WEST FRASER TIMBER CO LTD (WFG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WFG - CA9528451052 - Common Stock
62.34 USD
+0.36 (+0.58%)
62.34 USD
0 (0%)
Taking everything into account, WFG scores 3 out of 10 in our fundamental rating. WFG was compared to 9 industry peers in the Paper & Forest Products industry. While WFG seems to be doing ok healthwise, there are quite some concerns on its profitability. WFG is valued expensive and it does not seem to be growing.
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.
In the past 5 years WFG always reported a positive cash flow from operatings.
1.2 Ratios
WFG has a Return On Assets (-2.89%) which is comparable to the rest of the industry.
WFG has a Return On Equity (-3.74%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.89% | ||
| ROE | -3.74% | ||
| 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.
WFG's Gross Margin of 25.57% is amongst the best of the industry. WFG outperforms 88.89% of its industry peers.
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 | 25.57% |
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
WFG has more shares outstanding than it did 5 years ago.
WFG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.92 indicates that WFG is not a great score, but indicates only limited risk for bankruptcy at the moment.
WFG's Altman-Z score of 2.92 is fine compared to the rest of the industry. WFG outperforms 77.78% of its industry peers.
WFG has a debt to FCF ratio of 26.92. This is a negative value and a sign of low solvency as WFG would need 26.92 years to pay back of all of its debts.
WFG has a Debt to FCF ratio of 26.92. This is comparable to the rest of the industry: WFG outperforms 44.44% of its industry peers.
WFG has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
WFG's Debt to Equity ratio of 0.05 is amongst the best of the industry. WFG outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 26.92 | ||
| Altman-Z | 2.92 |
ROIC/WACCN/A
WACC7.61%
2.3 Liquidity
A Current Ratio of 2.39 indicates that WFG has no problem at all paying its short term obligations.
WFG's Current ratio of 2.39 is fine compared to the rest of the industry. WFG outperforms 66.67% of its industry peers.
WFG has a Quick Ratio of 1.32. This is a normal value and indicates that WFG is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of WFG (1.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The earnings per share for WFG have decreased strongly by -167.74% in the last year.
The Revenue has decreased by -9.23% in the past 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)-167.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-155.34%
Revenue 1Y (TTM)-9.23%
Revenue growth 3Y-16.27%
Revenue growth 5Y10.92%
Sales Q2Q%-9.05%
3.2 Future
WFG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 118.65% yearly.
The Revenue is expected to grow by 2.70% on average over the next years.
EPS Next Y-2393.2%
EPS Next 2Y-77.79%
EPS Next 3Y219.3%
EPS Next 5Y118.65%
Revenue Next Year-10.68%
Revenue Next 2Y-1.13%
Revenue Next 3Y2.2%
Revenue Next 5Y2.7%
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.
Also next year WFG is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WFG indicates a slightly more expensive valuation: WFG is more expensive than 77.78% of the companies listed in the same industry.
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 | 407.03 | ||
| EV/EBITDA | 16.19 |
4.3 Compensation for Growth
A more expensive valuation may be justified as WFG's earnings are expected to grow with 219.30% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-77.79%
EPS Next 3Y219.3%
5. Dividend
5.1 Amount
WFG has a Yearly Dividend Yield of 2.15%.
Compared to an average industry Dividend Yield of 5.49, WFG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, WFG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
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 decreased its dividend in the last 3 years.
Dividend Growth(5Y)15.82%
Div Incr Years2
Div Non Decr Years2
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-41.13%
EPS Next 2Y-77.79%
EPS Next 3Y219.3%
62.34
+0.36 (+0.58%)
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 Cap4.88B
Revenue(TTM)5.70B
Net Income(TTM)-248.00M
Analysts80
Price Target68.66 (10.14%)
Short Float %3.58%
Short Ratio7.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
Yearly Dividend1.25
Dividend Growth(5Y)15.82%
DP-41.13%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-132.44%
Min EPS beat(2)-146.07%
Max EPS beat(2)-118.82%
EPS beat(4)0
Avg EPS beat(4)-445.1%
Min EPS beat(4)-1486.14%
Max EPS beat(4)-29.39%
EPS beat(8)1
Avg EPS beat(8)-259.45%
EPS beat(12)2
Avg EPS beat(12)-260.16%
EPS beat(16)5
Avg EPS beat(16)-191.85%
Revenue beat(2)0
Avg Revenue beat(2)-5.59%
Min Revenue beat(2)-6.51%
Max Revenue beat(2)-4.67%
Revenue beat(4)0
Avg Revenue beat(4)-4.79%
Min Revenue beat(4)-6.51%
Max Revenue beat(4)-1.75%
Revenue beat(8)4
Avg Revenue beat(8)0.15%
Revenue beat(12)4
Avg Revenue beat(12)-1.23%
Revenue beat(16)7
Avg Revenue beat(16)-0.04%
PT rev (1m)-0.17%
PT rev (3m)-4.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3111.11%
EPS NY rev (1m)-27.44%
EPS NY rev (3m)-3073.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.86 | ||
| P/FCF | 407.03 | ||
| P/OCF | 11.08 | ||
| P/B | 0.74 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 16.19 |
EPS(TTM)-3.32
EYN/A
EPS(NY)-0.57
Fwd EYN/A
FCF(TTM)0.15
FCFY0.25%
OCF(TTM)5.63
OCFY9.03%
SpS72.79
BVpS84.53
TBVpS52.75
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.89% | ||
| ROE | -3.74% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 25.57% | ||
| FCFM | 0.21% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 26.92 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 79.74% | ||
| Cap/Sales | 7.52% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 153.13% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 2.92 |
F-Score4
WACC7.61%
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)-167.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-155.34%
EPS Next Y-2393.2%
EPS Next 2Y-77.79%
EPS Next 3Y219.3%
EPS Next 5Y118.65%
Revenue 1Y (TTM)-9.23%
Revenue growth 3Y-16.27%
Revenue growth 5Y10.92%
Sales Q2Q%-9.05%
Revenue Next Year-10.68%
Revenue Next 2Y-1.13%
Revenue Next 3Y2.2%
Revenue Next 5Y2.7%
EBIT growth 1Y-580.77%
EBIT growth 3Y-69.77%
EBIT growth 5YN/A
EBIT Next Year1.13%
EBIT Next 3Y123.2%
EBIT Next 5Y73.84%
FCF growth 1Y-88.78%
FCF growth 3Y-60.93%
FCF growth 5YN/A
OCF growth 1Y-23.44%
OCF growth 3Y-42.91%
OCF growth 5Y50.12%
WEST FRASER TIMBER CO LTD / WFG FAQ
What is the ChartMill fundamental rating of WEST FRASER TIMBER CO LTD (WFG) stock?
ChartMill assigns a fundamental rating of 3 / 10 to WFG.
What is the valuation status for WFG stock?
ChartMill assigns a valuation rating of 1 / 10 to WEST FRASER TIMBER CO LTD (WFG). This can be considered as Overvalued.
Can you provide the profitability details for WEST FRASER TIMBER CO LTD?
WEST FRASER TIMBER CO LTD (WFG) has a profitability rating of 3 / 10.
What is the financial health of WEST FRASER TIMBER CO LTD (WFG) stock?
The financial health rating of WEST FRASER TIMBER CO LTD (WFG) is 5 / 10.