WESTON GEORGE

George Weston Limited operates through two segments: Loblaw and Choice Properties. Loblaw provides grocery, pharmacy, healthcare services, and financial services. It also offers credit cards, banking services, insurance brokerage, investment certificates, and wireless mobile products. Choice Properties owns, operates, manages, and develops retail properties, industrial assets, and residential spaces. The company markets products under various brands including Shoppers Drug Mart and Presidents Choice Bank. Founded in 1882, it is based in Toronto, Canada and operates as a subsidiary of Wittington Investments, Limited.

Overview

Sector

Grocery Stores

Target Price

501.4 CAD

Current Price

267.7 CAD

Potential

87%

Strengths

With an appreciation Potential of 90.77%, based on our fundamental analysis, it suggests the stock may be undervalued.
The company has high returns. ROIC (27.04%) is higher than the sector mean (17.44%).
EV/EBIT (10.42) is lower than the sector mean.
Price to free cash flow (9.31) is lower than the sector mean.

Weaknesses

Current Price to Earnings Ratio (25.14) is significantly higher than the sector mean (15.24).
Price to book ratio (5.47) is significantly higher than the sector mean (3.75).
The company has high debt. Net Debt to EBITDA Ratio (1.95) is higher than the sector mean.

Key Financial Data

Indicator	Value
PER	25.6
EV/EBITDA	6.8
Price/Free Cash Flow'	9.5
ROIC	27.0%
Net Debt/EBITDA	2.0