WESTON (GEORGE) LTD (WN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:WN - CA9611485090 - Common Stock
97.6 CAD
+0.65 (+0.67%)
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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- WN had positive earnings in the past year.
- In the past year WN had a positive cash flow from operations.
- WN had positive earnings in each of the past 5 years.
- WN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of WN (2.88%) is worse than 64.71% of its industry peers.
- WN has a Return On Equity of 23.74%. This is in the better half of the industry: WN outperforms 76.47% of its industry peers.
- The Return On Invested Capital of WN (9.58%) is comparable to the rest of the industry.
- WN had an Average Return On Invested Capital over the past 3 years of 8.75%. This is in line with the industry average of 8.51%.
- The 3 year average ROIC (8.75%) for WN 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
- WN has a Profit Margin of 2.32%. This is comparable to the rest of the industry: WN outperforms 41.18% of its industry peers.
- In the last couple of years the Profit Margin of WN has grown nicely.
- With a decent Operating Margin value of 8.02%, WN is doing good in the industry, outperforming 64.71% of the companies in the same industry.
- In the last couple of years the Operating Margin of WN has grown nicely.
- WN has a Gross Margin (33.06%) which is comparable to the rest of the industry.
- WN's Gross Margin has been stable in the last couple of years.
| 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 is creating some value.
- WN has less shares outstanding than it did 1 year ago.
- WN has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for WN is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.28 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 2.28. This is comparable to the rest of the industry: WN outperforms 52.94% of its industry peers.
- WN has a debt to FCF ratio of 6.69. This is a slightly negative value and a sign of low solvency as WN would need 6.69 years to pay back of all of its debts.
- The Debt to FCF ratio of WN (6.69) is worse than 70.59% of its industry peers.
- A Debt/Equity ratio of 3.18 is on the high side and indicates that WN has dependencies on debt financing.
- WN has a worse Debt to Equity ratio (3.18) than 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.18 | ||
| Debt/FCF | 6.69 | ||
| Altman-Z | 2.28 |
ROIC/WACC1.45
WACC6.61%
2.3 Liquidity
- WN has a Current Ratio of 1.24. This is a normal value and indicates that WN is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.24, WN is in line with its industry, outperforming 41.18% of the companies in the same industry.
- A Quick Ratio of 0.74 indicates that WN may have some problems paying its short term obligations.
- The Quick ratio of WN (0.74) is worse than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
- WN 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 shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.57% on average per year.
- WN shows a small growth in Revenue. In the last year, the Revenue has grown by 4.15%.
- WN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.22% yearly.
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
- Based on estimates for the next years, WN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.23% on average per year.
- Based on estimates for the next years, WN 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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 22.70, the valuation of WN can be described as rather expensive.
- The rest of the industry has a similar Price/Earnings ratio as WN.
- When comparing the Price/Earnings ratio of WN to the average of the S&P500 Index (27.21), we can say WN is valued inline with the index average.
- The Price/Forward Earnings ratio is 19.12, which indicates a rather expensive current valuation of WN.
- The rest of the industry has a similar Price/Forward Earnings ratio as WN.
- WN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.7 | ||
| Fwd PE | 19.12 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WN is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, WN is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.23 | ||
| EV/EBITDA | 7.29 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- WN has a very decent profitability rating, which may justify a higher PE ratio.
- WN's earnings are expected to grow with 12.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.42
PEG (5Y)2.15
EPS Next 2Y13.21%
EPS Next 3Y12.8%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.22%, WN has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.00, WN pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.82, WN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
- The dividend of WN decreases each year by -13.94%.
- WN has paid a dividend for at least 10 years, which is a reliable track record.
- WN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-13.94%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
- 32.79% of the earnings are spent on dividend by WN. This is a low number and sustainable payout ratio.
DP32.79%
EPS Next 2Y13.21%
EPS Next 3Y12.8%
WESTON (GEORGE) LTD / WN.CA FAQ
What is the fundamental rating for WN stock?
ChartMill assigns a fundamental rating of 4 / 10 to WN.CA.
Can you provide the valuation status for WESTON (GEORGE) LTD?
ChartMill assigns a valuation rating of 4 / 10 to WESTON (GEORGE) LTD (WN.CA). This can be considered as Fairly Valued.
What is the profitability of WN stock?
WESTON (GEORGE) LTD (WN.CA) has a profitability rating of 6 / 10.
What are the PE and PB ratios of WESTON (GEORGE) LTD (WN.CA) stock?
The Price/Earnings (PE) ratio for WESTON (GEORGE) LTD (WN.CA) is 22.7 and the Price/Book (PB) ratio is 5.97.
How sustainable is the dividend of WESTON (GEORGE) LTD (WN.CA) stock?
The dividend rating of WESTON (GEORGE) LTD (WN.CA) is 5 / 10 and the dividend payout ratio is 32.79%.