George Weston (WN) AI Stock Analysis

• Market Cap: C$33.11B
• Dividend Yield: 1.17%
• Average Volume (3M): 312.76K
• Price to Earnings (P/E): 33.0
• Beta (1Y): 0.51
• 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: 383,694,730
• 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: 2.43
• 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$105.00
• Price Target Upside: 9.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: C$103.00 ▲(7.84% Upside)

The overall stock score of 72 reflects George Weston's stable financial performance with robust cash flow generation, despite challenges in net income and increased leverage. The technical analysis indicates strong bullish momentum, although the stock is nearing overbought levels. Valuation concerns arise from a high P/E ratio, suggesting potential overvaluation. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Stable Revenue Growth

Stable revenue growth indicates resilience in market demand and effective sales strategies, supporting long-term business sustainability.

Strong Cash Flow Generation

Strong cash flow generation provides financial flexibility for reinvestment and debt management, enhancing the company's ability to sustain operations.

Consistent Gross Profit Margins

Consistent gross profit margins reflect effective cost management and pricing strategies, contributing to long-term profitability.

Negative Factors

Declining Net Income

Declining net income can hinder reinvestment and growth opportunities, potentially affecting the company's competitive position.

Increased Leverage

Higher leverage increases financial risk, potentially limiting the company's ability to invest in growth and manage economic downturns.

Decreased Free Cash Flow Growth

Slowing free cash flow growth may constrain the company's ability to fund new projects and return value to shareholders, impacting long-term 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 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	63.16B	61.61B	60.12B	57.05B	53.75B	53.27B
Gross Profit	20.83B	20.31B	19.61B	18.52B	17.31B	16.55B
EBITDA	7.82B	6.32B	5.84B	6.01B	5.52B	4.42B
Net Income	1.15B	1.36B	1.54B	1.82B	431.00M	963.00M
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	2.98B	3.10B	3.01B	2.60B	3.21B	3.41B
Operating Cash Flow	4.94B	5.11B	4.95B	4.07B	4.26B	4.64B
Investing Cash Flow	-2.48B	-2.31B	-1.68B	-2.55B	-289.00M	-1.74B
Financing Cash Flow	-3.70B	-3.22B	-3.13B	-2.19B	-3.57B	-2.15B

George Weston Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 95.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 95.51 is above the 20-day moving average (MA) of 92.27, above the 50-day MA of 88.37, and above the 200-day MA of 86.03, indicating a bullish trend. The MACD of 2.63 indicates Negative momentum. The RSI at 71.00 is Negative, neither overbought nor oversold. The STOCH value of 81.05 is Negative, 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
L	80 Outperform	$72.44B	29.32	21.51%	1.50%	4.21%	14.03%
MRU	78 Outperform	C$20.12B	20.23	14.48%	1.48%	3.71%	12.40%
WN	72 Outperform	C$33.11B	32.95	26.36%	1.17%	4.15%	149.50%
EMP.A	70 Outperform	C$11.24B	16.30	12.97%	1.65%	1.96%	9.26%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SAP	61 Neutral	C$13.83B	-95.78	-1.32%	1.99%	5.37%	-135.85%

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.

The most recent analyst rating on (TSE:WN) stock is a Buy with a C$108.00 price target. To see the full list of analyst forecasts on George Weston stock, see the TSE:WN Stock Forecast page.

George Weston Amends Share Buyback Program for Proportionate Participation

George Weston Limited announced an amendment to its normal course issuer bid (NCIB), allowing Wittington Investments, its majority shareholder, to participate proportionately in the share buyback program. This change follows Wittington’s increased ownership in the company and aims to maintain its proportionate ownership while expanding its diversification and impact investing. The amendment, effective September 4, 2025, will adjust the maximum number of shares purchased under the NCIB to account for Wittington’s participation, with purchases made during the TSX’s Special Trading Session.

The most recent analyst rating on (TSE:WN) stock is a Hold with a C$288.00 price target. To see the full list of analyst forecasts on George Weston stock, see the TSE:WN Stock Forecast page.

George Weston Limited Completes Three-For-One Stock Split

George Weston Limited has completed a three-for-one stock split of its common shares, effective as of August 19, 2025. This move, executed via a stock dividend, allows shareholders to receive two additional shares for each share held, potentially increasing market liquidity and making shares more accessible to a broader range of investors.

The most recent analyst rating on (TSE:WN) stock is a Hold with a C$288.00 price target. To see the full list of analyst forecasts on George Weston stock, see the TSE:WN Stock Forecast page.