George Weston (WN) AI Stock Analysis

• Market Cap: C$34.33B
• Dividend Yield: 1.34%
• Average Volume (3M): 121.28K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 0.55
• Revenue Growth: 2.36%
• EPS Growth: -6.97%
• Country: CA
• Employees: 220,000
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Grocery Stores
• EPS (TTM): 2.58
• Shares Outstanding: 128,658,450
• 10 Day Avg. Volume: 97,234
• 30 Day Avg. Volume: 121,278
• PEG Ratio: -2.52
• Price to Book (P/B): 5.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.86
• 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$290.67
• Price Target Upside: 8.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 76 Outperform
• Price Target: C$298.00 ▲(11.67%Upside)

George Weston's overall score of 76 reflects strong financial performance and effective management of its operations. The company benefits from stable revenue growth and profitability, despite high leverage. Technical indicators suggest a positive momentum, and recent corporate actions enhance its strategic position. Valuation metrics are balanced, aligning with moderate market optimism.

Positive Factors

Earnings Outlook

The company's 2025 outlook remains positive, with expectations of increased adjusted net earnings and plans to use excess cash for buybacks.

HoldCo Discount

The HoldCo discount for George Weston Limited has narrowed from 20% to 14%, indicating improved market sentiment.

Target Price Revision

The analyst target price for George Weston Limited has been revised upward to $230, reflecting updated estimates and a revised target for Choice Properties REIT.

Negative Factors

Market Perform 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 is a Canadian public company and one of the country's largest food processing and distribution enterprises. The company operates through several key sectors, including food retail, real estate, and consumer goods. Its primary subsidiaries include Loblaw Companies Limited, a leading grocery and pharmacy retailer, and Choice Properties Real Estate Investment Trust, which focuses on owning, managing, and developing retail and commercial properties.

How the Company Makes Money

George Weston Limited generates revenue primarily through its subsidiaries. Loblaw Companies Limited contributes significantly to the company's earnings through its extensive network of grocery stores, which offer a wide range of food products, health and beauty items, and pharmacy services. The company also benefits from its private label brands. Additionally, Choice Properties REIT provides revenue through leasing income from its portfolio of retail and commercial properties. Key factors contributing to George Weston's earnings include its strategic partnerships within the retail industry, a diverse product line, and a broad real estate portfolio that ensures stable rental income.

George Weston Financial Statement Overview

Summary

George Weston exhibits strong financial performance with solid profitability and operational efficiency. Revenue growth is steady, although there is some pressure on net income due to a slight decrease in net profit margins. The company shows a high debt level, typical for the industry, but manages assets effectively with robust cash flow generation.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	61.61B	60.12B	57.05B	53.75B	54.70B
Gross Profit	20.31B	19.61B	18.52B	17.31B	17.12B
EBITDA	7.25B	6.95B	6.88B	5.51B	5.21B
Net Income	1.36B	1.54B	2.81B	1.75B	1.58B
Balance Sheet
Total Assets	51.44B	49.77B	48.96B	47.08B	48.08B
Cash, Cash Equivalents and Short-Term Investments	2.70B	2.92B	2.82B	3.86B	3.16B
Total Debt	22.21B	21.30B	20.65B	19.50B	20.87B
Total Liabilities	38.30B	36.31B	35.78B	33.95B	34.66B
Stockholders Equity	6.24B	6.67B	6.84B	6.96B	7.81B
Cash Flow
Free Cash Flow	3.67B	3.51B	2.98B	3.65B	3.93B
Operating Cash Flow	6.07B	5.85B	4.88B	5.11B	5.52B
Investing Cash Flow	-2.30B	-1.68B	-2.54B	-279.00M	-1.74B
Financing Cash Flow	-4.18B	-4.05B	-3.01B	-4.43B	-3.04B

George Weston Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 266.85
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 266.85 is below the 20-day moving average (MA) of 269.07, below the 50-day MA of 268.04, and above the 200-day MA of 239.06, indicating a neutral trend. The MACD of -0.62 indicates Positive momentum. The RSI at 43.00 is Neutral, neither overbought nor oversold. The STOCH value of 15.88 is Positive, 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
EMP.A	80 Outperform	C$13.05B	18.82	13.02%	1.56%	1.77%	0.77%
L	78 Outperform	$66.24B	30.10	20.10%	1.02%	2.42%	7.04%
MRU	78 Outperform	C$22.85B	23.30	14.26%	1.41%	2.31%	4.45%
WN	76 Outperform	C$34.33B	29.66	19.58%	1.34%	2.36%	-6.97%
SAP	70 Outperform	C$11.38B	42.30	-2.51%	2.76%	9.91%	-165.83%
Sector *	65 Neutral	$26.91B	15.41	-4.18%	3.21%	1.01%	1.34%

George Weston Corporate Events

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%.