TSX:WPRT

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Westport Fuel Systems

Market Cap

CA$832.2m

Last Updated

2021/08/05 22:58 UTC

Data Sources

Company Financials +

Executive Summary

Westport Fuel Systems Inc. engineers, manufactures, and supplies alternative fuel systems and components for use in transportation applications worldwide. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Westport Fuel Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WPRT is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: WPRT's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

-3.0%

WPRT

0.5%

CA Machinery

0.5%

CA Market


1 Year Return

142.9%

WPRT

69.4%

CA Machinery

26.4%

CA Market

Return vs Industry: WPRT exceeded the Canadian Machinery industry which returned 69.4% over the past year.

Return vs Market: WPRT exceeded the Canadian Market which returned 26.4% over the past year.


Shareholder returns

WPRTIndustryMarket
7 Day-3.0%0.5%0.5%
30 Day-21.6%-2.9%-0.9%
90 Day-35.0%2.1%2.3%
1 Year142.9%142.9%71.4%69.4%30.3%26.4%
3 Year54.1%54.1%26.3%17.2%32.4%19.5%
5 Year127.2%127.2%73.9%54.8%50.3%28.2%

Long-Term Price Volatility Vs. Market

How volatile is Westport Fuel Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Westport Fuel Systems undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WPRT (CA$4.93) is trading below our estimate of fair value (CA$31.33)

Significantly Below Fair Value: WPRT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WPRT is poor value based on its PE Ratio (115.2x) compared to the Canadian Machinery industry average (40.8x).

PE vs Market: WPRT is poor value based on its PE Ratio (115.2x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: WPRT is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: WPRT is overvalued based on its PB Ratio (5.1x) compared to the CA Machinery industry average (3.8x).


Future Growth

How is Westport Fuel Systems forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

53.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WPRT's forecast earnings growth (53.3% per year) is above the savings rate (1.5%).

Earnings vs Market: WPRT's earnings (53.3% per year) are forecast to grow faster than the Canadian market (13.9% per year).

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

Revenue vs Market: WPRT's revenue (15.9% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: WPRT's revenue (15.9% 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 WPRT's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Westport Fuel Systems performed over the past 5 years?

47.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WPRT has a high level of non-cash earnings.

Growing Profit Margin: WPRT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WPRT has become profitable over the past 5 years, growing earnings by 47.1% per year.

Accelerating Growth: WPRT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: WPRT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (11.3%).


Return on Equity

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


Financial Health

How is Westport Fuel Systems's financial position?


Financial Position Analysis

Short Term Liabilities: WPRT's short term assets ($214.6M) exceed its short term liabilities ($129.3M).

Long Term Liabilities: WPRT's short term assets ($214.6M) exceed its long term liabilities ($89.8M).


Debt to Equity History and Analysis

Debt Level: WPRT's debt to equity ratio (52.6%) is considered high.

Reducing Debt: WPRT's debt to equity ratio has reduced from 130.2% to 52.6% over the past 5 years.

Debt Coverage: WPRT's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if WPRT's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Westport Fuel Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WPRT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WPRT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WPRT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WPRT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WPRT's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

David Johnson (54 yo)

2.58yrs

Tenure

US$945,740

Compensation

Mr. David M. Johnson has been the Chief Executive Officer & Director at Westport Fuel Systems Inc. since January 15, 2019. Mr. Johnson joined Westport Fuel Systems having served for ten years as President ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD945.74K) is about average for companies of similar size in the Canadian market ($USD1.17M).

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


Leadership Team

Experienced Management: WPRT's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: WPRT's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 23.6%.


Top Shareholders

Company Information

Westport Fuel Systems Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Westport Fuel Systems Inc.
  • Ticker: WPRT
  • Exchange: TSX
  • Founded: 1995
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: CA$832.175m
  • Shares outstanding: 168.80m
  • Website: https://www.wfsinc.com

Number of Employees


Location

  • Westport Fuel Systems Inc.
  • 1750 West 75th Avenue
  • Suite 101
  • Vancouver
  • British Columbia
  • V6P 6G2
  • Canada

Listings


Biography

Westport Fuel Systems Inc. engineers, manufactures, and supplies alternative fuel systems and components for use in transportation applications worldwide. It operates through Original Equipment Manufacture...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/05 22:58
End of Day Share Price2021/08/05 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.