WEST FRASER TIMBER CO LTD (WFG) Stock Fundamental Analysis
USA - NYSE:WFG - CA9528451052 - Common Stock
74.46 USD
-0.96 (-1.27%)
74.46 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. No worries on liquidiy or solvency for WFG as it has an excellent financial health rating, but there are worries on the profitability. WFG does not seem to be growing, but still is valued 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
Looking at the Return On Assets, with a value of -1.45%, WFG is in line with its industry, outperforming 55.56% of the companies in the same industry.
WFG's Return On Equity of -1.84% is in line compared to the rest of the industry. WFG outperforms 55.56% of its industry peers.
| 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.
The Gross Margin of WFG (27.77%) is better than 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 | 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.
Compared to 1 year ago, WFG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.47 indicates that WFG is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.47, WFG is doing good in the industry, outperforming 77.78% of the companies in the same industry.
WFG has a debt to FCF ratio of 3.74. This is a good value and a sign of high solvency as WFG would need 3.74 years to pay back of all of its debts.
The Debt to FCF ratio of WFG (3.74) is better than 66.67% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that WFG is not too dependend on debt financing.
The Debt to Equity ratio of WFG (0.05) is better than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 3.74 | ||
| Altman-Z | 3.47 |
ROIC/WACCN/A
WACC7.97%
2.3 Liquidity
A Current Ratio of 2.89 indicates that WFG has no problem at all paying its short term obligations.
WFG has a Current ratio of 2.89. This is in the better half of the industry: WFG outperforms 77.78% of its industry peers.
A Quick Ratio of 1.61 indicates that WFG should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.61, WFG is in line with its industry, outperforming 55.56% of the companies in the same industry.
| 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.
The Revenue for WFG has decreased by -10.96% in the past year. This is quite bad
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
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 24.41 indicates a rather expensive valuation of WFG.
WFG's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.77. WFG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 24.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WFG is valued a bit more expensive than 66.67% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as WFG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.73 | ||
| EV/EBITDA | 11.85 |
4.3 Compensation for Growth
The 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
WFG has a Yearly Dividend Yield of 1.84%. Purely for dividend investing, there may be better candidates out there.
WFG's Dividend Yield is a higher than the industry average which is at 4.17.
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.
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
WFG has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of WFG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-81.1%
EPS Next 2Y335.26%
EPS Next 3Y269.3%
74.46
-0.96 (-1.27%)
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 Cap5.87B
Analysts82
Price Target71.58 (-3.87%)
Short Float %3.14%
Short Ratio6.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend1.25
Dividend Growth(5Y)15.82%
DP-81.1%
Div Incr Years2
Div Non Decr Years2
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)-1.41%
PT rev (3m)-7.94%
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 | 24.41 | ||
| P/S | 1.01 | ||
| P/FCF | 66.73 | ||
| P/OCF | 11.02 | ||
| P/B | 0.85 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | 11.85 |
EPS(TTM)-1.72
EYN/A
EPS(NY)3.05
Fwd EY4.1%
FCF(TTM)1.12
FCFY1.5%
OCF(TTM)6.76
OCFY9.08%
SpS73.97
BVpS87.47
TBVpS55.66
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
WACC7.97%
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%