WEST FRASER TIMBER CO LTD (WFG.CA) Stock Fundamental Analysis
TSX:WFG - CA9528451052 - Common Stock
100.37 CAD
+1.79 (+1.82%)
Overall WFG gets a fundamental rating of 5 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year WFG has reported negative net income.
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.
WFG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.45%, WFG is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
WFG has a better Return On Equity (-1.84%) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.45% | ||
| ROE | -1.84% | ||
| ROIC | N/A |
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 Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 27.77%, WFG belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Gross Margin of WFG has grown nicely.
The Profit Margin and Operating Margin are not available for WFG so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 27.77% |
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
WFG does not have a ROIC to compare to the WACC, probably because it is not profitable.
WFG has less shares outstanding than it did 1 year ago.
WFG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, WFG has an improved debt to assets ratio.
2.2 Solvency
WFG has an Altman-Z score of 3.40. This indicates that WFG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.40, WFG belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
WFG has a debt to FCF ratio of 3.74. This is a good value and a sign of high solvency as WFG would need 3.74 years to pay back of all of its debts.
WFG's Debt to FCF ratio of 3.74 is amongst the best of the industry. WFG outperforms 83.33% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that WFG is not too dependend on debt financing.
WFG has a better Debt to Equity ratio (0.05) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 3.74 | ||
| Altman-Z | 3.4 |
ROIC/WACCN/A
WACC7.98%
2.3 Liquidity
A Current Ratio of 2.89 indicates that WFG has no problem at all paying its short term obligations.
WFG has a Current ratio of 2.89. This is amongst the best in the industry. WFG outperforms 83.33% of its industry peers.
WFG has a Quick Ratio of 1.61. This is a normal value and indicates that WFG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.61, WFG belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
WFG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -207.50%.
Looking at the last year, WFG shows a very negative growth in Revenue. The Revenue has decreased by -10.96% in the last year.
The Revenue has been growing by 10.92% on average over the past years. This is quite good.
EPS 1Y (TTM)-207.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-131.67%
Revenue 1Y (TTM)-10.96%
Revenue growth 3Y-16.27%
Revenue growth 5Y10.92%
Sales Q2Q%-10.15%
3.2 Future
The Earnings Per Share is expected to grow by 125.48% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.18% on average over the next years.
EPS Next Y21.44%
EPS Next 2Y335.26%
EPS Next 3Y269.3%
EPS Next 5Y125.48%
Revenue Next Year-5.99%
Revenue Next 2Y1.09%
Revenue Next 3Y1.01%
Revenue Next 5Y3.18%
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.
Based on the Price/Forward Earnings ratio of 23.81, the valuation of WFG can be described as rather expensive.
WFG's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, WFG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 23.81 |
4.2 Price Multiples
WFG's Enterprise Value to EBITDA ratio is in line with the industry average.
WFG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.19 | ||
| EV/EBITDA | 11.41 |
4.3 Compensation for Growth
WFG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WFG's earnings are expected to grow with 269.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y335.26%
EPS Next 3Y269.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.87%, WFG has a reasonable but not impressive dividend return.
WFG's Dividend Yield is a higher than the industry average which is at 5.77.
Compared to an average S&P500 Dividend Yield of 2.32, WFG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
5.2 History
On average, the dividend of WFG grows each year by 15.82%, which is quite nice.
WFG has been paying a dividend for at least 10 years, so it has a reliable track record.
WFG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)15.82%
Div Incr Years4
Div Non Decr Years14
5.3 Sustainability
The earnings of WFG are negative and hence is the payout ratio. WFG will probably not be able to sustain this dividend level.
The dividend of WFG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-81.1%
EPS Next 2Y335.26%
EPS Next 3Y269.3%
TSX:WFG (9/4/2025, 7:00:00 PM)
100.37
+1.79 (+1.82%)
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 Cap7.93B
Analysts82
Price Target99.63 (-0.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
Yearly Dividend1.72
Dividend Growth(5Y)15.82%
DP-81.1%
Div Incr Years4
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-85.2%
Min EPS beat(2)-145.06%
Max EPS beat(2)-25.34%
EPS beat(4)0
Avg EPS beat(4)-433.28%
Min EPS beat(4)-1486.14%
Max EPS beat(4)-25.34%
EPS beat(8)2
Avg EPS beat(8)-239.87%
EPS beat(12)3
Avg EPS beat(12)-246.03%
EPS beat(16)6
Avg EPS beat(16)-184.11%
Revenue beat(2)0
Avg Revenue beat(2)-5.45%
Min Revenue beat(2)-6.23%
Max Revenue beat(2)-4.67%
Revenue beat(4)1
Avg Revenue beat(4)-2.43%
Min Revenue beat(4)-6.23%
Max Revenue beat(4)2.94%
Revenue beat(8)4
Avg Revenue beat(8)0.51%
Revenue beat(12)5
Avg Revenue beat(12)-0.21%
Revenue beat(16)7
Avg Revenue beat(16)0.12%
PT rev (1m)-2.56%
PT rev (3m)-6.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-144.57%
EPS NY rev (1m)-103.39%
EPS NY rev (3m)-103.39%
Revenue NQ rev (1m)-5.18%
Revenue NQ rev (3m)-7.98%
Revenue NY rev (1m)-2.49%
Revenue NY rev (3m)-6.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 23.81 | ||
| P/S | 0.98 | ||
| P/FCF | 65.19 | ||
| P/OCF | 10.76 | ||
| P/B | 0.83 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 11.41 |
EPS(TTM)-2.38
EYN/A
EPS(NY)4.21
Fwd EY4.2%
FCF(TTM)1.54
FCFY1.53%
OCF(TTM)9.33
OCFY9.29%
SpS102.05
BVpS120.69
TBVpS76.79
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.45% | ||
| ROE | -1.84% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 27.77% | ||
| FCFM | 1.51% |
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 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
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-Score4
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 3.74 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 82.41% | ||
| Cap/Sales | 7.63% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 112.21% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.89 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 3.4 |
F-Score4
WACC7.98%
ROIC/WACCN/A
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)-207.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-131.67%
EPS Next Y21.44%
EPS Next 2Y335.26%
EPS Next 3Y269.3%
EPS Next 5Y125.48%
Revenue 1Y (TTM)-10.96%
Revenue growth 3Y-16.27%
Revenue growth 5Y10.92%
Sales Q2Q%-10.15%
Revenue Next Year-5.99%
Revenue Next 2Y1.09%
Revenue Next 3Y1.01%
Revenue Next 5Y3.18%
EBIT growth 1Y-119.17%
EBIT growth 3Y-69.77%
EBIT growth 5YN/A
EBIT Next Year776.05%
EBIT Next 3Y146.1%
EBIT Next 5Y77.64%
FCF growth 1Y-42.11%
FCF growth 3Y-60.93%
FCF growth 5YN/A
OCF growth 1Y-18.38%
OCF growth 3Y-42.91%
OCF growth 5Y50.12%