West Fraser Timber Co. Ltd. (WFT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Acadian Timber Corp.

Stella-Jones, Inc.

Interfor Corp.

G2 Energy Corp.

West Fraser Timber Co. Ltd.

Western Forest Products, Inc.

Atlas Engineered Products Ltd.

Canfor Corp.

GreenFirst Forest Products, Inc.

Conifex Timber, Inc.

Why is West Fraser Timber Co. Ltd. ?

With a fall in Operating Profit of -236%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 4 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CAD 4.46 MM
ROCE(HY) Lowest at -18.14%
INTEREST(Q) At CAD 9.6 MM has Grown at 14.77%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -3.70%, its profits have fallen by -318.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.70% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is West Fraser Timber Co. Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

West Fraser Timber Co. Ltd.

-3.7%

3.43

32.19%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.65%

EBIT Growth (5y)

-182.73%

EBIT to Interest (avg)

56.94

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

0.84

Tax Ratio

94.91%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

55.83%

ROCE (avg)

21.26%

ROE (avg)

14.73%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.96

EV to EBIT

-9.21

EV to EBITDA

-64.98

EV to Capital Employed

0.96

EV to Sales

1.10

PEG Ratio

Dividend Yield

ROCE (Latest)

-10.45%

ROE (Latest)

-6.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-37What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 4.46 MM

ROCE(HY)

Lowest at -18.14%

INTEREST(Q)

At CAD 9.6 MM has Grown at 14.77%

PRE-TAX PROFIT(Q)

Lowest at CAD -355.27 MM

RAW MATERIAL COST(Y)

Grown by 97.23% (YoY

CASH AND EQV(HY)

Lowest at CAD 389.93 MM

DEBT-EQUITY RATIO (HY)

Highest at 7.93 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.3 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 11.5 times

NET PROFIT(Q)

Lowest at CAD -270.23 MM

Here's what is not working for West Fraser Timber Co. Ltd.

Pre-Tax Profit

At CAD -355.27 MM has Fallen at -210.17%

over average net sales of the previous four periods of CAD -114.54 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -270.23 MM has Fallen at -618.67%

over average net sales of the previous four periods of CAD -37.6 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Operating Cash Flow

Lowest at CAD 4.46 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Interest

At CAD 9.6 MM has Grown at 14.77%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Pre-Tax Profit

Lowest at CAD -355.27 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD -270.23 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Cash and Eqv

Lowest at CAD 389.93 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 7.93 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 5.3 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 11.5 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 97.23% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales