CanWel Building Materials Group
Market Cap
CA$425.4m
Last Updated
2020/02/17 00:46 UTC
Data Sources
Company Financials +
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
Risk Analysis
Dividend of 10.24% is not well covered by earnings or forecast to be in the next 3 years
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%
CWX
-2.3%
CA Trade Distributors
0.6%
CA Market
1 Year Return
15.4%
CWX
-1.4%
CA Trade Distributors
5.8%
CA Market
Return vs Industry: CWX exceeded the Canadian Trade Distributors industry which returned -1.4% over the past year.
Return vs Market: CWX exceeded the Canadian Market which returned 5.8% over the past year.
Shareholder returns
| CWX | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | -2.3% | 0.6% |
| 30 Day | 1.3% | -4.5% | 0.5% |
| 90 Day | 5.8% | -1.6% | 3.6% |
| 1 Year | 28.7%15.4% | 1.7%-1.4% | 9.1%5.8% |
| 3 Year | 20.3%-10.2% | 14.7%5.1% | 15.4%5.0% |
| 5 Year | 51.5%-7.4% | 45.7%24.0% | 33.6%14.0% |
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
1 day ago | Simply Wall St
Here's Why CanWel Building Materials Group (TSE:CWX) Is Weighed Down By Its Debt Load1 week ago | Simply Wall St
How Much Of CanWel Building Materials Group Ltd. (TSE:CWX) Do Institutions Own?3 weeks ago | Simply Wall St
Volatility 101: Should CanWel Building Materials Group (TSE:CWX) Shares Have Dropped 13%?Valuation
Is CanWel Building Materials Group undervalued compared to its fair value and its price relative to the market?
26.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CWX (CA$5.47) is trading below our estimate of fair value (CA$7.42)
Significantly Below Fair Value: CWX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CWX is poor value based on its PE Ratio (29.9x) compared to the Trade Distributors industry average (14.9x).
PE vs Market: CWX is poor value based on its PE Ratio (29.9x) compared to the Canadian market (15.9x).
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 (1.1x).
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 (10.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CWX's revenue (5.1% per year) is forecast to grow faster than the Canadian market (4.9% per year).
High Growth Revenue: CWX's revenue (5.1% 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 (12.2%).
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 (-2.7%).
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?
10.24%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CWX's dividend (10.24%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).
High Dividend: CWX's dividend (10.24%) is in the top 25% of dividend payers in the Canadian market (5.32%)
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 (114.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.9yrs
Average management tenure
CEO
Amar Doman 0
10.1yrs
Tenure
CA$901,500
Compensation
Mr. Amardeip Singh Doman, also known as Amar, founded The Futura Corporation and has been President and Chief Executive Officer since December 1999 and also serves as its Chairman. Mr. Doman serves as the ...
CEO Compensation Analysis
Compensation vs Market: Amar's total compensation ($USD680.27K) is about average for companies of similar size in the Canadian market ($USD963.71K).
Compensation vs Earnings: Amar's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 10.1yrs | CA$901.50k | 0.17% CA$705.8k | |
| President & Director | 7.8yrs | CA$757.00k | 0.23% CA$977.3k | |
| Chief Financial Officer | 8.3yrs | CA$474.89k | 0.11% CA$448.8k | |
| VP of Treated Wood - CanWel Treating Division & Director | 15.9yrs | CA$476.13k | 0.21% CA$906.6k | |
| President of CanWel US Division | 2.6yrs | CA$900.00k | no data | |
| Head of Investor Relations | 0yrs | no data | no data | |
| General Counsel & Corporate Secretary | 0yrs | no data | 0.25% CA$1.1m | |
| Director of Products & Marketing | 9.4yrs | no data | no data | |
| Director of Human Resources | 0yrs | no data | no data |
8.9yrs
Average Tenure
Experienced Management: CWX's management team is seasoned and experienced (8.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 10.1yrs | CA$901.50k | 0.17% CA$705.8k | |
| President & Director | 7.8yrs | CA$757.00k | 0.23% CA$977.3k | |
| VP of Treated Wood - CanWel Treating Division & Director | 15.9yrs | CA$476.13k | 0.21% CA$906.6k | |
| Independent Director | 6.8yrs | CA$84.50k | 0.10% CA$437.6k | |
| Independent Director | 15.9yrs | CA$80.50k | 0.072% CA$307.0k | |
| Independent Director | 16.1yrs | CA$80.00k | 0.12% CA$519.8k | |
| Independent Director | 15.9yrs | CA$92.50k | 0.024% CA$102.6k | |
| Independent Director | 15.9yrs | CA$72.50k | 0.14% CA$588.7k | |
| Director | 3.8yrs | no data | 0.27% CA$1.2m |
15.9yrs
Average Tenure
Experienced Board: CWX's board of directors are seasoned and experienced ( 15.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CWX insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$425.376m
- Shares outstanding: 77.77m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CWX | TSX (The Toronto Stock Exchange) | Yes | New Common Shares | CA | CAD | May 2004 |
| CWXZ.F | OTCPK (Pink Sheets LLC) | Yes | New Common Shares | US | USD | May 2004 |
| 2CW1 | DB (Deutsche Boerse AG) | Yes | New Common Shares | DE | EUR | May 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 segments, Building Materials Distribution and Forestry. The company sells decking and railing; engineered wood products; fasteners and adhesives; foundation; insulation and building envelope; interior finishing; lumber, plywood, OSB, and specialty industrial products; roofing and accessories; treated wood; exterior trim and décor products; welded panels; profiles and colors; fusion stones; exterior products; sidings, panels, shingles, and trims; and security and door ware products. It also offers wood pressure treating services. In addition, the company is involved in the ownership and management of private timberlands and Crown forest licenses; logging and trucking operations; and post-peeling and pressure treating for the agricultural market. The company serves new home construction, home renovation, and industrial markets, as well as building materials industry, hardware stores, and industrial and furniture manufacturers. CanWel Building Materials Group Ltd. was founded in 1989 and is headquartered in Vancouver, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 00:46 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.