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West Fraser Timber

TSX:WFT
Snowflake Description

Outstanding track record with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WFT
TSX
CA$4B
Market Cap
  1. Home
  2. CA
  3. Materials
Company description

West Fraser Timber Co. Ltd. produces and sells lumber, panels, and pulp and paper in western Canada and the southern United States. The last earnings update was 70 days ago. More info.


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WFT Share Price and Events
7 Day Returns
-2.9%
TSX:WFT
-3.8%
CA Forestry
0.6%
CA Market
1 Year Returns
-31.5%
TSX:WFT
-33.5%
CA Forestry
3.4%
CA Market
WFT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
West Fraser Timber (WFT) -2.9% 0.4% -6.4% -31.5% 47.5% 32.2%
CA Forestry -3.8% -1.8% -6.2% -33.5% 16.7% 4.5%
CA Market 0.6% 2.7% 8.3% 3.4% 15.7% 7.1%
1 Year Return vs Industry and Market
  • WFT outperformed the Forestry industry which returned -33.5% over the past year.
  • WFT underperformed the Market in Canada which returned 3.4% over the past year.
Price Volatility
WFT
Industry
5yr Volatility vs Market

Value

 Is West Fraser Timber undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of West Fraser Timber to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for West Fraser Timber.

TSX:WFT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:WFT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Forestry Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.893 (1 + (1- 26.5%) (16.8%))
1.002
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.002 * 5.96%)
7.92%

Discounted Cash Flow Calculation for TSX:WFT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for West Fraser Timber is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:WFT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 7.92%)
2019 323.70 Analyst x4 299.95
2020 434.08 Analyst x4 372.71
2021 394.49 Est @ -9.12% 313.86
2022 371.62 Est @ -5.8% 273.97
2023 358.70 Est @ -3.48% 245.04
2024 352.07 Est @ -1.85% 222.86
2025 349.57 Est @ -0.71% 205.04
2026 349.88 Est @ 0.09% 190.16
2027 352.14 Est @ 0.65% 177.34
2028 355.78 Est @ 1.04% 166.03
Present value of next 10 years cash flows CA$2,466.97
TSX:WFT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$355.78 × (1 + 1.95%) ÷ (7.92% – 1.95%)
CA$6,073.12
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$6,073.12 ÷ (1 + 7.92%)10
CA$2,834.11
TSX:WFT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$2,466.97 + CA$2,834.11
CA$5,301.07
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$5,301.07 / 69.35
CA$76.44
TSX:WFT Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$76.44
Current discount Discount to share price of CA$64.62
= -1 x (CA$64.62 - CA$76.44) / CA$76.44
15.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price West Fraser Timber is available for.
Intrinsic value
15%
Share price is CA$64.62 vs Future cash flow value of CA$76.44
Current Discount Checks
For West Fraser Timber to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • West Fraser Timber's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • West Fraser Timber's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for West Fraser Timber's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are West Fraser Timber's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:WFT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CAD CA$10.88
TSX:WFT Share Price ** TSX (2019-04-23) in CAD CA$64.62
Canada Forestry Industry PE Ratio Median Figure of 9 Publicly-Listed Forestry Companies 9.24x
Canada Market PE Ratio Median Figure of 557 Publicly-Listed Companies 14.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of West Fraser Timber.

TSX:WFT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:WFT Share Price ÷ EPS (both in CAD)

= 64.62 ÷ 10.88

5.94x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • West Fraser Timber is good value based on earnings compared to the CA Forestry industry average.
  • West Fraser Timber is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does West Fraser Timber's expected growth come at a high price?
Raw Data
TSX:WFT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.94x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
-28.2%per year
Canada Forestry Industry PEG Ratio Median Figure of 7 Publicly-Listed Forestry Companies -0.19x
Canada Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

TSX:WFT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.94x ÷ -28.2%

-0.21x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • West Fraser Timber earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on West Fraser Timber's assets?
Raw Data
TSX:WFT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CAD CA$41.48
TSX:WFT Share Price * TSX (2019-04-23) in CAD CA$64.62
Canada Forestry Industry PB Ratio Median Figure of 13 Publicly-Listed Forestry Companies 1.14x
Canada Market PB Ratio Median Figure of 2,380 Publicly-Listed Companies 1.51x
TSX:WFT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:WFT Share Price ÷ Book Value per Share (both in CAD)

= 64.62 ÷ 41.48

1.56x

* Primary Listing of West Fraser Timber.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • West Fraser Timber is overvalued based on assets compared to the CA Forestry industry average.
X
Value checks
We assess West Fraser Timber's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Forestry industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Forestry industry average (and greater than 0)? (1 check)
  5. West Fraser Timber has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-28.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is West Fraser Timber expected to grow at an attractive rate?
  • West Fraser Timber's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.
Growth vs Market Checks
  • West Fraser Timber's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.
  • West Fraser Timber's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:WFT Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:WFT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts -28.2%
TSX:WFT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts -3.2%
Canada Forestry Industry Earnings Growth Rate Market Cap Weighted Average -17.6%
Canada Forestry Industry Revenue Growth Rate Market Cap Weighted Average -0.2%
Canada Market Earnings Growth Rate Market Cap Weighted Average 18.2%
Canada Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:WFT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:WFT Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 5,783 742 433 3
2019-12-31 5,517 726 349 3
TSX:WFT Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-12-31 6,118 909 810
2018-09-30 6,220 1,152 988
2018-06-30 5,821 1,048 870
2018-03-31 5,309 879 670
2017-12-31 5,134 902 596
2017-09-30 4,865 829 468
2017-06-30 4,773 783 455
2017-03-31 4,562 678 407
2016-12-31 4,450 689 326
2016-09-30 4,356 479 232
2016-06-30 4,245 319 181
2016-03-31 4,163 232 97

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • West Fraser Timber's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • West Fraser Timber's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:WFT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from West Fraser Timber Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:WFT Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 6.51 7.48 5.81 3.00
2019-12-31 5.15 5.80 4.32 3.00
TSX:WFT Past Financials Data
Date (Data in CAD Millions) EPS *
2018-12-31 10.88
2018-09-30 12.94
2018-06-30 11.21
2018-03-31 8.59
2017-12-31 7.63
2017-09-30 5.98
2017-06-30 5.79
2017-03-31 5.14
2016-12-31 4.06
2016-09-30 2.86
2016-06-30 2.20
2016-03-31 1.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • West Fraser Timber is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess West Fraser Timber's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
West Fraser Timber has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare West Fraser Timber's growth in the last year to its industry (Forestry).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • West Fraser Timber has delivered over 20% year on year earnings growth in the past 5 years.
  • West Fraser Timber's 1-year earnings growth exceeds its 5-year average (35.9% vs 29.5%)
  • West Fraser Timber's earnings growth has exceeded the CA Forestry industry average in the past year (35.9% vs 2.8%).
Earnings and Revenue History
West Fraser Timber's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from West Fraser Timber Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:WFT Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 6,118.00 810.00 970.00
2018-09-30 6,220.00 988.00 970.00
2018-06-30 5,821.00 870.00 926.00
2018-03-31 5,309.00 670.00 885.00
2017-12-31 5,134.00 596.00 882.00
2017-09-30 4,865.00 468.00 881.00
2017-06-30 4,773.00 455.00 878.00
2017-03-31 4,562.00 407.00 822.00
2016-12-31 4,450.00 326.00 807.00
2016-09-30 4,356.00 232.00 814.00
2016-06-30 4,245.00 181.00 741.00
2016-03-31 4,163.00 97.00 778.00
2015-12-31 4,100.00 104.00 763.00
2015-09-30 4,051.00 162.00 736.00
2015-06-30 4,037.00 176.00 791.00
2015-03-31 4,061.00 236.00 784.00
2014-12-31 3,856.00 259.00 744.00
2014-09-30 3,725.00 334.00 718.00
2014-06-30 3,573.00 319.00 702.00
2014-03-31 3,420.00 354.00 650.00
2013-12-31 3,474.00 349.00 686.00
2013-09-30 3,414.00 251.00 693.00
2013-06-30 3,308.00 248.00 673.00
2013-03-31 3,182.00 163.00 688.00
2012-12-31 3,000.00 77.00 662.00
2012-09-30 2,877.00 47.00 613.00
2012-06-30 2,810.30 0.70 581.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • West Fraser Timber has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • West Fraser Timber used its assets more efficiently than the CA Forestry industry average last year based on Return on Assets.
  • West Fraser Timber has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess West Fraser Timber's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Forestry industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
West Fraser Timber has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is West Fraser Timber's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up West Fraser Timber's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • West Fraser Timber is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • West Fraser Timber's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of West Fraser Timber's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from West Fraser Timber Company Filings, last reported 3 months ago.

TSX:WFT Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,896.00 753.00 160.00
2018-09-30 2,986.00 657.00 282.00
2018-06-30 3,034.00 668.00 302.00
2018-03-31 2,881.00 735.00 125.00
2017-12-31 2,726.00 636.00 258.00
2017-09-30 2,554.00 632.00 132.00
2017-06-30 2,445.00 399.00 231.00
2017-03-31 2,365.00 517.00 86.00
2016-12-31 2,241.00 413.00 50.00
2016-09-30 2,101.00 449.00 52.00
2016-06-30 2,021.00 539.00 27.00
2016-03-31 2,041.00 691.00 19.00
2015-12-31 2,147.00 601.00 13.00
2015-09-30 2,124.00 448.00 21.00
2015-06-30 2,132.00 413.00 30.00
2015-03-31 2,078.00 542.00 12.00
2014-12-31 2,029.00 457.00 21.00
2014-09-30 2,029.00 386.00 18.00
2014-06-30 1,990.00 455.00 26.00
2014-03-31 2,026.00 398.00 49.00
2013-12-31 1,947.00 328.00 162.00
2013-09-30 1,768.00 317.00 221.00
2013-06-30 1,678.00 317.00 220.00
2013-03-31 1,506.00 306.00 61.00
2012-12-31 1,492.00 300.00 102.00
2012-09-30 1,426.00 296.00 164.00
2012-06-30 1,443.60 306.90 79.50
  • West Fraser Timber's level of debt (26%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (16.9% vs 26% today).
  • Debt is well covered by operating cash flow (120.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 38.3x coverage).
X
Financial health checks
We assess West Fraser Timber's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. West Fraser Timber has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.24%
Current annual income from West Fraser Timber dividends. Estimated to be 1.09% next year.
If you bought CA$2,000 of West Fraser Timber shares you are expected to receive CA$25 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • West Fraser Timber's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.05%).
  • West Fraser Timber's dividend is below the markets top 25% of dividend payers in Canada (5.51%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:WFT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Canada Forestry Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 3%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:WFT Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.73 4.00
2019-12-31 0.68 4.00
TSX:WFT Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2018-12-11 0.800 1.169
2018-09-06 0.800 1.125
2018-06-12 0.600 0.693
2018-02-14 0.600 0.666
2017-12-12 0.440 0.535
2017-09-12 0.440 0.577
2017-06-12 0.280 0.445
2017-03-15 0.280 0.480
2016-12-06 0.280 0.562
2016-09-08 0.280 0.645
2016-06-14 0.280 0.678
2015-12-08 0.280 0.624
2015-09-15 0.280 0.584
2015-06-17 0.280 0.479
2014-12-09 0.280 0.425
2014-09-05 0.280 0.494
2014-06-17 0.280 0.548
2013-12-10 0.280 0.537
2013-09-10 0.280 0.609
2013-06-10 0.280 0.655
2013-02-14 0.280 0.661
2012-12-06 0.280 0.732
2012-09-11 0.280 0.922
2012-06-12 0.280 1.061
2012-02-16 0.280 1.228
2011-12-08 0.280 1.265
2011-09-14 0.280 1.348
2011-06-14 0.280 1.271
2011-02-17 0.280 1.083
2010-12-08 0.120 0.483
2010-09-14 0.120 0.578
2010-06-15 0.060 0.333
2010-02-12 0.060 0.301
2009-12-10 0.060 0.354
2009-09-15 0.060 0.415
2009-05-29 0.060 0.483
2009-04-24 0.280 1.927

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of West Fraser Timber's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (15.5x coverage).
Future Payout to shareholders
  • No need to calculate the sustainability of West Fraser Timber's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess West Fraser Timber's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can West Fraser Timber afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. West Fraser Timber has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of West Fraser Timber's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ted Seraphim
COMPENSATION CA$4,652,960
AGE 59
TENURE AS CEO 6.1 years
CEO Bio

Mr. Edward R. Seraphim, also known as Ted, has been Director at Finning International Inc. since January 15, 2019. He serves as the President and Chief Executive Officer of West Fraser Mills Ltd. Mr. Seraphim has been the Chief Executive Officer of West Fraser Timber Co. Ltd. since March 1, 2013 and served as its President since April 2012 until April 19, 2018. Mr. Seraphim has over 33 years of operations, marketing and sales experience in the forest products industry. Mr. Seraphim served as Managing Director of Pulp and Paper Sales until 2002. Mr. Seraphim served as the Chief Operating Officer of West Fraser Timber Co. Ltd. since July 1, 2010 until March 1, 2013 and served as its Executive Vice President since July 1, 2010. He served as Vice President of Pulp & Paper Sales of West Fraser Timber Co Ltd. until July 1, 2010, which he joined in 1997. He has been a Director of West Fraser Timber Co. Ltd. since April 30, 2013. Mr. Seraphim serves as a Director of FPInnovations and also Cariboo Pulp and Paper Company Limited. Mr. Seraphim is Chairman of the B.C. Council of Forest Industries and acts as West Fraser’s representative in a number of industry-related associations including the Forest Products Association of Canada, B.C. Lumber Trade Council and the Softwood Lumber Board. Mr. Seraphim holds a Bachelor of Commerce degree from the University of British Columbia and is a Chartered Accountant.

CEO Compensation
  • Ted's compensation has been consistent with company performance over the past year.
  • Ted's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the West Fraser Timber management team in years:

2
Average Tenure
55
Average Age
  • The tenure for the West Fraser Timber management team is about average.
Management Team

Ted Seraphim

TITLE
CEO & Director
COMPENSATION
CA$5M
AGE
59
TENURE
6.1 yrs

Ray Ferris

TITLE
President & COO
COMPENSATION
CA$3M
AGE
55
TENURE
1 yrs

Chris Virostek

TITLE
CFO & VP of Finance
COMPENSATION
CA$1M
AGE
45
TENURE
2 yrs

Chris McIver

TITLE
Vice-President of Sales & Marketing
COMPENSATION
CA$1M
TENURE
3.2 yrs

Tom Theodorakis

TITLE
Corporate Secretary
TENURE
1.8 yrs
Board of Directors Tenure

Average tenure and age of the West Fraser Timber board of directors in years:

4
Average Tenure
61
Average Age
  • The tenure for the West Fraser Timber board of directors is about average.
Board of Directors

Hank Ketcham

TITLE
Chairman
COMPENSATION
CA$450K
AGE
69
TENURE
3 yrs

Ted Seraphim

TITLE
CEO & Director
COMPENSATION
CA$5M
AGE
59
TENURE
6 yrs

Ray Ferris

TITLE
President & COO
COMPENSATION
CA$3M
AGE
55

Bob Phillips

TITLE
Lead Director
COMPENSATION
CA$210K
AGE
67
TENURE
11.2 yrs

Reid Carter

TITLE
Corporate Director
COMPENSATION
CA$162K
AGE
61
TENURE
3 yrs

Gerry Miller

TITLE
Corporate Director
COMPENSATION
CA$155K
AGE
63
TENURE
7 yrs

Janice Rennie

TITLE
Corporate Director
COMPENSATION
CA$158K
AGE
61
TENURE
15 yrs

John Ketcham

TITLE
Director
COMPENSATION
CA$155K
AGE
57
TENURE
4 yrs

John Floren

TITLE
Director
COMPENSATION
CA$160K
AGE
59
TENURE
3 yrs

Brian Kenning

TITLE
Corporate Director
COMPENSATION
CA$155K
AGE
69
TENURE
2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by West Fraser Timber insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
11. Mar 19 Buy Keith Carter Individual 07. Mar 19 07. Mar 19 960 CA$63.87 CA$61,297
11. Mar 19 Buy Brian Balkwill Individual 05. Mar 19 11. Mar 19 1,414 CA$71.19 CA$99,777
06. Mar 19 Buy Sean McLaren Individual 06. Mar 19 06. Mar 19 1,000 CA$64.91 CA$64,910
28. Feb 19 Buy Charles Watkins Individual 28. Feb 19 28. Feb 19 1,000 CA$65.48 CA$65,389
28. Feb 19 Buy Raymond Ferris Individual 28. Feb 19 28. Feb 19 1,600 CA$64.16 CA$102,654
19. Feb 19 Buy Brian Kenning Individual 19. Feb 19 19. Feb 19 1,200 CA$70.30 CA$84,356
15. Feb 19 Buy Raymond Ferris Individual 15. Feb 19 15. Feb 19 3,120 CA$71.29 CA$221,742
28. Dec 18 Buy Sean McLaren Individual 26. Dec 18 26. Dec 18 1,000 CA$67.84 CA$67,838
19. Dec 18 Buy Keith Carter Individual 19. Dec 18 19. Dec 18 750 CA$65.52 CA$49,126
19. Dec 18 Buy Keith Carter Individual 18. Dec 18 18. Dec 18 700 CA$63.58 CA$44,506
19. Dec 18 Buy Christopher Virostek Individual 18. Dec 18 18. Dec 18 2,350 CA$65.48 CA$153,878
20. Sep 18 Buy Raymond Ferris Individual 19. Sep 18 19. Sep 18 1,500 CA$77.96 CA$116,940
20. Sep 18 Buy Christopher Virostek Individual 20. Sep 18 20. Sep 18 600 CA$78.97 CA$47,382
24. Jul 18 Buy Charles Watkins Individual 24. Jul 18 24. Jul 18 2,400 CA$82.18 CA$197,233
24. Jul 18 Buy Keith Carter Individual 24. Jul 18 24. Jul 18 240 CA$83.79 CA$19,823
24. Jul 18 Buy Christopher Virostek Individual 24. Jul 18 24. Jul 18 2,400 CA$82.86 CA$198,864
16. May 18 Sell Ketcham Investments Inc. Company 16. May 18 16. May 18 -200,000 CA$94.10 CA$-18,820,000
10. May 18 Sell Ketcham Investments Inc. Company 09. May 18 09. May 18 -175,000 CA$90.25 CA$-15,793,750
27. Apr 18 Buy Raymond Ferris Individual 27. Apr 18 27. Apr 18 1,700 CA$86.72 CA$147,420
X
Management checks
We assess West Fraser Timber's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. West Fraser Timber has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

West Fraser Timber Co. Ltd. (TSE:WFT) Is An Attractive Dividend Stock - Here's Why

Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. … Some simple analysis can offer a lot of insight when buying a company for its dividend, and we'll go through these below. … Click the interactive chart for our full dividend analysis

Simply Wall St -

The West Fraser Timber (TSE:WFT) Share Price Is Up 50% And Shareholders Are Holding On

One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … During three years of share price growth, West Fraser Timber achieved compound earnings per share growth of 106% per year. … Dive deeper into the earnings by checking this interactive graph of West Fraser Timber's earnings, revenue and cash flow.

Simply Wall St -

Can West Fraser Timber Co. Ltd.'s (TSE:WFT) ROE Continue To Surpass The Industry Average?

That means that for every CA$1 worth of shareholders' equity, it generated CA$0.33 in profit. … Check out our latest analysis for West Fraser Timber? … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Here's What West Fraser Timber Co Ltd's (TSE:WFT) P/E Ratio Is Telling Us

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at West Fraser Timber Co Ltd's (TSE:WFT) P/E ratio and reflect on what it tells us about the company's share price. … West Fraser Timber has a price to earnings ratio of 5.05, based on the last twelve months.

Simply Wall St -

Why West Fraser Timber Co Ltd's (TSE:WFT) CEO Salary Matters To You

Ted Seraphim has been the CEO of West Fraser Timber Co Ltd (TSE:WFT) since 2013. … Check out our latest analysis for West Fraser Timber? … Our data indicates that West Fraser Timber Co Ltd is worth CA$4.7b, and total annual CEO compensation is CA$4m.

Simply Wall St -

What Does West Fraser Timber Co Ltd's (TSE:WFT) Share Price Indicate?

West Fraser Timber Co Ltd (TSE:WFT), which is in the forestry business, and is based in Canada,. … A question to answer is whether West Fraser Timber's current trading price of CA$66.85 reflective of the actual value of the? … Let’s take a look at West Fraser Timber’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Is West Fraser Timber Co Ltd (TSE:WFT) A Smart Pick For Income Investors?

Historically, West Fraser Timber Co Ltd (TSE:WFT) has paid a dividend to shareholders. … Let's take a look at West Fraser Timber in more detail. … See our latest analysis for West Fraser Timber

Simply Wall St -

Do Institutions Own Shares In West Fraser Timber Co Ltd (TSE:WFT)?

Every investor in West Fraser Timber Co Ltd (TSE:WFT) should be aware of the most powerful shareholder groups. … West Fraser Timber is a pretty big company. … Check out our latest analysis for West Fraser Timber

Simply Wall St -

Buy West Fraser Timber Co Ltd (TSE:WFT) When Everyone Panics

High quality companies, such as West Fraser Timber Co Ltd, are impacted by general market panic and sell-off, but the fundamentals of these companies stay the same. … Check out our latest analysis for West Fraser Timber. … West Fraser Timber Co.

Simply Wall St -

Can West Fraser Timber Co Ltd (TSE:WFT) Continue To Outperform Its Industry?

and want to begin learning the link between company’s fundamentals and stock market performance. … With an ROE of 28.68%, West Fraser Timber Co Ltd (TSE:WFT) outpaced its own industry which delivered a less exciting 14.10% over the past year. … See our latest analysis for West Fraser Timber

Simply Wall St -

Company Info

Description

West Fraser Timber Co. Ltd. produces and sells lumber, panels, and pulp and paper in western Canada and the southern United States. The company offers spruce-pine-fir and southern yellow pine lumber, as well as newsprint, wood chips, and other residuals and energy products. It also provides treated wood, medium density fiberboard panels, laminated veneer lumber panels, and plywood; northern bleached softwood Kraft pulp used to produce various paper products, including printing and writing papers, specialty grades, and various tissue products; and bleached chemical thermo-mechanical pulp that is used to produce coated board grades, printing and writing paper, and paper towel/napkin grades, as well as specialty papers and tissue grades. The company was founded in 1955 and is based in Vancouver, Canada.

Details
Name: West Fraser Timber Co. Ltd.
WFT
Exchange: TSX
Founded: 1955
CA$4,481,302,525
69,348,538
Website: http://www.westfraser.com
Address: West Fraser Timber Co. Ltd.
858 Beatty Street,
Suite 501,
Vancouver,
British Columbia, V6B 1C1,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX WFT Common Shares The Toronto Stock Exchange CA CAD 07. May 1986
OTCPK WFTB.F Common Shares Pink Sheets LLC US USD 07. May 1986
DB WFC Common Shares Deutsche Boerse AG DE EUR 07. May 1986
Number of employees
Current staff
Staff numbers
0
West Fraser Timber employees.
Industry
Forest Products
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 23:47
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/22
Last earnings filing: 2019/02/12
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.