WEST FRASER TIMBER CO LTD (WFG.CA) Stock Fundamental Analysis
TSX:WFG - Toronto Stock Exchange - CA9528451052 - Common Stock - Currency: CAD
Taking everything into account, WFG scores 6 out of 10 in our fundamental rating. WFG was compared to 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
WFG had negative earnings in the past year.
WFG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: WFG reported negative net income in multiple years.
Each year in the past 5 years WFG had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 0.02%, WFG belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
With an excellent Return On Equity value of 0.03%, WFG belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
WFG has a Return On Invested Capital of 1.05%. This is comparable to the rest of the industry: WFG outperforms 58.33% of its industry peers.
| 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
Looking at the Profit Margin, with a value of 0.03%, WFG belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
WFG's Operating Margin of 1.90% is in line compared to the rest of the industry. WFG outperforms 58.33% of its industry peers.
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.
In the last couple of years the Gross Margin of WFG has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WFG is destroying value.
Compared to 1 year ago, WFG has less shares outstanding
The number of shares outstanding for WFG has been increased compared to 5 years ago.
The debt/assets ratio for WFG has been reduced compared to a year ago.
2.2 Solvency
WFG has an Altman-Z score of 3.53. This indicates that WFG is financially healthy and has little risk of bankruptcy at the moment.
WFG's Altman-Z score of 3.53 is amongst the best of the industry. WFG outperforms 100.00% of its industry peers.
WFG has a debt to FCF ratio of 1.42. This is a very positive value and a sign of high solvency as it would only need 1.42 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.42, WFG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that WFG is not too dependend on debt financing.
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 | 3.53 |
ROIC/WACC0.14
WACC7.74%
2.3 Liquidity
WFG has a Current Ratio of 2.09. This indicates that WFG is financially healthy and has no problem in meeting its short term obligations.
WFG has a Current ratio of 2.09. This is comparable to the rest of the industry: WFG outperforms 50.00% of its industry peers.
WFG has a Quick Ratio of 2.09. This is a bad value and indicates that WFG is not financially healthy enough and could expect problems in meeting 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.
Looking at the last year, WFG shows a decrease in Revenue. The Revenue has decreased by -6.94% in the last year.
Measured over the past years, WFG shows a quite strong growth in Revenue. The Revenue has been growing by 10.92% on average per year.
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
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for WFG. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 9.61, the valuation of WFG can be described as very reasonable.
Based on the Price/Forward Earnings ratio, WFG is valued a bit cheaper than 75.00% of the companies in the same industry.
WFG is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WFG indicates a somewhat cheap valuation: WFG is cheaper 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 WFG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.86 | ||
| EV/EBITDA | 8.59 |
4.3 Compensation for Growth
WFG's 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
With a Yearly Dividend Yield of 1.82%, WFG has a reasonable but not impressive dividend return.
WFG's Dividend Yield is a higher than the industry average which is at 5.89.
Compared to the average S&P500 Dividend Yield of 2.42, WFG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
The dividend of WFG is nicely growing with an annual growth rate of 15.82%!
WFG has been paying a dividend for at least 10 years, so it has 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
5150.00% of the earnings are spent on dividend by WFG. This is not a sustainable payout ratio.
WFG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP5150%
EPS Next 2Y566.27%
EPS Next 3Y277.88%
TSX:WFG (6/27/2025, 7:00:00 PM)
100.1
-1.08 (-1.07%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners50.42%
Inst Owner ChangeN/A
Ins Owners0.95%
Ins Owner ChangeN/A
Market Cap7.95B
Analysts82
Price Target102.25 (2.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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)-4.3%
PT rev (3m)-9.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.26%
EPS NY rev (1m)0%
EPS NY rev (3m)0.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.61 | ||
| P/S | 0.97 | ||
| P/FCF | 36.86 | ||
| P/OCF | 9.29 | ||
| P/B | 0.84 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 8.59 |
EPS(TTM)-0.19
EYN/A
EPS(NY)10.42
Fwd EY10.41%
FCF(TTM)2.72
FCFY2.71%
OCF(TTM)10.78
OCFY10.76%
SpS103.22
BVpS119.25
TBVpS75.91
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 | 3.53 |
F-Score7
WACC7.74%
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%