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WESTON (GEORGE) LTD (WN.CA) Stock Fundamental Analysis

TSX:WN - Toronto Stock Exchange - CA9611485090 - Common Stock - Currency: CAD

223.36  -0.81 (-0.36%)

Fundamental Rating

4

WN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 17 industry peers in the Consumer Staples Distribution & Retail industry. WN has a medium profitability rating, but doesn't score so well on its financial health evaluation. WN has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

WN had positive earnings in the past year.
WN had a positive operating cash flow in the past year.
WN had positive earnings in each of the past 5 years.
In the past 5 years WN always reported a positive cash flow from operatings.
WN.CA Yearly Net Income VS EBIT VS OCF VS FCFWN.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

1.2 Ratios

WN's Return On Assets of 1.23% is on the low side compared to the rest of the industry. WN is outperformed by 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 9.18%, WN is doing worse than 62.50% of the companies in the same industry.
WN's Return On Invested Capital of 8.99% is in line compared to the rest of the industry. WN outperforms 43.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WN is in line with the industry average of 8.25%.
The 3 year average ROIC (8.89%) for WN is below the current ROIC(8.99%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 1.23%
ROE 9.18%
ROIC 8.99%
ROA(3y)2.48%
ROA(5y)1.95%
ROE(3y)17.96%
ROE(5y)13.65%
ROIC(3y)8.89%
ROIC(5y)7.65%
WN.CA Yearly ROA, ROE, ROICWN.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20 25

1.3 Margins

WN has a worse Profit Margin (1.00%) than 68.75% of its industry peers.
In the last couple of years the Profit Margin of WN has grown nicely.
The Operating Margin of WN (7.41%) is better than 62.50% of its industry peers.
WN's Operating Margin has improved in the last couple of years.
The Gross Margin of WN (33.09%) is better than 62.50% of its industry peers.
In the last couple of years the Gross Margin of WN has remained more or less at the same level.
Industry RankSector Rank
OM 7.41%
PM (TTM) 1%
GM 33.09%
OM growth 3Y11.68%
OM growth 5Y6.76%
PM growth 3Y13.99%
PM growth 5Y17.92%
GM growth 3Y1.4%
GM growth 5Y0.84%
WN.CA Yearly Profit, Operating, Gross MarginsWN.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

3

2. Health

2.1 Basic Checks

WN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
WN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for WN has been reduced compared to 5 years ago.
Compared to 1 year ago, WN has a worse debt to assets ratio.
WN.CA Yearly Shares OutstandingWN.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
WN.CA Yearly Total Debt VS Total AssetsWN.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B

2.2 Solvency

An Altman-Z score of 2.16 indicates that WN is not a great score, but indicates only limited risk for bankruptcy at the moment.
WN has a Altman-Z score of 2.16. This is comparable to the rest of the industry: WN outperforms 56.25% of its industry peers.
The Debt to FCF ratio of WN is 6.09, which is on the high side as it means it would take WN, 6.09 years of fcf income to pay off all of its debts.
WN has a worse Debt to FCF ratio (6.09) than 68.75% of its industry peers.
WN has a Debt/Equity ratio of 2.71. This is a high value indicating a heavy dependency on external financing.
WN has a Debt to Equity ratio of 2.71. This is amonst the worse of the industry: WN underperforms 87.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.71
Debt/FCF 6.09
Altman-Z 2.16
ROIC/WACC1.44
WACC6.25%
WN.CA Yearly LT Debt VS Equity VS FCFWN.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

2.3 Liquidity

A Current Ratio of 1.24 indicates that WN should not have too much problems paying its short term obligations.
The Current ratio of WN (1.24) is comparable to the rest of the industry.
A Quick Ratio of 0.75 indicates that WN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.75, WN is in line with its industry, outperforming 50.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.24
Quick Ratio 0.75
WN.CA Yearly Current Assets VS Current LiabilitesWN.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B

4

3. Growth

3.1 Past

WN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.50%.
Measured over the past years, WN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.00% on average per year.
Looking at the last year, WN shows a small growth in Revenue. The Revenue has grown by 2.76% in the last year.
The Revenue has been growing slightly by 4.36% on average over the past years.
EPS 1Y (TTM)6.5%
EPS 3Y15.39%
EPS 5Y9%
EPS Q2Q%6.25%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y3.2%
Revenue growth 5Y4.36%
Sales Q2Q%1.51%

3.2 Future

The Earnings Per Share is expected to grow by 5.24% on average over the next years.
The Revenue is expected to grow by 3.52% on average over the next years.
EPS Next Y15.74%
EPS Next 2Y15.9%
EPS Next 3Y14.46%
EPS Next 5Y5.24%
Revenue Next Year2.48%
Revenue Next 2Y3.41%
Revenue Next 3Y3.36%
Revenue Next 5Y3.52%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
WN.CA Yearly Revenue VS EstimatesWN.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B 80B
WN.CA Yearly EPS VS EstimatesWN.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15

4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 19.75, the valuation of WN can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of WN is on the same level as its industry peers.
WN is valuated rather cheaply when we compare the Price/Earnings ratio to 28.12, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.78, the valuation of WN can be described as correct.
WN's Price/Forward Earnings is on the same level as the industry average.
WN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 94.77.
Industry RankSector Rank
PE 19.75
Fwd PE 15.78
WN.CA Price Earnings VS Forward Price EarningsWN.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as WN.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WN is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 8.31
EV/EBITDA 6.48
WN.CA Per share dataWN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 100 200 300 400

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of WN may justify a higher PE ratio.
WN's earnings are expected to grow with 14.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.25
PEG (5Y)2.19
EPS Next 2Y15.9%
EPS Next 3Y14.46%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.46%, WN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.63, WN pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.29, WN is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.46%

5.2 History

On average, the dividend of WN grows each year by 8.75%, which is quite nice.
WN has been paying a dividend for at least 10 years, so it has a reliable track record.
WN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.75%
Div Incr Years12
Div Non Decr Years33
WN.CA Yearly Dividends per shareWN.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 2 3

5.3 Sustainability

WN pays out 73.57% of its income as dividend. This is not a sustainable payout ratio.
The dividend of WN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP73.57%
EPS Next 2Y15.9%
EPS Next 3Y14.46%
WN.CA Yearly Income VS Free CF VS DividendWN.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B
WN.CA Dividend Payout.WN.CA Dividend Payout, showing the Payout Ratio.WN.CA Dividend Payout.PayoutRetained Earnings

WESTON (GEORGE) LTD

TSX:WN (2/7/2025, 7:00:00 PM)

223.36

-0.81 (-0.36%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)11-19 2024-11-19/bmo
Earnings (Next)02-26 2025-02-26/amc
Inst Owners15.35%
Inst Owner ChangeN/A
Ins Owners59.42%
Ins Owner ChangeN/A
Market Cap29.07B
Analysts81.33
Price Target251.14 (12.44%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.46%
Yearly Dividend3.08
Dividend Growth(5Y)8.75%
DP73.57%
Div Incr Years12
Div Non Decr Years33
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.91%
Min EPS beat(2)-2.86%
Max EPS beat(2)4.68%
EPS beat(4)1
Avg EPS beat(4)-3.64%
Min EPS beat(4)-14.49%
Max EPS beat(4)4.68%
EPS beat(8)1
Avg EPS beat(8)-5.25%
EPS beat(12)3
Avg EPS beat(12)-2.57%
EPS beat(16)5
Avg EPS beat(16)-1.83%
Revenue beat(2)0
Avg Revenue beat(2)-4.04%
Min Revenue beat(2)-4.31%
Max Revenue beat(2)-3.77%
Revenue beat(4)0
Avg Revenue beat(4)-3.4%
Min Revenue beat(4)-4.31%
Max Revenue beat(4)-2.62%
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)1.29%
PT rev (3m)6.51%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)12.69%
EPS NY rev (1m)0.87%
EPS NY rev (3m)0.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.39%
Valuation
Industry RankSector Rank
PE 19.75
Fwd PE 15.78
P/S 0.47
P/FCF 8.31
P/OCF 4.94
P/B 4.36
P/tB N/A
EV/EBITDA 6.48
EPS(TTM)11.31
EY5.06%
EPS(NY)14.16
Fwd EY6.34%
FCF(TTM)26.89
FCFY12.04%
OCF(TTM)45.24
OCFY20.25%
SpS470.24
BVpS51.28
TBVpS-32.37
PEG (NY)1.25
PEG (5Y)2.19
Profitability
Industry RankSector Rank
ROA 1.23%
ROE 9.18%
ROCE 12.04%
ROIC 8.99%
ROICexc 9.72%
ROICexgc 14%
OM 7.41%
PM (TTM) 1%
GM 33.09%
FCFM 5.72%
ROA(3y)2.48%
ROA(5y)1.95%
ROE(3y)17.96%
ROE(5y)13.65%
ROIC(3y)8.89%
ROIC(5y)7.65%
ROICexc(3y)9.69%
ROICexc(5y)8.29%
ROICexgc(3y)14.13%
ROICexgc(5y)12.18%
ROCE(3y)11.85%
ROCE(5y)10.26%
ROICexcg growth 3Y14.98%
ROICexcg growth 5Y8.13%
ROICexc growth 3Y16.05%
ROICexc growth 5Y10.4%
OM growth 3Y11.68%
OM growth 5Y6.76%
PM growth 3Y13.99%
PM growth 5Y17.92%
GM growth 3Y1.4%
GM growth 5Y0.84%
F-Score7
Asset Turnover1.23
Health
Industry RankSector Rank
Debt/Equity 2.71
Debt/FCF 6.09
Debt/EBITDA 2.53
Cap/Depr 91.88%
Cap/Sales 3.9%
Interest Coverage 3.81
Cash Conversion 82.51%
Profit Quality 570.96%
Current Ratio 1.24
Quick Ratio 0.75
Altman-Z 2.16
F-Score7
WACC6.25%
ROIC/WACC1.44
Cap/Depr(3y)77.11%
Cap/Depr(5y)72.83%
Cap/Sales(3y)3.31%
Cap/Sales(5y)3.19%
Profit Quality(3y)448.79%
Profit Quality(5y)657.51%
High Growth Momentum
Growth
EPS 1Y (TTM)6.5%
EPS 3Y15.39%
EPS 5Y9%
EPS Q2Q%6.25%
EPS Next Y15.74%
EPS Next 2Y15.9%
EPS Next 3Y14.46%
EPS Next 5Y5.24%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y3.2%
Revenue growth 5Y4.36%
Sales Q2Q%1.51%
Revenue Next Year2.48%
Revenue Next 2Y3.41%
Revenue Next 3Y3.36%
Revenue Next 5Y3.52%
EBIT growth 1Y-2.43%
EBIT growth 3Y15.25%
EBIT growth 5Y11.42%
EBIT Next Year53.76%
EBIT Next 3Y17.36%
EBIT Next 5Y8.55%
FCF growth 1Y15.78%
FCF growth 3Y-3.7%
FCF growth 5Y25.52%
OCF growth 1Y27.94%
OCF growth 3Y1.95%
OCF growth 5Y16.56%