Latest news with #A&WFoodServicesofCanadaInc
Yahoo
26-05-2025
- Business
- Yahoo
A & W Food Services of Canada Insiders Placed Bullish Bets Worth CA$1.36m
Over the last year, a good number of insiders have significantly increased their holdings in A & W Food Services of Canada Inc. (TSE:AW). This is encouraging because it indicates that insiders are more optimistic about the company's prospects. While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares. We've discovered 3 warning signs about A & W Food Services of Canada. View them for free. In the last twelve months, the biggest single purchase by an insider was when insider David Mindell bought CA$1.0m worth of shares at a price of CA$32.64 per share. That implies that an insider found the current price of CA$33.11 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices. Over the last year, we can see that insiders have bought 41.53k shares worth CA$1.4m. On the other hand they divested 24.94k shares, for CA$883k. In the last twelve months there was more buying than selling by A & W Food Services of Canada insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! Check out our latest analysis for A & W Food Services of Canada A & W Food Services of Canada is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket. At A & W Food Services of Canada,over the last quarter, we have observed quite a lot more insider buying than insider selling. Insiders spent CA$1.4m on shares. On the other hand, insiders netted CA$219k by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares. For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. A & W Food Services of Canada insiders own about CA$299m worth of shares (which is 38% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders. It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about A & W Food Services of Canada. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that A & W Food Services of Canada is showing 3 warning signs in our investment analysis, and 1 of those is concerning... If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Cision Canada
25-04-2025
- Business
- Cision Canada
A&W FOOD SERVICES OF CANADA INC. ANNOUNCES TIMING OF RELEASE OF FIRST QUARTER FISCAL 2025 RESULTS AND CONFERENCE CALL
VANCOUVER, BC, April 25, 2025 /CNW/ - A&W Food Services of Canada Inc. (TSX: AW) ("A&W", "Food Services", "our") will release its financial results for the First Quarter of Fiscal 2025 before the market opens on Friday, May 2, 2025. Following the release of its results, A&W host a conference call at 1:00 p.m. Pacific Time (4:00 p.m. Eastern Time) on Monday, May 5, 2025. Food Services' CEO, Susan Senecal, and CFO, Kelly Blankstein, will review A&W's financial results for the First Quarter of Fiscal 2025 and provide an update on corporate developments. The call will be webcast live and may be accessed at: Participants who wish to ask questions or are unable to join via webcast may dial-in by calling toll-free 1-800-549-8228 and by quoting the conference ID "38530" when prompted by the operator. For those unable to participate in the live call, a replay will be made available for one year at: We look forward to having you participate in our call. SOURCE A&W Food Services of Canada Inc.
Yahoo
08-04-2025
- Business
- Yahoo
Is A & W Food Services of Canada Inc. (TSE:AW) Trading At A 49% Discount?
A & W Food Services of Canada's estimated fair value is CA$58.98 based on 2 Stage Free Cash Flow to Equity A & W Food Services of Canada is estimated to be 49% undervalued based on current share price of CA$30.00 Today we'll do a simple run through of a valuation method used to estimate the attractiveness of A & W Food Services of Canada Inc. (TSE:AW) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. Our analysis will employ the Discounted Cash Flow (DCF) model. Believe it or not, it's not too difficult to follow, as you'll see from our example! We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (CA$, Millions) CA$92.5m CA$99.0m CA$106.0m CA$112.0m CA$118.0m CA$122.8m CA$127.2m CA$131.2m CA$135.1m CA$138.8m Growth Rate Estimate Source Analyst x2 Analyst x2 Analyst x1 Analyst x1 Analyst x1 Est @ 4.07% Est @ 3.56% Est @ 3.20% Est @ 2.95% Est @ 2.77% Present Value (CA$, Millions) Discounted @ 10% CA$84.1 CA$81.8 CA$79.6 CA$76.4 CA$73.2 CA$69.2 CA$65.2 CA$61.1 CA$57.2 CA$53.4 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = CA$701m After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.4%. We discount the terminal cash flows to today's value at a cost of equity of 10%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = CA$139m× (1 + 2.4%) ÷ (10%– 2.4%) = CA$1.9b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= CA$1.9b÷ ( 1 + 10%)10= CA$714m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is CA$1.4b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of CA$30.0, the company appears quite good value at a 49% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at A & W Food Services of Canada as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 10%, which is based on a levered beta of 1.769. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for A & W Food Services of Canada Strength Debt is well covered by earnings and cashflows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Hospitality market. Opportunity Annual earnings are forecast to grow faster than the Canadian market. Trading below our estimate of fair value by more than 20%. Significant insider buying over the past 3 months. Threat Paying a dividend but company has no free cash flows. Whilst important, the DCF calculation is only one of many factors that you need to assess for a company. It's not possible to obtain a foolproof valuation with a DCF model. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Can we work out why the company is trading at a discount to intrinsic value? For A & W Food Services of Canada, there are three relevant aspects you should assess: Risks: For example, we've discovered 3 warning signs for A & W Food Services of Canada that you should be aware of before investing here. Future Earnings: How does AW's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart . Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the TSX every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
