Westaim (TSXV:WED) - Share price, News & Analysis

WED fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	2/6
Past Performance	2/6
Financial Health	4/6
Dividends	0/6

WED Stock Overview

Rewards

Revenue is forecast to grow 48.65% per year

Became profitable this year

Risk Analysis

High level of non-cash earnings

Westaim Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Westaim
Historical stock prices
Current Share Price	CA$2.45
52 Week High	CA$2.78
52 Week Low	CA$2.14
Beta	0.57
1 Month Change	-5.04%
3 Month Change	2.94%
1 Year Change	-9.26%
3 Year Change	-7.55%
5 Year Change	-22.71%
Change since IPO	-98.91%

Shareholder Returns

	WED	CA Capital Markets	CA Market
7D	1.2%	3.4%	0.3%
1Y	-9.3%	-15.2%	-4.0%

Return vs Industry: WED exceeded the Canadian Capital Markets industry which returned -15.1% over the past year.

Return vs Market: WED underperformed the Canadian Market which returned -4.1% over the past year.

Price Volatility

Is WED's price volatile compared to industry and market?
WED volatility
WED Average Weekly Movement	4.3%
Capital Markets Industry Average Movement	6.9%
Market Average Movement	10.0%
10% most volatile stocks in CA Market	17.3%
10% least volatile stocks in CA Market	4.4%

Stable Share Price: WED is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: WED's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1996	7	Cam MacDonald	https://www.westaim.com

The Westaim Corporation is a private equity firm specializing in direct and indirect investments through acquisitions, joint ventures, secondary investments both direct and indirect, fund of fund investments, and other arrangements. For direct investments, the firm invests in early venture, mid venture, late venture, middle market, later stage, mature, emerging growth, PIPEs, and buyout transactions. For fund of fund investments, it seeks to invest in private equity funds, venture capital funds, and hedge funds.

Westaim Fundamentals Summary

How do Westaim's earnings and revenue compare to its market cap?
WED fundamental statistics
Market Cap	US$268.74m
Earnings (TTM)	US$22.63m
Revenue (TTM)	US$28.03m

11.9x

P/E Ratio

9.6x

P/S Ratio

Is WED overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
WED income statement (TTM)
Revenue	US$28.03m
Cost of Revenue	US$0
Gross Profit	US$28.03m
Other Expenses	US$5.39m
Earnings	US$22.63m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.16
Gross Margin	100.00%
Net Profit Margin	80.76%
Debt/Equity Ratio	11.4%

How did WED perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is WED undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WED?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for WED. This is calculated by dividing WED's market cap by their current preferred multiple.
What is WED's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$268.74m

WED key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does WED's PE Ratio compare to its peers?

WED PE Ratio vs Peers

The above table shows the PE ratio for WED vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	12x

Forward PE

Price-To-Earnings vs Peers: WED is good value based on its Price-To-Earnings Ratio (11.9x) compared to the peer average (12x).

Price to Earnings Ratio vs Industry

How does WED's PE Ratio compare vs other companies in the Canadian Capital Markets Industry?

Price-To-Earnings vs Industry: WED is expensive based on its Price-To-Earnings Ratio (11.9x) compared to the Canadian Capital Markets industry average (8.9x)

Price to Earnings Ratio vs Fair Ratio

What is WED's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WED PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate WED's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of WED when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WED (CA$2.45) is trading above our estimate of fair value (CA$0.38)

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

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WED's PEG Ratio to determine if it is good value.

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Future Growth

How is Westaim forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

48.7%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if WED's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if WED's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if WED's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WED's revenue (48.7% per year) is forecast to grow faster than the Canadian market (7.3% per year).

High Growth Revenue: WED's revenue (48.7% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

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

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Past Performance

How has Westaim performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-1.7%

Historical annual earnings growth

Earnings and Revenue History

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

Growing Profit Margin: WED became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: WED has become profitable over the past 5 years, growing earnings by -1.7% per year.

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

Earnings vs Industry: WED has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (0.2%).

Return on Equity

High ROE: WED's Return on Equity (6.4%) is considered low.

Discover strong past performing companies

Financial Health

How is Westaim's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: WED's short term assets ($374.8M) exceed its short term liabilities ($13.3M).

Long Term Liabilities: WED's short term assets ($374.8M) exceed its long term liabilities ($41.6M).

Debt to Equity History and Analysis

Debt Level: WED has more cash than its total debt.

Reducing Debt: WED's debt to equity ratio has increased from 0.1% to 11.4% over the past 5 years.

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

Interest Coverage: WED's interest payments on its debt are well covered by EBIT (10.6x coverage).

Balance Sheet

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Dividend

What is Westaim current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate WED'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 WED's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as WED has not reported any payouts.

Discover strong dividend paying companies

Management

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

9.3yrs

Average management tenure

CEO

Cam MacDonald

13.17yrs

Tenure

US$536,724

Compensation

Mr. John Cameron MacDonald, also known as Cam, CFA serves as Director at Skyward Specialty Insurance Group Inc. (formerly known as Houston International Insurance Group, Ltd.) also serves as it's Chairman...

CEO Compensation Analysis

Compensation vs Market: Cam's total compensation ($USD536.72K) is about average for companies of similar size in the Canadian market ($USD751.41K).

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

Leadership Team

Experienced Management: WED's management team is seasoned and experienced (9.3 years average tenure).

Board Members

Experienced Board: WED's board of directors are considered experienced (7.6 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: WED 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31