WEST FRASER TIMBER CO LTD (WFG) Stock Fundamental Analysis
NYSE:WFG - New York Stock Exchange, Inc. - CA9528451052 - Common Stock - Currency: USD
WFG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 correct valuation and a medium growth rate.
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.
In the past 5 years WFG always reported a positive cash flow from operatings.
1.2 Ratios
WFG has a Return On Assets of 0.02%. This is in the better half of the industry: WFG outperforms 66.67% of its industry peers.
The Return On Equity of WFG (0.03%) is better than 66.67% of its industry peers.
WFG has a Return On Invested Capital (1.15%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.02% | ||
| ROE | 0.03% | ||
| ROIC | 1.15% |
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
The Profit Margin of WFG (0.03%) is better than 66.67% of its industry peers.
WFG's Operating Margin of 1.90% is in line compared to the rest of the industry. WFG outperforms 55.56% of its industry peers.
In the last couple of years the Operating Margin of WFG has declined.
Looking at the Gross Margin, with a value of 30.12%, WFG belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Gross Margin of WFG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.9% | ||
| PM (TTM) | 0.03% | ||
| GM | 30.12% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WFG is destroying value.
WFG has less shares outstanding than it did 1 year ago.
WFG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, WFG has an improved debt to assets ratio.
2.2 Solvency
WFG has an Altman-Z score of 3.53. This indicates that WFG is financially healthy and has little risk of bankruptcy at the moment.
WFG has a Altman-Z score of 3.53. This is in the better half of the industry: WFG outperforms 77.78% of its industry peers.
The Debt to FCF ratio of WFG is 1.42, which is an excellent value as it means it would take WFG, only 1.42 years of fcf income to pay off all of its debts.
WFG has a Debt to FCF ratio of 1.42. This is amongst the best in the industry. WFG outperforms 88.89% of its industry peers.
WFG has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
WFG has a better Debt to Equity ratio (0.00) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 3.53 |
ROIC/WACC0.15
WACC7.53%
2.3 Liquidity
WFG has a Current Ratio of 2.09. This indicates that WFG is financially healthy and has no problem in meeting its short term obligations.
WFG's Current ratio of 2.09 is fine compared to the rest of the industry. WFG outperforms 66.67% of its industry peers.
A Quick Ratio of 0.96 indicates that WFG may have some problems paying its short term obligations.
The Quick ratio of WFG (0.96) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 88.03% over the past year.
The Revenue has decreased by -6.94% in the past year.
The Revenue has been growing by 10.92% on average over the past years. This is quite good.
EPS 1Y (TTM)88.03%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%9.52%
Revenue 1Y (TTM)-6.94%
Revenue growth 3Y-16.27%
Revenue growth 5Y10.92%
Sales Q2Q%-10.33%
3.2 Future
The Earnings Per Share is expected to grow by 122.17% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 5.24% on average over the next years.
EPS Next Y2420.19%
EPS Next 2Y566.27%
EPS Next 3Y277.88%
EPS Next 5Y122.17%
Revenue Next Year3.72%
Revenue Next 2Y5.46%
Revenue Next 3Y6.18%
Revenue Next 5Y5.24%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for WFG. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 9.64, the valuation of WFG can be described as very reasonable.
77.78% of the companies in the same industry are more expensive than WFG, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, WFG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.64 |
4.2 Price Multiples
WFG's Enterprise Value to EBITDA is on the same level as the industry average.
66.67% of the companies in the same industry are more expensive than WFG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.97 | ||
| EV/EBITDA | 8.61 |
4.3 Compensation for Growth
The 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 277.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y566.27%
EPS Next 3Y277.88%
5. Dividend
5.1 Amount
WFG has a Yearly Dividend Yield of 1.83%.
WFG's Dividend Yield is a higher than the industry average which is at 2.81.
WFG's Dividend Yield is slightly below the S&P500 average, which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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 recently.
Dividend Growth(5Y)15.82%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
WFG pays out 5150.00% of its income as dividend. This is not a sustainable payout ratio.
WFG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP5150%
EPS Next 2Y566.27%
EPS Next 3Y277.88%
73.56
+0.83 (+1.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners50.94%
Inst Owner ChangeN/A
Ins Owners1.78%
Ins Owner ChangeN/A
Market Cap5.84B
Analysts82
Price Target77.37 (5.18%)
Short Float %1.58%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend1.25
Dividend Growth(5Y)15.82%
DP5150%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-755.74%
Min EPS beat(2)-1486.14%
Max EPS beat(2)-25.34%
EPS beat(4)0
Avg EPS beat(4)-399.51%
Min EPS beat(4)-1486.14%
Max EPS beat(4)-9.99%
EPS beat(8)2
Avg EPS beat(8)-274.72%
EPS beat(12)4
Avg EPS beat(12)-232.93%
EPS beat(16)7
Avg EPS beat(16)-174.54%
Revenue beat(2)0
Avg Revenue beat(2)-3.99%
Min Revenue beat(2)-6.23%
Max Revenue beat(2)-1.75%
Revenue beat(4)2
Avg Revenue beat(4)0.26%
Min Revenue beat(4)-6.23%
Max Revenue beat(4)6.1%
Revenue beat(8)4
Avg Revenue beat(8)0.56%
Revenue beat(12)6
Avg Revenue beat(12)0.69%
Revenue beat(16)8
Avg Revenue beat(16)1.2%
PT rev (1m)-0.86%
PT rev (3m)-4.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.6%
EPS NY rev (1m)0.98%
EPS NY rev (3m)-17.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.22%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-2.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.64 | ||
| P/S | 0.97 | ||
| P/FCF | 36.97 | ||
| P/OCF | 9.32 | ||
| P/B | 0.84 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 8.61 |
EPS(TTM)-0.14
EYN/A
EPS(NY)7.63
Fwd EY10.37%
FCF(TTM)1.99
FCFY2.71%
OCF(TTM)7.9
OCFY10.74%
SpS75.64
BVpS87.39
TBVpS55.63
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.02% | ||
| ROE | 0.03% | ||
| ROCE | 1.45% | ||
| ROIC | 1.15% | ||
| ROICexc | 1.21% | ||
| ROICexgc | 1.82% | ||
| OM | 1.9% | ||
| PM (TTM) | 0.03% | ||
| GM | 30.12% | ||
| FCFM | 2.63% |
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 Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.42 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 86.06% | ||
| Cap/Sales | 7.81% | ||
| Interest Coverage | 3.93 | ||
| Cash Conversion | 95.14% | ||
| Profit Quality | 7900% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 3.53 |
F-Score7
WACC7.53%
ROIC/WACC0.15
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)88.03%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%9.52%
EPS Next Y2420.19%
EPS Next 2Y566.27%
EPS Next 3Y277.88%
EPS Next 5Y122.17%
Revenue 1Y (TTM)-6.94%
Revenue growth 3Y-16.27%
Revenue growth 5Y10.92%
Sales Q2Q%-10.33%
Revenue Next Year3.72%
Revenue Next 2Y5.46%
Revenue Next 3Y6.18%
Revenue Next 5Y5.24%
EBIT growth 1Y-15.56%
EBIT growth 3Y-69.77%
EBIT growth 5YN/A
EBIT Next Year1016.29%
EBIT Next 3Y151.67%
EBIT Next 5Y76.3%
FCF growth 1Y-83.59%
FCF growth 3Y-60.93%
FCF growth 5YN/A
OCF growth 1Y-56.64%
OCF growth 3Y-42.91%
OCF growth 5Y50.12%