WEST FRASER TIMBER CO LTD (WFG.CA) Stock Fundamental Analysis
TSX:WFG - Toronto Stock Exchange - CA9528451052 - Common Stock - Currency: CAD
Overall WFG gets a fundamental rating of 6 out of 10. We evaluated WFG against 12 industry peers in the Paper & Forest Products industry. WFG is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. WFG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
WFG had negative earnings in the past year.
In the past year WFG had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: WFG reported negative net income in multiple years.
WFG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WFG's Return On Assets of 0.02% is amongst the best of the industry. WFG outperforms 83.33% of its industry peers.
WFG has a Return On Equity of 0.03%. This is amongst the best in the industry. WFG outperforms 83.33% of its industry peers.
With a Return On Invested Capital value of 1.05%, WFG perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.02% | ||
| ROE | 0.03% | ||
| ROIC | 1.05% |
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 has a better Profit Margin (0.03%) than 83.33% of its industry peers.
WFG has a Operating Margin of 1.90%. This is comparable to the rest of the industry: WFG outperforms 58.33% of its industry peers.
In the last couple of years the Operating Margin of WFG has declined.
WFG's Gross Margin of 30.12% is amongst the best of the industry. WFG outperforms 91.67% of its industry peers.
WFG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.9% | ||
| PM (TTM) | 0.03% | ||
| GM | 30.12% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WFG is destroying value.
WFG has less shares outstanding than it did 1 year ago.
WFG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, WFG has an improved debt to assets ratio.
2.2 Solvency
WFG has an Altman-Z score of 3.58. This indicates that WFG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.58, WFG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of WFG is 1.42, which is an excellent value as it means it would take WFG, only 1.42 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.42, WFG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that WFG is not too dependend on debt financing.
WFG's Debt to Equity ratio of 0.00 is amongst the best of the industry. WFG outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 3.58 |
ROIC/WACC0.14
WACC7.74%
2.3 Liquidity
A Current Ratio of 2.09 indicates that WFG has no problem at all paying its short term obligations.
The Current ratio of WFG (2.09) is comparable to the rest of the industry.
A Quick Ratio of 0.96 indicates that WFG may have some problems paying its short term obligations.
WFG has a Quick ratio of 0.96. This is comparable to the rest of the industry: WFG outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
WFG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 88.03%, which is quite impressive.
WFG shows a decrease in Revenue. In the last year, the revenue decreased by -6.94%.
WFG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.92% yearly.
EPS 1Y (TTM)88.03%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%9.52%
Revenue 1Y (TTM)-6.94%
Revenue growth 3Y-16.27%
Revenue growth 5Y10.92%
Sales Q2Q%-10.33%
3.2 Future
WFG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 124.16% yearly.
The Revenue is expected to grow by 4.14% on average over the next years.
EPS Next Y2420.19%
EPS Next 2Y566.27%
EPS Next 3Y277.88%
EPS Next 5Y124.16%
Revenue Next Year0.24%
Revenue Next 2Y4.1%
Revenue Next 3Y4.48%
Revenue Next 5Y4.14%
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 9.92, which indicates a very decent valuation of WFG.
WFG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WFG is cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WFG to the average of the S&P500 Index (21.76), we can say WFG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.92 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than WFG, based on the Enterprise Value to EBITDA ratio.
WFG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.93 | ||
| EV/EBITDA | 8.84 |
4.3 Compensation for Growth
WFG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of WFG may justify a higher PE ratio.
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
With a Yearly Dividend Yield of 1.73%, WFG has a reasonable but not impressive dividend return.
WFG's Dividend Yield is a higher than the industry average which is at 5.75.
WFG's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
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 not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)15.82%
Div Incr Years4
Div Non Decr Years14
5.3 Sustainability
5150.00% of the earnings are spent on dividend by WFG. This is not a sustainable payout ratio.
WFG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP5150%
EPS Next 2Y566.27%
EPS Next 3Y277.88%
TSX:WFG (7/11/2025, 7:00:00 PM)
103.71
-2.71 (-2.55%)
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 Cap8.21B
Analysts82
Price Target102.25 (-1.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend1.71
Dividend Growth(5Y)15.82%
DP5150%
Div Incr Years4
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-755.74%
Min EPS beat(2)-1486.14%
Max EPS beat(2)-25.34%
EPS beat(4)0
Avg EPS beat(4)-399.51%
Min EPS beat(4)-1486.14%
Max EPS beat(4)-9.99%
EPS beat(8)2
Avg EPS beat(8)-274.72%
EPS beat(12)4
Avg EPS beat(12)-232.93%
EPS beat(16)7
Avg EPS beat(16)-174.54%
Revenue beat(2)0
Avg Revenue beat(2)-3.99%
Min Revenue beat(2)-6.23%
Max Revenue beat(2)-1.75%
Revenue beat(4)2
Avg Revenue beat(4)0.26%
Min Revenue beat(4)-6.23%
Max Revenue beat(4)6.1%
Revenue beat(8)4
Avg Revenue beat(8)0.56%
Revenue beat(12)6
Avg Revenue beat(12)0.69%
Revenue beat(16)8
Avg Revenue beat(16)1.2%
PT rev (1m)-4.3%
PT rev (3m)-9.37%
EPS NQ rev (1m)-6.18%
EPS NQ rev (3m)-9.24%
EPS NY rev (1m)0%
EPS NY rev (3m)0.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.92 | ||
| P/S | 1 | ||
| P/FCF | 37.93 | ||
| P/OCF | 9.56 | ||
| P/B | 0.86 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 8.84 |
EPS(TTM)-0.19
EYN/A
EPS(NY)10.45
Fwd EY10.08%
FCF(TTM)2.73
FCFY2.64%
OCF(TTM)10.85
OCFY10.46%
SpS103.94
BVpS120.09
TBVpS76.44
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.02% | ||
| ROE | 0.03% | ||
| ROCE | 1.45% | ||
| ROIC | 1.05% | ||
| ROICexc | 1.1% | ||
| ROICexgc | 1.66% | ||
| OM | 1.9% | ||
| PM (TTM) | 0.03% | ||
| GM | 30.12% | ||
| FCFM | 2.63% |
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 3Y-69.33%
ROICexcg growth 5YN/A
ROICexc growth 3Y-69.12%
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-Score7
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.42 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 86.06% | ||
| Cap/Sales | 7.81% | ||
| Interest Coverage | 3.93 | ||
| Cash Conversion | 95.14% | ||
| Profit Quality | 7900% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 3.58 |
F-Score7
WACC7.74%
ROIC/WACC0.14
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)88.03%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%9.52%
EPS Next Y2420.19%
EPS Next 2Y566.27%
EPS Next 3Y277.88%
EPS Next 5Y124.16%
Revenue 1Y (TTM)-6.94%
Revenue growth 3Y-16.27%
Revenue growth 5Y10.92%
Sales Q2Q%-10.33%
Revenue Next Year0.24%
Revenue Next 2Y4.1%
Revenue Next 3Y4.48%
Revenue Next 5Y4.14%
EBIT growth 1Y-15.56%
EBIT growth 3Y-69.77%
EBIT growth 5YN/A
EBIT Next Year776.05%
EBIT Next 3Y146.1%
EBIT Next 5Y76.07%
FCF growth 1Y-83.59%
FCF growth 3Y-60.93%
FCF growth 5YN/A
OCF growth 1Y-56.64%
OCF growth 3Y-42.91%
OCF growth 5Y50.12%