WEST FRASER TIMBER CO LTD (WFG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WFG - CA9528451052 - Common Stock
66.13 USD
-0.16 (-0.24%)
66.13 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. The financial health of WFG is average, but there are quite some concerns on its profitability. WFG does not seem to be growing, but still is valued expensively.
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.
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
WFG has a Return On Assets (-2.89%) which is comparable to the rest of the industry.
The Return On Equity of WFG (-3.74%) is comparable to the rest of the industry.
| 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.
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 | 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.
WFG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for WFG has been increased compared to 5 years ago.
WFG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.01 indicates that WFG is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.01, WFG is doing good in the industry, outperforming 77.78% of the companies in the same industry.
The Debt to FCF ratio of WFG is 26.92, which is on the high side as it means it would take WFG, 26.92 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 26.92, WFG is in line with its industry, outperforming 44.44% of the companies in the same industry.
A Debt/Equity ratio of 0.05 indicates that WFG is not too dependend on debt financing.
WFG has a Debt to Equity ratio of 0.05. This is amongst the best in the industry. WFG outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 26.92 | ||
| Altman-Z | 3.01 |
ROIC/WACCN/A
WACC7.67%
2.3 Liquidity
A Current Ratio of 2.39 indicates that WFG has no problem at all paying its short term obligations.
The Current ratio of WFG (2.39) is better than 66.67% 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's Quick ratio of 1.32 is in line compared to the rest of the industry. WFG outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
WFG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -167.74%.
The Revenue has decreased by -9.23% in the past 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)-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
The Earnings Per Share is expected to grow by 118.65% on average over the next years. This is a very strong growth
Based on estimates for the next years, WFG will show a small growth in Revenue. The Revenue will grow by 2.70% on average per year.
EPS Next Y-2393.2%
EPS Next 2Y-77.79%
EPS Next 3Y219.3%
EPS Next 5Y118.65%
Revenue Next Year-10.68%
Revenue Next 2Y-1.13%
Revenue Next 3Y2.2%
Revenue Next 5Y2.7%
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
WFG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for WFG. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WFG indicates a slightly more expensive valuation: WFG is more expensive than 77.78% of the companies listed in the same industry.
66.67% of the companies in the same industry are cheaper than WFG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 431.77 | ||
| EV/EBITDA | 17.22 |
4.3 Compensation for Growth
WFG's earnings are expected to grow with 219.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-77.79%
EPS Next 3Y219.3%
5. Dividend
5.1 Amount
WFG has a Yearly Dividend Yield of 2.14%.
Compared to an average industry Dividend Yield of 2.64, WFG pays a bit more dividend than its industry peers.
WFG's Dividend Yield is comparable with the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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.
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
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-41.13%
EPS Next 2Y-77.79%
EPS Next 3Y219.3%
66.13
-0.16 (-0.24%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners57.5%
Inst Owner ChangeN/A
Ins Owners0.96%
Ins Owner ChangeN/A
Market Cap5.18B
Revenue(TTM)5.70B
Net Income(TTM)-248.00M
Analysts77.78
Price Target67.93 (2.72%)
Short Float %2.88%
Short Ratio6.06
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-DateN/A
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)-183.91%
Min EPS beat(4)-441.37%
Max EPS beat(4)-29.39%
EPS beat(8)2
Avg EPS beat(8)-119.87%
EPS beat(12)3
Avg EPS beat(12)-167.1%
EPS beat(16)6
Avg EPS beat(16)-122.06%
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)-1.06%
PT rev (3m)-3.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-379.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-512.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.91 | ||
| P/FCF | 431.77 | ||
| P/OCF | 11.75 | ||
| P/B | 0.78 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 17.22 |
EPS(TTM)-3.32
EYN/A
EPS(NY)-0.57
Fwd EYN/A
FCF(TTM)0.15
FCFY0.23%
OCF(TTM)5.63
OCFY8.51%
SpS72.79
BVpS84.53
TBVpS52.75
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 | 3.01 |
F-Score4
WACC7.67%
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-2393.2%
EPS Next 2Y-77.79%
EPS Next 3Y219.3%
EPS Next 5Y118.65%
Revenue 1Y (TTM)-9.23%
Revenue growth 3Y-16.27%
Revenue growth 5Y10.92%
Sales Q2Q%-9.05%
Revenue Next Year-10.68%
Revenue Next 2Y-1.13%
Revenue Next 3Y2.2%
Revenue Next 5Y2.7%
EBIT growth 1Y-580.77%
EBIT growth 3Y-69.77%
EBIT growth 5YN/A
EBIT Next Year1.13%
EBIT Next 3Y123.2%
EBIT Next 5Y73.84%
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 fundamental rating for WFG stock?
ChartMill assigns a fundamental rating of 4 / 10 to WFG.
Can you provide the valuation status for WEST FRASER TIMBER CO LTD?
ChartMill assigns a valuation rating of 1 / 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.
Can you provide the expected EPS growth for WFG stock?
The Earnings per Share (EPS) of WEST FRASER TIMBER CO LTD (WFG) is expected to decline by -2393.2% in the next year.
Can you provide the dividend sustainability for WFG stock?
The dividend rating of WEST FRASER TIMBER CO LTD (WFG) is 5 / 10 and the dividend payout ratio is -41.13%.