Taking everything into account, WFG scores 4 out of 10 in our fundamental rating. WFG was compared to 9 industry peers in the Paper & Forest Products industry. The financial health of WFG is average, but there are quite some concerns on its profitability. WFG does not seem to be growing, but still is valued expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

WFG had negative earnings in the past year.
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

With a Return On Assets value of -2.89%, WFG perfoms like the industry average, outperforming 55.56% of the companies in the same 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

In the last couple of years the Operating Margin of WFG has declined.
WFG has a Gross Margin of 25.57%. This is amongst the best in 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
WFG has more shares outstanding than it did 5 years ago.
WFG has a better debt/assets ratio than last year.

2.2 Solvency

WFG has an Altman-Z score of 3.13. 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 3.13, 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's Debt to FCF ratio of 26.92 is in line compared to the rest of the industry. WFG outperforms 44.44% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that WFG is not too dependend on debt financing.
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	3.13

ROIC/WACCN/A

WACC7.88%

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 better than 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.
WFG's Quick ratio of 1.32 is in line compared to the rest of the industry. WFG outperforms 55.56% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.39
Quick Ratio	1.32

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for WFG have decreased strongly by -167.74% in the last year.
Looking at the last year, WFG shows a decrease in Revenue. The Revenue has decreased by -9.23% 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)-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

The Earnings Per Share is expected to grow by 118.65% 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 2.70% yearly.

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

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for WFG. In the last year negative earnings were reported.
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

Based on the Enterprise Value to EBITDA ratio, WFG is valued a bit more expensive than 77.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WFG is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.

		Industry Rank	Sector Rank
P/FCF	471.14
EV/EBITDA	18.58

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%

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5. Dividend

5.1 Amount

WFG has a Yearly Dividend Yield of 1.88%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.37, WFG pays a bit more dividend than its industry peers.
WFG's Dividend Yield is comparable with the S&P500 average which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	1.88%

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%

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WEST FRASER TIMBER CO LTD / WFG FAQ

What is the fundamental rating for WFG stock?

ChartMill assigns a fundamental rating of 4 / 10 to WFG.

Can you provide the valuation status for WEST FRASER TIMBER CO LTD?

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.

Can you provide the expected EPS growth for WFG stock?

The Earnings per Share (EPS) of WEST FRASER TIMBER CO LTD (WFG) is expected to decline by -2393.2% in the next year.

Can you provide the dividend sustainability for WFG stock?

The dividend rating of WEST FRASER TIMBER CO LTD (WFG) is 5 / 10 and the dividend payout ratio is -41.13%.