George Weston (WN) AI Stock Analysis

• Market Cap: C$31.11B
• Dividend Yield: 1.32%
• Average Volume (3M): 151.98K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.77
• Revenue Growth: 2.47%
• EPS Growth: -7.67%
• Country: CA
• Employees: 220,000
• Sector: Consumer Defensive
• Sector Strength: 73
• Industry: Grocery Stores
• EPS (TTM): 9.98
• Shares Outstanding: 129,623,920
• 10 Day Avg. Volume: 148,854
• 30 Day Avg. Volume: 151,976
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.50
• Price to Cash Flow (P/CF): 4.50
• P/FCF Ratio: 7.80
• 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$251.67
• Price Target Upside: 4.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

George Weston's overall stock score of 76 reflects strong financial performance and positive corporate actions. While technical indicators suggest upward momentum, the high leverage poses a risk. Valuation metrics, including a reasonable P/E ratio, provide a balanced outlook.

Positive Factors

Financial Performance

The company's adjusted net earnings are expected to increase, supported by results from its operating segments and planned stock buybacks.

Market Sentiment

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

Stock Valuation

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

Investment Outlook

The market perform rating for George Weston Limited is largely due to a neutral stance on Loblaw shares, indicating a cautious outlook.

Stock 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 engaged in food processing and distribution. The company operates through three primary segments: Loblaw Companies Limited, Weston Foods, and Choice Properties Real Estate Investment Trust. Loblaw Companies Limited is Canada's largest retailer and a leading provider of drugstore, general merchandise, and financial products and services. Weston Foods is a North American baking company, and Choice Properties is one of Canada’s largest real estate investment trusts.

How the Company Makes Money

George Weston Limited generates revenue primarily through its three core segments. Loblaw Companies Limited, as a major retailer, contributes significantly to the company's earnings through the sale of groceries, pharmacy products, and general merchandise. It also offers financial services, adding to its revenue streams. Weston Foods earns money by producing and distributing baked goods to various retailers and foodservice providers across North America. Choice Properties Real Estate Investment Trust generates income through the ownership, management, and development of commercial properties, primarily retail properties anchored by Loblaw grocery stores. Key partnerships and relationships with retailers, suppliers, and real estate stakeholders are crucial to sustaining and growing these revenue streams.

George Weston Financial Statement Overview

Summary

George Weston presents strong revenue growth and robust cash flow generation. Despite a high debt-to-equity ratio indicating leverage risk, the company's efficient cash management supports stable operations and potential growth. Strategic cost management could enhance profitability and margin resilience.

Income Statement

George Weston demonstrates strong revenue growth of 2.47% from 2023 to 2024, indicating robust business expansion. The company maintains a healthy gross profit margin of 32.98% and a stable EBIT margin of 7.10% for 2024. However, there is a slight decline in net income, resulting in a reduced net profit margin of 2.21%, potentially due to increased operational costs.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 3.56, indicating significant leverage which may pose a risk in economic downturns. Return on equity is moderate at 21.77%, reflecting efficient use of shareholder funds. The equity ratio is relatively low at 12.13%, suggesting a heavy reliance on debt financing.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 4.58%, signaling effective cash management. The operating cash flow to net income ratio is robust at 4.46, illustrating strong cash generation relative to profits. Free cash flow to net income ratio at 2.70 further supports the company's solid cash position.

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
	EBIT
4.38B	4.60B	4.55B	4.03B	2.89B
	EBITDA
7.25B	6.95B	6.88B	5.51B	5.21B
	Net Income Common Stockholders
1.36B	1.54B	2.81B	1.75B	1.58B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.70B	2.92B	2.82B	3.86B	3.16B
	Total Assets
51.44B	49.77B	48.96B	47.08B	48.08B
	Total Debt
22.21B	21.30B	20.65B	19.50B	20.87B
	Net Debt
20.16B	18.85B	18.34B	16.51B	18.29B
	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: Positive
• Last Price: 239.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 239.98 is above the 20-day moving average (MA) of 234.05, above the 50-day MA of 227.40, and above the 200-day MA of 219.06, indicating a bullish trend. The MACD of 3.24 indicates Negative momentum. The RSI at 63.08 is Neutral, neither overbought nor oversold. The STOCH value of 86.09 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
MRU	80 Outperform	C$21.54B	22.75	13.78%	1.41%	1.59%	-1.98%
L	78 Outperform	$59.57B	28.07	19.33%	1.05%	2.49%	7.16%
EMP.A	78 Outperform	C$10.90B	16.56	12.64%	1.68%	1.05%	-6.94%
ATD	77 Outperform	C$66.16B	18.58	18.66%	1.03%	11.62%	-8.08%
WN	76 Outperform	C$31.11B	24.13	21.04%	1.32%	2.47%	-7.67%
NWC	69 Neutral	C$2.35B	17.94	18.50%	3.22%	3.28%	1.42%
Sector *	63 Neutral	$20.68B	14.36	-12.41%	3.14%	1.24%	2.53%

George Weston Corporate Events

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.

George Weston Limited Declares Quarterly Dividend

George Weston Limited’s Board of Directors has declared a quarterly dividend of $0.3625 per share on its Preferred Shares, Series I, payable on March 15, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders, potentially enhancing its attractiveness to investors and maintaining its competitive position in the market.

George Weston Limited Reports Strong 2024 Financial Results

George Weston Limited reported strong financial results for the fourth quarter and fiscal year 2024, driven by the robust performance of its subsidiaries, Loblaw and Choice Properties. Loblaw achieved significant market share gains in food retail and expanded its network with new stores and clinics, while Choice Properties enhanced its portfolio with substantial real estate transactions and development projects, ensuring stable and growing cash flows.