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WED

Westaim TSXV:WED Stock Report

Last Price

CA$2.59

Market Cap

CA$366.2m

7D

4.4%

1Y

6.1%

Updated

13 Aug, 2022

Data

Company Financials +
WED fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance4/6
Financial Health5/6
Dividends0/6

WED Stock Overview

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.

Westaim Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Westaim
Historical stock prices
Current Share PriceCA$2.59
52 Week HighCA$2.78
52 Week LowCA$2.14
Beta0.56
1 Month Change9.75%
3 Month Change-0.39%
1 Year Change6.15%
3 Year Change-0.39%
5 Year Change-16.72%
Change since IPO-98.85%

Recent News & Updates

Shareholder Returns

WEDCA Capital MarketsCA Market
7D4.4%5.6%3.0%
1Y6.1%-9.3%0.7%

Return vs Industry: WED exceeded the Canadian Capital Markets industry which returned -9.2% over the past year.

Return vs Market: WED exceeded the Canadian Market which returned 0.7% over the past year.

Price Volatility

Is WED's price volatile compared to industry and market?
WED volatility
WED Average Weekly Movement3.2%
Capital Markets Industry Average Movement9.3%
Market Average Movement10.6%
10% most volatile stocks in CA Market18.9%
10% least volatile stocks in CA Market4.3%

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

Volatility Over Time: WED's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19967Cam MacDonaldhttps://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 CapUS$286.19m
Earnings (TTM)US$10.18m
Revenue (TTM)US$17.96m

28.1x

P/E Ratio

15.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WED income statement (TTM)
RevenueUS$17.96m
Cost of RevenueUS$0
Gross ProfitUS$17.96m
Other ExpensesUS$7.78m
EarningsUS$10.18m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.072
Gross Margin100.00%
Net Profit Margin56.69%
Debt/Equity Ratio11.2%

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

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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.

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/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ration/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.
CompanyPEEstimated GrowthMarket Cap
Peer Average15.3x
AGF.B AGF Management
8.9x7.1%CA$457.6m
GOGR Osisko Green Acquisition
12.7xn/aCA$316.9m
GCG.A Guardian Capital Group
182.1xn/aCA$734.5m
CKI Clarke
21.9xn/aCA$159.5m
WED Westaim
28.1xn/aCA$366.2m

Price-To-Earnings vs Peers: WED is expensive based on its Price-To-Earnings Ratio (28.1x) compared to the peer average (15.3x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: WED is expensive based on its Price-To-Earnings Ratio (28.1x) compared to the Canadian Capital Markets industry average (9.2x)


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 Ratio28.1x
Fair PE Ration/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$2.59) is trading above our estimate of fair value (CA$0.32)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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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


87.0%

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 (87% per year) is forecast to grow faster than the Canadian market (6.7% per year).

High Growth Revenue: WED's revenue (87% 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


Discover growth companies

Past Performance

How has Westaim performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-3.3%

Historical annual earnings growth

Earnings and Revenue History

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

Growing Profit Margin: WED's current net profit margins (56.7%) are higher than last year (35.3%).


Past Earnings Growth Analysis

Earnings Trend: WED has become profitable over the past 5 years, growing earnings by -3.3% per year.

Accelerating Growth: WED's earnings growth over the past year (67.8%) exceeds its 5-year average (-3.3% per year).

Earnings vs Industry: WED earnings growth over the past year (67.8%) exceeded the Capital Markets industry 6.5%.


Return on Equity

High ROE: WED's Return on Equity (2.9%) is considered low.


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Financial Health

How is Westaim's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • 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 ($367.9M) exceed its short term liabilities ($12.1M).

Long Term Liabilities: WED's short term assets ($367.9M) exceed its long term liabilities ($40.1M).


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 reduced from 12.4% to 11.2% 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 (5.4x 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

  • Cash Flow 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?

9.5yrs

Average management tenure


CEO

Cam MacDonald

13.33yrs

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 ($USD536.72K) is about average for companies of similar size in the Canadian market ($USD695.79K).

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 (9.5 years average tenure).


Board Members

Experienced Board: WED's board of directors are considered experienced (7.8 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.


Top Shareholders

Company Information

The Westaim Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: The Westaim Corporation
  • Ticker: WED
  • Exchange: TSXV
  • Founded: 1996
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Implied Market Cap: CA$366.192m
  • Shares outstanding: 141.39m
  • Website: https://www.westaim.com

Number of Employees


Location

  • The Westaim Corporation
  • 70 York Street
  • Suite 1700
  • Toronto
  • Ontario
  • M5J 1S9
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/13 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.