WESTON (GEORGE) LTD (WN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:WN - CA9611485090 - Common Stock
96.95 CAD
+0.08 (+0.08%)
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. 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
- In the past year WN was profitable.
- In the past year WN had a positive cash flow from operations.
- WN had positive earnings in each of the past 5 years.
- In the past 5 years WN always reported a positive cash flow from operatings.
1.2 Ratios
- WN has a worse Return On Assets (2.88%) than 64.71% of its industry peers.
- WN's Return On Equity of 23.74% is fine compared to the rest of the industry. WN outperforms 76.47% of its industry peers.
- WN has a Return On Invested Capital (9.58%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for WN is in line with the industry average of 8.51%.
- The last Return On Invested Capital (9.58%) for WN is above the 3 year average (8.75%), which is a sign of increasing profitability.
| 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 (2.32%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of WN has grown nicely.
- WN has a better Operating Margin (8.02%) than 64.71% of its industry peers.
- WN's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 33.06%, WN perfoms like the industry average, outperforming 47.06% of the companies in the same 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WN is still creating some value.
- Compared to 1 year ago, WN has less shares outstanding
- Compared to 5 years ago, WN has less shares outstanding
- Compared to 1 year ago, WN has a worse debt to assets ratio.
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's Altman-Z score of 2.28 is in line compared to the rest of the industry. WN outperforms 52.94% of its industry peers.
- The Debt to FCF ratio of WN is 6.69, which is on the high side as it means it would take WN, 6.69 years of fcf income to pay off all of its debts.
- WN has a worse Debt to FCF ratio (6.69) 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.
- The Debt to Equity ratio of WN (3.18) is worse 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
- A Current Ratio of 1.24 indicates that WN should not have too much problems paying its short term obligations.
- The Current ratio of WN (1.24) is comparable to the rest of the industry.
- A Quick Ratio of 0.74 indicates that WN may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.74, WN is doing worse than 64.71% 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 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.06%, which is quite good.
- The Earnings Per Share has been growing by 10.57% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 4.15% in the past year.
- 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
- The Earnings Per Share is expected to grow by 8.23% on average over the next years. This is quite good.
- WN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.42% yearly.
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.
- 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 22.55, the valuation of WN can be described as rather expensive.
- WN's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, WN is valued at the same level.
- The Price/Forward Earnings ratio is 18.99, 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 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.55 | ||
| Fwd PE | 18.99 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WN indicates a somewhat cheap valuation: WN is cheaper than 70.59% of the companies listed in the same industry.
- 64.71% of the companies in the same industry are more expensive than WN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.15 | ||
| 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.
- The decent profitability rating of WN may justify a higher PE ratio.
- A more expensive valuation may be justified as WN's earnings are expected to grow with 12.80% in the coming years.
PEG (NY)1.41
PEG (5Y)2.13
EPS Next 2Y13.21%
EPS Next 3Y12.8%
5. Dividend
5.1 Amount
- WN has a Yearly Dividend Yield of 1.22%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.00, WN pays a bit more dividend than its industry peers.
- WN's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| 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 22.55 and the Price/Book (PB) ratio is 5.93.
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%.