Morningstar

George Weston Ltd WN

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Stock XTSE Rating as of
CAD 225.16 −0.53 (0.23%)
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As of Delayed Price Closed

Company Report

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We View George Weston's Strategic Investments as Favorable but Not Enough to Warrant a Moat

Dan Su, Grace Na

As the majority shareholder of Canada’s largest retailer Loblaw and leading real estate investment trust Choice Properties, George Weston capitalizes on resilient consumer demand for groceries and pharmacy services, and benefits from synergies between the two operating subsidiaries. We view its financial performance as anchored by steady dividends from the retail and property arms, but we don’t think the firm has a durable competitive edge based on our no-moat rating on Loblaw, which makes up the bulk of revenue and profits for the holding company.

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Price vs Fair Value

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WN is trading at a 635% premium.
Price
CAD 225.16
Fair Value
CAD 536.00
Uncertainty
Low
1-Star Price
CAD 794.19
5-Star Price
CAD 417.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Major subsidiary Loblaw is the largest retailer in Canada, which leverages an extensive retail footprint and strong banners to capture shopper demand across the country.

Bears

George Weston is susceptible to regulatory headwinds, labor disputes, and supply chain disruptions that could hamper the performance of its subsidiaries.

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Trading Information

Previous Close Price
CAD 225.69
Day Range
CAD 224.09–226.89
52-Week Range
CAD 144.41–229.22
Bid/Ask
CAD 225.00 / CAD 225.88
Market Cap
CAD 29.75 Bil
Volume/Avg
122,105 / 126,671

Key Statistics

Price/Earnings (Normalized)
20.28
Price/Sales
0.50
Dividend Yield (Trailing)
1.36%
Dividend Yield (Forward)
1.46%
Total Yield
7.82%

Company Profile

George Weston is a holding company that controls a 53% stake in retailer Loblaw and a 62% stake in Choice Properties, a real estate investment trust. Loblaw boasts the largest retail footprint across Canada with 2,500 food retail and pharmacy stores under banners such as Loblaw, No-Frills, Maxi, and Shoppers Drug Mart. Meanwhile, open-ended Choice Properties REIT owns and manages over 700 commercial and residential properties in Canada, generating roughly 60% of its gross rental revenue from its largest tenant Loblaw. Previously, George Weston sold its wholly owned bakery Weston Foods in 2022. The firm is controlled by the Weston family, which owns a 65% stake.
Sector
Consumer Defensive
Industry
Grocery Stores
Stock Style Box
Large Value
Total Number of Employees
220,000
Website
https://www.weston.ca

Competitors

Valuation

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Metric
WN
L
KR
Price/Earnings (Normalized)
 20.2823.6712.19
Price/Book Value
 5.304.933.26
Price/Sales
 0.500.920.27
Price/Cash Flow
 6.4911.195.65
Price/Earnings
WN
L
KR

Financial Strength

Metric
WN
L
KR
Quick Ratio
 0.730.700.37
Current Ratio
 1.341.360.87
Interest Coverage
 3.474.389.95
Quick Ratio
WN
L
KR

Profitability

Metric
WN
L
KR
Return on Assets (Normalized)
 5.14%5.71%—
Return on Equity (Normalized)
 42.85%19.78%—
Return on Invested Capital (Normalized)
 9.71%9.50%—
Return on Assets
WN
L
KR

Grocery Stores Industry Comparables

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1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
The Kroger Co
KR
HjvbwsfcxFwvfh$40.9 Bil
 Loblaw Companies Ltd
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—Nhzzr$40.3 Bil
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—Zkfyhc$39.6 Bil
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—Gqypj$39.6 Bil
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TSCDY
DsvxcylnXgzvq$32.8 Bil
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—Xycd$32.8 Bil
 Koninklijke Ahold Delhaize NV
AHODF
—Phc$32.4 Bil
 Koninklijke Ahold Delhaize NV ADR
ADRNY
YjnvxdytwRvsw$32.4 Bil
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—Kwcpclh$28.1 Bil
 Albertsons Companies Inc Class A
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YtldmygwVbxq$10.7 Bil

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