TSX:CWX

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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.


Snowflake Analysis

Reasonable growth potential with questionable track record.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.8%

CWX

6.0%

CA Trade Distributors

2.2%

CA Market


1 Year Return

-21.4%

CWX

2.9%

CA Trade Distributors

-10.1%

CA Market

Return vs Industry: CWX underperformed the Canadian Trade Distributors industry which returned 2.9% over the past year.

Return vs Market: CWX underperformed the Canadian Market which returned -10.1% over the past year.


Shareholder returns

CWXIndustryMarket
7 Day7.8%6.0%2.2%
30 Day17.4%10.9%5.8%
90 Day-21.9%1.9%-5.3%
1 Year-11.0%-21.4%6.4%2.9%-7.1%-10.1%
3 Year-24.9%-45.0%5.0%-4.1%1.8%-7.7%
5 Year11.2%-33.4%33.8%13.8%19.1%1.5%

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?

15.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CWX (CA$3.71) is trading above our estimate of fair value (CA$3.14)

Significantly Below Fair Value: CWX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CWX is poor value based on its PE Ratio (15.7x) compared to the Trade Distributors industry average (13.9x).

PE vs Market: CWX is poor value based on its PE Ratio (15.7x) compared to the Canadian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: CWX is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: CWX is overvalued based on its PB Ratio (0.9x) compared to the CA Trade Distributors industry average (0.8x).


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?

27.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWX's forecast earnings growth (27.7% per year) is above the savings rate (1.7%).

Earnings vs Market: CWX's earnings (27.7% per year) are forecast to grow faster than the Canadian market (24% per year).

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

Revenue vs Market: CWX's revenue (5.7% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: CWX's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CWX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWX has high quality earnings.

Growing Profit Margin: CWX's current net profit margins (1.3%) are lower than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: CWX's earnings have grown by 2.4% 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 (-20.2%) over the past year, making it difficult to compare to the Trade Distributors industry average (6.7%).


Return on Equity

High ROE: CWX's Return on Equity (5.5%) is considered low.


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$512.4M) exceed its short term liabilities (CA$169.7M).

Long Term Liabilities: CWX's short term assets (CA$512.4M) do not cover its long term liabilities (CA$519.8M).


Debt to Equity History and Analysis

Debt Level: CWX's debt to equity ratio (116%) is considered high.

Reducing Debt: CWX's debt to equity ratio has reduced from 207% to 116% over the past 5 years.

Debt Coverage: CWX's debt is not well covered by operating cash flow (19.9%).

Interest Coverage: CWX's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Next Steps

Dividend

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

15.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CWX's dividend (15.09%) is higher than the bottom 25% of dividend payers in the Canadian market (1.94%).

High Dividend: CWX's dividend (15.09%) is in the top 25% of dividend payers in the Canadian market (6.08%)


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 (236.3%), CWX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.2yrs

Average management tenure


CEO

Amar Doman

10.42yrs

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 ($USD666.72K) is about average for companies of similar size in the Canadian market ($USD730.29K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Amardeip Doman
Chairman & CEO10.42yrsCA$901.50k0.17% CA$478.7k
Marc Séguin
President & Director8.08yrsCA$751.06k0.25% CA$714.8k
James Code
Chief Financial Officer8.67yrsCA$492.38k0.12% CA$360.0k
Stephen Marshall
VP of Treated Wood - CanWel Treating Division & Director16.25yrsCA$528.16k0.23% CA$670.6k
John Russell
President of CanWel US Division2.92yrsCA$1.03mno data
Ali Mahdavi
Head of Investor Relationsno datano datano data
R. Doman
General Counsel & Corporate Secretaryno datano data0.27% CA$767.3k
Michel Walsh
Director of Products & Marketing9.75yrsno datano data
Julie Wong
Director of Human Resourcesno datano datano data

9.2yrs

Average Tenure

Experienced Management: CWX's management team is seasoned and experienced (9.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Amardeip Doman
Chairman & CEO10.42yrsCA$901.50k0.17% CA$478.7k
Marc Séguin
President & Director8.08yrsCA$751.06k0.25% CA$714.8k
Stephen Marshall
VP of Treated Wood - CanWel Treating Division & Director16.25yrsCA$528.16k0.23% CA$670.6k
Sam Fleiser
Independent Director7.08yrsCA$83.50k0.099% CA$285.7k
Kelvin P. Dushnisky
Independent Director16.25yrsCA$82.00k0.084% CA$242.0k
Tom Donaldson
Independent Director16.42yrsCA$77.00k0.12% CA$352.5k
Siegfried Thoma
Independent Director16.25yrsCA$89.50k0.027% CA$78.8k
Ian Baskerville
Independent Director16.25yrsCA$69.50k0.14% CA$399.3k
Harry Rosenfeld
Director4.08yrsno data0.34% CA$987.5k

16.3yrs

Average Tenure

Experienced Board: CWX's board of directors are seasoned and experienced ( 16.3 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$288.761m
  • Shares outstanding: 77.83m
  • Website: https://www.canwel.com

Number of Employees


Location

  • CanWel Building Materials Group Ltd.
  • 1100 Melville Street
  • Suite 1600
  • Vancouver
  • British Columbia
  • V6E 4A6
  • 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 segments, Distribution and Forestry. The company sells decking and railing; engineered wood products; fasteners and adhesives; foundation; insulation and wraps; interior finishing; lumber, plywood, OSB, and specialty industrial products; roofing products; treated wood; siding and trim products; and security products, as well as forms and reinforcement 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 05:00
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.