A&W FOOD SERVICES OF CANADA (AW.CA) Fundamental Analysis & Valuation

TSX:AW • CA0002251027

Current stock price

36.3 CAD
-0.05 (-0.14%)
Last:

This AW.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. AW.CA Profitability Analysis

1.1 Basic Checks

  • In the past year AW was profitable.
  • In the past year AW had a positive cash flow from operations.
  • AW had positive earnings in 4 of the past 5 years.
  • Of the past 5 years AW 4 years had a positive operating cash flow.
AW.CA Yearly Net Income VS EBIT VS OCF VS FCFAW.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2021 2022 2023 2024 20M 40M 60M

1.2 Ratios

  • AW has a Return On Assets of 2.27%. This is comparable to the rest of the industry: AW outperforms 44.44% of its industry peers.
  • Looking at the Return On Equity, with a value of 13.07%, AW is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
  • The Return On Invested Capital of AW (4.96%) is comparable to the rest of the industry.
  • AW had an Average Return On Invested Capital over the past 3 years of 2.73%. This is significantly below the industry average of 8.81%.
  • The last Return On Invested Capital (4.96%) for AW is above the 3 year average (2.73%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 2.27%
ROE 13.07%
ROIC 4.96%
ROA(3y)2.52%
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.73%
ROIC(5y)N/A
AW.CA Yearly ROA, ROE, ROICAW.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2021 2022 2023 2024 0 -10 -20

1.3 Margins

  • AW's Profit Margin of 9.58% is fine compared to the rest of the industry. AW outperforms 61.11% of its industry peers.
  • In the last couple of years the Profit Margin of AW has declined.
  • With an excellent Operating Margin value of 30.63%, AW belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
  • AW's Operating Margin has improved in the last couple of years.
  • AW has a better Gross Margin (98.04%) than 94.44% of its industry peers.
  • AW's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 30.63%
PM (TTM) 9.58%
GM 98.04%
OM growth 3Y3.59%
OM growth 5YN/A
PM growth 3Y-34.57%
PM growth 5YN/A
GM growth 3Y1.67%
GM growth 5YN/A
AW.CA Yearly Profit, Operating, Gross MarginsAW.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2021 2022 2023 2024 20 40 60 80

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2

2. AW.CA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AW is creating some value.
  • AW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
AW.CA Yearly Shares OutstandingAW.CA Yearly Shares OutstandingYearly Shares Outstanding 2021 2022 2023 2024 5M 10M 15M 20M
AW.CA Yearly Total Debt VS Total AssetsAW.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

  • AW has an Altman-Z score of 0.75. This is a bad value and indicates that AW is not financially healthy and even has some risk of bankruptcy.
  • AW has a Altman-Z score (0.75) which is in line with its industry peers.
  • AW has a debt to FCF ratio of 25.25. This is a negative value and a sign of low solvency as AW would need 25.25 years to pay back of all of its debts.
  • AW has a Debt to FCF ratio (25.25) which is comparable to the rest of the industry.
  • A Debt/Equity ratio of 4.02 is on the high side and indicates that AW has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 4.02, AW is doing worse than 66.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 4.02
Debt/FCF 25.25
Altman-Z 0.75
ROIC/WACC1.1
WACC4.5%
AW.CA Yearly LT Debt VS Equity VS FCFAW.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2021 2022 2023 2024 0 200M -200M 400M 600M 800M

2.3 Liquidity

  • A Current Ratio of 0.90 indicates that AW may have some problems paying its short term obligations.
  • The Current ratio of AW (0.90) is comparable to the rest of the industry.
  • A Quick Ratio of 0.84 indicates that AW may have some problems paying its short term obligations.
  • AW has a Quick ratio (0.84) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 0.9
Quick Ratio 0.84
AW.CA Yearly Current Assets VS Current LiabilitesAW.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2021 2022 2023 2024 20M 40M 60M 80M 100M

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1

3. AW.CA Growth Analysis

3.1 Past

EPS 1Y (TTM)N/A
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.23%

3.2 Future

  • Based on estimates for the next years, AW will show a small growth in Earnings Per Share. The EPS will grow by 5.87% on average per year.
  • AW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.82% yearly.
EPS Next Y-0.89%
EPS Next 2Y5.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.26%
Revenue Next 2Y3.82%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

AW.CA Yearly Revenue VS EstimatesAW.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2021 2022 2023 2024 2025 2026 2027 100M 200M 300M
AW.CA Yearly EPS VS EstimatesAW.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2025 2026 2027 0.5 1 1.5 2 2.5

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4

4. AW.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 15.25, the valuation of AW can be described as correct.
  • Based on the Price/Earnings ratio, AW is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
  • AW is valuated rather cheaply when we compare the Price/Earnings ratio to 25.71, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 15.39 indicates a correct valuation of AW.
  • Based on the Price/Forward Earnings ratio, AW is valued a bit cheaper than 72.22% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.83. AW is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 15.25
Fwd PE 15.39
AW.CA Price Earnings VS Forward Price EarningsAW.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • AW's Enterprise Value to EBITDA is on the same level as the industry average.
  • AW's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 24.34
EV/EBITDA 18.26
AW.CA Per share dataAW.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 -10

4.3 Compensation for Growth

  • The decent profitability rating of AW may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.87%
EPS Next 3YN/A

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4

5. AW.CA Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 5.28%, AW is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 2.58, AW pays a better dividend. On top of this AW pays more dividend than 83.33% of the companies listed in the same industry.
  • AW's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 5.28%

5.2 History

  • AW has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
AW.CA Yearly Dividends per shareAW.CA Yearly Dividends per shareYearly Dividends per share 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • AW pays out 122.53% of its income as dividend. This is not a sustainable payout ratio.
DP122.53%
EPS Next 2Y5.87%
EPS Next 3YN/A
AW.CA Yearly Income VS Free CF VS DividendAW.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2021 2022 2023 2024 10M 20M 30M 40M 50M
AW.CA Dividend Payout.AW.CA Dividend Payout, showing the Payout Ratio.AW.CA Dividend Payout.PayoutRetained Earnings

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AW.CA Fundamentals: All Metrics, Ratios and Statistics

A&W FOOD SERVICES OF CANADA

TSX:AW (3/13/2026, 7:00:00 PM)

36.3

-0.05 (-0.14%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)03-05
Earnings (Next)04-30
Inst Owners8.45%
Inst Owner ChangeN/A
Ins Owners37.75%
Ins Owner ChangeN/A
Market Cap871.20M
Revenue(TTM)N/A
Net Income(TTM)28.19M
Analysts42.22
Price Target42.84 (18.02%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.28%
Yearly Dividend1.18
Dividend Growth(5Y)N/A
DP122.53%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-16
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.09%
Min EPS beat(2)-9.61%
Max EPS beat(2)27.79%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-2.7%
Max Revenue beat(2)-2.23%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 15.25
Fwd PE 15.39
P/S 2.96
P/FCF 24.34
P/OCF 22.54
P/B 4.04
P/tB N/A
EV/EBITDA 18.26
EPS(TTM)2.38
EY6.56%
EPS(NY)2.36
Fwd EY6.5%
FCF(TTM)1.49
FCFY4.11%
OCF(TTM)1.61
OCFY4.44%
SpS12.26
BVpS8.99
TBVpS-11.59
PEG (NY)N/A
PEG (5Y)N/A
Graham Number21.94
Profitability
Industry RankSector Rank
ROA 2.27%
ROE 13.07%
ROCE 7.99%
ROIC 4.96%
ROICexc 4.99%
ROICexgc 8.92%
OM 30.63%
PM (TTM) 9.58%
GM 98.04%
FCFM 12.16%
ROA(3y)2.52%
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.73%
ROIC(5y)N/A
ROICexc(3y)2.76%
ROICexc(5y)N/A
ROICexgc(3y)3.42%
ROICexgc(5y)N/A
ROCE(3y)4.45%
ROCE(5y)N/A
ROICexgc growth 3Y16.71%
ROICexgc growth 5YN/A
ROICexc growth 3Y-2.73%
ROICexc growth 5YN/A
OM growth 3Y3.59%
OM growth 5YN/A
PM growth 3Y-34.57%
PM growth 5YN/A
GM growth 3Y1.67%
GM growth 5YN/A
F-Score5
Asset Turnover0.24
Health
Industry RankSector Rank
Debt/Equity 4.02
Debt/FCF 25.25
Debt/EBITDA 8.97
Cap/Depr 43.02%
Cap/Sales 0.97%
Interest Coverage 7.02
Cash Conversion 39.94%
Profit Quality 126.96%
Current Ratio 0.9
Quick Ratio 0.84
Altman-Z 0.75
F-Score5
WACC4.5%
ROIC/WACC1.1
Cap/Depr(3y)90.11%
Cap/Depr(5y)N/A
Cap/Sales(3y)1.52%
Cap/Sales(5y)N/A
Profit Quality(3y)182.81%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)N/A
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
EPS Next Y-0.89%
EPS Next 2Y5.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.23%
Revenue Next Year4.26%
Revenue Next 2Y3.82%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y22.47%
EBIT growth 3Y9.87%
EBIT growth 5YN/A
EBIT Next Year120.83%
EBIT Next 3Y35.21%
EBIT Next 5YN/A
FCF growth 1Y350.36%
FCF growth 3Y38%
FCF growth 5YN/A
OCF growth 1Y223.05%
OCF growth 3Y35.37%
OCF growth 5YN/A

A&W FOOD SERVICES OF CANADA / AW.CA Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for A&W FOOD SERVICES OF CANADA?

ChartMill assigns a fundamental rating of 3 / 10 to AW.CA.


Can you provide the valuation status for A&W FOOD SERVICES OF CANADA?

ChartMill assigns a valuation rating of 4 / 10 to A&W FOOD SERVICES OF CANADA (AW.CA). This can be considered as Fairly Valued.


What is the profitability of AW stock?

A&W FOOD SERVICES OF CANADA (AW.CA) has a profitability rating of 5 / 10.


Can you provide the financial health for AW stock?

The financial health rating of A&W FOOD SERVICES OF CANADA (AW.CA) is 2 / 10.


Can you provide the expected EPS growth for AW stock?

The Earnings per Share (EPS) of A&W FOOD SERVICES OF CANADA (AW.CA) is expected to decline by -0.89% in the next year.