A & W Food Services of Canada Inc. (AW.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+198.6%

CA$107.63

vs CA$36.05 price

Levered DCF

CA$108.27

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

0.77

Distress zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	16.42×	71.58×	40.3×	27.41×	5.42×	9.22×	4.45×	12.4×
P/B	4.09×	5.25×	-4.56×	-4.47×	-1.31×	-1.79×	-1.47×	-2.03×
P/S	3.08×	2.94×	3.23×	3.23×	0.79×	0.95×	0.78×	0.94×
EV / EBITDA	18.01×	24.19×	21.27×	25.46×	22.82×	28.64×	4.4×	14.84×
Gross margin	48.8%	84.9%	81.7%	43.9%	28.4%	28.1%	25.3%	26.7%
Operating margin	31.9%	14.6%	11.2%	10.8%	11.7%	11.0%	6.4%	4.9%
Net margin	18.8%	4.1%	8.1%	11.8%	14.5%	10.3%	17.6%	7.5%
Current ratio	0.82×	0.93×	0.88×	0.85×	0.8×	1.14×	0.85×	0.82×
Debt / equity	4.08×	5.59×	-3.11×	-2.91×	-4.3×	-5.56×	-0.02×	-0.02×
Interest coverage	2.26×	1.65×	1.42×	1.37×	36.28×	25.43×	0×	0×
Dividend yield	5.1%	3.3%	2.0%	1.0%	29.9%	3.5%	40.9%	6.4%
Payout ratio	83.5%	237.8%	78.4%	28.3%	161.8%	32.6%	182.0%	79.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	24.9%	7.3%	-11.4%	-16.3%	-24.2%	-19.3%	-33.0%	-16.4%
Return on invested capital	5.9%	1.6%	3.1%	2.9%	3.0%	2.3%	11.4%	6.5%
Return on assets	4.5%	1.0%	2.6%	4.0%	4.1%	2.5%	23.7%	8.3%
Free cash flow yield	6.2%	6.8%	1.3%	1.5%	11.5%	10.4%	4.4%	3.8%
Earnings yield	6.1%	1.4%	2.5%	3.6%	18.4%	10.8%	22.4%	8.1%
Enterprise value	CA$1.8B	CA$1.8B	CA$1.6B	CA$1.6B	CA$813.7M	CA$753.1M	CA$186.9M	CA$183.2M
Net debt / EBITDA	9×	12.33×	8.59×	10×	17.41×	21.31×	-0.14×	-0.77×
Cash conversion cycle (days)	68	-98	63	82	71	42	5	16