WEST FRASER TIMBER CO LTD (WFG) Stock Fundamental Analysis
NYSE:WFG - CA9528451052 - Common Stock
75.95 USD
+3.49 (+4.82%)
75.95 USD
0 (0%)
Overall WFG gets a fundamental rating of 4 out of 10. We evaluated WFG against 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 has a valuation in line with the averages, but it does not seem to be growing.
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.
Each year in the past 5 years WFG had a positive operating cash flow.
1.2 Ratios
WFG has a Return On Assets (-1.45%) which is in line with its industry peers.
The Return On Equity of WFG (-1.84%) 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
In the last couple of years the Operating Margin of WFG has declined.
WFG's Gross Margin of 27.77% 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.
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 | 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.
Compared to 5 years ago, WFG has more shares outstanding
The debt/assets ratio for WFG has been reduced compared to a year ago.
2.2 Solvency
WFG has an Altman-Z score of 3.39. This indicates that WFG is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.39, 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 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 Debt to FCF ratio of 3.74. This is in the better half of the industry: WFG outperforms 66.67% of its industry peers.
WFG has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.05, WFG belongs to the top 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 | 3.39 |
ROIC/WACCN/A
WACC7.97%
2.3 Liquidity
WFG has a Current Ratio of 2.89. This indicates that WFG is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of WFG (2.89) is better than 77.78% of its industry peers.
WFG has a Quick Ratio of 1.61. This is a normal value and indicates that WFG is financially healthy and should not expect problems in meeting its short term obligations.
WFG's Quick ratio of 1.61 is fine compared to the rest of the industry. WFG outperforms 66.67% of 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%.
WFG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.96%.
The Revenue has been growing by 10.92% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 125.48% 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 3.18% on average per year.
EPS Next Y2420.19%
EPS Next 2Y566.27%
EPS Next 3Y277.88%
EPS Next 5Y125.48%
Revenue Next Year-3.59%
Revenue Next 2Y2.76%
Revenue Next 3Y2.77%
Revenue Next 5Y3.18%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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 9.95, which indicates a very decent valuation of WFG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WFG indicates a somewhat cheap valuation: WFG is cheaper than 66.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, WFG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WFG is valued a bit more expensive than 66.67% of the companies in the same industry.
WFG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.16 | ||
| EV/EBITDA | 11.38 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as WFG's earnings are expected to grow with 277.88% in the coming years.
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 1.87%.
Compared to an average industry Dividend Yield of 3.62, WFG pays a bit more dividend than its industry peers.
WFG's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
5.2 History
The dividend of WFG is nicely growing with an annual growth rate of 15.82%!
WFG has paid a dividend for at least 10 years, which is 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
WFG has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of WFG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-81.1%
EPS Next 2Y566.27%
EPS Next 3Y277.88%
75.95
+3.49 (+4.82%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners50.42%
Inst Owner ChangeN/A
Ins Owners0.95%
Ins Owner ChangeN/A
Market Cap6.00B
Analysts82
Price Target72.6 (-4.41%)
Short Float %2.98%
Short Ratio6.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
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)-2.77%
PT rev (3m)-6.14%
EPS NQ rev (1m)-176.77%
EPS NQ rev (3m)-144.57%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)1.8%
Revenue NQ rev (3m)-2.96%
Revenue NY rev (1m)-3.82%
Revenue NY rev (3m)-3.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.95 | ||
| P/S | 1.03 | ||
| P/FCF | 68.16 | ||
| P/OCF | 11.25 | ||
| P/B | 0.87 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 11.38 |
EPS(TTM)-1.72
EYN/A
EPS(NY)7.63
Fwd EY10.05%
FCF(TTM)1.11
FCFY1.47%
OCF(TTM)6.75
OCFY8.89%
SpS73.85
BVpS87.34
TBVpS55.57
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 | 3.39 |
F-Score4
WACC7.97%
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 Y2420.19%
EPS Next 2Y566.27%
EPS Next 3Y277.88%
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-3.59%
Revenue Next 2Y2.76%
Revenue Next 3Y2.77%
Revenue Next 5Y3.18%
EBIT growth 1Y-119.17%
EBIT growth 3Y-69.77%
EBIT growth 5YN/A
EBIT Next Year776.05%
EBIT Next 3Y146.1%
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%