WEST FRASER TIMBER CO LTD (WFG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WFG - CA9528451052 - Common Stock
59.72 USD
+1.66 (+2.86%)
59.72 USD
0 (0%)
WFG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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
WFG had negative earnings in the past year.
In the past year WFG had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of -2.89%, WFG is in line with its industry, outperforming 55.56% of the companies in the same industry.
WFG has a Return On Equity of -3.74%. This is comparable to the rest of the industry: WFG outperforms 55.56% of 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 has a Gross Margin of 25.57%. This is amongst the best in the industry. WFG outperforms 88.89% of its industry peers.
WFG's Gross Margin has improved in the last couple of years.
The Profit Margin and Operating Margin are not available for WFG so they could not be analyzed.
| 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.
WFG has less shares outstanding than it did 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 2.87. This is not the best score and indicates that WFG is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.87, WFG is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
The Debt to FCF ratio of WFG is 26.92, which is on the high side as it means it would take WFG, 26.92 years of fcf income to pay off all of its debts.
WFG has a Debt to FCF ratio (26.92) which is in line with 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 has a better Debt to Equity ratio (0.05) than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 26.92 | ||
| Altman-Z | 2.87 |
ROIC/WACCN/A
WACC7.61%
2.3 Liquidity
WFG has a Current Ratio of 2.39. This indicates that WFG is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of WFG (2.39) is comparable to the rest of the industry.
A Quick Ratio of 1.32 indicates that WFG should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.32, WFG perfoms like the industry average, outperforming 55.56% of the companies in the same 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.
The Revenue has been growing by 10.92% on average over the past years. This is quite good.
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 118.50% yearly.
The Revenue is expected to grow by 2.70% on average over the next years.
EPS Next Y-1856.41%
EPS Next 2Y84.97%
EPS Next 3Y253.71%
EPS Next 5Y118.5%
Revenue Next Year-10.68%
Revenue Next 2Y-1.13%
Revenue Next 3Y2.2%
Revenue Next 5Y2.7%
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.
WFG is valuated quite expensively with a Price/Forward Earnings ratio of 233.41.
WFG's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.42, WFG is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 233.41 |
4.2 Price Multiples
WFG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. WFG is more expensive than 77.78% of the companies in the same industry.
WFG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 391.61 | ||
| EV/EBITDA | 15.54 |
4.3 Compensation for Growth
WFG's earnings are expected to grow with 253.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y84.97%
EPS Next 3Y253.71%
5. Dividend
5.1 Amount
WFG has a Yearly Dividend Yield of 2.15%. Purely for dividend investing, there may be better candidates out there.
The stock price of WFG dropped by -21.37% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 6.38, WFG pays a bit more dividend than its industry peers.
WFG's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
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.
The dividend of WFG decreased in the last 3 years.
Dividend Growth(5Y)15.82%
Div Incr Years2
Div Non Decr Years2
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-41.13%
EPS Next 2Y84.97%
EPS Next 3Y253.71%
59.72
+1.66 (+2.86%)
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 Cap4.70B
Revenue(TTM)5.70B
Net Income(TTM)-248.00M
Analysts80
Price Target68.3 (14.37%)
Short Float %3.3%
Short Ratio7.25
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)-3.09%
PT rev (3m)-4.89%
EPS NQ rev (1m)-379.65%
EPS NQ rev (3m)-3111.11%
EPS NY rev (1m)-380.92%
EPS NY rev (3m)-2390.48%
Revenue NQ rev (1m)-6.84%
Revenue NQ rev (3m)-13.99%
Revenue NY rev (1m)-4.86%
Revenue NY rev (3m)-4.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 233.41 | ||
| P/S | 0.82 | ||
| P/FCF | 391.61 | ||
| P/OCF | 10.66 | ||
| P/B | 0.71 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 15.54 |
EPS(TTM)-3.32
EYN/A
EPS(NY)0.26
Fwd EY0.43%
FCF(TTM)0.15
FCFY0.26%
OCF(TTM)5.6
OCFY9.38%
SpS72.47
BVpS84.17
TBVpS52.52
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 | 2.87 |
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-1856.41%
EPS Next 2Y84.97%
EPS Next 3Y253.71%
EPS Next 5Y118.5%
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 Year410.48%
EBIT Next 3Y135.05%
EBIT Next 5Y73.79%
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 4 / 10 to WFG.
What is the valuation status for WFG stock?
ChartMill assigns a valuation rating of 2 / 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.