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.

Canfor Corp.

Interfor Corp.

West Fraser Timber Co. Ltd.

G2 Energy Corp.

Western Forest Products, Inc.

Atlas Engineered Products Ltd.

GreenFirst Forest Products, Inc.

Conifex Timber, Inc.

Why is West Fraser Timber Co. Ltd. ?

The company has declared negative results for the last 5 consecutive quarters

NET PROFIT(HY) At CAD -320.06 MM has Grown at -520.21%
OPERATING CASH FLOW(Y) Lowest at CAD -150.57 MM
ROCE(HY) Lowest at -19.3%

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 -1.19%, its profits have fallen by -318.6%

Underperformed the market in the last 1 year

Even though the market (S&P/TSX 60) has generated returns of 28.13% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -1.19% returns

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?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

West Fraser Timber Co. Ltd.

1.52%

3.31

33.64%

S&P/TSX 60

29.63%

2.33

12.07%

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)

44.18

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

0.84

Tax Ratio

21.55%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

55.83%

ROCE (avg)

16.65%

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

-9.17

EV to EBITDA

-64.70

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

3What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at CAD 13.32

PRE-TAX PROFIT(Q)

At CAD -88.6 MM has Grown at 62.8%

NET PROFIT(Q)

At CAD -49.84 MM has Grown at 60.75%

-29What is not working for the Company

NET PROFIT(HY)

At CAD -320.06 MM has Grown at -520.21%

OPERATING CASH FLOW(Y)

Lowest at CAD -150.57 MM

ROCE(HY)

Lowest at -19.3%

DEBT-EQUITY RATIO (HY)

Highest at 5.5 %

INTEREST(Q)

At CAD 11.08 MM has Grown at 15.34%

RAW MATERIAL COST(Y)

Grown by 22.62% (YoY

CASH AND EQV(HY)

Lowest at CAD 218.03 MM

Here's what is working for West Fraser Timber Co. Ltd.

Pre-Tax Profit

At CAD -88.6 MM has Grown at 62.8%

over average net sales of the previous four periods of CAD -238.16 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -49.84 MM has Grown at 60.75%

over average net sales of the previous four periods of CAD -126.97 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Dividend per share

Highest at CAD 13.32

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

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

Operating Cash Flow

Lowest at CAD -150.57 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 11.08 MM has Grown at 15.34%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Debt-Equity Ratio

Highest at 5.5 % and Grown

In each half year 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

Cash and Eqv

Lowest at CAD 218.03 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 22.62% (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