WEST FRASER TIMBER CO LTD (WFG.CA) Stock Fundamental Analysis
Canada - TSX:WFG - CA9528451052 - Common Stock
96.45 CAD
-0.44 (-0.45%)
WFG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 does not seem to be growing, but still is valued expensively.
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.
In multiple years WFG reported negative net income over the last 5 years.
In the past 5 years WFG always reported a positive cash flow from operatings.
1.2 Ratios
WFG has a better Return On Assets (-1.45%) than 75.00% of its industry peers.
With a decent Return On Equity value of -1.84%, WFG is doing good in the industry, outperforming 75.00% of the companies in the same 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.
Looking at the Gross Margin, with a value of 27.77%, WFG belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Gross Margin of WFG has grown nicely.
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.
WFG has less shares outstanding than it did 1 year ago.
WFG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WFG has been reduced compared to a year ago.
2.2 Solvency
WFG has an Altman-Z score of 3.30. This indicates that WFG is financially healthy and has little risk of bankruptcy at the moment.
WFG has a better Altman-Z score (3.30) than 91.67% of its industry peers.
WFG has a debt to FCF ratio of 3.74. This is a good value and a sign of high solvency as WFG would need 3.74 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.74, WFG belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
WFG has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
WFG has a Debt to Equity ratio of 0.05. This is amongst the best in the industry. WFG outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 3.74 | ||
| Altman-Z | 3.3 |
ROIC/WACCN/A
WACC7.93%
2.3 Liquidity
A Current Ratio of 2.89 indicates that WFG has no problem at all paying its short term obligations.
WFG has a better Current ratio (2.89) than 91.67% 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.
Looking at the Quick ratio, with a value of 1.61, WFG belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
The earnings per share for WFG have decreased strongly by -207.50% in the last year.
Looking at the last year, WFG shows a very negative growth in Revenue. The Revenue has decreased by -10.96% in the last year.
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)-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
Based on estimates for the next years, WFG will show a very strong growth in Earnings Per Share. The EPS will grow by 125.48% on average per year.
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 Y-306.81%
EPS Next 2Y340.87%
EPS Next 3Y257.77%
EPS Next 5Y125.48%
Revenue Next Year-6.12%
Revenue Next 2Y1.57%
Revenue Next 3Y3.08%
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.
A Price/Forward Earnings ratio of 21.85 indicates a rather expensive valuation of WFG.
The rest of the industry has a similar Price/Forward Earnings ratio as WFG.
WFG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 21.85 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WFG.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WFG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.32 | ||
| EV/EBITDA | 10.74 |
4.3 Compensation for Growth
WFG's earnings are expected to grow with 257.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y340.87%
EPS Next 3Y257.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.92%, WFG has a reasonable but not impressive dividend return.
WFG's Dividend Yield is a higher than the industry average which is at 6.04.
WFG's Dividend Yield is slightly below the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.82%
Div Incr Years4
Div Non Decr Years14
5.3 Sustainability
WFG has negative earnings and hence a negative payout ratio. The dividend may be in danger.
WFG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-81.1%
EPS Next 2Y340.87%
EPS Next 3Y257.77%
TSX:WFG (10/15/2025, 7:00:00 PM)
96.45
-0.44 (-0.45%)
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 Cap7.59B
Analysts80
Price Target98.23 (1.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Yearly Dividend1.75
Dividend Growth(5Y)15.82%
DP-81.1%
Div Incr Years4
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-87.73%
Min EPS beat(2)-146.07%
Max EPS beat(2)-29.39%
EPS beat(4)0
Avg EPS beat(4)-434.55%
Min EPS beat(4)-1486.14%
Max EPS beat(4)-29.39%
EPS beat(8)2
Avg EPS beat(8)-240.5%
EPS beat(12)3
Avg EPS beat(12)-246.46%
EPS beat(16)6
Avg EPS beat(16)-184.43%
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)-1.4%
PT rev (3m)-3.93%
EPS NQ rev (1m)-56.58%
EPS NQ rev (3m)-220.2%
EPS NY rev (1m)-417.86%
EPS NY rev (3m)-117.53%
Revenue NQ rev (1m)1.15%
Revenue NQ rev (3m)-12.52%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-6.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 21.85 | ||
| P/S | 0.93 | ||
| P/FCF | 61.32 | ||
| P/OCF | 10.12 | ||
| P/B | 0.78 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 10.74 |
EPS(TTM)-2.42
EYN/A
EPS(NY)4.41
Fwd EY4.58%
FCF(TTM)1.57
FCFY1.63%
OCF(TTM)9.53
OCFY9.88%
SpS104.26
BVpS123.29
TBVpS78.45
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 | 3.3 |
F-Score4
WACC7.93%
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 Y-306.81%
EPS Next 2Y340.87%
EPS Next 3Y257.77%
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-6.12%
Revenue Next 2Y1.57%
Revenue Next 3Y3.08%
Revenue Next 5Y3.18%
EBIT growth 1Y-119.17%
EBIT growth 3Y-69.77%
EBIT growth 5YN/A
EBIT Next Year410.48%
EBIT Next 3Y135.05%
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%