George Weston (WN) AI Stock Analysis

• Market Cap: C$33.82B
• Dividend Yield: 1.27%
• Average Volume (3M): 398.71K
• Price to Earnings (P/E): 33.7
• Beta (1Y): 0.54
• Revenue Growth: 3.21%
• EPS Growth: -12.20%
• Country: CA
• Employees: 220,000
• Sector: Consumer Defensive
• Sector Strength: 48
• Industry: Grocery Stores
• EPS (TTM): 1.02
• Shares Outstanding: 383,694,730
• 10 Day Avg. Volume: 478,427
• 30 Day Avg. Volume: 398,711
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$100.23
• Price Target Upside: 13.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 62 Neutral
• Price Target: C$94.00 ▲(6.19% Upside)

The overall stock score of 62 reflects George Weston's stable financial performance, despite challenges with declining net income and increased leverage. Technical analysis indicates a lack of strong momentum, while the high P/E ratio suggests potential overvaluation. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Earnings Growth

The company continues to expect adjusted net earnings to increase due to results from its operating segments and to use excess cash for buybacks.

Market Sentiment

Improved sentiment towards WN's exposure to Choice REIT with rate cuts.

Stock Split

Weston announced a 3-for-1 stock split following Loblaw's 4-for-1 split announcement, both expected to be effective around August 19.

Negative Factors

Earnings Performance

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

HoldCo Discount

The market is currently pricing in a ~14% HoldCo discount.

Market Rating

Market Perform rating largely reflects a current neutral stance on Loblaw shares.

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 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 demonstrates stable revenue growth and gross profit margins, but faces challenges with declining net income and increased leverage. The balance sheet shows higher debt levels, which could pose risks if not managed carefully. Cash flow generation remains robust, though free cash flow growth has slowed. Overall, the company maintains a solid financial position but should focus on improving net profitability and managing leverage.

Income Statement

George Weston shows a stable gross profit margin around 32-33% over the years, indicating consistent cost management. However, the net profit margin has decreased in the TTM period to 1.69% from 2.21% in the previous year, suggesting pressure on net earnings. Revenue growth is positive, with a slight increase in the TTM period, but the net income has declined, impacting profitability.

Balance Sheet

The company's debt-to-equity ratio has increased to 4.07 in the TTM period, indicating higher leverage and potential risk. Return on equity has decreased to 18.07% from 21.77% in the previous year, reflecting reduced efficiency in generating profits from shareholders' equity. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Operating cash flow remains strong, but the free cash flow growth rate has slowed down significantly in the TTM period. The operating cash flow to net income ratio is stable, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has decreased slightly, reflecting potential challenges in maintaining free cash flow levels.

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: 88.52
• 50DMA: Negative
• 100DMA: Negative
• 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 88.52 is below the 20-day moving average (MA) of 88.58, below the 50-day MA of 88.82, and above the 200-day MA of 81.99, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 48.65 is Neutral, neither overbought nor oversold. The STOCH value of 32.52 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
EMP.A	73 Outperform	C$12.20B	17.91	13.02%	1.56%	1.77%	0.77%
MRU	69 Neutral	C$21.15B	21.09	14.60%	1.49%	2.26%	12.56%
SAP	63 Neutral	C$13.85B	42.30	-2.20%	2.25%	7.58%	-155.93%
Sector *	63 Neutral	$20.49B	14.78	-2.98%	3.11%	1.86%	-5.76%
WN	62 Neutral	C$33.82B	33.66	17.72%	1.27%	3.21%	-12.20%
LBLCF	―	$48.65B	27.97	21.77%	0.92%	―	―
TPX.A	―	C$13.73B	10.24	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.