George Weston (WN) AI Stock Analysis

• Market Cap: C$34.60B
• Dividend Yield: 1.33%
• Average Volume (3M): 135.41K
• Price to Earnings (P/E): 30.3
• Beta (1Y): 0.55
• Revenue Growth: 2.36%
• EPS Growth: -6.97%
• Country: CA
• Employees: 220,000
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Grocery Stores
• EPS (TTM): 2.58
• Shares Outstanding: 128,963,680
• 10 Day Avg. Volume: 125,024
• 30 Day Avg. Volume: 135,415
• PEG Ratio: 0.13
• Price to Book (P/B): 3.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.12
• 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: 8.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 76 Outperform
• Price Target: C$298.00 ▲(11.48%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

Analyst Target Price

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.

Financial Performance

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

Negative Factors

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 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 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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
62.16B	61.61B	60.12B	57.05B	53.75B	54.70B
	Gross Profit
20.48B	20.31B	19.61B	18.52B	17.31B	17.12B
	EBIT
4.48B	4.38B	4.60B	4.55B	4.03B	2.89B
	EBITDA
7.21B	7.25B	6.95B	6.88B	5.51B	5.21B
	Net Income Common Stockholders
1.21B	1.36B	1.54B	2.81B	1.75B	1.58B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.31B	2.70B	2.92B	2.82B	3.86B	3.16B
	Total Assets
50.23B	51.44B	49.77B	48.96B	47.08B	48.08B
	Total Debt
22.39B	22.21B	21.30B	20.65B	19.50B	20.87B
	Net Debt
21.09B	20.16B	18.85B	18.34B	16.51B	18.29B
	Total Liabilities
37.46B	38.30B	36.31B	35.78B	33.95B	34.66B
	Stockholders Equity
5.86B	6.24B	6.67B	6.84B	6.96B	7.81B
Cash Flow		Free Cash Flow
3.46B	3.67B	3.51B	2.98B	3.65B	3.93B
	Operating Cash Flow
5.70B	6.07B	5.85B	4.88B	5.11B	5.52B
	Investing Cash Flow
-2.51B	-2.30B	-1.68B	-2.54B	-279.00M	-1.74B
	Financing Cash Flow
-4.04B	-4.18B	-4.05B	-3.01B	-4.43B	-3.04B

George Weston Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 267.32
• 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 267.32 is below the 20-day moving average (MA) of 269.95, above the 50-day MA of 264.00, and above the 200-day MA of 234.72, indicating a neutral trend. The MACD of 0.87 indicates Positive momentum. The RSI at 50.89 is Neutral, neither overbought nor oversold. The STOCH value of 52.20 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	76 Outperform	C$34.60B	30.27	19.58%	1.33%	2.36%	-6.97%
Sector *	65 Neutral	$8.73B	15.14	4.69%	4.60%	3.64%	-2.51%
LBLCF		$48.50B	31.09	20.10%	1.00%	―	―
EMP.A	79 Outperform	C$12.04B	18.43	13.02%	1.46%	1.05%	-6.94%
MRU	77 Outperform	C$22.73B	23.26	14.26%	1.42%	2.31%	4.45%
SAP	60 Neutral	C$11.09B	42.30	-2.51%	2.84%	9.20%	-147.37%
TPX.A		C$13.55B	10.43	8.50%	3.15%	―	―

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%.

George Weston Limited Launches Automatic Share Purchase Plan

George Weston Limited has initiated an automatic share purchase plan (ASPP) to facilitate the repurchase of its common shares under a previously announced normal course issuer bid (NCIB). This move allows the company to buy back up to 5% of its outstanding shares, enhancing its market position by potentially increasing shareholder value. The ASPP enables share purchases even during periods when the company is restricted from active trading due to insider trading rules, thereby ensuring compliance with Canadian securities laws.