WEST FRASER TIMBER CO LTD (WFG.CA) Stock Fundamental Analysis
TSX:WFG - Toronto Stock Exchange - CA9528451052 - Common Stock - Currency: CAD
Overall WFG gets a fundamental rating of 6 out of 10. We evaluated WFG against 12 industry peers in the Paper & Forest Products industry. WFG is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. WFG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WFG has reported negative net income.
In the past year WFG had a positive cash flow from operations.
In multiple years WFG reported negative net income over the last 5 years.
In the past 5 years WFG always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WFG (0.02%) is better than 83.33% of its industry peers.
WFG's Return On Equity of 0.03% is amongst the best of the industry. WFG outperforms 83.33% of its industry peers.
With a Return On Invested Capital value of 1.05%, WFG perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.02% | ||
| ROE | 0.03% | ||
| ROIC | 1.05% |
ROA(3y)5.99%
ROA(5y)12.01%
ROE(3y)7.85%
ROE(5y)17.08%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
WFG's Profit Margin of 0.03% is amongst the best of the industry. WFG outperforms 83.33% of its industry peers.
WFG has a Operating Margin (1.90%) which is comparable to the rest of the industry.
WFG's Operating Margin has declined in the last couple of years.
The Gross Margin of WFG (30.12%) is better than 91.67% of its industry peers.
WFG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.9% | ||
| PM (TTM) | 0.03% | ||
| GM | 30.12% |
OM growth 3Y-63.89%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-18.87%
GM growth 5Y3.49%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WFG is destroying value.
WFG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, WFG has more shares outstanding
The debt/assets ratio for WFG has been reduced compared to a year ago.
2.2 Solvency
WFG has an Altman-Z score of 3.56. This indicates that WFG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.56, WFG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of WFG is 1.42, which is an excellent value as it means it would take WFG, only 1.42 years of fcf income to pay off all of its debts.
WFG's Debt to FCF ratio of 1.42 is amongst the best of the industry. WFG outperforms 100.00% of its industry peers.
WFG has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of WFG (0.00) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 3.56 |
ROIC/WACC0.14
WACC7.59%
2.3 Liquidity
A Current Ratio of 2.09 indicates that WFG has no problem at all paying its short term obligations.
With a Current ratio value of 2.09, WFG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 0.96 indicates that WFG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.96, WFG is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 88.03% over the past year.
WFG shows a decrease in Revenue. In the last year, the revenue decreased by -6.94%.
WFG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.92% yearly.
EPS 1Y (TTM)88.03%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%9.52%
Revenue 1Y (TTM)-6.94%
Revenue growth 3Y-16.27%
Revenue growth 5Y10.92%
Sales Q2Q%-10.33%
3.2 Future
WFG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 124.16% yearly.
The Revenue is expected to grow by 4.14% on average over the next years.
EPS Next Y2420.19%
EPS Next 2Y566.27%
EPS Next 3Y277.88%
EPS Next 5Y124.16%
Revenue Next Year0.24%
Revenue Next 2Y4.1%
Revenue Next 3Y4.48%
Revenue Next 5Y4.14%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
WFG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 9.80, the valuation of WFG can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WFG indicates a somewhat cheap valuation: WFG is cheaper than 75.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of WFG to the average of the S&P500 Index (22.25), we can say WFG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WFG is valued a bit cheaper than 75.00% of the companies in the same industry.
WFG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.59 | ||
| EV/EBITDA | 8.76 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WFG has a very decent profitability rating, which may justify a higher PE ratio.
WFG's earnings are expected to grow with 277.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y566.27%
EPS Next 3Y277.88%
5. Dividend
5.1 Amount
WFG has a Yearly Dividend Yield of 1.79%.
Compared to an average industry Dividend Yield of 5.84, WFG pays a bit more dividend than its industry peers.
WFG's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
5.2 History
On average, the dividend of WFG grows each year by 15.82%, which is quite nice.
WFG has paid a dividend for at least 10 years, which is a reliable track record.
WFG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.82%
Div Incr Years4
Div Non Decr Years14
5.3 Sustainability
WFG pays out 5150.00% of its income as dividend. This is not a sustainable payout ratio.
The dividend of WFG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP5150%
EPS Next 2Y566.27%
EPS Next 3Y277.88%
TSX:WFG (6/6/2025, 7:00:00 PM)
102.41
-0.89 (-0.86%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners50.94%
Inst Owner ChangeN/A
Ins Owners1.78%
Ins Owner ChangeN/A
Market Cap8.13B
Analysts82
Price Target106.84 (4.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Yearly Dividend1.71
Dividend Growth(5Y)15.82%
DP5150%
Div Incr Years4
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-755.74%
Min EPS beat(2)-1486.14%
Max EPS beat(2)-25.34%
EPS beat(4)0
Avg EPS beat(4)-399.51%
Min EPS beat(4)-1486.14%
Max EPS beat(4)-9.99%
EPS beat(8)2
Avg EPS beat(8)-274.72%
EPS beat(12)4
Avg EPS beat(12)-232.93%
EPS beat(16)7
Avg EPS beat(16)-174.54%
Revenue beat(2)0
Avg Revenue beat(2)-3.99%
Min Revenue beat(2)-6.23%
Max Revenue beat(2)-1.75%
Revenue beat(4)2
Avg Revenue beat(4)0.26%
Min Revenue beat(4)-6.23%
Max Revenue beat(4)6.1%
Revenue beat(8)4
Avg Revenue beat(8)0.56%
Revenue beat(12)6
Avg Revenue beat(12)0.69%
Revenue beat(16)8
Avg Revenue beat(16)1.2%
PT rev (1m)0%
PT rev (3m)-6.57%
EPS NQ rev (1m)12.66%
EPS NQ rev (3m)-21.24%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.35%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.8 | ||
| P/S | 0.99 | ||
| P/FCF | 37.59 | ||
| P/OCF | 9.47 | ||
| P/B | 0.86 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | 8.76 |
EPS(TTM)-0.19
EYN/A
EPS(NY)10.45
Fwd EY10.21%
FCF(TTM)2.72
FCFY2.66%
OCF(TTM)10.81
OCFY10.56%
SpS103.57
BVpS119.66
TBVpS76.17
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.02% | ||
| ROE | 0.03% | ||
| ROCE | 1.45% | ||
| ROIC | 1.05% | ||
| ROICexc | 1.1% | ||
| ROICexgc | 1.66% | ||
| OM | 1.9% | ||
| PM (TTM) | 0.03% | ||
| GM | 30.12% | ||
| FCFM | 2.63% |
ROA(3y)5.99%
ROA(5y)12.01%
ROE(3y)7.85%
ROE(5y)17.08%
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 3Y-69.33%
ROICexcg growth 5YN/A
ROICexc growth 3Y-69.12%
ROICexc growth 5YN/A
OM growth 3Y-63.89%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-18.87%
GM growth 5Y3.49%
F-Score7
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.42 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 86.06% | ||
| Cap/Sales | 7.81% | ||
| Interest Coverage | 3.93 | ||
| Cash Conversion | 95.14% | ||
| Profit Quality | 7900% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 3.56 |
F-Score7
WACC7.59%
ROIC/WACC0.14
Cap/Depr(3y)85.95%
Cap/Depr(5y)91.03%
Cap/Sales(3y)6.73%
Cap/Sales(5y)6.07%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)88.03%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%9.52%
EPS Next Y2420.19%
EPS Next 2Y566.27%
EPS Next 3Y277.88%
EPS Next 5Y124.16%
Revenue 1Y (TTM)-6.94%
Revenue growth 3Y-16.27%
Revenue growth 5Y10.92%
Sales Q2Q%-10.33%
Revenue Next Year0.24%
Revenue Next 2Y4.1%
Revenue Next 3Y4.48%
Revenue Next 5Y4.14%
EBIT growth 1Y-15.56%
EBIT growth 3Y-69.77%
EBIT growth 5YN/A
EBIT Next Year776.05%
EBIT Next 3Y146.1%
EBIT Next 5Y76.07%
FCF growth 1Y-83.59%
FCF growth 3Y-60.93%
FCF growth 5YN/A
OCF growth 1Y-56.64%
OCF growth 3Y-42.91%
OCF growth 5Y50.12%