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WFG

West Fraser Timber TSX:WFG Stock Report

Last Price

CA$97.63

Market Cap

CA$8.8b

7D

-4.0%

1Y

13.2%

Updated

26 Jun, 2022

Data

Company Financials +
WFG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends4/6

WFG Stock Overview

West Fraser Timber Co. Ltd., a diversified wood products company, engages in manufacturing, selling, marketing, and distributing lumber, engineered wood products, pulp, newsprint, wood chips, and other residuals and renewable energy.

West Fraser Timber Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for West Fraser Timber
Historical stock prices
Current Share PriceCA$97.63
52 Week HighCA$130.13
52 Week LowCA$82.66
Beta1.94
1 Month Change-16.10%
3 Month Change-9.47%
1 Year Change13.16%
3 Year Change63.53%
5 Year Change59.06%
Change since IPO1,805.87%

Recent News & Updates

Mar 23
Is West Fraser Timber Co. Ltd. (TSE:WFG) Trading At A 43% Discount?

Is West Fraser Timber Co. Ltd. (TSE:WFG) Trading At A 43% Discount?

Today we will run through one way of estimating the intrinsic value of West Fraser Timber Co. Ltd. ( TSE:WFG ) by...

Shareholder Returns

WFGCA ForestryCA Market
7D-4.0%-2.6%0.3%
1Y13.2%-10.2%-4.0%

Return vs Industry: WFG exceeded the Canadian Forestry industry which returned -10.6% over the past year.

Return vs Market: WFG exceeded the Canadian Market which returned -4.1% over the past year.

Price Volatility

Is WFG's price volatile compared to industry and market?
WFG volatility
WFG Average Weekly Movement6.1%
Forestry Industry Average Movement6.3%
Market Average Movement10.0%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market4.4%

Stable Share Price: WFG is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: WFG's weekly volatility (6%) 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, engages in manufacturing, selling, marketing, and distributing lumber, engineered wood products, pulp, newsprint, wood chips, and other residuals and renewable energy. It offers spruce-pine-fir and southern yellow pine lumber, treated wood products, medium density fiberboard panels and plywood, oriented strand board, and laminated veneer lumber wood products. The company also provides northern bleached softwood Kraft pulp and bleached chemical thermo-mechanical 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$6.78b
Earnings (TTM)US$3.37b
Revenue (TTM)US$11.29b

2.0x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WFG income statement (TTM)
RevenueUS$11.29b
Cost of RevenueUS$4.87b
Gross ProfitUS$6.41b
Other ExpensesUS$3.04b
EarningsUS$3.37b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)37.57
Gross Margin56.81%
Net Profit Margin29.88%
Debt/Equity Ratio5.8%

How did WFG perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

3%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 WFG?

Other financial metrics that can be useful for relative valuation.

WFG 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/Revenue0.5x
Enterprise Value/EBITDA1.1x
PEG Ratio-0.03x

Price to Earnings Ratio vs Peers

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

WFG PE Ratio vs Peers
The above table shows the PE ratio for WFG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average3.7x

Price-To-Earnings vs Peers: WFG is good value based on its Price-To-Earnings Ratio (2x) compared to the peer average (3.7x).


Price to Earnings Ratio vs Industry

How does WFG's PE Ratio compare vs other companies in the Global Forestry Industry?

Price-To-Earnings vs Industry: WFG is good value based on its Price-To-Earnings Ratio (2x) compared to the Canadian Forestry industry average (3.6x)


Price to Earnings Ratio vs Fair Ratio

What is WFG'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.

WFG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio2x
Fair PE Ratio2.5x

Price-To-Earnings vs Fair Ratio: WFG is good value based on its Price-To-Earnings Ratio (2x) compared to the estimated Fair Price-To-Earnings Ratio (2.5x).


Share Price vs Fair Value

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

Below Fair Value: WFG (CA$97.63) is trading below our estimate of fair value (CA$232.71)

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


Price to Earnings Growth Ratio

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


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-67.2%

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 (-67.2% per year).

Earnings vs Market: WFG's earnings are forecast to decline over the next 3 years (-67.2% 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 (-16.7% per year).

High Growth Revenue: WFG's revenue is forecast to decline over the next 3 years (-16.7% 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


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Past Performance

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

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


50.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WFG has high quality earnings.

Growing Profit Margin: WFG's current net profit margins (29.9%) are higher than last year (21.4%).


Past Earnings Growth Analysis

Earnings Trend: WFG's earnings have grown significantly by 50.9% per year over the past 5 years.

Accelerating Growth: WFG's earnings growth over the past year (171.1%) exceeds its 5-year average (50.9% per year).

Earnings vs Industry: WFG earnings growth over the past year (171.1%) exceeded the Forestry industry 74.5%.


Return on Equity

High ROE: WFG's Return on Equity (39.4%) is considered high.


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Financial Health

How is West Fraser Timber's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: WFG's short term assets ($4.0B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: WFG's short term assets ($4.0B) exceed its long term liabilities ($1.4B).


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 21.8% to 5.8% over the past 5 years.

Debt Coverage: WFG's debt is well covered by operating cash flow (732.1%).

Interest Coverage: WFG's interest payments on its debt are well covered by EBIT (210.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.59%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: WFG's dividend (1.59%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: WFG's dividend (1.59%) is low compared to the top 25% of dividend payers in the Canadian market (5.33%).


Stability and Growth of Payments

Stable Dividend: WFG's dividends per share have been stable in the past 10 years.

Growing Dividend: WFG's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (2.9%), WFG's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (3.6%), WFG's dividend payments are thoroughly covered by cash flows.


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Management

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

1.3yrs

Average management tenure


CEO

Ray Ferris (58 yo)

4.17yrs

Tenure

US$6,037,687

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 ($USD6.04M) is about average for companies of similar size in the Canadian market ($USD4.78M).

Compensation vs Earnings: Ray's compensation has increased by more than 20% in the past year.


Leadership Team

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


Board Members

Experienced Board: WFG's board of directors are considered experienced (5.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WFG 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

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$8.763b
  • Shares outstanding: 89.76m
  • 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 Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
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.