TSX:WFT

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West Fraser Timber

Executive Summary

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. More Details


Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

How has West Fraser Timber's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

Volatility Over Time: WFT's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

2.9%

WFT

4.3%

CA Forestry

2.7%

CA Market


1 Year Return

25.2%

WFT

21.3%

CA Forestry

0.5%

CA Market

Return vs Industry: WFT exceeded the Canadian Forestry industry which returned 21.3% over the past year.

Return vs Market: WFT exceeded the Canadian Market which returned 0.5% over the past year.


Shareholder returns

WFTIndustryMarket
7 Day2.9%4.3%2.7%
30 Day17.0%14.5%12.7%
90 Day3.4%6.0%7.5%
1 Year27.3%25.2%22.9%21.3%4.2%0.5%
3 Year-5.9%-9.4%-8.9%-14.6%12.8%1.9%
5 Year41.6%34.8%22.2%12.0%49.7%26.8%

Long-Term Price Volatility Vs. Market

How volatile is West Fraser Timber's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

18.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WFT (CA$72.3) is trading below our estimate of fair value (CA$88.74)

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


Price To Earnings Ratio

PE vs Industry: WFT is good value based on its PE Ratio (13.5x) compared to the CA Forestry industry average (13.7x).

PE vs Market: WFT is good value based on its PE Ratio (13.5x) compared to the Canadian market (15.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WFT is overvalued based on its PB Ratio (1.8x) compared to the CA Forestry industry average (1.3x).


Next Steps

Future Growth

How is West Fraser Timber forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WFT's earnings are forecast to decline over the next 3 years (-8% per year).

Earnings vs Market: WFT's earnings are forecast to decline over the next 3 years (-8% per year).

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

Revenue vs Market: WFT's revenue (0.5% per year) is forecast to grow slower than the Canadian market (6.2% per year).

High Growth Revenue: WFT's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

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

-3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WFT has high quality earnings.

Growing Profit Margin: WFT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WFT's earnings have declined by 3.5% per year over the past 5 years.

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

Earnings vs Industry: WFT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Forestry industry (31.1%).


Return on Equity

High ROE: WFT's Return on Equity (13.1%) is considered low.


Next Steps

Financial Health

How is West Fraser Timber's financial position?


Financial Position Analysis

Short Term Liabilities: WFT's short term assets (CA$1.4B) exceed its short term liabilities (CA$667.0M).

Long Term Liabilities: WFT's short term assets (CA$1.4B) do not cover its long term liabilities (CA$1.5B).


Debt to Equity History and Analysis

Debt Level: WFT's debt to equity ratio (23.9%) is considered satisfactory.

Reducing Debt: WFT's debt to equity ratio has increased from 21.2% to 23.9% over the past 5 years.

Debt Coverage: WFT's debt is well covered by operating cash flow (143.9%).

Interest Coverage: WFT's interest payments on its debt are well covered by EBIT (11.6x coverage).


Balance Sheet


Next Steps

Dividend

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

1.11%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WFT's dividend (1.11%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.62%).

High Dividend: WFT's dividend (1.11%) is low compared to the top 25% of dividend payers in the Canadian market (5.26%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.1%), WFT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WFT's dividends in 3 years are forecast to be thoroughly covered by earnings (12.3% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Ray Ferris (57 yo)

1.33yrs

Tenure

CA$3,623,055

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 ($USD2.79M) is about average for companies of similar size in the Canadian market ($USD2.98M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Raymond Ferris
CEO, President & Corporate Director1.33yrsCA$3.62m0.055%
CA$ 2.7m
Christopher Virostek
CFO & VP of Finance3.58yrsCA$1.17m0.0087%
CA$ 433.5k
Christopher McIver
Vice-President of Sales & Marketing4.75yrsCA$1.22m0.010%
CA$ 517.4k
Chuck Watkins
Vice-President of Capital & Technology0.75yrno datano data
D'Arcy Henderson
Vice-Presidentno datano data0.0022%
CA$ 111.7k
Tom Theodorakis
Corporate Secretary3.33yrsno datano data

3.3yrs

Average Tenure

Experienced Management: WFT's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Raymond Ferris
CEO, President & Corporate Director1.33yrsCA$3.62m0.055%
CA$ 2.7m
Brian Kenning
Independent Corporate Director3.58yrsCA$176.86k0.0018%
CA$ 86.9k
Henry Ketcham
Independent Chairman4.58yrsCA$465.00k0.58%
CA$ 28.6m
Janice Rennie
Independent Corporate Director16.58yrsCA$170.00k0.0015%
CA$ 72.5k
Robert Phillips
Lead Independent Director12.75yrsCA$223.14k0.015%
CA$ 723.0k
Gerald Miller
Independent Corporate Director8.58yrsCA$170.00k0.012%
CA$ 588.9k
Reid Carter
Independent Corporate Director4.58yrsCA$180.00kno data
John Floren
Independent Corporate Director4.58yrsCA$180.00kno data
Gillian Winckler
Independent Corporate Director3.58yrsCA$170.00k0.0026%
CA$ 126.6k
John Ketcham
Independent Corporate Director5.58yrsCA$170.00k1.44%
CA$ 71.7m

4.6yrs

Average Tenure

63yo

Average Age

Experienced Board: WFT's board of directors are considered experienced (4.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: West Fraser Timber Co. Ltd.
  • Ticker: WFT
  • Exchange: TSX
  • Founded: 1955
  • Industry: Forest Products
  • Sector: Materials
  • Market Cap: CA$4.965b
  • Shares outstanding: 68.68m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WFTTSX (The Toronto Stock Exchange)YesCommon SharesCACADMay 1986
WFCDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 1986
WFTB.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 1986

Biography

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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 23:08
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.