George Weston (WN) AI Stock Analysis

• Market Cap: C$36.30B
• Dividend Yield: 1.23%
• Average Volume (3M): 312.76K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.35
• Revenue Growth: 4.15%
• EPS Growth: 149.50%
• Country: CA
• Employees: 220,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 1.37
• Shares Outstanding: 382,300,000
• 10 Day Avg. Volume: 269,994
• 30 Day Avg. Volume: 312,762
• PEG Ratio: -0.93
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 3.18
• 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$106.17
• Price Target Upside: 11.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: C$104.00 ▲(9.54% Upside)

George Weston scores well due to strong financial performance and positive technical indicators. However, the high P/E ratio suggests potential overvaluation, and increased financial leverage poses a risk. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a robust market position and effective business strategies, supporting long-term sustainability.

Operational Efficiency

Improved margins reflect enhanced operational efficiency, which can lead to better profitability and competitive advantage over time.

Cash Flow Generation

Strong cash flow generation supports financial flexibility, enabling investments in growth opportunities and resilience in economic downturns.

Negative Factors

Net Profit Margin Decline

A declining net profit margin indicates challenges in converting revenue into profit, which may affect long-term profitability.

Increased Financial Leverage

High leverage can increase financial risk and limit the company's ability to invest in growth, impacting long-term stability.

Free Cash Flow Decline

Declining free cash flow growth may constrain the company's ability to fund new projects or return capital to shareholders, affecting future growth.

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

George Weston demonstrates strong revenue growth and operational efficiency, with stable gross profit margins and improving EBIT and EBITDA margins. However, challenges include declining net profit margins and increased financial leverage, which could pose risks in a volatile market. Cash flow generation remains robust, but the declining free cash flow growth rate warrants attention.

Income Statement

George Weston shows a solid revenue growth trajectory with a TTM revenue growth rate of 1.37% and consistent annual growth over the past years. The gross profit margin remains stable around 32.9%, indicating effective cost management. However, the net profit margin has decreased to 1.82% in the TTM, reflecting potential challenges in converting revenue into profit. The EBIT and EBITDA margins have improved in the TTM, suggesting operational efficiency gains.

Balance Sheet

The company's debt-to-equity ratio has increased to 4.07 in the TTM, indicating higher leverage and potential financial risk. Return on equity has decreased to 19.55%, suggesting reduced profitability for shareholders. The equity ratio remains low, reflecting a high reliance on debt financing, which could pose risks if market conditions change.

Cash Flow

Operating cash flow remains strong, but the free cash flow has shown a decline in growth at -3.15% in the TTM. The operating cash flow to net income ratio is 0.45, indicating decent cash generation relative to net income. The free cash flow to net income ratio is 0.60, suggesting that the company is generating sufficient cash to cover its net income, albeit with a declining trend.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.02B	61.61B	60.12B	57.05B	53.75B	53.27B
Gross Profit	21.16B	20.31B	19.61B	18.52B	17.31B	16.55B
EBITDA	7.70B	6.32B	5.84B	6.01B	5.52B	4.42B
Net Income	1.61B	1.36B	1.54B	1.82B	431.00M	963.00M
Balance Sheet
Total Assets	52.05B	51.44B	49.77B	48.96B	47.08B	48.08B
Cash, Cash Equivalents and Short-Term Investments	2.44B	2.70B	2.92B	2.82B	3.86B	3.16B
Total Debt	23.06B	22.21B	21.30B	20.65B	19.50B	20.87B
Total Liabilities	39.05B	38.30B	36.31B	35.78B	33.95B	34.66B
Stockholders Equity	5.70B	6.24B	6.67B	6.84B	6.96B	7.81B
Cash Flow
Free Cash Flow	2.89B	3.10B	3.01B	2.60B	3.21B	3.41B
Operating Cash Flow	4.97B	5.11B	4.95B	4.07B	4.26B	4.64B
Investing Cash Flow	-2.41B	-2.31B	-1.68B	-2.55B	-289.00M	-1.74B
Financing Cash Flow	-2.65B	-3.22B	-3.13B	-2.19B	-3.57B	-2.15B

George Weston Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 94.94
• 50DMA: Positive
• 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 94.94 is below the 20-day moving average (MA) of 95.15, above the 50-day MA of 91.47, and above the 200-day MA of 87.33, indicating a neutral trend. The MACD of 0.86 indicates Positive momentum. The RSI at 53.84 is Neutral, neither overbought nor oversold. The STOCH value of 49.33 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
MRU	78 Outperform	C$21.05B	21.20	14.48%	1.50%	3.71%	12.40%
L	76 Outperform	$73.10B	29.72	21.51%	1.51%	4.21%	14.03%
WN	70 Outperform	C$36.30B	24.72	26.36%	1.23%	4.15%	149.50%
EMP.A	68 Neutral	C$10.84B	15.98	12.66%	1.78%	2.58%	7.85%
SAP	66 Neutral	C$17.11B	-207.18	-1.32%	1.87%	5.37%	-135.85%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

George Weston Corporate Events

George Weston Limited Reports Strong Q3 Earnings Growth

George Weston Limited reported a 15.1% growth in adjusted diluted net earnings per common share for the third quarter of 2025, reflecting strong performance in its operating segments. Loblaw Companies Limited saw increased customer engagement and sales growth through value offerings and new store openings, while Choice Properties experienced robust tenant demand and financial growth. The company’s strategic focus on value and convenience positions it for continued growth, benefiting stakeholders and expanding its market presence.