WEST FRASER TIMBER CO LTD (WFG) Stock Fundamental Analysis
NYSE:WFG - New York Stock Exchange, Inc. - CA9528451052 - Common Stock - Currency: USD
Overall WFG gets a fundamental rating of 5 out of 10. We evaluated WFG against 9 industry peers in the Paper & Forest Products industry. WFG has an excellent financial health rating, but there are some minor concerns on its profitability. WFG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
WFG had negative earnings in the past year.
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.
WFG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WFG has a Return On Assets of 0.02%. This is in the better half of the industry: WFG outperforms 66.67% of its industry peers.
WFG's Return On Equity of 0.03% is fine compared to the rest of the industry. WFG outperforms 66.67% of its industry peers.
WFG has a Return On Invested Capital (1.15%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.02% | ||
| ROE | 0.03% | ||
| ROIC | 1.15% |
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
With a decent Profit Margin value of 0.03%, WFG is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Operating Margin, with a value of 1.90%, WFG is in line with its industry, outperforming 55.56% of the companies in the same industry.
In the last couple of years the Operating Margin of WFG has declined.
WFG's Gross Margin of 30.12% is amongst the best of the industry. WFG outperforms 88.89% 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
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 has a better Altman-Z score (3.53) than 77.78% 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.
WFG has a better Debt to FCF ratio (1.42) than 88.89% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that WFG is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.00, WFG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 3.53 |
ROIC/WACC0.15
WACC7.62%
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 in the better half of the industry: WFG outperforms 66.67% 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.
The Quick ratio of WFG (0.96) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
WFG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 88.03%, which is quite impressive.
WFG shows a decrease in Revenue. In the last year, the revenue decreased by -6.94%.
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
The Earnings Per Share is expected to grow by 122.17% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 5.24% on average over the next years.
EPS Next Y2420.19%
EPS Next 2Y566.27%
EPS Next 3Y277.88%
EPS Next 5Y122.17%
Revenue Next Year0.24%
Revenue Next 2Y4.1%
Revenue Next 3Y4.48%
Revenue Next 5Y5.24%
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.
With a Price/Forward Earnings ratio of 9.61, the valuation of WFG can be described as very reasonable.
77.78% of the companies in the same industry are more expensive than WFG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.76. WFG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.61 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WFG.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WFG is on the same level as its industry peers.
| 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'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 1.81%. 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 3.00.
WFG's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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 recently.
Dividend Growth(5Y)15.82%
Div Incr Years1
Div Non Decr Years1
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%
73.32
-0.05 (-0.07%)
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 Cap5.82B
Analysts82
Price Target77.35 (5.5%)
Short Float %2.11%
Short Ratio5.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend1.25
Dividend Growth(5Y)15.82%
DP5150%
Div Incr Years1
Div Non Decr Years1
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)-1.51%
PT rev (3m)-4.11%
EPS NQ rev (1m)-14.13%
EPS NQ rev (3m)-30.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-20.56%
Revenue NQ rev (1m)-4.5%
Revenue NQ rev (3m)-0.97%
Revenue NY rev (1m)-3.75%
Revenue NY rev (3m)-5.74%
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)-0.14
EYN/A
EPS(NY)7.63
Fwd EY10.41%
FCF(TTM)1.99
FCFY2.71%
OCF(TTM)7.89
OCFY10.77%
SpS75.61
BVpS87.36
TBVpS55.61
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.02% | ||
| ROE | 0.03% | ||
| ROCE | 1.45% | ||
| ROIC | 1.15% | ||
| ROICexc | 1.21% | ||
| ROICexgc | 1.82% | ||
| 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
WACC7.62%
ROIC/WACC0.15
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 5Y122.17%
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 5Y5.24%
EBIT growth 1Y-15.56%
EBIT growth 3Y-69.77%
EBIT growth 5YN/A
EBIT Next Year1016.29%
EBIT Next 3Y151.67%
EBIT Next 5Y76.3%
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%