WESTON (GEORGE) LTD (WN.CA) Stock Fundamental Analysis
TSX:WN - Toronto Stock Exchange - CA9611485090 - Common Stock - Currency: CAD
Overall WN gets a fundamental rating of 4 out of 10. We evaluated WN against 19 industry peers in the Consumer Staples Distribution & Retail industry. There are concerns on the financial health of WN while its profitability can be described as average. WN has a correct valuation and a medium growth rate.
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.
In the past 5 years WN has always been profitable.
In the past 5 years WN always reported a positive cash flow from operatings.
1.2 Ratios
WN has a worse Return On Assets (1.23%) than 68.42% of its industry peers.
Looking at the Return On Equity, with a value of 9.18%, WN is in line with its industry, outperforming 42.11% 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 47.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WN is in line with the industry average of 8.58%.
The 3 year average ROIC (8.89%) for WN is below the current ROIC(8.99%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
WN has a Profit Margin of 1.00%. This is in the lower half of the industry: WN underperforms 63.16% of its industry peers.
WN's Profit Margin has improved in the last couple of years.
WN has a Operating Margin of 7.41%. This is in the better half of the industry: WN outperforms 68.42% of its industry peers.
In the last couple of years the Operating Margin of WN has grown nicely.
With a decent Gross Margin value of 33.09%, WN is doing good in the industry, outperforming 63.16% of the companies in the same industry.
In the last couple of years the Gross Margin of WN has remained more or less at the same level.
| Industry Rank | Sector 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%
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.
Compared to 1 year ago, WN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.15 indicates that WN is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of WN (2.15) is comparable to the rest of the industry.
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.
The Debt to FCF ratio of WN (6.09) is worse than 63.16% of its industry peers.
A Debt/Equity ratio of 2.71 is on the high side and indicates that WN has dependencies on debt financing.
WN has a Debt to Equity ratio of 2.71. This is amonst the worse of the industry: WN underperforms 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.71 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 2.15 |
ROIC/WACC1.44
WACC6.25%
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.
With a Current ratio value of 1.24, WN perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
WN has a Quick Ratio of 1.24. This is a bad value and indicates that WN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of WN (0.75) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.75 |
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%.
WN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.00% yearly.
The Revenue has been growing slightly by 2.76% in the past year.
WN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.36% yearly.
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
Based on estimates for the next years, WN will show a small growth in Earnings Per Share. The EPS will grow by 5.24% on average per year.
WN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.52% yearly.
EPS Next Y15.74%
EPS Next 2Y15.9%
EPS Next 3Y13.96%
EPS Next 5Y5.24%
Revenue Next Year2.48%
Revenue Next 2Y3.41%
Revenue Next 3Y3.36%
Revenue Next 5Y3.52%
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
A Price/Earnings ratio of 19.23 indicates a rather expensive valuation of WN.
Compared to the rest of the industry, the Price/Earnings ratio of WN is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 29.63. WN is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.36, the valuation of WN can be described as correct.
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 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.23 | ||
| Fwd PE | 15.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WN is on the same level as its industry peers.
WN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.07 | ||
| EV/EBITDA | 6.34 |
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 13.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.22
PEG (5Y)2.14
EPS Next 2Y15.9%
EPS Next 3Y13.96%
5. Dividend
5.1 Amount
WN has a Yearly Dividend Yield of 1.50%. Purely for dividend investing, there may be better candidates out there.
WN's Dividend Yield is rather good when compared to the industry average which is at 1.55. WN pays more dividend than 84.21% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.27, WN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
The dividend of WN is nicely growing with an annual growth rate of 8.75%!
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
5.3 Sustainability
73.57% of the earnings are spent on dividend by WN. This is not a sustainable payout ratio.
WN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP73.57%
EPS Next 2Y15.9%
EPS Next 3Y13.96%
TSX:WN (2/21/2025, 7:00:00 PM)
217.5
-1.83 (-0.83%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners14.99%
Inst Owner ChangeN/A
Ins Owners59.13%
Ins Owner ChangeN/A
Market Cap28.23B
Analysts82.67
Price Target251.14 (15.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.23 | ||
| Fwd PE | 15.36 | ||
| P/S | 0.46 | ||
| P/FCF | 8.07 | ||
| P/OCF | 4.79 | ||
| P/B | 4.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.34 |
EPS(TTM)11.31
EY5.2%
EPS(NY)14.16
Fwd EY6.51%
FCF(TTM)26.96
FCFY12.4%
OCF(TTM)45.37
OCFY20.86%
SpS471.58
BVpS51.43
TBVpS-32.46
PEG (NY)1.22
PEG (5Y)2.14
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.15 |
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 3Y13.96%
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%