WEST FRASER TIMBER CO LTD (WFG) Stock Fundamental Analysis
USA - NYSE:WFG - CA9528451052 - Common Stock
60.12 USD
-0.88 (-1.44%)
60.12 USD
0 (0%)
WFG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 9 industry peers in the Paper & Forest Products industry. WFG scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. WFG has a expensive valuation and it also scores bad on growth.
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.
In multiple years WFG reported negative net income over the last 5 years.
Each year in the past 5 years WFG had a positive operating cash flow.
1.2 Ratios
WFG has a Return On Assets (-2.89%) which is in line with its industry peers.
WFG's Return On Equity of -3.74% is in line compared to the rest of the industry. WFG outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.89% | ||
| ROE | -3.74% | ||
| 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.
WFG has a Gross Margin of 25.57%. This is amongst the best in the industry. WFG outperforms 88.89% of its industry peers.
WFG's Gross Margin has improved in the last couple of years.
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 | 25.57% |
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.
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
An Altman-Z score of 2.90 indicates that WFG is not a great score, but indicates only limited risk for bankruptcy at the moment.
WFG has a Altman-Z score of 2.90. This is in the better half of the industry: WFG outperforms 77.78% of its industry peers.
WFG has a debt to FCF ratio of 26.92. This is a negative value and a sign of low solvency as WFG would need 26.92 years to pay back of all of its debts.
WFG's Debt to FCF ratio of 26.92 is in line compared to the rest of the industry. WFG outperforms 44.44% 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 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 26.92 | ||
| Altman-Z | 2.9 |
ROIC/WACCN/A
WACC7.7%
2.3 Liquidity
A Current Ratio of 2.39 indicates that WFG has no problem at all paying its short term obligations.
WFG has a Current ratio of 2.39. This is comparable to the rest of the industry: WFG outperforms 55.56% of its industry peers.
A Quick Ratio of 1.32 indicates that WFG should not have too much problems paying its short term obligations.
WFG has a Quick ratio (1.32) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The earnings per share for WFG have decreased strongly by -167.74% in the last year.
WFG shows a decrease in Revenue. In the last year, the revenue decreased by -9.23%.
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)-167.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-155.34%
Revenue 1Y (TTM)-9.23%
Revenue growth 3Y-16.27%
Revenue growth 5Y10.92%
Sales Q2Q%-9.05%
3.2 Future
Based on estimates for the next years, WFG will show a very strong growth in Earnings Per Share. The EPS will grow by 125.48% on average per year.
The Revenue is expected to grow by 3.18% on average over the next years.
EPS Next Y-306.81%
EPS Next 2Y340.87%
EPS Next 3Y257.77%
EPS Next 5Y125.48%
Revenue Next Year-6.12%
Revenue Next 2Y1.57%
Revenue Next 3Y3.08%
Revenue Next 5Y3.18%
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 19.16 indicates a rather expensive valuation of WFG.
WFG's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of WFG to the average of the S&P500 Index (22.53), we can say WFG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.16 |
4.2 Price Multiples
WFG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. WFG is more expensive than 77.78% of the companies 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 | 394.24 | ||
| EV/EBITDA | 15.89 |
4.3 Compensation for Growth
WFG's earnings are expected to grow with 257.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y340.87%
EPS Next 3Y257.77%
5. Dividend
5.1 Amount
WFG has a Yearly Dividend Yield of 2.14%. Purely for dividend investing, there may be better candidates out there.
WFG's Dividend Yield is a higher than the industry average which is at 4.77.
Compared to an average S&P500 Dividend Yield of 2.38, WFG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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.
The dividend of WFG decreased in the last 3 years.
Dividend Growth(5Y)15.82%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
WFG has negative earnings and hence a negative payout ratio. The dividend may be in danger.
WFG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-41.13%
EPS Next 2Y340.87%
EPS Next 3Y257.77%
60.12
-0.88 (-1.44%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners51.45%
Inst Owner ChangeN/A
Ins Owners0.95%
Ins Owner ChangeN/A
Market Cap4.73B
Revenue(TTM)5.70B
Net Income(TTM)-248000000
Analysts80
Price Target68.77 (14.39%)
Short Float %3.25%
Short Ratio6.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend1.25
Dividend Growth(5Y)15.82%
DP-41.13%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-132.44%
Min EPS beat(2)-146.07%
Max EPS beat(2)-118.82%
EPS beat(4)0
Avg EPS beat(4)-445.1%
Min EPS beat(4)-1486.14%
Max EPS beat(4)-29.39%
EPS beat(8)1
Avg EPS beat(8)-259.45%
EPS beat(12)2
Avg EPS beat(12)-260.16%
EPS beat(16)5
Avg EPS beat(16)-191.85%
Revenue beat(2)0
Avg Revenue beat(2)-5.59%
Min Revenue beat(2)-6.51%
Max Revenue beat(2)-4.67%
Revenue beat(4)0
Avg Revenue beat(4)-4.79%
Min Revenue beat(4)-6.51%
Max Revenue beat(4)-1.75%
Revenue beat(8)4
Avg Revenue beat(8)0.15%
Revenue beat(12)4
Avg Revenue beat(12)-1.23%
Revenue beat(16)7
Avg Revenue beat(16)-0.04%
PT rev (1m)-3.92%
PT rev (3m)-7.69%
EPS NQ rev (1m)-214.16%
EPS NQ rev (3m)-2072.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-117.53%
Revenue NQ rev (1m)-4.61%
Revenue NQ rev (3m)-11.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.16 | ||
| P/S | 0.83 | ||
| P/FCF | 394.24 | ||
| P/OCF | 10.73 | ||
| P/B | 0.71 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 15.89 |
EPS(TTM)-3.32
EYN/A
EPS(NY)3.14
Fwd EY5.22%
FCF(TTM)0.15
FCFY0.25%
OCF(TTM)5.6
OCFY9.32%
SpS72.47
BVpS84.17
TBVpS52.52
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.89% | ||
| ROE | -3.74% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 25.57% | ||
| FCFM | 0.21% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 26.92 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 79.74% | ||
| Cap/Sales | 7.52% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 153.13% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 2.9 |
F-Score4
WACC7.7%
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)-167.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-155.34%
EPS Next Y-306.81%
EPS Next 2Y340.87%
EPS Next 3Y257.77%
EPS Next 5Y125.48%
Revenue 1Y (TTM)-9.23%
Revenue growth 3Y-16.27%
Revenue growth 5Y10.92%
Sales Q2Q%-9.05%
Revenue Next Year-6.12%
Revenue Next 2Y1.57%
Revenue Next 3Y3.08%
Revenue Next 5Y3.18%
EBIT growth 1Y-580.77%
EBIT growth 3Y-69.77%
EBIT growth 5YN/A
EBIT Next Year410.48%
EBIT Next 3Y135.05%
EBIT Next 5Y77.64%
FCF growth 1Y-88.78%
FCF growth 3Y-60.93%
FCF growth 5YN/A
OCF growth 1Y-23.44%
OCF growth 3Y-42.91%
OCF growth 5Y50.12%
WEST FRASER TIMBER CO LTD / WFG FAQ
What is the ChartMill fundamental rating of WEST FRASER TIMBER CO LTD (WFG) stock?
ChartMill assigns a fundamental rating of 4 / 10 to WFG.
What is the valuation status for WFG stock?
ChartMill assigns a valuation rating of 2 / 10 to WEST FRASER TIMBER CO LTD (WFG). This can be considered as Overvalued.
Can you provide the profitability details for WEST FRASER TIMBER CO LTD?
WEST FRASER TIMBER CO LTD (WFG) has a profitability rating of 3 / 10.
What is the financial health of WEST FRASER TIMBER CO LTD (WFG) stock?
The financial health rating of WEST FRASER TIMBER CO LTD (WFG) is 5 / 10.