Overall WFG gets a fundamental rating of 4 out of 10. We evaluated WFG against 9 industry peers in the Paper & Forest Products industry. WFG scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. WFG has a expensive valuation and it also scores bad on growth.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
The reported net income has been mixed in the past 5 years: WFG reported negative net income in multiple years.
WFG had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

WFG's Return On Assets of -2.89% is in line compared to the rest of the industry. WFG outperforms 55.56% of its industry peers.
Looking at the Return On Equity, with a value of -3.74%, WFG is in line with its industry, outperforming 55.56% of the companies in the same industry.

		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 better Gross Margin (25.57%) than 88.89% of its industry peers.
In the last couple of years the Gross Margin of WFG has grown nicely.
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%

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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.
The number of shares outstanding for WFG has been reduced compared to 1 year ago.
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 3.16 indicates that WFG is not in any danger for bankruptcy at the moment.
WFG has a Altman-Z score of 3.16. 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 26.92. This is a negative value and a sign of low solvency as WFG would need 26.92 years to pay back of all of its debts.
WFG has a Debt to FCF ratio (26.92) which is comparable to the rest of the industry.
WFG has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
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	26.92
Altman-Z	3.16

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.
WFG has a Current ratio of 2.39. This is in the better half of the industry: WFG outperforms 66.67% of its industry peers.
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

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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

WFG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -167.74%.
WFG shows a decrease in Revenue. In the last year, the revenue decreased by -9.23%.
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

Based on estimates for the next years, WFG will show a very strong growth in Earnings Per Share. The EPS will grow by 118.65% on average per year.
The Revenue is expected to grow by 2.70% on average over the next years.

EPS Next Y-2393.2%

EPS Next 2Y-77.79%

EPS Next 3Y213.54%

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

WFG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
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

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WFG indicates a slightly more expensive valuation: WFG is more expensive than 77.78% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WFG indicates a slightly more expensive valuation: WFG is more expensive than 66.67% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	471.14
EV/EBITDA	18.86

4.3 Compensation for Growth

A more expensive valuation may be justified as WFG's earnings are expected to grow with 213.54% in the coming years.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-77.79%

EPS Next 3Y213.54%

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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.
Compared to an average S&P500 Dividend Yield of 1.81, WFG has a dividend comparable with the average S&P500 company.

		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 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

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-41.13%

EPS Next 2Y-77.79%

EPS Next 3Y213.54%

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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%.