TSE:AW.UN

34.59
0.52 (1.48%) 1d
0

Related posts

Most Anticipated Earnings: CNR-T, WCP-T and more Canadian Companies Reporting Earnings this Week (Jul 22-26)Most Anticipated Earnings: UNC-T, DAN-X and more Canadian Companies Reporting Earnings this Week (Nov 27-Dec 01)Most Anticipated Earnings: SLF-T, REAL-T and more Canadian Companies Reporting Earnings this Week (Nov 13-17)
Investor Insights

This summary was created by AI, based on 5 opinions in the last 12 months.

Based on the reviews, A&W Revenue Royalties Income Fund (AW.UN-T) is seen as a fundamentally strong income stock with a safe 5.9% yield. While not a growth stock, it demonstrates resilience in its growth, positive same-store sales, and a stable cashflow-generating business. The company's debt load is manageable, and it is reasonably valued at these levels. Overall, it is considered a steady company with potential upside.

Consensus
Stable
Valuation
Fair Value
Similar
MTY Foods, MTY.TO
Unspecified

It executes well, pays out most of its earnings and is still opening U.S. restaurants. It is not a growth stock - MTY Foods is better for this in the sector.

investment companies / funds
HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

The main concerns are related to same store sales growth slowing, but still remains positive over the last year. The general economic environment in 2023 also impacted results and were a concern, but improvements in the future here should help. Number of restaurants in the royalty pool was also flat in the fourth quarter. Debt load is still very manageable and we are not too concered on that front. 
Unlock Premium - Try 5i Free

investment companies / funds
COMMENT

It has a yield of 5.9% which is safe. It is not growthy enough for him since he is looking for 20% growth per year. However it is a steady company with a decent chart

investment companies / funds
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

AW.UN is a fundamentally strong fund, and is primarily an income stock. It has a yield of 5.8%, has grown its distributions by 3% annually over the past 10 years, and is reasonably valued at these levels. We feel that investors have opted to purchase 'risk-free' cash investments that have a similar yield to AW.UN, but much less risk given the changing interest rate environment. Although, we don't believe that this trend will last forever, and AW.UN has more upside potential than money market funds. For an investor looking for yield and a stable cashflow-generating business, we like AW.UN here and feel that it's at a good valuation today. 
Unlock Premium - Try 5i Free

investment companies / funds
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

AW.UN is now trading at 16x times' P/E. In the 2Q, AW.UN’s royalty income grew 4.8% to $12.8M compared to last year of $12.2M and same-store sales growth remains positive at 2.5%. Distributable cash per unit grew slightly 3.5% to $0.497, compared to last year of $0.48. The balance sheet is okay, with net debt of $35M. Total debt is around 1.3x times trailing twelve-month cash flow of $27M. AW.UN’s growth is quite resilient, the company has demonstrated pricing power in inflationary periods in recent years to maintain profit margins.

Compared to the industry, AW.UN is quite attractive, trading at only 16x, with consistently positive same-store sales growth and store openings. Unlike other restaurants, AW.UN did not make any recent acquisitions, and most of the earnings are paid out as distributions. We expect the company will continue to raise distributions due to the resilience in the franchise and its track record of value creation.
Unlock Premium - Try 5i Free

investment companies / funds
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Negative sales growth, but improving. Distribution on path to being restored. Larger base of stores for recovery. Share fairly valued with attractive yield.
investment companies / funds
WATCH
Fast food faces rising supply and labour costs and maybe a weakening consumer, but that consumer may be trading to into fast food. Fast food tends to offer stable demand. This stock has come off a lot (QSR too). A&W pays a 5% dividend yield. An interesting company. He's patient and watching this.
investment companies / funds
WATCH
Nice recovery from Covid. Massive increases in price of raw materials and labour. Will they be able to increase margins? Will consumer be forced to come down market and boost their business? Yields are very attractive. After the recent run, all stocks should pull back, so he's watching the space.
investment companies / funds
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They announced a two year pilot to introduce the Pret brand in its restaurants. It would offer customers an alternative and the brand is popular abroad. A good move overall to diversify. Unlock Premium - Try 5i Free

investment companies / funds
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Likes the name and would be fine adding to it at current levels. Is well positioned and the management team is good. Results were okay last quarter, all things considered. Worst is most likely over. Unlock Premium - Try 5i Free

investment companies / funds
HOLD
Stands out as one of the best run of the Canadian quick serves. Great growth strategy. Execute well. Hit by pandemic, but the dividend will come back. Short-term blip in a great long-term story. Hold it if you own it. Has potential to continue to surprise.
investment companies / funds
DON'T BUY
The payout ratio is bumping on 100%. It is reasonably priced but has rolled off to get here. He would be concerned about the dividend.
investment companies / funds
BUY

Will people be scared to eat out during the coronavirus scare? It's a great business. He likes the royalty model, because they can grow in a capital-lite fashion, meaning not beholden to huge capital expenditures. To increase stores, the franchisees pay for that, but they can't benefit from same-store sales growth. They're good at expanding locations and menu offerings that are popular and innovative like wild cod fillet and the Beyond Meat burger. The dividend is safe. Maybe the virus will effect them, but not for long and that will pressure only one quarterly report. Long run, no, the virus won't have an impact. After 9/11, people said no one will fly again, but years later, airlines were hot stocks.

investment companies / funds
PAST TOP PICK
(A Top Pick Dec 04/19, Down 15%) Any consumer stocks are terrible now. Don't buy then. However, now is seasonality, and the high dividends are attractive during volatile times. This failed to act as his hedge during volatility which upsetted him.
investment companies / funds
BUY
He likes A&W and royalties like these in general. A nice yield and good sales growth. They are marketing themselves as the healthy alternative fast food company. He thinks there are opportunities to expand further. Yield 5%
investment companies / funds
Showing 1 to 15 of 87 entries

A&W Revenue Royalties Income Fund(AW.UN-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 3

Stockchase rating for A&W Revenue Royalties Income Fund is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

A&W Revenue Royalties Income Fund(AW.UN-T) Frequently Asked Questions

What is A&W Revenue Royalties Income Fund stock symbol?

A&W Revenue Royalties Income Fund is a Canadian stock, trading under the symbol AW.UN-T on the Toronto Stock Exchange (AW.UN-CT). It is usually referred to as TSX:AW.UN or AW.UN-T

Is A&W Revenue Royalties Income Fund a buy or a sell?

In the last year, 3 stock analysts published opinions about AW.UN-T. 2 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for A&W Revenue Royalties Income Fund.

Is A&W Revenue Royalties Income Fund a good investment or a top pick?

A&W Revenue Royalties Income Fund was recommended as a Top Pick by on . Read the latest stock experts ratings for A&W Revenue Royalties Income Fund.

Why is A&W Revenue Royalties Income Fund stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is A&W Revenue Royalties Income Fund worth watching?

3 stock analysts on Stockchase covered A&W Revenue Royalties Income Fund In the last year. It is a trending stock that is worth watching.

What is A&W Revenue Royalties Income Fund stock price?

On 2024-07-23, A&W Revenue Royalties Income Fund (AW.UN-T) stock closed at a price of $34.59.