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WFG

West Fraser TimberTSX:WFG Stock Report

Last Price

CA$114.32

Market Cap

CA$12.2b

7D

-5.6%

1Y

34.1%

Updated

26 Jan, 2022

Data

Company Financials +
WFG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends0/6

WFG Stock Overview

West Fraser Timber Co. Ltd., a diversified wood products company, produces and sells lumber, panels, and pulp and papers in western Canada and the southern United States.

West Fraser Timber Competitors

Canfor

TSX:CFP

CA$3.5b

Stella-Jones

TSX:SJ

CA$2.5b

Interfor

TSX:IFP

CA$2.3b

Western Forest Products

TSX:WEF

CA$674.0m

Price History & Performance

Summary of all time highs, changes and price drops for West Fraser Timber
Historical stock prices
Current Share PriceCA$114.32
52 Week HighCA$126.72
52 Week LowCA$77.32
Beta2.13
1 Month Change-1.40%
3 Month Change13.76%
1 Year Change34.15%
3 Year Change50.54%
5 Year Change157.25%
Change since IPO2,131.68%

Recent News & Updates

Jan 12
I Ran A Stock Scan For Earnings Growth And West Fraser Timber (TSE:WFG) Passed With Ease

I Ran A Stock Scan For Earnings Growth And West Fraser Timber (TSE:WFG) Passed With Ease

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Dec 28
These 4 Measures Indicate That West Fraser Timber (TSE:WFG) Is Using Debt Safely

These 4 Measures Indicate That West Fraser Timber (TSE:WFG) Is Using Debt Safely

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Dec 13
Calculating The Fair Value Of West Fraser Timber Co. Ltd. (TSE:WFG)

Calculating The Fair Value Of West Fraser Timber Co. Ltd. (TSE:WFG)

In this article we are going to estimate the intrinsic value of West Fraser Timber Co. Ltd. ( TSE:WFG ) by estimating...

Shareholder Returns

WFGCA ForestryCA Market
7D-5.6%-6.9%-2.9%
1Y34.1%22.1%16.1%

Return vs Industry: WFG exceeded the Canadian Forestry industry which returned 21.4% over the past year.

Return vs Market: WFG exceeded the Canadian Market which returned 15% over the past year.

Price Volatility

Is WFG's price volatile compared to industry and market?
WFG volatility
WFG Average Weekly Movement3.7%
Forestry Industry Average Movement5.9%
Market Average Movement9.8%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market3.7%

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

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

About the Company

FoundedEmployeesCEOWebsite
195511,000Ray Ferrishttps://www.westfraser.com

West Fraser Timber Co. Ltd., a diversified wood products company, produces and sells lumber, panels, and pulp and papers in western Canada and the southern United States. It offers spruce-pine-fir, Douglas Fir-Larch, Hem-Fir tree, and southern yellow pine lumber; treated wood products; and newsprint, wood chips, and other residuals and energy products, as well as bioproducts. The company also provides medium density fiberboard panels and plywood; laminated veneer lumber wood products; and northern bleached softwood Kraft pulp used to produce various paper products, including printing and writing papers, specialty grades, and various tissue products.

West Fraser Timber Fundamentals Summary

How do West Fraser Timber's earnings and revenue compare to its market cap?
WFG fundamental statistics
Market CapUS$9.67b
Earnings (TTM)US$2.92b
Revenue (TTM)US$10.03b

3.3x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WFG income statement (TTM)
RevenueUS$10.03b
Cost of RevenueUS$4.24b
Gross ProfitUS$5.79b
ExpensesUS$2.87b
EarningsUS$2.92b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 15, 2022

Earnings per share (EPS)27.33
Gross Margin57.75%
Net Profit Margin29.13%
Debt/Equity Ratio6.7%

How did WFG perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

4%

Payout Ratio

Valuation

Is West Fraser Timber undervalued compared to its fair value and its price relative to the market?

10.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WFG (CA$114.32) is trading below our estimate of fair value (CA$127.31)

Significantly Below Fair Value: WFG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WFG is good value based on its PE Ratio (3.3x) compared to the Canadian Forestry industry average (6.8x).

PE vs Market: WFG is good value based on its PE Ratio (3.3x) compared to the Canadian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: WFG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WFG is overvalued based on its PB Ratio (1.3x) compared to the CA Forestry industry average (1.2x).


Future Growth

How is West Fraser Timber forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-55.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WFG's earnings are forecast to decline over the next 3 years (-55.2% per year).

Earnings vs Market: WFG's earnings are forecast to decline over the next 3 years (-55.2% per year).

High Growth Earnings: WFG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WFG's revenue is expected to decline over the next 3 years (-12.5% per year).

High Growth Revenue: WFG's revenue is forecast to decline over the next 3 years (-12.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has West Fraser Timber performed over the past 5 years?

41.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WFG has high quality earnings.

Growing Profit Margin: WFG's current net profit margins (29.1%) are higher than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: WFG's earnings have grown significantly by 41% per year over the past 5 years.

Accelerating Growth: WFG's earnings growth over the past year (964.1%) exceeds its 5-year average (41% per year).

Earnings vs Industry: WFG earnings growth over the past year (964.1%) exceeded the Forestry industry 172.7%.


Return on Equity

High ROE: WFG's Return on Equity (39.3%) is considered high.


Financial Health

How is West Fraser Timber's financial position?


Financial Position Analysis

Short Term Liabilities: WFG's short term assets ($3.7B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: WFG's short term assets ($3.7B) exceed its long term liabilities ($1.5B).


Debt to Equity History and Analysis

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

Reducing Debt: WFG's debt to equity ratio has reduced from 21.3% to 6.7% over the past 5 years.

Debt Coverage: WFG's debt is well covered by operating cash flow (720.3%).

Interest Coverage: WFG's interest payments on its debt are well covered by EBIT (104.6x coverage).


Balance Sheet


Dividend

What is West Fraser Timber current dividend yield, its reliability and sustainability?

0.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WFG's dividend (0.87%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.63%).

High Dividend: WFG's dividend (0.87%) is low compared to the top 25% of dividend payers in the Canadian market (4.88%).


Stability and Growth of Payments

Stable Dividend: WFG is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: WFG is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: WFG is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WFG'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?

1.0yrs

Average management tenure


CEO

Ray Ferris (58 yo)

3.75yrs

Tenure

US$3,276,460

Compensation

Mr. Raymond W. Ferris, also known as Ray, has been President since April 19, 2018 and Chief Executive Officer since July 1, 2019 and served as the Chief Operating Officer of West Fraser Timber Co. Ltd. sin...


CEO Compensation Analysis

Compensation vs Market: Ray's total compensation ($USD3.28M) is below average for companies of similar size in the Canadian market ($USD6.14M).

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


Leadership Team

Experienced Management: WFG's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

Experienced Board: WFG's board of directors are considered experienced (5.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WFG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 55.6%.


Top Shareholders

Company Information

West Fraser Timber Co. Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: West Fraser Timber Co. Ltd.
  • Ticker: WFG
  • Exchange: TSX
  • Founded: 1955
  • Industry: Forest Products
  • Sector: Materials
  • Implied Market Cap: CA$12.217b
  • Shares outstanding: 106.87m
  • Website: https://www.westfraser.com

Number of Employees


Location

  • West Fraser Timber Co. Ltd.
  • 858 Beatty Street
  • Suite 501
  • Vancouver
  • British Columbia
  • V6B 1C1
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 00:57
End of Day Share Price2022/01/25 00:00
Earnings2021/09/30
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.