WESTERN FOREST PRODUCTS INC (WEF.CA) Stock Fundamental Analysis
TSX:WEF - Toronto Stock Exchange - CA9582112038 - Common Stock - Currency: CAD
WEF gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 12 industry peers in the Paper & Forest Products industry. The financial health of WEF is average, but there are quite some concerns on its profitability. While showing a medium growth rate, WEF is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
WEF had negative earnings in the past year.
WEF had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: WEF reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: WEF reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.01%, WEF is in line with its industry, outperforming 58.33% of the companies in the same industry.
Looking at the Return On Equity, with a value of -1.52%, WEF is in line with its industry, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.01% | ||
| ROE | -1.52% | ||
| ROIC | N/A |
ROA(3y)-1.4%
ROA(5y)4.14%
ROE(3y)-2.68%
ROE(5y)6.29%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
WEF has a worse Gross Margin (9.52%) than 75.00% of its industry peers.
In the last couple of years the Gross Margin of WEF has grown nicely.
The Profit Margin and Operating Margin are not available for WEF so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 9.52% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-26.24%
GM growth 5Y7.26%
2. Health
2.1 Basic Checks
WEF does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for WEF remains at a similar level compared to 1 year ago.
Compared to 5 years ago, WEF has less shares outstanding
WEF has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.92 indicates that WEF is not a great score, but indicates only limited risk for bankruptcy at the moment.
WEF has a Altman-Z score of 1.92. This is in the better half of the industry: WEF outperforms 66.67% of its industry peers.
WEF has a debt to FCF ratio of 7.17. This is a slightly negative value and a sign of low solvency as WEF would need 7.17 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.17, WEF is in line with its industry, outperforming 50.00% of the companies in the same industry.
WEF has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
WEF's Debt to Equity ratio of 0.07 is amongst the best of the industry. WEF outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 1.92 |
ROIC/WACCN/A
WACC6.98%
2.3 Liquidity
A Current Ratio of 2.71 indicates that WEF has no problem at all paying its short term obligations.
WEF has a better Current ratio (2.71) than 83.33% of its industry peers.
WEF has a Quick Ratio of 2.71. This is a bad value and indicates that WEF is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of WEF (0.99) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.71 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 83.33% over the past year.
WEF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.43%.
WEF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.66% yearly.
EPS 1Y (TTM)83.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
Revenue 1Y (TTM)9.43%
Revenue growth 3Y-9.13%
Revenue growth 5Y5.66%
Sales Q2Q%9.6%
3.2 Future
Based on estimates for the next years, WEF will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.92% on average per year.
The Revenue is expected to grow by 6.78% on average over the next years.
EPS Next Y2.74%
EPS Next 2Y27.51%
EPS Next 3Y25.99%
EPS Next 5Y18.92%
Revenue Next Year8.9%
Revenue Next 2Y6.78%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for WEF. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for WEF. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
WEF's Enterprise Value to EBITDA ratio is in line with the industry average.
WEF's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.04 | ||
| EV/EBITDA | 10 |
4.3 Compensation for Growth
A more expensive valuation may be justified as WEF's earnings are expected to grow with 25.99% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y27.51%
EPS Next 3Y25.99%
5. Dividend
5.1 Amount
No dividends for WEF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:WEF (7/17/2025, 7:00:00 PM)
0.405
0 (0%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners40.35%
Inst Owner ChangeN/A
Ins Owners0.84%
Ins Owner ChangeN/A
Market Cap128.28M
Analysts50
Price Target0.47 (16.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)199.01%
Min EPS beat(2)100%
Max EPS beat(2)298.02%
EPS beat(4)3
Avg EPS beat(4)111.55%
Min EPS beat(4)-18.81%
Max EPS beat(4)298.02%
EPS beat(8)5
Avg EPS beat(8)43.74%
EPS beat(12)6
Avg EPS beat(12)28.54%
EPS beat(16)10
Avg EPS beat(16)25.19%
Revenue beat(2)1
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-4.27%
Max Revenue beat(2)2.46%
Revenue beat(4)2
Avg Revenue beat(4)4.57%
Min Revenue beat(4)-4.27%
Max Revenue beat(4)21.6%
Revenue beat(8)4
Avg Revenue beat(8)2.14%
Revenue beat(12)8
Avg Revenue beat(12)6.94%
Revenue beat(16)12
Avg Revenue beat(16)6.46%
PT rev (1m)0%
PT rev (3m)-21.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)25%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.12 | ||
| P/FCF | 20.04 | ||
| P/OCF | 3.03 | ||
| P/B | 0.22 | ||
| P/tB | 0.27 | ||
| EV/EBITDA | 10 |
EPS(TTM)-0.03
EYN/A
EPS(NY)-0.03
Fwd EYN/A
FCF(TTM)0.02
FCFY4.99%
OCF(TTM)0.13
OCFY33.05%
SpS3.43
BVpS1.81
TBVpS1.51
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.01% | ||
| ROE | -1.52% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 9.52% | ||
| FCFM | 0.59% |
ROA(3y)-1.4%
ROA(5y)4.14%
ROE(3y)-2.68%
ROE(5y)6.29%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-26.24%
GM growth 5Y7.26%
F-Score6
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 7.17 | ||
| Debt/EBITDA | 2.29 | ||
| Cap/Depr | 66.42% | ||
| Cap/Sales | 3.31% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 250.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.71 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 1.92 |
F-Score6
WACC6.98%
ROIC/WACCN/A
Cap/Depr(3y)78.79%
Cap/Depr(5y)67.27%
Cap/Sales(3y)3.57%
Cap/Sales(5y)3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)83.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
EPS Next Y2.74%
EPS Next 2Y27.51%
EPS Next 3Y25.99%
EPS Next 5Y18.92%
Revenue 1Y (TTM)9.43%
Revenue growth 3Y-9.13%
Revenue growth 5Y5.66%
Sales Q2Q%9.6%
Revenue Next Year8.9%
Revenue Next 2Y6.78%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y54.62%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year132.88%
EBIT Next 3Y43.2%
EBIT Next 5Y30.91%
FCF growth 1Y113.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y14233.3%
OCF growth 3Y-58.52%
OCF growth 5Y13.87%