GEORGE WESTON LTD - WNCN 4 3/4 PERP (WN-PR-E.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:WN-PR-E - CA9611488482
22.05 CAD
+0.15 (+0.68%)
WN-PR-E gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 17 industry peers in the Consumer Staples Distribution & Retail industry. While WN-PR-E has a great profitability rating, there are quite some concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on WN-PR-E.
1. Profitability
1.1 Basic Checks
- In the past year WN-PR-E was profitable.
- WN-PR-E had a positive operating cash flow in the past year.
- In the past 5 years WN-PR-E has always been profitable.
- WN-PR-E had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- WN-PR-E has a Return On Assets of 2.88%. This is comparable to the rest of the industry: WN-PR-E outperforms 58.82% of its industry peers.
- WN-PR-E has a Return On Equity of 23.74%. This is amongst the best in the industry. WN-PR-E outperforms 100.00% of its industry peers.
- The Return On Invested Capital of WN-PR-E (9.58%) is better than 82.35% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for WN-PR-E is in line with the industry average of 8.51%.
- The 3 year average ROIC (8.75%) for WN-PR-E is below the current ROIC(9.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 23.74% | ||
| ROIC | 9.58% |
ROA(3y)3.06%
ROA(5y)2.38%
ROE(3y)23.13%
ROE(5y)17.34%
ROIC(3y)8.75%
ROIC(5y)7.97%
1.3 Margins
- The Profit Margin of WN-PR-E (2.32%) is better than 64.71% of its industry peers.
- In the last couple of years the Profit Margin of WN-PR-E has grown nicely.
- WN-PR-E has a better Operating Margin (8.02%) than 88.24% of its industry peers.
- In the last couple of years the Operating Margin of WN-PR-E has grown nicely.
- WN-PR-E's Gross Margin of 33.06% is fine compared to the rest of the industry. WN-PR-E outperforms 70.59% of its industry peers.
- In the last couple of years the Gross Margin of WN-PR-E has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.02% | ||
| PM (TTM) | 2.32% | ||
| GM | 33.06% |
OM growth 3Y-1.8%
OM growth 5Y3.86%
PM growth 3Y43.65%
PM growth 5Y40.12%
GM growth 3Y0.7%
GM growth 5Y0.7%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WN-PR-E is creating some value.
- WN-PR-E has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, WN-PR-E has less shares outstanding
- The debt/assets ratio for WN-PR-E is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 1.90 indicates that WN-PR-E is not a great score, but indicates only limited risk for bankruptcy at the moment.
- WN-PR-E has a Altman-Z score of 1.90. This is in the lower half of the industry: WN-PR-E underperforms 76.47% of its industry peers.
- The Debt to FCF ratio of WN-PR-E is 6.69, which is on the high side as it means it would take WN-PR-E, 6.69 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 6.69, WN-PR-E perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
- A Debt/Equity ratio of 3.18 is on the high side and indicates that WN-PR-E has dependencies on debt financing.
- WN-PR-E has a Debt to Equity ratio (3.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.18 | ||
| Debt/FCF | 6.69 | ||
| Altman-Z | 1.9 |
ROIC/WACC1.44
WACC6.63%
2.3 Liquidity
- WN-PR-E has a Current Ratio of 1.24. This is a normal value and indicates that WN-PR-E is financially healthy and should not expect problems in meeting its short term obligations.
- WN-PR-E has a Current ratio of 1.24. This is in the better half of the industry: WN-PR-E outperforms 64.71% of its industry peers.
- A Quick Ratio of 0.74 indicates that WN-PR-E may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.74, WN-PR-E is in line with its industry, outperforming 58.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
- WN-PR-E shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.06%, which is quite good.
- Measured over the past years, WN-PR-E shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.57% on average per year.
- The Revenue has been growing slightly by 4.15% in the past year.
- The Revenue has been growing slightly by 4.22% on average over the past years.
EPS 1Y (TTM)14.06%
EPS 3Y13.75%
EPS 5Y10.57%
EPS Q2Q%15.13%
Revenue 1Y (TTM)4.15%
Revenue growth 3Y4.65%
Revenue growth 5Y4.22%
Sales Q2Q%4.62%
3.2 Future
- The Earnings Per Share is expected to grow by 8.23% on average over the next years. This is quite good.
- Based on estimates for the next years, WN-PR-E will show a small growth in Revenue. The Revenue will grow by 3.42% on average per year.
EPS Next Y16%
EPS Next 2Y13.21%
EPS Next 3Y12.8%
EPS Next 5Y8.23%
Revenue Next Year6.32%
Revenue Next 2Y4.38%
Revenue Next 3Y4.43%
Revenue Next 5Y3.42%
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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 5.13, which indicates a rather cheap valuation of WN-PR-E.
- Based on the Price/Earnings ratio, WN-PR-E is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.21. WN-PR-E is valued rather cheaply when compared to this.
- WN-PR-E is valuated cheaply with a Price/Forward Earnings ratio of 4.32.
- WN-PR-E's Price/Forward Earnings ratio is rather cheap when compared to the industry. WN-PR-E is cheaper than 100.00% of the companies in the same industry.
- WN-PR-E's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.13 | ||
| Fwd PE | 4.32 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WN-PR-E is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- 94.12% of the companies in the same industry are more expensive than WN-PR-E, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.54 | ||
| EV/EBITDA | 3.5 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of WN-PR-E may justify a higher PE ratio.
- A more expensive valuation may be justified as WN-PR-E's earnings are expected to grow with 12.80% in the coming years.
PEG (NY)0.32
PEG (5Y)0.49
EPS Next 2Y13.21%
EPS Next 3Y12.8%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.51%, WN-PR-E is a good candidate for dividend investing.
- WN-PR-E's Dividend Yield is a higher than the industry average which is at 2.25.
- Compared to an average S&P500 Dividend Yield of 1.81, WN-PR-E pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.51% |
5.2 History
- The dividend of WN-PR-E decreases each year by -13.94%.
- WN-PR-E has been paying a dividend for at least 10 years, so it has a reliable track record.
- WN-PR-E has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-13.94%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- WN-PR-E pays out 32.79% of its income as dividend. This is a sustainable payout ratio.
DP32.79%
EPS Next 2Y13.21%
EPS Next 3Y12.8%
GEORGE WESTON LTD - WNCN 4 3/4 PERP / WN-PR-E.CA FAQ
What is the fundamental rating for WN-PR-E stock?
ChartMill assigns a fundamental rating of 6 / 10 to WN-PR-E.CA.
What is the valuation status of GEORGE WESTON LTD - WNCN 4 3/4 PERP (WN-PR-E.CA) stock?
ChartMill assigns a valuation rating of 9 / 10 to GEORGE WESTON LTD - WNCN 4 3/4 PERP (WN-PR-E.CA). This can be considered as Undervalued.
How profitable is GEORGE WESTON LTD - WNCN 4 3/4 PERP (WN-PR-E.CA) stock?
GEORGE WESTON LTD - WNCN 4 3/4 PERP (WN-PR-E.CA) has a profitability rating of 8 / 10.
What is the financial health of GEORGE WESTON LTD - WNCN 4 3/4 PERP (WN-PR-E.CA) stock?
The financial health rating of GEORGE WESTON LTD - WNCN 4 3/4 PERP (WN-PR-E.CA) is 3 / 10.
How sustainable is the dividend of GEORGE WESTON LTD - WNCN 4 3/4 PERP (WN-PR-E.CA) stock?
The dividend rating of GEORGE WESTON LTD - WNCN 4 3/4 PERP (WN-PR-E.CA) is 6 / 10 and the dividend payout ratio is 32.79%.