of bakery products. Additionally, George Weston has significant real estate holdings through its ownership of Choice Properties Real Estate Investment Trust.

How the Company Makes Money

George Weston Limited generates revenue primarily through its subsidiaries. Loblaw Companies Limited, the largest contributor, earns money from retail sales of groceries, pharmaceuticals, and general merchandise across Canada. This includes income from owned retail stores and franchise locations. The company also benefits from its financial services division, which offers credit card services, insurance, and banking. Weston Foods contributes to revenue through the manufacturing and sale of bakery products to retail and foodservice customers across North America. Choice Properties Real Estate Investment Trust generates income through rental and property management services, focusing on commercial real estate, including retail and industrial properties. Strategic partnerships and acquisitions in each sector further bolster George Weston's financial performance.

George Weston Financial Statement Overview

Summary

George Weston shows strong operational performance with high profitability margins and efficient cash flow management. Despite challenges with net income reduction and leverage, revenue growth and cost control are solid.

Income Statement

George Weston demonstrates strong profitability with a consistent gross profit margin at 32.9% in TTM (Trailing-Twelve-Months). The net profit margin, however, decreased slightly to 1.9% from the previous year, indicating pressure on net income. Revenue growth is steady at 3.3% annually, showcasing stable business performance. EBIT and EBITDA margins remain robust at 7.2% and 11.6% respectively, underscoring efficient operational management.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 3.82, which indicates a high debt level relative to equity, a common trait in the grocery industry. Return on equity (ROE) has decreased to 20.6%, reflecting lower net income. The equity ratio stands at 11.6%, highlighting a leveraged position but consistent asset management.

Cash Flow

Free cash flow has shown a slight decline, but the company maintains strong cash flow generation with a free cash flow to net income ratio of 2.86, indicating effective cash management. The operating cash flow to net income ratio is 4.73 in TTM (Trailing-Twelve-Months), suggesting robust cash conversion efficiency despite a decrease in net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	62.89B	61.61B	60.12B	57.05B	53.75B	54.70B
Gross Profit	20.71B	20.31B	19.61B	18.52B	17.31B	17.12B
EBITDA	7.17B	7.25B	6.95B	6.88B	5.51B	5.21B
Net Income	1.06B	1.36B	1.54B	2.81B	1.75B	1.58B
Balance Sheet
Total Assets	50.85B	51.44B	49.77B	48.96B	47.08B	48.08B
Cash, Cash Equivalents and Short-Term Investments	2.13B	2.70B	2.92B	2.82B	3.86B	3.16B
Total Debt	22.70B	22.21B	21.30B	20.65B	19.50B	20.87B
Total Liabilities	38.20B	38.30B	36.31B	35.78B	33.95B	34.66B
Stockholders Equity	5.58B	6.24B	6.67B	6.84B	6.96B	7.81B
Cash Flow
Free Cash Flow	3.57B	4.05B	3.51B	2.98B	3.65B	3.93B
Operating Cash Flow	5.89B	6.07B	5.85B	4.88B	5.11B	5.52B
Investing Cash Flow	-2.46B	-2.30B	-1.68B	-2.54B	-279.00M	-1.74B
Financing Cash Flow	-4.68B	-4.18B	-4.05B	-3.01B	-4.43B	-3.04B

George Weston Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 260.42
• 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 Positive. The current price of 260.42 is below the 20-day moving average (MA) of 265.05, below the 50-day MA of 268.16, and above the 200-day MA of 241.67, indicating a neutral trend. The MACD of -1.21 indicates Positive momentum. The RSI at 49.97 is Neutral, neither overbought nor oversold. The STOCH value of 27.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WN.

George Weston Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WN	67 Neutral	C$34.02B	33.15	17.72%	1.26%	3.21%	-12.20%
Sector *	63 Neutral	$20.31B	12.53	-7.33%	3.14%	2.97%	-12.13%
LBLCF	―	$48.99B	26.42	21.77%	0.93%	―	―
EMP.A	80 Outperform	C$12.88B	18.88	13.02%	1.50%	1.77%	0.77%
MRU	76 Outperform	C$23.31B	23.93	14.26%	1.34%	2.31%	4.45%
SAP	70 Outperform	C$12.02B	42.30	-2.51%	2.62%	9.91%	-165.83%
TPX.A	―	C$13.74B	9.97	8.50%	―	―	―

George Weston Corporate Events

George Weston Limited Announces Three-for-One Stock Split to Enhance Accessibility

George Weston Limited announced a three-for-one stock split to enhance the accessibility of its common shares for retail investors and employees, and to improve share liquidity. The stock split, effective August 18, 2025, will not dilute shareholders’ equity and will not incur Canadian income tax for shareholders, ensuring a smooth transition for stakeholders.

The most recent analyst rating on (TSE:WN) stock is a Buy with a C$254.00 price target. To see the full list of analyst forecasts on George Weston stock, see the TSE:WN Stock Forecast page.

George Weston Reports Strong Q2 Performance and Announces Stock Split

George Weston Limited reported strong operational performance in the second quarter of 2025, with Loblaw Companies showing robust sales growth driven by new store openings and increased customer engagement through value offerings and loyalty rewards. Choice Properties also performed well, supported by strategic property acquisitions and a solid portfolio. Despite a decrease in net earnings due to a fair value adjustment related to Choice Properties, the company announced a 3-for-1 stock split to enhance share accessibility for retail investors and employees.

The most recent analyst rating on (TSE:WN) stock is a Buy with a C$254.00 price target. To see the full list of analyst forecasts on George Weston stock, see the TSE:WN Stock Forecast page.

George Weston Limited Confirms Board of Directors Election

George Weston Limited announced the election of its board of directors at the Annual Meeting of Shareholders, with all nominees listed in the management proxy circular being successfully elected. This election reflects strong shareholder support and is likely to ensure continuity in the company’s strategic direction, potentially impacting its operations and reinforcing its position in the market.

George Weston Limited Reports Strong Q1 2025 Earnings Growth

George Weston Limited reported a 12.2% growth in adjusted diluted net earnings per common share for the first quarter of 2025. The company saw a 4% increase in revenue and a 4.1% rise in adjusted EBITDA, driven by strong performances from its subsidiaries, Loblaw and Choice Properties. Loblaw experienced sales momentum and market share gains in food and drug retail, while Choice Properties maintained high occupancy and pursued growth opportunities. Despite a decrease in net earnings due to the fair value adjustment of the Trust Unit liability, the company improved its underlying operating performance and increased its dividend by 9%.