WEST FRASER TIMBER CO LTD (WFG)
CA9528451052 - Common Stock
Taking everything into account, WFG scores 4 out of 10 in our fundamental rating. WFG was compared to 9 industry peers in the Paper & Forest Products industry. While WFG seems to be doing ok healthwise, there are quite some concerns on its profitability. WFG is valued correctly, but it does not seem to be growing.
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.
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
The Return On Assets of WFG (-1.77%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of -2.31%, WFG is in line with its industry, outperforming 44.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.77% | ||
| ROE | -2.31% | ||
| ROIC | N/A |
ROA(3y)15.43%
ROA(5y)11.4%
ROE(3y)20.7%
ROE(5y)15.9%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 27.42%, WFG is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Gross Margin of WFG has declined.
WFG 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 | 27.42% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.69%
GM growth 5Y-7.68%
2. Health
2.1 Basic Checks
WFG does not have a ROIC to compare to the WACC, probably because it is not profitable.
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.
WFG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.34 indicates that WFG is not in any danger for bankruptcy at the moment.
WFG has a better Altman-Z score (3.34) than 66.67% of its industry peers.
WFG has a debt to FCF ratio of 10.94. This is a negative value and a sign of low solvency as WFG would need 10.94 years to pay back of all of its debts.
WFG has a better Debt to FCF ratio (10.94) than 77.78% of its industry peers.
WFG has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.03, WFG belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 10.94 | ||
| Altman-Z | 3.34 |
ROIC/WACCN/A
WACC7.72%
2.3 Liquidity
WFG has a Current Ratio of 2.26. This indicates that WFG is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of WFG (2.26) is better than 66.67% of its industry peers.
WFG has a Quick Ratio of 1.45. This is a normal value and indicates that WFG is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of WFG (1.45) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The earnings per share for WFG have decreased strongly by -110.93% in the last year.
WFG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -33.47%.
WFG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.46% yearly.
EPS 1Y (TTM)-110.93%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-61.95%
Revenue 1Y (TTM)-33.47%
Revenue growth 3Y13.94%
Revenue growth 5Y6.46%
Revenue growth Q2Q-6.31%
3.2 Future
The Earnings Per Share is expected to grow by 46.72% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 4.54% on average over the next years.
EPS Next Y228.28%
EPS Next 2Y130.07%
EPS Next 3Y88.48%
EPS Next 5Y46.72%
Revenue Next Year-3%
Revenue Next 2Y3.32%
Revenue Next 3Y6.24%
Revenue Next 5Y4.54%
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
The Price/Earnings Ratio is negative for WFG. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 29.06 indicates a quite expensive valuation of WFG.
WFG's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.35. WFG is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 29.06 |
4.2 Price Multiples
WFG's Enterprise Value to EBITDA ratio is in line with the industry average.
77.78% of the companies in the same industry are more expensive than WFG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 133.92 | ||
| EV/EBITDA | 11.29 |
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's earnings are expected to grow with 88.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y130.07%
EPS Next 3Y88.48%
5. Dividend
5.1 Amount
WFG has a Yearly Dividend Yield of 1.50%.
Compared to an average industry Dividend Yield of 1.94, WFG pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.41, WFG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
The dividend of WFG is nicely growing with an annual growth rate of 25.68%!
WFG has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of WFG decreased recently.
Dividend Growth(5Y)25.68%
Div Incr Years1
Div Non Decr Years1
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-59.88%
EPS Next 2Y130.07%
EPS Next 3Y88.48%
WEST FRASER TIMBER CO LTD
NYSE:WFG (4/26/2024, 7:24:09 PM)
After market: 78.67 0 (0%)78.67
-0.22 (-0.28%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 29.06 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.77% | ||
| ROE | -2.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 27.42% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-110.93%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y228.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-33.47%
Revenue growth 3Y13.94%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y