WEST FRASER TIMBER CO LTD (WFG) Stock Fundamental Analysis
NYSE:WFG - New York Stock Exchange, Inc. - CA9528451052 - Common Stock - Currency: USD
Overall WFG gets a fundamental rating of 5 out of 10. We evaluated WFG against 9 industry peers in the Paper & Forest Products industry. While WFG has a great health rating, its profitability is only average at the moment. WFG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year WFG was profitable.
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
WFG's Return On Assets of -0.06% is in line compared to the rest of the industry. WFG outperforms 55.56% of its industry peers.
With a Return On Equity value of -0.07%, WFG perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
WFG has a Return On Invested Capital (1.09%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.06% | ||
| ROE | -0.07% | ||
| ROIC | 1.09% |
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
Looking at the Operating Margin, with a value of 1.75%, WFG is in line with its industry, outperforming 55.56% of the companies in the same industry.
WFG's Operating Margin has declined in the last couple of years.
The Gross Margin of WFG (29.80%) is better than 88.89% of its industry peers.
WFG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.75% | ||
| PM (TTM) | N/A | ||
| GM | 29.8% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WFG is destroying value.
The number of shares outstanding for WFG has been reduced compared to 1 year ago.
WFG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WFG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.76 indicates that WFG is not in any danger for bankruptcy at the moment.
WFG has a Altman-Z score of 3.76. This is in the better half of the industry: WFG outperforms 77.78% of its industry peers.
WFG has a debt to FCF ratio of 1.21. This is a very positive value and a sign of high solvency as it would only need 1.21 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.21, WFG belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that WFG is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.00, WFG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.21 | ||
| Altman-Z | 3.76 |
ROIC/WACC0.14
WACC7.68%
2.3 Liquidity
A Current Ratio of 1.97 indicates that WFG should not have too much problems paying its short term obligations.
WFG has a Current ratio (1.97) which is comparable to the rest of the industry.
A Quick Ratio of 1.06 indicates that WFG should not have too much problems paying its short term obligations.
WFG has a Quick ratio (1.06) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
WFG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 131.75%, which is quite impressive.
The earnings per share for WFG have been decreasing by -70.74% on average. This is quite bad
WFG shows a decrease in Revenue. In the last year, the revenue decreased by -4.34%.
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)131.75%
EPS 3Y-70.74%
EPS 5YN/A
EPS Q2Q%104.37%
Revenue 1Y (TTM)-4.34%
Revenue growth 3Y-16.27%
Revenue growth 5Y10.92%
Sales Q2Q%-7.2%
3.2 Future
WFG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 69.61% yearly.
WFG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.62% yearly.
EPS Next Y611.15%
EPS Next 2Y281.06%
EPS Next 3Y142.88%
EPS Next 5Y69.61%
Revenue Next Year5.89%
Revenue Next 2Y7.47%
Revenue Next 3Y5.9%
Revenue Next 5Y4.62%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 117.67, the valuation of WFG can be described as expensive.
WFG's Price/Earnings ratio is in line with the industry average.
WFG's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 16.55, which indicates a correct valuation of WFG.
WFG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WFG is cheaper than 77.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WFG to the average of the S&P500 Index (22.68), we can say WFG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 117.67 | ||
| Fwd PE | 16.55 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than WFG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WFG is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.24 | ||
| EV/EBITDA | 9.11 |
4.3 Compensation for Growth
WFG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WFG's earnings are expected to grow with 142.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y281.06%
EPS Next 3Y142.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.64%, WFG has a reasonable but not impressive dividend return.
WFG's Dividend Yield is a higher than the industry average which is at 2.20.
WFG's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
5.2 History
The dividend of WFG is nicely growing with an annual growth rate of 15.82%!
WFG has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of WFG decreased recently.
Dividend Growth(5Y)15.82%
Div Incr Years1
Div Non Decr Years1
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-2020%
EPS Next 2Y281.06%
EPS Next 3Y142.88%
NYSE:WFG (2/21/2025, 8:04:00 PM)
78.84
-1.39 (-1.73%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners46.15%
Inst Owner ChangeN/A
Ins Owners1.78%
Ins Owner ChangeN/A
Market Cap6.31B
Analysts82
Price Target80.66 (2.31%)
Short Float %1.54%
Short Ratio4.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Yearly Dividend1.25
Dividend Growth(5Y)15.82%
DP-2020%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)28.92%
Min EPS beat(2)-76.59%
Max EPS beat(2)134.44%
EPS beat(4)2
Avg EPS beat(4)38.94%
Min EPS beat(4)-76.59%
Max EPS beat(4)134.44%
EPS beat(8)3
Avg EPS beat(8)-74.87%
EPS beat(12)6
Avg EPS beat(12)-95.57%
EPS beat(16)9
Avg EPS beat(16)-70.94%
Revenue beat(2)1
Avg Revenue beat(2)1.29%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)2.94%
Revenue beat(4)3
Avg Revenue beat(4)4.54%
Min Revenue beat(4)-0.35%
Max Revenue beat(4)9.49%
Revenue beat(8)4
Avg Revenue beat(8)1.31%
Revenue beat(12)7
Avg Revenue beat(12)1.75%
Revenue beat(16)9
Avg Revenue beat(16)1.73%
PT rev (1m)-0.15%
PT rev (3m)6.21%
EPS NQ rev (1m)58.18%
EPS NQ rev (3m)53.54%
EPS NY rev (1m)27.18%
EPS NY rev (3m)27.18%
Revenue NQ rev (1m)2.47%
Revenue NQ rev (3m)2.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 117.67 | ||
| Fwd PE | 16.55 | ||
| P/S | 1.02 | ||
| P/FCF | 36.24 | ||
| P/OCF | 9.54 | ||
| P/B | 0.91 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 9.11 |
EPS(TTM)0.67
EY0.85%
EPS(NY)4.76
Fwd EY6.04%
FCF(TTM)2.18
FCFY2.76%
OCF(TTM)8.26
OCFY10.48%
SpS77.18
BVpS86.94
TBVpS55.21
PEG (NY)0.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.06% | ||
| ROE | -0.07% | ||
| ROCE | 1.38% | ||
| ROIC | 1.09% | ||
| ROICexc | 1.19% | ||
| ROICexgc | 1.84% | ||
| OM | 1.75% | ||
| PM (TTM) | N/A | ||
| GM | 29.8% | ||
| FCFM | 2.82% |
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 3Y-69.33%
ROICexcg growth 5YN/A
ROICexc growth 3Y-69.12%
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-Score7
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.21 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 88.71% | ||
| Cap/Sales | 7.89% | ||
| Interest Coverage | 4 | ||
| Cash Conversion | 100.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 3.76 |
F-Score7
WACC7.68%
ROIC/WACC0.14
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)131.75%
EPS 3Y-70.74%
EPS 5YN/A
EPS Q2Q%104.37%
EPS Next Y611.15%
EPS Next 2Y281.06%
EPS Next 3Y142.88%
EPS Next 5Y69.61%
Revenue 1Y (TTM)-4.34%
Revenue growth 3Y-16.27%
Revenue growth 5Y10.92%
Sales Q2Q%-7.2%
Revenue Next Year5.89%
Revenue Next 2Y7.47%
Revenue Next 3Y5.9%
Revenue Next 5Y4.62%
EBIT growth 1Y2260%
EBIT growth 3Y-69.77%
EBIT growth 5YN/A
EBIT Next Year5276.24%
EBIT Next 3Y316.83%
EBIT Next 5Y139.57%
FCF growth 1Y262.5%
FCF growth 3Y-60.93%
FCF growth 5YN/A
OCF growth 1Y25.9%
OCF growth 3Y-42.91%
OCF growth 5Y50.12%