WESTERN FOREST PRODUCTS INC (WEF.CA) Stock Fundamental Analysis
TSX:WEF - Toronto Stock Exchange - CA9582112038 - Common Stock - Currency: CAD
Overall WEF gets a fundamental rating of 3 out of 10. We evaluated WEF 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. WEF is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WEF has reported negative net income.
WEF had a positive operating cash flow in the past year.
In multiple years WEF reported negative net income over the last 5 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
WEF has a Return On Assets of -1.01%. This is comparable to the rest of the industry: WEF outperforms 58.33% of its industry peers.
With a decent Return On Equity value of -1.52%, WEF is doing good in the industry, outperforming 66.67% 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's Gross Margin of 9.52% is on the low side compared to the rest of the industry. WEF is outperformed by 75.00% of its industry peers.
In the last couple of years the Gross Margin of WEF has grown nicely.
WEF does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| 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.
Compared to 1 year ago, WEF has about the same amount of shares outstanding.
The number of shares outstanding for WEF has been reduced compared to 5 years ago.
The debt/assets ratio for WEF is higher compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 1.92, WEF is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of WEF is 7.17, which is on the high side as it means it would take WEF, 7.17 years of fcf income to pay off 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.
Looking at the Debt to Equity ratio, with a value of 0.07, WEF belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 1.92 |
ROIC/WACCN/A
WACC7.01%
2.3 Liquidity
WEF has a Current Ratio of 2.71. This indicates that WEF is financially healthy and has no problem in meeting its short term obligations.
WEF's Current ratio of 2.71 is amongst the best of the industry. WEF outperforms 83.33% of its industry peers.
A Quick Ratio of 0.99 indicates that WEF may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.99, WEF is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.71 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
WEF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 83.33%, which is quite impressive.
WEF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.43%.
The Revenue has been growing slightly by 5.66% on average over the past years.
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
WEF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.92% yearly.
WEF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.78% yearly.
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
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for WEF. In the last year negative earnings were reported.
Also next year WEF is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
WEF's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WEF is on the same level as its industry peers.
| 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
WEF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:WEF (6/6/2025, 7:00:00 PM)
0.405
0 (0%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners41.03%
Inst Owner ChangeN/A
Ins Owners0.69%
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)-17.78%
PT rev (3m)-21.28%
EPS NQ rev (1m)25%
EPS NQ rev (3m)-50%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-4.1%
Revenue NQ rev (3m)N/A
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
WACC7.01%
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%