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WESTSHORE TERMINALS INVESTME (WTE.CA) Stock Fundamental Analysis

TSX:WTE - Toronto Stock Exchange - CA96145A2002 - Common Stock - Currency: CAD

24.21  -0.29 (-1.18%)

Fundamental Rating

6

Taking everything into account, WTE scores 6 out of 10 in our fundamental rating. WTE was compared to 1 industry peers in the Transportation Infrastructure industry. While WTE belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. WTE is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year WTE was profitable.
WTE had a positive operating cash flow in the past year.
Each year in the past 5 years WTE has been profitable.
Each year in the past 5 years WTE had a positive operating cash flow.
WTE.CA Yearly Net Income VS EBIT VS OCF VS FCFWTE.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M

1.2 Ratios

Looking at the Return On Assets, with a value of 6.02%, WTE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 15.02%, WTE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 7.39%, WTE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
WTE had an Average Return On Invested Capital over the past 3 years of 8.38%. This is in line with the industry average of 7.39%.
Industry RankSector Rank
ROA 6.02%
ROE 15.02%
ROIC 7.39%
ROA(3y)7.33%
ROA(5y)8.73%
ROE(3y)13.01%
ROE(5y)15.16%
ROIC(3y)8.38%
ROIC(5y)9.92%
WTE.CA Yearly ROA, ROE, ROICWTE.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20 25

1.3 Margins

The Profit Margin of WTE (27.31%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of WTE has declined.
The Operating Margin of WTE (40.88%) is better than 100.00% of its industry peers.
WTE's Operating Margin has declined in the last couple of years.
WTE's Gross Margin of 45.19% is amongst the best of the industry. WTE outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of WTE has declined.
Industry RankSector Rank
OM 40.88%
PM (TTM) 27.31%
GM 45.19%
OM growth 3Y-5.19%
OM growth 5Y-3.28%
PM growth 3Y-3.88%
PM growth 5Y-1.86%
GM growth 3Y-4.69%
GM growth 5Y-3.01%
WTE.CA Yearly Profit, Operating, Gross MarginsWTE.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

6

2. Health

2.1 Basic Checks

WTE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WTE has less shares outstanding
WTE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, WTE has an improved debt to assets ratio.
WTE.CA Yearly Shares OutstandingWTE.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
WTE.CA Yearly Total Debt VS Total AssetsWTE.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.2 Solvency

WTE has an Altman-Z score of 0.81. This is a bad value and indicates that WTE is not financially healthy and even has some risk of bankruptcy.
WTE's Altman-Z score of 0.81 is amongst the best of the industry. WTE outperforms 100.00% of its industry peers.
The Debt to FCF ratio of WTE is 4.03, which is a neutral value as it means it would take WTE, 4.03 years of fcf income to pay off all of its debts.
WTE has a Debt to FCF ratio of 4.03. This is amongst the best in the industry. WTE outperforms 100.00% of its industry peers.
WTE has a Debt/Equity ratio of 0.62. This is a neutral value indicating WTE is somewhat dependend on debt financing.
WTE has a Debt to Equity ratio of 0.62. This is amongst the best in the industry. WTE outperforms 100.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 4.03
Altman-Z 0.81
ROIC/WACC0.87
WACC8.49%
WTE.CA Yearly LT Debt VS Equity VS FCFWTE.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

2.3 Liquidity

WTE has a Current Ratio of 1.08. This is a normal value and indicates that WTE is financially healthy and should not expect problems in meeting its short term obligations.
WTE has a better Current ratio (1.08) than 100.00% of its industry peers.
A Quick Ratio of 0.98 indicates that WTE may have some problems paying its short term obligations.
WTE has a better Quick ratio (0.98) than 100.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 0.98
WTE.CA Yearly Current Assets VS Current LiabilitesWTE.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 11.76% over the past year.
Measured over the past 5 years, WTE shows a small growth in Earnings Per Share. The EPS has been growing by 0.65% on average per year.
WTE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.17%.
WTE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.95% yearly.
EPS 1Y (TTM)11.76%
EPS 3Y-1.55%
EPS 5Y0.65%
EPS Q2Q%3.77%
Revenue 1Y (TTM)14.17%
Revenue growth 3Y1.13%
Revenue growth 5Y0.95%
Sales Q2Q%6.05%

3.2 Future

WTE is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.19% yearly.
WTE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.63% yearly.
EPS Next Y-1.16%
EPS Next 2Y-7.62%
EPS Next 3Y-3.19%
EPS Next 5YN/A
Revenue Next Year7.45%
Revenue Next 2Y0.53%
Revenue Next 3Y1.63%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
WTE.CA Yearly Revenue VS EstimatesWTE.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M
WTE.CA Yearly EPS VS EstimatesWTE.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

6

4. Valuation

4.1 Price/Earnings Ratio

WTE is valuated correctly with a Price/Earnings ratio of 14.16.
WTE's Price/Earnings ratio is rather cheap when compared to the industry. WTE is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.19, WTE is valued rather cheaply.
WTE is valuated correctly with a Price/Forward Earnings ratio of 15.17.
Based on the Price/Forward Earnings ratio, WTE is valued cheaper than 100.00% of the companies in the same industry.
WTE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.58, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.16
Fwd PE 15.17
WTE.CA Price Earnings VS Forward Price EarningsWTE.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, WTE is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
100.00% of the companies in the same industry are more expensive than WTE, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 13.66
EV/EBITDA 9.29
WTE.CA Per share dataWTE.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

WTE has a very decent profitability rating, which may justify a higher PE ratio.
WTE's earnings are expected to decrease with -3.19% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)21.64
EPS Next 2Y-7.62%
EPS Next 3Y-3.19%

6

5. Dividend

5.1 Amount

WTE has a Yearly Dividend Yield of 6.12%, which is a nice return.
WTE's Dividend Yield is rather good when compared to the industry average which is at 6.12. WTE pays more dividend than 100.00% of the companies in the same industry.
WTE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
Industry RankSector Rank
Dividend Yield 6.12%

5.2 History

The dividend of WTE is nicely growing with an annual growth rate of 15.88%!
WTE has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of WTE decreased recently.
Dividend Growth(5Y)15.88%
Div Incr Years1
Div Non Decr Years1
WTE.CA Yearly Dividends per shareWTE.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5 2 2.5

5.3 Sustainability

WTE pays out 105.77% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of WTE has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP105.77%
EPS Next 2Y-7.62%
EPS Next 3Y-3.19%
WTE.CA Yearly Income VS Free CF VS DividendWTE.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
WTE.CA Dividend Payout.WTE.CA Dividend Payout, showing the Payout Ratio.WTE.CA Dividend Payout.PayoutRetained Earnings

WESTSHORE TERMINALS INVESTME

TSX:WTE (2/14/2025, 7:00:00 PM)

24.21

-0.29 (-1.18%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryTransportation Infrastructure
Earnings (Last)11-04 2024-11-04/amc
Earnings (Next)03-07 2025-03-07/amc
Inst Owners17.82%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap1.50B
Analysts45.71
Price Target25.5 (5.33%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.12%
Yearly Dividend1.35
Dividend Growth(5Y)15.88%
DP105.77%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.99%
Min EPS beat(2)18.38%
Max EPS beat(2)33.6%
EPS beat(4)3
Avg EPS beat(4)1.91%
Min EPS beat(4)-44.74%
Max EPS beat(4)33.6%
EPS beat(8)5
Avg EPS beat(8)-5.29%
EPS beat(12)6
Avg EPS beat(12)-8.63%
EPS beat(16)8
Avg EPS beat(16)-6.22%
Revenue beat(2)2
Avg Revenue beat(2)11.15%
Min Revenue beat(2)8.32%
Max Revenue beat(2)13.98%
Revenue beat(4)3
Avg Revenue beat(4)8.05%
Min Revenue beat(4)-5.46%
Max Revenue beat(4)15.38%
Revenue beat(8)6
Avg Revenue beat(8)3.84%
Revenue beat(12)7
Avg Revenue beat(12)0.82%
Revenue beat(16)8
Avg Revenue beat(16)0.26%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)20.51%
EPS NY rev (1m)0%
EPS NY rev (3m)6.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.63%
Valuation
Industry RankSector Rank
PE 14.16
Fwd PE 15.17
P/S 3.85
P/FCF 13.66
P/OCF 4.67
P/B 2.12
P/tB 4.5
EV/EBITDA 9.29
EPS(TTM)1.71
EY7.06%
EPS(NY)1.6
Fwd EY6.59%
FCF(TTM)1.77
FCFY7.32%
OCF(TTM)5.19
OCFY21.43%
SpS6.29
BVpS11.44
TBVpS5.38
PEG (NY)N/A
PEG (5Y)21.64
Profitability
Industry RankSector Rank
ROA 6.02%
ROE 15.02%
ROCE 10.13%
ROIC 7.39%
ROICexc 8.16%
ROICexgc 11.08%
OM 40.88%
PM (TTM) 27.31%
GM 45.19%
FCFM 28.17%
ROA(3y)7.33%
ROA(5y)8.73%
ROE(3y)13.01%
ROE(5y)15.16%
ROIC(3y)8.38%
ROIC(5y)9.92%
ROICexc(3y)9.96%
ROICexc(5y)11.68%
ROICexgc(3y)15.6%
ROICexgc(5y)18.43%
ROCE(3y)11.49%
ROCE(5y)13.59%
ROICexcg growth 3Y-8.97%
ROICexcg growth 5Y-4.89%
ROICexc growth 3Y-7.51%
ROICexc growth 5Y-4.15%
OM growth 3Y-5.19%
OM growth 5Y-3.28%
PM growth 3Y-3.88%
PM growth 5Y-1.86%
GM growth 3Y-4.69%
GM growth 5Y-3.01%
F-Score5
Asset Turnover0.22
Health
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 4.03
Debt/EBITDA 2.29
Cap/Depr 626.32%
Cap/Sales 54.26%
Interest Coverage 9.2
Cash Conversion 166.37%
Profit Quality 103.15%
Current Ratio 1.08
Quick Ratio 0.98
Altman-Z 0.81
F-Score5
WACC8.49%
ROIC/WACC0.87
Cap/Depr(3y)170.16%
Cap/Depr(5y)132.27%
Cap/Sales(3y)15.08%
Cap/Sales(5y)11.05%
Profit Quality(3y)85.86%
Profit Quality(5y)97.1%
High Growth Momentum
Growth
EPS 1Y (TTM)11.76%
EPS 3Y-1.55%
EPS 5Y0.65%
EPS Q2Q%3.77%
EPS Next Y-1.16%
EPS Next 2Y-7.62%
EPS Next 3Y-3.19%
EPS Next 5YN/A
Revenue 1Y (TTM)14.17%
Revenue growth 3Y1.13%
Revenue growth 5Y0.95%
Sales Q2Q%6.05%
Revenue Next Year7.45%
Revenue Next 2Y0.53%
Revenue Next 3Y1.63%
Revenue Next 5YN/A
EBIT growth 1Y17.47%
EBIT growth 3Y-4.12%
EBIT growth 5Y-2.36%
EBIT Next Year25.61%
EBIT Next 3Y5.57%
EBIT Next 5YN/A
FCF growth 1Y25.57%
FCF growth 3Y-15%
FCF growth 5Y-3.26%
OCF growth 1Y167.93%
OCF growth 3Y2.43%
OCF growth 5Y2.98%