TSX:WTE

Stock Analysis Report

Westshore Terminals Investment

Executive Summary

Westshore Terminals Investment Corporation, through its limited partner interests in Westshore Terminals Limited Partnership, operates a coal storage and loading terminal at Roberts Bank, British Columbia in Canada.

Rewards

Trading at 9.1% below its fair value

Earnings grew by 16.6% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -11.1% per year for the next 3 years

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Excellent balance sheet with solid track record.

Share Price & News

How has Westshore Terminals Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.6%

WTE

-0.9%

CA Infrastructure

-0.3%

CA Market


1 Year Return

-18.5%

WTE

-9.5%

CA Infrastructure

8.2%

CA Market

Return vs Industry: WTE underperformed the Canadian Infrastructure industry which returned -7.2% over the past year.

Return vs Market: WTE underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

WTEIndustryMarket
7 Day-2.6%-0.9%-0.3%
30 Day-5.7%0.7%1.3%
90 Day-22.0%2.4%5.2%
1 Year-15.9%-18.5%-4.1%-9.5%11.6%8.2%
3 Year-25.0%-31.1%-29.4%-42.7%17.8%7.1%
5 Year-34.3%-44.3%-16.5%-40.2%33.1%13.6%

Price Volatility Vs. Market

How volatile is Westshore Terminals Investment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Westshore Terminals Investment undervalued compared to its fair value and its price relative to the market?

10.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WTE (CA$17.46) is trading below our estimate of fair value (CA$19.21)

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


Price To Earnings Ratio

PE vs Industry: WTE is good value based on its PE Ratio (8.6x) compared to the Infrastructure industry average (12.3x).

PE vs Market: WTE is good value based on its PE Ratio (8.6x) compared to the Canadian market (15.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WTE is overvalued based on its PB Ratio (1.7x) compared to the XN Infrastructure industry average (1.3x).


Next Steps

Future Growth

How is Westshore Terminals Investment forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WTE's earnings are forecast to decline over the next 3 years (-11.1% per year).

Earnings vs Market: WTE's earnings are forecast to decline over the next 3 years (-11.1% per year).

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

Revenue vs Market: WTE's revenue is expected to decline over the next 3 years (-10.7% per year).

High Growth Revenue: WTE's revenue is forecast to decline over the next 3 years (-10.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WTE's Return on Equity is forecast to be low in 3 years time (10.2%).


Next Steps

Past Performance

How has Westshore Terminals Investment performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WTE has high quality earnings.

Growing Profit Margin: WTE's current net profit margins (35.7%) are higher than last year (33%).


Past Earnings Growth Analysis

Earnings Trend: WTE's earnings have declined by -2.7% per year over the past 5 years.

Accelerating Growth: WTE's earnings growth over the past year (16.6%) exceeds its 5-year average (-2.7% per year).

Earnings vs Industry: WTE earnings growth over the past year (16.6%) exceeded the Infrastructure industry 3.5%.


Return on Equity

High ROE: WTE's Return on Equity (20.1%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Westshore Terminals Investment's financial position?


Financial Position Analysis

Short Term Liabilities: WTE's short term assets (CA$141.5M) exceed its short term liabilities (CA$70.4M).

Long Term Liabilities: WTE's short term assets (CA$141.5M) do not cover its long term liabilities (CA$428.2M).


Debt to Equity History and Analysis

Debt Level: WTE is debt free.

Reducing Debt: WTE has no debt compared to 5 years ago when its debt to equity ratio was 0.01%.

Debt Coverage: WTE has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: WTE has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if WTE's debt is covered by short term assets.


Next Steps

Dividend

What is Westshore Terminals Investment's current dividend yield, its reliability and sustainability?

3.59%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%1.9%markettop25%5.5%industryaverage3.3%forecastin3Years4.4%

Current dividend yield vs market & industry

Notable Dividend: WTE's dividend (3.67%) is higher than the bottom 25% of dividend payers in the Canadian market (1.88%).

High Dividend: WTE's dividend (3.67%) is low compared to the top 25% of dividend payers in the Canadian market (5.48%).


Stability and Growth of Payments

Stable Dividend: WTE's dividend payments have been volatile in the past 10 years.

Growing Dividend: WTE's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.4%), WTE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WTE's dividends in 3 years are forecast to be covered by earnings (56.3% payout ratio).


Next Steps

Management

What is the CEO of Westshore Terminals Investment's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average board tenure


CEO

William Stinson (85yo)

0yrs

Tenure

0

Mr. William W. Stinson serves as the President and Chief Executive Officer of Westshore Terminals Ltd. Mr. Stinson serves as the Chairman, Chief Executive Officer and President at Westshore Terminals Inves ...


CEO Compensation Analysis

Compensation vs Market: William's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD1.63M).

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


Board Age and Tenure

2.6yrs

Average Tenure

64yo

Average Age

Experienced Board: WTE's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: WTE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$23,41007 Nov 19
H. Hollands
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceCA$23.41
SellCA$46,84007 Nov 19
HB Strategies Inc.
EntityCompany
Shares2,000
Max PriceCA$23.42
BuyCA$27,34405 Jun 19
Glenn Dudar
EntityIndividual
Shares1,250
Max PriceCA$21.87
BuyCA$9,62021 Mar 19
Glen Clark
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceCA$19.24
BuyCA$119,17521 Mar 19
Glenn Dudar
EntityIndividual
Shares6,000
Max PriceCA$19.87
BuyCA$37,48220 Mar 19
Brian Canfield
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceCA$18.74
BuyCA$48,02520 Mar 19
William Stinson
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares2,500
Max PriceCA$19.25

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • William Stinson (85yo)

    Chairman

    • Nick Desmarais

      VP of Development

      • Tenure: 1.6yrs
    • M. H. Ross (62yo)

      CFO & Director

      • Tenure: 23.1yrs
    • David Honsberger

      Director of Human Resources

      • Andrew MacDonell

        Manager of Operations


        Board Members

        • Brian Canfield (80yo)

          Independent Director

          • Tenure: 7.6yrs
        • William Stinson (85yo)

          Chairman

          • Nick Desmarais

            VP of Development

            • Tenure: 1.6yrs
          • Glen Clark (61yo)

            Independent Director

            • Tenure: 6.3yrs
          • Steve Akazawa

            Independent Director

            • Tenure: 1.6yrs
          • M. H. Ross (62yo)

            CFO & Director

            • Tenure: 23.1yrs
          • H. Hollands (66yo)

            Independent Director

            • Tenure: 2.6yrs
          • Dianne Watts (59yo)

            Independent Director

            • Tenure: 1.6yrs

          Company Information

          Westshore Terminals Investment Corporation's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Westshore Terminals Investment Corporation
          • Ticker: WTE
          • Exchange: TSX
          • Founded: 1970
          • Industry: Marine Ports and Services
          • Sector: Transportation
          • Market Cap: CA$1.183b
          • Shares outstanding: 66.70m
          • Website: https://www.westshore.com

          Number of Employees


          Location

          • Westshore Terminals Investment Corporation
          • 1067 West Cordova Street
          • Suite 1800
          • Vancouver
          • British Columbia
          • V6C 1C7
          • Canada

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          WTETSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1998
          WTSH.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1998

          Biography

          Westshore Terminals Investment Corporation, through its limited partner interests in Westshore Terminals Limited Partnership, operates a coal storage and loading terminal at Roberts Bank, British Columbia in Canada. It has contracts to ship coal from mines in British Columbia and Alberta, Canada; and Montana, the United States. The company was founded in 1970 and is headquartered in Vancouver, Canada. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/29 00:41
          End of Day Share Price2020/01/28 00:00
          Earnings2019/09/30
          Annual Earnings2018/12/31


          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.