TSX:CWX

Stock Analysis Report

CanWel Building Materials Group

Executive Summary

CanWel Building Materials Group Ltd., through its subsidiaries, distributes building materials and home renovation products in Canada, Hawaii, and the Western United States.

Rewards

Trading at 14% below its fair value

Earnings are forecast to grow 21.02% per year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 10.09% is not well covered by earnings or forecast to be in the next 3 years

Profit margins (1.1%) are lower than last year (2.7%)



Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.

Share Price & News

How has CanWel Building Materials Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CWX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

CWX

-0.7%

CA Trade Distributors

-0.4%

CA Market


1 Year Return

20.9%

CWX

8.8%

CA Trade Distributors

10.5%

CA Market

Return vs Industry: CWX exceeded the Canadian Trade Distributors industry which returned 8.8% over the past year.

Return vs Market: CWX exceeded the Canadian Market which returned 10.5% over the past year.


Shareholder returns

CWXIndustryMarket
7 Day-0.4%-0.7%-0.4%
30 Day22.0%-0.8%0.8%
90 Day22.0%5.8%1.7%
1 Year35.7%20.9%12.1%8.8%14.1%10.5%
3 Year33.9%0.2%14.7%5.2%16.1%5.6%
5 Year56.9%-4.0%51.6%28.7%41.2%20.4%

Price Volatility Vs. Market

How volatile is CanWel Building Materials Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CanWel Building Materials Group undervalued compared to its fair value and its price relative to the market?

14.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CWX (CA$5.55) is trading below our estimate of fair value (CA$6.45)

Significantly Below Fair Value: CWX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CWX is poor value based on its PE Ratio (30.3x) compared to the Trade Distributors industry average (13.7x).

PE vs Market: CWX is poor value based on its PE Ratio (30.3x) compared to the Canadian market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: CWX is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: CWX is overvalued based on its PB Ratio (1.3x) compared to the CA Trade Distributors industry average (0.9x).


Next Steps

Future Growth

How is CanWel Building Materials Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

21.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWX's forecast earnings growth (21% per year) is above the savings rate (1.4%).

Earnings vs Market: CWX's earnings (21% per year) are forecast to grow faster than the Canadian market (10.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CWX's revenue (4.9% per year) is forecast to grow faster than the Canadian market (4.9% per year).

High Growth Revenue: CWX's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CWX's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

How has CanWel Building Materials Group performed over the past 5 years?

11.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWX has high quality earnings.

Growing Profit Margin: CWX's current net profit margins (1.1%) are lower than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: CWX's earnings have grown by 11.4% per year over the past 5 years.

Accelerating Growth: CWX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CWX had negative earnings growth (-59.8%) over the past year, making it difficult to compare to the Trade Distributors industry average (-5.2%).


Return on Equity

High ROE: CWX's Return on Equity (4.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CanWel Building Materials Group's financial position?


Financial Position Analysis

Short Term Liabilities: CWX's short term assets (CA$431.8M) exceed its short term liabilities (CA$168.3M).

Long Term Liabilities: CWX's short term assets (CA$431.8M) exceed its long term liabilities (CA$424.5M).


Debt to Equity History and Analysis

Debt Level: CWX's debt to equity ratio (94.5%) is considered high.

Reducing Debt: CWX's debt to equity ratio has reduced from 114.6% to 94.5% over the past 5 years.

Debt Coverage: CWX's debt is not well covered by operating cash flow (17%).

Interest Coverage: CWX's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

Inventory Level: CWX has a high level of physical assets or inventory.

Debt Coverage by Assets: CWX's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is CanWel Building Materials Group's current dividend yield, its reliability and sustainability?

10.09%

Current Dividend Yield


Dividend Yield vs Market

company10.1%marketbottom25%2.0%markettop25%5.7%industryaverage3.1%forecastin3Years10.1%

Current dividend yield vs market & industry

Notable Dividend: CWX's dividend (10.09%) is higher than the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: CWX's dividend (10.09%) is in the top 25% of dividend payers in the Canadian market (5.68%)


Stability and Growth of Payments

Stable Dividend: CWX's dividend payments have been volatile in the past 10 years.

Growing Dividend: CWX's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (306.1%), CWX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CWX's dividends in 3 years are not forecast to be well covered by earnings (148.5% payout ratio).


Next Steps

Management

What is the CEO of CanWel Building Materials Group's salary, the management and board of directors tenure and is there insider trading?

8.7yrs

Average management tenure


CEO

Amar Doman 0

9.9yrs

Tenure

CA$901,500

Compensation

Mr. Amardeip Singh Doman, also known as Amar, founded The Futura Corporation and has been President and Chief Executive Officer since December 1999 and also serves as its Chairman. Mr. Doman serves as the  ...


CEO Compensation Analysis

Compensation vs Market: Amar's total compensation ($USD681.93K) is below average for companies of similar size in the Canadian market ($USD1.07M).

Compensation vs Earnings: Amar's compensation has been consistent with company performance over the past year.


Management Age and Tenure

8.7yrs

Average Tenure

Experienced Management: CWX's management team is seasoned and experienced (8.7 years average tenure).


Board Age and Tenure

15.8yrs

Average Tenure

Experienced Board: CWX's board of directors are seasoned and experienced ( 15.8 years average tenure).


Insider Trading

Insider Buying: CWX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$75,66225 Nov 19
Sam Fleiser
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares14,100
Max PriceCA$5.49
BuyCA$79,94422 Nov 19
Sam Fleiser
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceCA$5.33
BuyCA$51,50018 Nov 19
Sam Fleiser
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceCA$5.15
BuyCA$44,70006 Sep 19
The Futura Corporation
EntityCompany
Shares10,000
Max PriceCA$4.47
BuyCA$50,62928 Aug 19
The Futura Corporation
EntityCompany
Shares11,700
Max PriceCA$4.33
BuyCA$180,88627 Aug 19
The Futura Corporation
EntityCompany
Shares41,700
Max PriceCA$4.34
BuyCA$5,14823 Aug 19
The Futura Corporation
EntityCompany
Shares1,200
Max PriceCA$4.29
BuyCA$169,26023 Aug 19
Marc Séguin
EntityIndividual
Role
Member of the Board of Directors
President & Director
Shares39,000
Max PriceCA$4.34
BuyCA$26,59822 Aug 19
The Futura Corporation
EntityCompany
Shares6,200
Max PriceCA$4.29
SellCA$63,82821 Aug 19
Sam Fleiser
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares14,775
Max PriceCA$4.32
BuyCA$3,84321 Aug 19
The Futura Corporation
EntityCompany
Shares900
Max PriceCA$4.27
BuyCA$46,11620 Aug 19
The Futura Corporation
EntityCompany
Shares10,800
Max PriceCA$4.27
BuyCA$106,85019 Aug 19
The Futura Corporation
EntityCompany
Shares25,000
Max PriceCA$4.27
BuyCA$34,72017 Aug 19
James Code
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares8,000
Max PriceCA$4.34
BuyCA$1,70016 Aug 19
The Futura Corporation
EntityCompany
Shares400
Max PriceCA$4.25
BuyCA$172,83615 Aug 19
The Futura Corporation
EntityCompany
Shares40,000
Max PriceCA$4.32
BuyCA$7,84814 Aug 19
The Futura Corporation
EntityCompany
Shares1,800
Max PriceCA$4.36
SellCA$49,45014 Aug 19
Sam Fleiser
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares11,500
Max PriceCA$4.30
BuyCA$54,25013 Aug 19
The Futura Corporation
EntityCompany
Shares12,500
Max PriceCA$4.34
BuyCA$70,36913 Aug 19
Ian Baskerville
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares16,000
Max PriceCA$4.40
BuyCA$123,88912 Aug 19
The Futura Corporation
EntityCompany
Shares28,800
Max PriceCA$4.35
SellCA$129,83612 Aug 19
Sam Fleiser
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares30,000
Max PriceCA$4.35
BuyCA$56,49202 Jul 19
The Futura Corporation
EntityCompany
Shares11,600
Max PriceCA$4.87
BuyCA$4,80028 Jun 19
The Futura Corporation
EntityCompany
Shares1,000
Max PriceCA$4.80
BuyCA$48,00012 Jun 19
The Futura Corporation
EntityCompany
Shares10,000
Max PriceCA$4.80
BuyCA$4,60010 Jun 19
The Futura Corporation
EntityCompany
Shares1,000
Max PriceCA$4.60
BuyCA$93007 Jun 19
The Futura Corporation
EntityCompany
Shares200
Max PriceCA$4.65
BuyCA$67,99505 Jun 19
The Futura Corporation
EntityCompany
Shares15,000
Max PriceCA$4.53
BuyCA$180,96003 Jun 19
The Futura Corporation
EntityCompany
Shares40,000
Max PriceCA$4.52
BuyCA$22,54031 May 19
The Futura Corporation
EntityCompany
Shares4,900
Max PriceCA$4.60
BuyCA$30,93630 May 19
The Futura Corporation
EntityCompany
Shares6,800
Max PriceCA$4.55
BuyCA$86,98828 May 19
The Futura Corporation
EntityCompany
Shares18,800
Max PriceCA$4.63
BuyCA$92,00027 May 19
The Futura Corporation
EntityCompany
Shares20,000
Max PriceCA$4.60
BuyCA$46,10023 May 19
The Futura Corporation
EntityCompany
Shares10,000
Max PriceCA$4.61
BuyCA$46,40022 May 19
The Futura Corporation
EntityCompany
Shares10,000
Max PriceCA$4.64
BuyCA$9,24021 May 19
The Futura Corporation
EntityCompany
Shares2,000
Max PriceCA$4.62
BuyCA$39,35517 May 19
The Futura Corporation
EntityCompany
Shares8,500
Max PriceCA$4.63
BuyCA$110,87414 May 19
The Futura Corporation
EntityCompany
Shares25,200
Max PriceCA$4.40
BuyCA$76,73213 May 19
Harry Rosenfeld
EntityIndividual
Role
Member of the Board of Directors
Director
Shares17,762
Max PriceCA$4.32
SellCA$79,91604 Feb 19
Ian Baskerville
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares16,000
Max PriceCA$5.00
BuyCA$32,32517 Dec 18
R. Doman
EntityIndividual
Role
Chief Legal Officer
General Counsel & Corporate Secretary
Shares7,500
Max PriceCA$4.31
BuyCA$1,444,69717 Dec 18
The Futura Corporation
EntityCompany
Shares330,000
Max PriceCA$4.41
BuyCA$88,07214 Dec 18
The Futura Corporation
EntityCompany
Shares20,200
Max PriceCA$4.36
BuyCA$86,90013 Dec 18
The Futura Corporation
EntityCompany
Shares20,000
Max PriceCA$4.35
BuyCA$180,10912 Dec 18
The Futura Corporation
EntityCompany
Shares41,000
Max PriceCA$4.39
BuyCA$49,71212 Dec 18
R. Doman
EntityIndividual
Role
Chief Legal Officer
General Counsel & Corporate Secretary
Shares11,428
Max PriceCA$4.35
BuyCA$52,96411 Dec 18
Didar Doman
EntityIndividual
Shares12,000
Max PriceCA$4.43

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • James Code

    Chief Financial Officer

    • Tenure: 8.2yrs
    • Compensation: CA$474.89k
  • Amar Doman

    Chairman & CEO

    • Tenure: 9.9yrs
    • Compensation: CA$901.50k
  • Steve Marshall

    VP of Treated Wood - CanWel Treating Division & Director

    • Tenure: 15.8yrs
    • Compensation: CA$476.13k
  • Rob Doman (49yo)

    General Counsel & Corporate Secretary

    • Tenure: 0yrs
  • Michel Walsh

    Director of Products & Marketing

    • Tenure: 9.3yrs
  • Marc Séguin

    President & Director

    • Tenure: 7.6yrs
    • Compensation: CA$757.00k
  • Julie Wong

    Director of Human Resources

    • Tenure: 0yrs
  • John Russell

    President of CanWel US Division

    • Tenure: 2.4yrs
    • Compensation: CA$900.00k
  • Ali Mahdavi

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Sam Fleiser

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: CA$84.50k
  • Kelvin P. Dushnisky (55yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: CA$80.50k
  • Tom Donaldson

    Independent Director

    • Tenure: 15.9yrs
    • Compensation: CA$80.00k
  • Amar Doman

    Chairman & CEO

    • Tenure: 9.9yrs
    • Compensation: CA$901.50k
  • Siegfried Thoma

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: CA$92.50k
  • Steve Marshall

    VP of Treated Wood - CanWel Treating Division & Director

    • Tenure: 15.8yrs
    • Compensation: CA$476.13k
  • Ian Baskerville

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: CA$72.50k
  • Harry Rosenfeld

    Director

    • Tenure: 3.6yrs
  • Marc Séguin

    President & Director

    • Tenure: 7.6yrs
    • Compensation: CA$757.00k

Company Information

CanWel Building Materials Group Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CanWel Building Materials Group Ltd.
  • Ticker: CWX
  • Exchange: TSX
  • Founded: 1989
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: CA$430.810m
  • Shares outstanding: 77.76m
  • Website: https://www.canwel.com

Number of Employees


Location

  • CanWel Building Materials Group Ltd.
  • STN Royal Centre
  • Suite 1100
  • Vancouver
  • British Columbia
  • V6E 3P3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CWXTSX (The Toronto Stock Exchange)YesNew Common SharesCACADMay 2004
CWXZ.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDMay 2004
2CW1DB (Deutsche Boerse AG)YesNew Common SharesDEEURMay 2004

Biography

CanWel Building Materials Group Ltd., through its subsidiaries, distributes building materials and home renovation products in Canada, Hawaii, and the Western United States. It operates through two segment ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 00:18
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.