WEST FRASER TIMBER CO LTD (WFG) Stock Fundamental Analysis
USA - NYSE:WFG - CA9528451052 - Common Stock
66.86 USD
-0.28 (-0.42%)
66.86 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to WFG. WFG was compared to 9 industry peers in the Paper & Forest Products industry. While WFG has a great health rating, there are worries 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.
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
With a Return On Assets value of -1.45%, WFG perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
The Return On Equity of WFG (-1.84%) is comparable to the rest of the industry.
| 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.
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 | 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
Compared to 5 years ago, WFG has more shares outstanding
The debt/assets ratio for WFG has been reduced compared to a year ago.
2.2 Solvency
WFG has an Altman-Z score of 3.25. This indicates that WFG is financially healthy and has little risk of bankruptcy at the moment.
WFG has a better Altman-Z score (3.25) than 77.78% of its industry peers.
The Debt to FCF ratio of WFG is 3.74, which is a good value as it means it would take WFG, 3.74 years of fcf income to pay off all of its debts.
WFG has a better Debt to FCF ratio (3.74) than 66.67% 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 | 3.74 | ||
| Altman-Z | 3.25 |
ROIC/WACCN/A
WACC7.9%
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 better Current ratio (2.89) than 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
WFG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -207.50%.
The Revenue for WFG has decreased by -10.96% in the past year. This is quite bad
Measured over the past years, WFG shows a quite strong growth in Revenue. The Revenue has been growing by 10.92% on average per year.
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
The Earnings Per Share is expected to grow by 125.48% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.18% on average over the next years.
EPS Next Y-306.81%
EPS Next 2Y340.87%
EPS Next 3Y257.77%
EPS Next 5Y125.48%
Revenue Next Year-6.12%
Revenue Next 2Y1.57%
Revenue Next 3Y3.08%
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
The Price/Earnings Ratio is negative for WFG. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 21.30, the valuation of WFG can be described as rather expensive.
WFG's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, WFG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 21.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WFG is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WFG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.79 | ||
| EV/EBITDA | 10.41 |
4.3 Compensation for Growth
WFG's earnings are expected to grow with 257.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y340.87%
EPS Next 3Y257.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.96%, WFG has a reasonable but not impressive dividend return.
WFG's Dividend Yield is a higher than the industry average which is at 4.15.
WFG's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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.
The dividend of WFG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-81.1%
EPS Next 2Y340.87%
EPS Next 3Y257.77%
66.86
-0.28 (-0.42%)
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 Cap5.26B
Analysts80
Price Target70.48 (5.41%)
Short Float %3.35%
Short Ratio7.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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)-87.73%
Min EPS beat(2)-146.07%
Max EPS beat(2)-29.39%
EPS beat(4)0
Avg EPS beat(4)-434.55%
Min EPS beat(4)-1486.14%
Max EPS beat(4)-29.39%
EPS beat(8)2
Avg EPS beat(8)-240.5%
EPS beat(12)3
Avg EPS beat(12)-246.46%
EPS beat(16)6
Avg EPS beat(16)-184.43%
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)-1.54%
PT rev (3m)-5.4%
EPS NQ rev (1m)-56.58%
EPS NQ rev (3m)-220.2%
EPS NY rev (1m)-417.86%
EPS NY rev (3m)-117.53%
Revenue NQ rev (1m)1.15%
Revenue NQ rev (3m)-12.52%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-6.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 21.3 | ||
| P/S | 0.9 | ||
| P/FCF | 59.79 | ||
| P/OCF | 9.87 | ||
| P/B | 0.76 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 10.41 |
EPS(TTM)-1.72
EYN/A
EPS(NY)3.14
Fwd EY4.69%
FCF(TTM)1.12
FCFY1.67%
OCF(TTM)6.77
OCFY10.13%
SpS74.13
BVpS87.66
TBVpS55.78
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 | 3.25 |
F-Score4
WACC7.9%
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 Y-306.81%
EPS Next 2Y340.87%
EPS Next 3Y257.77%
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-6.12%
Revenue Next 2Y1.57%
Revenue Next 3Y3.08%
Revenue Next 5Y3.18%
EBIT growth 1Y-119.17%
EBIT growth 3Y-69.77%
EBIT growth 5YN/A
EBIT Next Year410.48%
EBIT Next 3Y135.05%
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%