Morningstar

George Weston Ltd WN

Morningstar Rating
Unlock
Stock XTSE Rating as of
CAD 219.60 −2.80 (1.26%)
View Full Chart
As of Delayed Price Closed

Company Report

View Archive

We View George Weston's Strategic Investments as Favorable but Not Enough to Warrant a Moat

Dan Su

As the majority shareholder of Canada’s largest retailer Loblaw as well as leading real estate investment trust Choice Properties, George Weston capitalizes on resilient consumer demand for groceries and pharmacy services, and benefits from synergies between the two operating subsidiaries. We view its financial performance as anchored by steady dividends from the retail and property arms, but don’t think the firm has a durable competitive edge based on our no-moat rating on Loblaw, which makes up the bulk of revenue and profits for the holding company.

Read Full Report

Price vs Fair Value

View History
WN is trading at a 17% premium.
Price
CAD 222.40
Fair Value
CAD 747.00
Uncertainty
Low
1-Star Price
CAD 138.44
5-Star Price
CAD 691.00
Economic Moat
Fprdr
Capital Allocation
Jqmrvvdqw

Bulls Say, Bears Say

Bulls

Major subsidiary Loblaw is the largest retailer in Canada, which leverages an extensive retail footprint and strong banners to capture shopper demand across the country.

Bears

George Weston is susceptible to regulatory headwinds, labor disputes, and supply chain disruptions that could hamper the performance of its subsidiaries.

Show More

News

View All

Trading Information

Previous Close Price
CAD 222.40
Day Range
CAD 219.60–223.50
52-Week Range
CAD 144.41–229.22
Bid/Ask
CAD 219.22 / CAD 220.85
Market Cap
CAD 29.02 Bil
Volume/Avg
70,795 / 126,362

Key Statistics

Price/Earnings (Normalized)
20.04
Price/Sales
0.49
Dividend Yield (Trailing)
1.38%
Dividend Yield (Forward)
1.47%
Total Yield
7.92%

Company Profile

George Weston is a holding company that controls a 53% stake in retailer Loblaw and a 62% stake in Choice Properties, a real estate investment trust. Loblaw boasts the largest retail footprint across Canada with 2,500 food retail and pharmacy stores under banners such as Loblaw, No-Frills, Maxi, and Shoppers Drug Mart. Meanwhile, open-ended Choice Properties REIT owns and manages over 700 commercial and residential properties in Canada, generating roughly 60% of its gross rental revenue from its largest tenant Loblaw. Previously, George Weston sold its wholly owned bakery Weston Foods in 2022. The firm is controlled by the Weston family, which owns a 65% stake.
Sector
Consumer Defensive
Industry
Grocery Stores
Stock Style Box
Large Value
Total Number of Employees
220,000
Website
https://www.weston.ca

Competitors

Valuation

View More
Metric
WN
L
KR
Price/Earnings (Normalized)
 20.0426.4811.99
Price/Book Value
 5.234.853.21
Price/Sales
 0.490.910.27
Price/Cash Flow
 6.4111.025.56
Price/Earnings
WN
L
KR

Financial Strength

Metric
WN
L
KR
Quick Ratio
 0.730.700.37
Current Ratio
 1.341.360.87
Interest Coverage
 3.474.389.95
Quick Ratio
WN
L
KR

Profitability

Metric
WN
L
KR
Return on Assets (Normalized)
 5.14%5.71%—
Return on Equity (Normalized)
 42.85%19.78%—
Return on Invested Capital (Normalized)
 9.71%9.50%—
Return on Assets
WN
L
KR

Grocery Stores Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
The Kroger Co
KR
FcntzsznrScsgh$40.2 Bil
 Loblaw Companies Ltd
LBLCF
—Bdb$39.6 Bil
 Seven & i Holdings Co Ltd
SVNDF
—Scnpgy$37.7 Bil
 Seven & i Holdings Co Ltd ADR
SVNDY
—Ybntk$37.7 Bil
 Tesco PLC ADR
TSCDY
KfpyjzgFgw$32.8 Bil
 Tesco PLC
TSCDF
—Cts$32.8 Bil
 Koninklijke Ahold Delhaize NV
AHODF
—Bswb$31.6 Bil
 Koninklijke Ahold Delhaize NV ADR
ADRNY
SbzfhctkNqrkh$31.6 Bil
 Woolworths Group Ltd
WOLWF
—Cgglk$27.8 Bil
 Albertsons Companies Inc Class A
ACI
CjjxydjHwcx$10.7 Bil

Sponsor Center