WEST FRASER TIMBER CO LTD (WFG.CA) Stock Fundamental Analysis
TSX:WFG - Toronto Stock Exchange - CA9528451052 - Common Stock - Currency: CAD
Taking everything into account, WFG scores 6 out of 10 in our fundamental rating. WFG was compared to 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
WFG had positive earnings in the past year.
WFG had a positive operating cash flow in the past year.
In multiple years WFG reported negative net income over the last 5 years.
Each year in the past 5 years WFG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.06%, WFG is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of -0.07%, WFG is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
WFG has a better Return On Invested Capital (0.99%) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.06% | ||
| ROE | -0.07% | ||
| ROIC | 0.99% |
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
The Operating Margin of WFG (1.75%) is better than 66.67% of its industry peers.
In the last couple of years the Operating Margin of WFG has declined.
WFG's Gross Margin of 29.80% 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 | 1.75% | ||
| PM (TTM) | N/A | ||
| GM | 29.8% |
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 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, WFG has less shares outstanding
Compared to 5 years ago, WFG has more shares outstanding
WFG has a better debt/assets ratio than last year.
2.2 Solvency
WFG has an Altman-Z score of 3.69. This indicates that WFG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.69, WFG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of WFG is 1.21, which is an excellent value as it means it would take WFG, only 1.21 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.21, WFG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
WFG has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
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 | 1.21 | ||
| Altman-Z | 3.69 |
ROIC/WACC0.13
WACC7.77%
2.3 Liquidity
WFG has a Current Ratio of 1.97. 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 Current ratio, with a value of 1.97, WFG is in line with its industry, outperforming 41.67% of the companies in the same industry.
WFG has a Quick Ratio of 1.06. This is a normal value and indicates that WFG is financially healthy and should not expect problems in meeting its short term obligations.
WFG's Quick ratio of 1.06 is fine compared to the rest of the industry. WFG outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 131.75% over the past year.
WFG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -70.74% yearly.
The Revenue has decreased by -4.34% in the past year.
The Revenue has been growing by 10.92% on average over the past years. This is quite good.
EPS 1Y (TTM)131.75%
EPS 3Y-70.74%
EPS 5YN/A
EPS Q2Q%104.37%
Revenue 1Y (TTM)-4.34%
Revenue growth 3Y-16.27%
Revenue growth 5Y10.92%
Sales Q2Q%-7.2%
3.2 Future
The Earnings Per Share is expected to grow by 69.61% on average over the next years. This is a very strong growth
WFG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.62% yearly.
EPS Next Y611.15%
EPS Next 2Y281.06%
EPS Next 3Y142.88%
EPS Next 5Y69.61%
Revenue Next Year4.15%
Revenue Next 2Y5.56%
Revenue Next 3Y6.18%
Revenue Next 5Y4.62%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 116.80, WFG can be considered very expensive at the moment.
Based on the Price/Earnings ratio, WFG is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. WFG is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 16.41, which indicates a correct valuation of WFG.
66.67% of the companies in the same industry are more expensive than WFG, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, WFG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 116.8 | ||
| Fwd PE | 16.41 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than WFG, based on the Enterprise Value to EBITDA ratio.
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 | 35.8 | ||
| EV/EBITDA | 8.83 |
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.
WFG's earnings are expected to grow with 142.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y281.06%
EPS Next 3Y142.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.66%, WFG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.93, WFG pays a bit more dividend than its industry peers.
WFG's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
On average, the dividend of WFG grows each year by 15.82%, which is quite nice.
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 Years3
Div Non Decr Years13
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-2020%
EPS Next 2Y281.06%
EPS Next 3Y142.88%
TSX:WFG (3/7/2025, 7:00:00 PM)
112.13
+0.72 (+0.65%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners50.94%
Inst Owner ChangeN/A
Ins Owners1.78%
Ins Owner ChangeN/A
Market Cap8.93B
Analysts82.22
Price Target112.82 (0.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
Yearly Dividend1.79
Dividend Growth(5Y)15.82%
DP-2020%
Div Incr Years3
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)28.92%
Min EPS beat(2)-76.59%
Max EPS beat(2)134.44%
EPS beat(4)2
Avg EPS beat(4)38.94%
Min EPS beat(4)-76.59%
Max EPS beat(4)134.44%
EPS beat(8)3
Avg EPS beat(8)-74.87%
EPS beat(12)6
Avg EPS beat(12)-95.57%
EPS beat(16)9
Avg EPS beat(16)-70.94%
Revenue beat(2)1
Avg Revenue beat(2)1.29%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)2.94%
Revenue beat(4)3
Avg Revenue beat(4)4.54%
Min Revenue beat(4)-0.35%
Max Revenue beat(4)9.49%
Revenue beat(8)4
Avg Revenue beat(8)1.31%
Revenue beat(12)7
Avg Revenue beat(12)1.75%
Revenue beat(16)9
Avg Revenue beat(16)1.73%
PT rev (1m)-2.75%
PT rev (3m)-2.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.9%
EPS NY rev (1m)-9.37%
EPS NY rev (3m)-5.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.02%
Revenue NY rev (1m)-2.06%
Revenue NY rev (3m)-1.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 116.8 | ||
| Fwd PE | 16.41 | ||
| P/S | 1.01 | ||
| P/FCF | 35.8 | ||
| P/OCF | 9.42 | ||
| P/B | 0.9 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 8.83 |
EPS(TTM)0.96
EY0.86%
EPS(NY)6.83
Fwd EY6.09%
FCF(TTM)3.13
FCFY2.79%
OCF(TTM)11.9
OCFY10.61%
SpS111.13
BVpS125.17
TBVpS79.49
PEG (NY)0.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.06% | ||
| ROE | -0.07% | ||
| ROCE | 1.38% | ||
| ROIC | 0.99% | ||
| ROICexc | 1.08% | ||
| ROICexgc | 1.67% | ||
| OM | 1.75% | ||
| PM (TTM) | N/A | ||
| GM | 29.8% | ||
| FCFM | 2.82% |
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 Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.21 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 88.71% | ||
| Cap/Sales | 7.89% | ||
| Interest Coverage | 4 | ||
| Cash Conversion | 100.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 3.69 |
F-Score7
WACC7.77%
ROIC/WACC0.13
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)131.75%
EPS 3Y-70.74%
EPS 5YN/A
EPS Q2Q%104.37%
EPS Next Y611.15%
EPS Next 2Y281.06%
EPS Next 3Y142.88%
EPS Next 5Y69.61%
Revenue 1Y (TTM)-4.34%
Revenue growth 3Y-16.27%
Revenue growth 5Y10.92%
Sales Q2Q%-7.2%
Revenue Next Year4.15%
Revenue Next 2Y5.56%
Revenue Next 3Y6.18%
Revenue Next 5Y4.62%
EBIT growth 1Y2260%
EBIT growth 3Y-69.77%
EBIT growth 5YN/A
EBIT Next Year5276.24%
EBIT Next 3Y316.83%
EBIT Next 5Y139.57%
FCF growth 1Y262.5%
FCF growth 3Y-60.93%
FCF growth 5YN/A
OCF growth 1Y25.9%
OCF growth 3Y-42.91%
OCF growth 5Y50.12%