George Weston Ltd. (WN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Metro, Inc.

The Becker Milk Co. Ltd.

Loblaw Cos. Ltd.

Empire Co. Ltd.

George Weston Ltd.

Nepra Foods, Inc.

Hill, Inc.

Colabor Group, Inc.

Sensible Meats, Inc.

Why is George Weston Ltd. ?

With ROE of 62.43%, it has a very expensive valuation with a 7.92 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 15.07%, its profits have risen by 7.1%

Underperformed the market in the last 1 year

The stock has generated a return of 15.07% in the last 1 year, much lower than market (S&P/TSX 60) returns of 28.13%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is George Weston Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

George Weston Ltd.

15.07%

0.39

70.33%

S&P/TSX 60

28.13%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.46%

EBIT Growth (5y)

9.83%

EBIT to Interest (avg)

5.41

Debt to EBITDA (avg)

1.88

Net Debt to Equity (avg)

2.56

Sales to Capital Employed (avg)

2.79

Tax Ratio

35.38%

Dividend Payout Ratio

40.89%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

24.86%

ROE (avg)

35.32%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.92

EV to EBIT

8.92

EV to EBITDA

6.40

EV to Capital Employed

2.86

EV to Sales

0.80

PEG Ratio

Dividend Yield

ROCE (Latest)

32.08%

ROE (Latest)

62.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 6,223 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 90.87%

DIVIDEND PER SHARE(HY)

Highest at CAD 19

RAW MATERIAL COST(Y)

Fallen by -0.54% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 19 times

OPERATING PROFIT MARGIN(Q)

Highest at 15.55 %

PRE-TAX PROFIT(Q)

Highest at CAD 1,522 MM

NET PROFIT(Q)

Highest at CAD 594.3 MM

-2What is not working for the Company

CASH AND EQV(HY)

Lowest at CAD 2,532 MM

DEBT-EQUITY RATIO (HY)

Highest at 410.32 %

Here's what is working for George Weston Ltd.

Operating Cash Flow

Highest at CAD 6,223 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Dividend per share

Highest at CAD 19 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Operating Cash Flow

Highest at CAD 6,223 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Dividend Payout Ratio

Highest at 90.87% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Operating Profit Margin

Highest at 15.55 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CAD 1,522 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 594.3 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Debtors Turnover Ratio

Highest at 19 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.54% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for George Weston Ltd.

Cash and Eqv

Lowest at CAD 2,532 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 410.32 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio