WEST FRASER TIMBER CO LTD (WFG) Stock Fundamental Analysis
USA - NYSE:WFG - CA9528451052 - Common Stock
68.3 USD
+0.4 (+0.59%)
68.3 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to WFG. WFG was compared to 9 industry peers in the Paper & Forest Products industry. No worries on liquidiy or solvency for WFG as it has an excellent financial health rating, but there are worries on the 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.
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.
In the past 5 years WFG always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WFG (-1.45%) is comparable to the rest of the industry.
WFG has a Return On Equity (-1.84%) which is comparable to the rest of the industry.
| 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.
The Gross Margin of WFG (27.77%) is better than 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 | 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.
The number of shares outstanding for WFG has been reduced compared to 1 year ago.
WFG has more shares outstanding than it did 5 years ago.
WFG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.28 indicates that WFG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.28, WFG is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
The Debt to FCF ratio of WFG is 3.74, which is a good value as it means it would take WFG, 3.74 years of fcf income to pay off all of its debts.
WFG has a better Debt to FCF ratio (3.74) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that WFG is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.05, WFG belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 3.74 | ||
| Altman-Z | 3.28 |
ROIC/WACCN/A
WACC7.9%
2.3 Liquidity
A Current Ratio of 2.89 indicates that WFG has no problem at all paying its short term obligations.
WFG's Current ratio of 2.89 is fine compared to the rest of the industry. WFG outperforms 77.78% of its industry peers.
A Quick Ratio of 1.61 indicates that WFG should not have too much problems paying its short term obligations.
WFG has a Quick ratio (1.61) which is in line with its industry peers.
| 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%.
The Revenue for WFG has decreased by -10.96% in the past year. This is quite bad
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)-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
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.
Based on estimates for the next years, WFG will show a small growth in Revenue. The Revenue will grow by 3.18% on average per year.
EPS Next Y-306.81%
EPS Next 2Y340.87%
EPS Next 3Y257.77%
EPS Next 5Y125.48%
Revenue Next Year-6.25%
Revenue Next 2Y0.83%
Revenue Next 3Y2.55%
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.
The Price/Forward Earnings ratio is 21.76, which indicates a rather expensive current valuation of WFG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WFG is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.29. WFG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 21.76 |
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 66.67% of the companies in the same industry.
WFG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.21 | ||
| EV/EBITDA | 10.61 |
4.3 Compensation for Growth
A more expensive valuation may be justified as WFG's earnings are expected to grow with 257.77% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y340.87%
EPS Next 3Y257.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.78%, WFG has a reasonable but not impressive dividend return.
WFG's Dividend Yield is a higher than the industry average which is at 4.53.
Compared to the average S&P500 Dividend Yield of 2.41, WFG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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 decreased its dividend 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-81.1%
EPS Next 2Y340.87%
EPS Next 3Y257.77%
68.3
+0.4 (+0.59%)
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 Cap5.39B
Analysts82
Price Target71.58 (4.8%)
Short Float %3.35%
Short Ratio7.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
Yearly Dividend1.25
Dividend Growth(5Y)15.82%
DP-81.1%
Div Incr Years2
Div Non Decr Years2
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)-0.32%
PT rev (3m)-4.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-144.57%
EPS NY rev (1m)-417.86%
EPS NY rev (3m)-117.53%
Revenue NQ rev (1m)-10.4%
Revenue NQ rev (3m)-17.55%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-6.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 21.76 | ||
| P/S | 0.92 | ||
| P/FCF | 61.21 | ||
| P/OCF | 10.11 | ||
| P/B | 0.78 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 10.61 |
EPS(TTM)-1.72
EYN/A
EPS(NY)3.14
Fwd EY4.6%
FCF(TTM)1.12
FCFY1.63%
OCF(TTM)6.76
OCFY9.9%
SpS73.97
BVpS87.47
TBVpS55.66
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 | 3.28 |
F-Score4
WACC7.9%
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 Y-306.81%
EPS Next 2Y340.87%
EPS Next 3Y257.77%
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-6.25%
Revenue Next 2Y0.83%
Revenue Next 3Y2.55%
Revenue Next 5Y3.18%
EBIT growth 1Y-119.17%
EBIT growth 3Y-69.77%
EBIT growth 5YN/A
EBIT Next Year410.48%
EBIT Next 3Y135.05%
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%