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WESTERN FOREST PRODUCTS INC (WEF.CA) Stock Fundamental Analysis

TSX:WEF - Toronto Stock Exchange - CA9582112038 - Common Stock - Currency: CAD

0.43  +0.01 (+2.38%)

Fundamental Rating

3

Taking everything into account, WEF scores 3 out of 10 in our fundamental rating. WEF was compared to 12 industry peers in the Paper & Forest Products industry. WEF scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. WEF is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

WEF had negative earnings in the past year.
In the past year WEF had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: WEF reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: WEF reported negative operating cash flow in multiple years.
WEF.CA Yearly Net Income VS EBIT VS OCF VS FCFWEF.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 2024 0 100M 200M

1.2 Ratios

WEF's Return On Assets of -3.32% is in line compared to the rest of the industry. WEF outperforms 58.33% of its industry peers.
WEF's Return On Equity of -5.45% is in line compared to the rest of the industry. WEF outperforms 58.33% of its industry peers.
Industry RankSector Rank
ROA -3.32%
ROE -5.45%
ROIC N/A
ROA(3y)-1.4%
ROA(5y)4.14%
ROE(3y)-2.68%
ROE(5y)6.29%
ROIC(3y)N/A
ROIC(5y)N/A
WEF.CA Yearly ROA, ROE, ROICWEF.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

1.3 Margins

The Gross Margin of WEF (8.48%) is worse than 66.67% of its industry peers.
In the last couple of years the Gross Margin of WEF has grown nicely.
WEF does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 8.48%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-26.24%
GM growth 5Y7.26%
WEF.CA Yearly Profit, Operating, Gross MarginsWEF.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

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4

2. Health

2.1 Basic Checks

WEF does not have a ROIC to compare to the WACC, probably because it is not profitable.
WEF has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, WEF has less shares outstanding
Compared to 1 year ago, WEF has a worse debt to assets ratio.
WEF.CA Yearly Shares OutstandingWEF.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
WEF.CA Yearly Total Debt VS Total AssetsWEF.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.2 Solvency

WEF has an Altman-Z score of 1.70. This is a bad value and indicates that WEF is not financially healthy and even has some risk of bankruptcy.
WEF has a Altman-Z score of 1.70. This is comparable to the rest of the industry: WEF outperforms 58.33% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that WEF is not too dependend on debt financing.
WEF has a Debt to Equity ratio of 0.18. This is amongst the best in the industry. WEF outperforms 83.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF N/A
Altman-Z 1.7
ROIC/WACCN/A
WACC7.11%
WEF.CA Yearly LT Debt VS Equity VS FCFWEF.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

2.3 Liquidity

A Current Ratio of 2.63 indicates that WEF has no problem at all paying its short term obligations.
WEF's Current ratio of 2.63 is amongst the best of the industry. WEF outperforms 83.33% of its industry peers.
WEF has a Quick Ratio of 2.63. This is a bad value and indicates that WEF is not financially healthy enough and could expect problems in meeting its short term obligations.
WEF has a Quick ratio (0.92) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.63
Quick Ratio 0.92
WEF.CA Yearly Current Assets VS Current LiabilitesWEF.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 55.06% over the past year.
WEF shows a small growth in Revenue. In the last year, the Revenue has grown by 4.56%.
WEF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.66% yearly.
EPS 1Y (TTM)55.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%96.33%
Revenue 1Y (TTM)4.56%
Revenue growth 3Y-9.13%
Revenue growth 5Y5.66%
Sales Q2Q%10.79%

3.2 Future

The Earnings Per Share is expected to grow by 18.92% on average over the next years. This is quite good.
Based on estimates for the next years, WEF will show a small growth in Revenue. The Revenue will grow by 7.26% on average per year.
EPS Next Y23.52%
EPS Next 2Y30.61%
EPS Next 3Y25.99%
EPS Next 5Y18.92%
Revenue Next Year9.09%
Revenue Next 2Y7.26%
Revenue Next 3YN/A
Revenue Next 5YN/A

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 accelerating.
WEF.CA Yearly Revenue VS EstimatesWEF.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B
WEF.CA Yearly EPS VS EstimatesWEF.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 0.2 -0.2 0.4

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for WEF. In the last year negative earnings were reported.
Also next year WEF is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
WEF.CA Price Earnings VS Forward Price EarningsWEF.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as WEF.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 27.77
WEF.CA Per share dataWEF.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3

4.3 Compensation for Growth

WEF's earnings are expected to grow with 25.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y30.61%
EPS Next 3Y25.99%

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0

5. Dividend

5.1 Amount

No dividends for WEF!.
Industry RankSector Rank
Dividend Yield N/A

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WESTERN FOREST PRODUCTS INC

TSX:WEF (3/7/2025, 7:00:00 PM)

0.43

+0.01 (+2.38%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)02-13 2025-02-13/amc
Earnings (Next)05-05 2025-05-05
Inst Owners41.03%
Inst Owner ChangeN/A
Ins Owners0.69%
Ins Owner ChangeN/A
Market Cap136.20M
Analysts50
Price Target0.6 (39.53%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.47%
Min Revenue beat(2)-1.52%
Max Revenue beat(2)2.46%
Revenue beat(4)3
Avg Revenue beat(4)6.98%
Min Revenue beat(4)-1.52%
Max Revenue beat(4)21.6%
Revenue beat(8)5
Avg Revenue beat(8)3.75%
Revenue beat(12)9
Avg Revenue beat(12)7.3%
Revenue beat(16)13
Avg Revenue beat(16)6.8%
PT rev (1m)9.3%
PT rev (3m)6.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)3.7%
EPS NY rev (3m)-5.05%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)0.26%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.13
P/FCF N/A
P/OCF 6.78
P/B 0.24
P/tB 0.29
EV/EBITDA 27.77
EPS(TTM)-0.1
EYN/A
EPS(NY)-0.09
Fwd EYN/A
FCF(TTM)-0.04
FCFYN/A
OCF(TTM)0.06
OCFY14.76%
SpS3.36
BVpS1.76
TBVpS1.46
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -3.32%
ROE -5.45%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 8.48%
FCFM N/A
ROA(3y)-1.4%
ROA(5y)4.14%
ROE(3y)-2.68%
ROE(5y)6.29%
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 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-26.24%
GM growth 5Y7.26%
F-Score5
Asset Turnover1.16
Health
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF N/A
Debt/EBITDA 11.7
Cap/Depr 61.06%
Cap/Sales 3.14%
Interest Coverage N/A
Cash Conversion 239.29%
Profit Quality N/A
Current Ratio 2.63
Quick Ratio 0.92
Altman-Z 1.7
F-Score5
WACC7.11%
ROIC/WACCN/A
Cap/Depr(3y)78.79%
Cap/Depr(5y)67.27%
Cap/Sales(3y)3.57%
Cap/Sales(5y)3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)55.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%96.33%
EPS Next Y23.52%
EPS Next 2Y30.61%
EPS Next 3Y25.99%
EPS Next 5Y18.92%
Revenue 1Y (TTM)4.56%
Revenue growth 3Y-9.13%
Revenue growth 5Y5.66%
Sales Q2Q%10.79%
Revenue Next Year9.09%
Revenue Next 2Y7.26%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y44.08%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year139.47%
EBIT Next 3Y42.28%
EBIT Next 5Y30.28%
FCF growth 1Y82.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y159.47%
OCF growth 3Y-58.52%
OCF growth 5Y13.87%