WEST FRASER TIMBER CO LTD (WFG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WFG - CA9528451052 - Common Stock
60.23 USD
+0.14 (+0.23%)
60.23 USD
0 (0%)
Taking everything into account, WFG scores 3 out of 10 in our fundamental rating. WFG was compared to 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year WFG has reported negative net income.
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
Looking at the Return On Assets, with a value of -2.89%, WFG is in line with its industry, outperforming 55.56% of the companies in the same 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
In the last couple of years the Operating Margin of WFG has declined.
With an excellent Gross Margin value of 25.57%, WFG belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
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.
The number of shares outstanding for WFG has been reduced compared to 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 2.87 indicates that WFG is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.87, WFG is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
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.
The Debt to FCF ratio of WFG (26.92) is comparable to the rest of the industry.
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 | 2.87 |
ROIC/WACCN/A
WACC7.61%
2.3 Liquidity
WFG has a Current Ratio of 2.39. This indicates that WFG is financially healthy and has no problem in meeting its short term obligations.
WFG has a better Current ratio (2.39) than 66.67% of its industry peers.
WFG has a Quick Ratio of 1.32. This is a normal value and indicates that WFG is financially healthy and should not expect problems in meeting its short term obligations.
WFG has a Quick ratio (1.32) which is comparable to the rest of the industry.
| 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
The Earnings Per Share is expected to grow by 118.65% on average over the next years. This is a very strong growth
WFG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.70% yearly.
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
The Price/Earnings Ratio is negative for WFG. In the last year negative earnings were reported.
Also next year WFG is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
77.78% of the companies in the same industry are cheaper than WFG, based on the Enterprise Value to EBITDA ratio.
WFG's Price/Free Cash Flow 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 393.25 | ||
| EV/EBITDA | 15.57 |
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
With a Yearly Dividend Yield of 2.15%, WFG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.45, WFG pays a bit more dividend than its industry peers.
WFG's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
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.
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.
WFG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-41.13%
EPS Next 2Y-77.79%
EPS Next 3Y219.3%
60.23
+0.14 (+0.23%)
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 Cap4.72B
Revenue(TTM)5.70B
Net Income(TTM)-248.00M
Analysts80
Price Target68.66 (14%)
Short Float %3.58%
Short Ratio7.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
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)-0.17%
PT rev (3m)-4.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3111.11%
EPS NY rev (1m)-27.44%
EPS NY rev (3m)-3073.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.83 | ||
| P/FCF | 393.25 | ||
| P/OCF | 10.7 | ||
| P/B | 0.71 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 15.57 |
EPS(TTM)-3.32
EYN/A
EPS(NY)-0.57
Fwd EYN/A
FCF(TTM)0.15
FCFY0.25%
OCF(TTM)5.63
OCFY9.35%
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 | 2.87 |
F-Score4
WACC7.61%
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 ChartMill fundamental rating of WEST FRASER TIMBER CO LTD (WFG) stock?
ChartMill assigns a fundamental rating of 3 / 10 to WFG.
What is the valuation status for WFG stock?
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.
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.