WEST FRASER TIMBER CO LTD (WFG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WFG - CA9528451052 - Common Stock
70.77 USD
+0.51 (+0.73%)
70.77 USD
0 (0%)
Overall WFG gets a fundamental rating of 4 out of 10. We evaluated WFG against 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year WFG has reported negative net income.
- In the past year WFG had a positive cash flow from operations.
- 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
- 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.
- 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.
- WFG's Gross Margin has improved in the last couple of years.
- 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%
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.
- Compared to 5 years ago, WFG has more shares outstanding
- Compared to 1 year ago, WFG has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.11 indicates that WFG is not in any danger for bankruptcy at the moment.
- WFG has a Altman-Z score of 3.11. 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 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 has a Debt to FCF ratio (26.92) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.05 indicates that WFG is not too dependend on debt financing.
- With an excellent Debt to Equity ratio value of 0.05, WFG belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 26.92 | ||
| Altman-Z | 3.11 |
ROIC/WACCN/A
WACC7.87%
2.3 Liquidity
- A Current Ratio of 2.39 indicates that WFG has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.39, WFG is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- A Quick Ratio of 1.32 indicates that WFG should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.32, WFG is in line with its industry, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
- The earnings per share for WFG have decreased strongly by -167.74% in the last year.
- The Revenue has decreased by -9.23% 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)-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
- Based on estimates for the next years, WFG will show a small growth in Revenue. The Revenue will grow by 2.70% on average per year.
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
- 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.
- 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 the industry average as 77.78% of the companies are valued more cheaply.
- Based on the Price/Free Cash Flow ratio, WFG is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 462.07 | ||
| EV/EBITDA | 18.34 |
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%
5. Dividend
5.1 Amount
- WFG has a Yearly Dividend Yield of 1.88%.
- WFG's Dividend Yield is a higher than the industry average which is at 1.45.
- 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.
- 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%
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%.