WEST FRASER TIMBER CO LTD (WFG) Stock Fundamental Analysis
NYSE:WFG - New York Stock Exchange, Inc. - CA9528451052 - Common Stock - Currency: USD
WFG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 9 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 decent growth rate and is not valued too expensively.
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.
In multiple years WFG reported negative net income over the last 5 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 fine compared to the rest of the industry. WFG outperforms 66.67% of its industry peers.
The Return On Equity of WFG (0.03%) is better than 66.67% of its industry peers.
With a Return On Invested Capital value of 1.15%, WFG perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.02% | ||
| ROE | 0.03% | ||
| ROIC | 1.15% |
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 Profit Margin of 0.03% is fine compared to the rest of the industry. WFG outperforms 66.67% of its industry peers.
Looking at the Operating Margin, with a value of 1.90%, WFG is in line with its industry, outperforming 44.44% of the companies in the same industry.
In the last couple of years the Operating Margin of WFG has declined.
With an excellent Gross Margin value of 30.12%, WFG belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Gross Margin of WFG has grown nicely.
| 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.
The number of shares outstanding for WFG has been reduced compared to 1 year ago.
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 3.59. 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 3.59, WFG is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
WFG has a debt to FCF ratio of 1.42. This is a very positive value and a sign of high solvency as it would only need 1.42 years to pay back of all of its debts.
WFG's Debt to FCF ratio of 1.42 is amongst the best of the industry. WFG outperforms 88.89% of its industry peers.
WFG has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
WFG has a better Debt to Equity ratio (0.00) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 3.59 |
ROIC/WACC0.15
WACC7.73%
2.3 Liquidity
WFG has a Current Ratio of 2.09. This indicates that WFG is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.09, WFG is in line with its industry, outperforming 55.56% of the companies in the same 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 in the lower half of the industry: WFG underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 88.03% over the past year.
Looking at the last year, WFG shows a decrease in Revenue. The Revenue has decreased by -6.94% 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)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.
Based on estimates for the next years, WFG will show a small growth in Revenue. The Revenue will grow by 4.14% on average per year.
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
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
WFG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 9.99 indicates a reasonable valuation of WFG.
WFG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WFG is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, WFG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.99 |
4.2 Price Multiples
WFG's Enterprise Value to EBITDA ratio is in line with the industry average.
66.67% of the companies in the same industry are cheaper than WFG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.31 | ||
| EV/EBITDA | 8.88 |
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 277.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y566.27%
EPS Next 3Y277.88%
5. Dividend
5.1 Amount
WFG has a Yearly Dividend Yield of 1.80%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.15, WFG pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.37, WFG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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 decreased its dividend in the last 3 years.
Dividend Growth(5Y)15.82%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
5150.00% of the earnings are spent on dividend by WFG. This is not a sustainable payout ratio.
The dividend of WFG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP5150%
EPS Next 2Y566.27%
EPS Next 3Y277.88%
NYSE:WFG (7/9/2025, 9:57:35 AM)
76.2
+0.44 (+0.58%)
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 Cap6.05B
Analysts82
Price Target74.67 (-2.01%)
Short Float %3.06%
Short Ratio8.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
Yearly Dividend1.25
Dividend Growth(5Y)15.82%
DP5150%
Div Incr Years2
Div Non Decr Years2
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)-3.47%
PT rev (3m)-4.92%
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 | 9.99 | ||
| P/S | 1.01 | ||
| P/FCF | 38.31 | ||
| P/OCF | 9.65 | ||
| P/B | 0.87 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 8.88 |
EPS(TTM)-0.14
EYN/A
EPS(NY)7.63
Fwd EY10.01%
FCF(TTM)1.99
FCFY2.61%
OCF(TTM)7.89
OCFY10.36%
SpS75.61
BVpS87.36
TBVpS55.61
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.02% | ||
| ROE | 0.03% | ||
| ROCE | 1.45% | ||
| ROIC | 1.15% | ||
| ROICexc | 1.21% | ||
| ROICexgc | 1.82% | ||
| 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 | 3.59 |
F-Score7
WACC7.73%
ROIC/WACC0.15
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%