TSXV:WBE

Stock Analysis Report

WestBond Enterprises

Executive Summary

WestBond Enterprises Corporation, together with its subsidiary, WestBond Industries Inc., manufactures and sells disposable paper products for medical, hygienic, and industrial uses primarily in Canada and the United States.

Rewards

PE ratio (16.5x) is below the Forestry industry average (16.7x)

Earnings grew by 12.2% over the past year

Risk Analysis

Shares are highly illiquid

Does not have a meaningful market cap (CA$8M)

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Proven track record with mediocre balance sheet.

Share Price & News

How has WestBond Enterprises's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WBE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.0%

WBE

6.2%

CA Forestry

0.6%

CA Market


1 Year Return

29.4%

WBE

-9.0%

CA Forestry

5.8%

CA Market

Return vs Industry: WBE exceeded the Canadian Forestry industry which returned -9% over the past year.

Return vs Market: WBE exceeded the Canadian Market which returned 5.8% over the past year.


Shareholder returns

WBEIndustryMarket
7 Day10.0%6.2%0.6%
30 Day4.8%3.5%0.5%
90 Day33.3%3.1%3.6%
1 Year36.8%29.4%-7.1%-9.0%9.1%5.8%
3 Year167.0%144.4%5.5%-1.9%15.4%5.0%
5 Year220.4%193.3%-11.6%-18.1%33.6%14.0%

Price Volatility Vs. Market

How volatile is WestBond Enterprises's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is WestBond Enterprises undervalued compared to its fair value and its price relative to the market?

16.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WBE (CA$0.22) is trading above our estimate of fair value (CA$0.2)

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


Price To Earnings Ratio

PE vs Industry: WBE is good value based on its PE Ratio (16.5x) compared to the Forestry industry average (16.7x).

PE vs Market: WBE is poor value based on its PE Ratio (16.5x) compared to the Canadian market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WBE's PEG Ratio to determine if it is good value.


Price to Book Ratio

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


Next Steps

Future Growth

How is WestBond Enterprises forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

83.4%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as WestBond Enterprises has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has WestBond Enterprises performed over the past 5 years?

65.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WBE has high quality earnings.

Growing Profit Margin: WBE's current net profit margins (3.9%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: WBE has become profitable over the past 5 years, growing earnings by 65.2% per year.

Accelerating Growth: WBE's earnings growth over the past year (12.2%) is below its 5-year average (65.2% per year).

Earnings vs Industry: WBE earnings growth over the past year (12.2%) exceeded the Forestry industry -13.1%.


Return on Equity

High ROE: WBE's Return on Equity (8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is WestBond Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: WBE's short term assets (CA$2.8M) exceed its short term liabilities (CA$2.1M).

Long Term Liabilities: WBE's short term assets (CA$2.8M) do not cover its long term liabilities (CA$5.8M).


Debt to Equity History and Analysis

Debt Level: WBE's debt to equity ratio (50.6%) is considered high.

Reducing Debt: WBE's debt to equity ratio has increased from 2.8% to 50.6% over the past 5 years.

Debt Coverage: WBE's debt is well covered by operating cash flow (48.9%).

Interest Coverage: WBE's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

Inventory Level: WBE has a high level of physical assets or inventory.

Debt Coverage by Assets: WBE's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is WestBond Enterprises's current dividend yield, its reliability and sustainability?

4.55%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%1.9%markettop25%5.3%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: WBE's dividend (4.55%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: WBE's dividend (4.55%) is low compared to the top 25% of dividend payers in the Canadian market (5.32%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether WBE's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if WBE's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.1%), WBE's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

23.3yrs

Average board tenure


CEO

Gennaro Magistrale 0

CA$259,782

Compensation

Mr. Gennaro Magistrale serves as the President and Chief Executive Officer of Westbond Enterprises Corp and has been its Executive Director since October 24, 1989. Mr. Magistrale has over 25 years of exper ...


CEO Compensation Analysis

Compensation vs Market: Gennaro's total compensation ($USD196.03K) is about average for companies of similar size in the Canadian market ($USD155.16K).

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


Board Members

NamePositionTenureCompensationOwnership
Gennaro Magistrale
President0yrsCA$259.78k22.85% CA$1.8m
Owen Granger
CFO, Corporate Secretary30.3yrsCA$89.68k8.56% CA$669.1k
D. Dawson
Independent Director16.8yrsno data0.42% CA$33.0k
J. Seppala
Non-Independent Director23.3yrsCA$11.33k1.15% CA$89.6k
Peter Toigo
Independent Director6.7yrsno data0.42% CA$33.0k

23.3yrs

Average Tenure

Experienced Board: WBE's board of directors are seasoned and experienced ( 23.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WBE insiders have sold more shares than they have bought 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

WestBond Enterprises Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: WestBond Enterprises Corporation
  • Ticker: WBE
  • Exchange: TSXV
  • Founded:
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: CA$7.813m
  • Shares outstanding: 35.52m
  • Website: https://www.westbond.ca

Location

  • WestBond Enterprises Corporation
  • 7403 Progress Way
  • Unit 101
  • Delta
  • British Columbia
  • V4G 1E7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WBETSXV (TSX Venture Exchange)YesCommon SharesCACADFeb 1992

Biography

WestBond Enterprises Corporation, together with its subsidiary, WestBond Industries Inc., manufactures and sells disposable paper products for medical, hygienic, and industrial uses primarily in Canada and the United States. The company offers personal hygiene products, such as jumbo roll and conventional bathroom tissues, center pull towels, kraft roll towels, and single fold towels; and long-term care products, including fold and roll air laid wipes, waterproof underlays, and mitts. It also provides clinical products, including sheets, drapes, examination table papers, gowns, aprons, chiropractor rolls, pillowcases, dental bibs, patient wipes, and dental head rest covers; and in-flight paper disposables consisting of pillowcases and lavatory hand towels. The company sells its products primarily to medical and industrial distributors, as well as to end-users on a direct basis. WestBond Enterprises Corporation is headquartered in Delta, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:07
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.