WEST FRASER TIMBER CO LTD (WFG.CA) Stock Fundamental Analysis
Canada - TSX:WFG - CA9528451052 - Common Stock
104.51 CAD
-1.7 (-1.6%)
Taking everything into account, WFG scores 5 out of 10 in our fundamental rating. WFG was compared to 12 industry peers in the Paper & Forest Products industry. WFG has an excellent financial health rating, but there are some minor concerns on its profitability. WFG has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year WFG has reported negative net income.
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 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
WFG's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 27.77%, WFG belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
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.
Compared to 1 year ago, WFG has less shares outstanding
The number of shares outstanding for WFG has been increased compared to 5 years ago.
WFG has a better debt/assets ratio than last year.
2.2 Solvency
WFG has an Altman-Z score of 3.47. This indicates that WFG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.47, WFG belongs to the best of the industry, outperforming 91.67% 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.
Looking at the Debt to FCF ratio, with a value of 3.74, WFG belongs to the top 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 better Debt to Equity ratio (0.05) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 3.74 | ||
| Altman-Z | 3.47 |
ROIC/WACCN/A
WACC7.99%
2.3 Liquidity
A Current Ratio of 2.89 indicates that WFG has no problem at all paying its short term obligations.
The Current ratio of WFG (2.89) is better 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.
WFG has a better Quick ratio (1.61) than 91.67% of its industry peers.
| 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.
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)-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 Y21.44%
EPS Next 2Y335.26%
EPS Next 3Y269.3%
EPS Next 5Y125.48%
Revenue Next Year-6.25%
Revenue Next 2Y0.83%
Revenue Next 3Y2.55%
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
WFG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 24.74 indicates a rather expensive valuation of WFG.
The rest of the industry has a similar Price/Forward Earnings ratio as WFG.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, WFG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 24.74 |
4.2 Price Multiples
WFG's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 67.63 | ||
| EV/EBITDA | 11.86 |
4.3 Compensation for Growth
WFG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WFG's earnings are expected to grow with 269.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y335.26%
EPS Next 3Y269.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, WFG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.90, WFG pays a bit more dividend than its industry peers.
WFG's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
On average, the dividend of WFG grows each year by 15.82%, which is quite nice.
WFG has paid a dividend for at least 10 years, which is 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
The earnings of WFG are negative and hence is the payout ratio. WFG will probably not be able to sustain this dividend level.
WFG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-81.1%
EPS Next 2Y335.26%
EPS Next 3Y269.3%
TSX:WFG (9/12/2025, 7:00:00 PM)
104.51
-1.7 (-1.6%)
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 Cap8.24B
Analysts82
Price Target99.08 (-5.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend1.73
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)-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)-0.55%
PT rev (3m)-7.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-144.57%
EPS NY rev (1m)-103.39%
EPS NY rev (3m)-103.39%
Revenue NQ rev (1m)-15.04%
Revenue NQ rev (3m)-17.55%
Revenue NY rev (1m)-2.76%
Revenue NY rev (3m)-6.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 24.74 | ||
| P/S | 1.02 | ||
| P/FCF | 67.63 | ||
| P/OCF | 11.17 | ||
| P/B | 0.86 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 11.86 |
EPS(TTM)-2.38
EYN/A
EPS(NY)4.22
Fwd EY4.04%
FCF(TTM)1.55
FCFY1.48%
OCF(TTM)9.36
OCFY8.96%
SpS102.43
BVpS121.13
TBVpS77.07
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 | 3.47 |
F-Score4
WACC7.99%
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 Y21.44%
EPS Next 2Y335.26%
EPS Next 3Y269.3%
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-6.25%
Revenue Next 2Y0.83%
Revenue Next 3Y2.55%
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%