WESTERN FOREST PRODUCTS INC (WEF.CA) Stock Fundamental Analysis
TSX:WEF - Toronto Stock Exchange - CA9582112038 - Common Stock - Currency: CAD
We assign a fundamental rating of 3 out of 10 to WEF. WEF was compared to 12 industry peers in the Paper & Forest Products industry. WEF scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. While showing a medium growth rate, WEF is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year WEF has reported negative net income.
In the past year WEF had a positive cash flow from operations.
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 (-1.01%) which is in line with its industry peers.
With a Return On Equity value of -1.52%, WEF perfoms like the industry average, 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 Gross Margin of 9.52%. This is in the lower half of the industry: WEF underperforms 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.
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 10.63 indicates that WEF is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.63, WEF belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 7.17, WEF perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 0.07 indicates that WEF is not too dependend on debt financing.
WEF has a better Debt to Equity ratio (0.07) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 10.63 |
ROIC/WACCN/A
WACC7.9%
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.
With an excellent Current ratio value of 2.71, WEF belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
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.
WEF has a Quick ratio of 0.99. This is in the better half of the industry: WEF outperforms 66.67% of its industry peers.
| 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.
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
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.
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
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WEF indicates a slightly more expensive valuation: WEF is more expensive than 75.00% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as WEF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 658.25 | ||
| EV/EBITDA | 258.24 |
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 (7/30/2025, 7:00:00 PM)
13.3
-0.35 (-2.56%)
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 Cap4.21B
Analysts50
Price TargetN/A
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)-17.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)25%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-4.98%
Revenue NQ rev (3m)-8.87%
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 | 3.88 | ||
| P/FCF | 658.25 | ||
| P/OCF | 99.36 | ||
| P/B | 7.37 | ||
| P/tB | 8.83 | ||
| EV/EBITDA | 258.24 |
EPS(TTM)-0.03
EYN/A
EPS(NY)-0.03
Fwd EYN/A
FCF(TTM)0.02
FCFY0.15%
OCF(TTM)0.13
OCFY1.01%
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 | 10.63 |
F-Score6
WACC7.9%
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%