West Fraser Timber Co Ltd
TSX:WFG
Intrinsic Value
West Fraser Timber Co. Ltd. is a diversified wood products company, which engages in producing lumber, engineered wood products (oriented strand board, laminated veneer lumber, medium density fiberboa... [ Read More ]
The intrinsic value of one
WFG
stock under the Base Case scenario is
143.05
CAD.
Compared to the current market price of 107.29 CAD,
West Fraser Timber Co Ltd
is
Undervalued by 25%.
WFG could be a value trap.A value trap occurs when a stock looks inexpensive based on fundamental analysis but fails to reach its intrinsic valuation over time, often due to underlying issues not reflected in quantitative data.
Scrutinize beyond numbers; assess long-term potential.
West Fraser Timber Co Ltd's market capitalization is 8.8B CAD.
WFG stock price is 107.29 CAD.
WFG stock price (107.29 CAD) is 25% less than its Intrinsic Value (143.05 CAD).
WFG stock (103.81 CAD) is 3% less than its price (107.29 CAD). Open Relative Valuation
WFG has downside potential of 7% compared to the average analyst price target.
Open Wall St Estimates
WFG's Revenue has been growing by 3% per year for the last 3 years.
WFG's Revenue is forecast to grow at a rate of 6% per year over the next 3 years.
WFG has negative Net Income for the last twelve months.
WFG's ROIC (Return on Invested Capital) for the past 12 months is very low and is equal to 1%.
WFG's ROE (Return on Equity) for the past 12 months is negative and is equal to -1%.
WFG has positive Operating Income for the last twelve months.
WFG's Revenue has dropped by 21% over the past 12 months.
WFG's ROE (Return on Equity) has significantly decreased in the last 3 years from 29% to -1%.
WFG's ROIC (Return on Invested Capital) has significantly decreased in the last 3 years from 23% to 1%.
WFG has positive three-year average ROIC (Return on Invested Capital): 25%. The company is efficient at using invested capital to generate operating income.
WFG has positive Gross Profit for the last twelve months.
WFG has very high three-year average ROE (Return on Equity): 26%. The company is very efficient at transforming stockholders' equity into net income.
WFG has positive Free Cash Flow for the last twelve months.
WFG's short-term assets (2B USD) exceed its short-term liabilties (1B USD).
WFG has negative Net Debt. This means that the company has more cash and short-term investments (711m USD) than debt (223m USD).
WFG generates enough operating income (135m USD) to cover interest payments on its debt (24m USD).
WFG's D/E (Debt to Equity) is very low and is equal to 0.03.
WFG's Altman Z-Score is very high and is equal to 4.22.
WFG's long-term assets (9B USD) exceed its long-term liabilties (2B USD).
Valuation Backtest
West Fraser Timber Co Ltd
Run backtest to discover the historical profit from buying and selling
WFG
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
West Fraser Timber Co Ltd
Balance Sheet Decomposition
West Fraser Timber Co Ltd
| Current Assets | 2.4B |
| Cash & Short-Term Investments | 711m |
| Receivables | 458m |
| Other Current Assets | 1.2B |
| Non-Current Assets | 7B |
| PP&E | 3.8B |
| Intangibles | 2.7B |
| Other Non-Current Assets | 528m |
| Current Liabilities | 1B |
| Accounts Payable | 622m |
| Other Current Liabilities | 391m |
| Non-Current Liabilities | 1.1B |
| Long-Term Debt | 223m |
| Other Non-Current Liabilities | 911m |
Earnings Waterfall
West Fraser Timber Co Ltd
|
Revenue
|
6.5B
USD
|
|
Cost of Revenue
|
-4.6B
USD
|
|
Gross Profit
|
1.9B
USD
|
|
Operating Expenses
|
-1.8B
USD
|
|
Operating Income
|
135m
USD
|
|
Other Expenses
|
-225m
USD
|
|
Net Income
|
-90m
USD
|
Free Cash Flow Analysis
West Fraser Timber Co Ltd
WFG Profitability Score
Profitability Due Diligence
West Fraser Timber Co Ltd's profitability score is 56/100. The higher the profitability score, the more profitable the company is.
Score
West Fraser Timber Co Ltd's profitability score is 56/100. The higher the profitability score, the more profitable the company is.
WFG Solvency Score
Solvency Due Diligence
West Fraser Timber Co Ltd's solvency score is 72/100. The higher the solvency score, the more solvent the company is.
Score
West Fraser Timber Co Ltd's solvency score is 72/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
WFG Price Targets Summary
West Fraser Timber Co Ltd
According to Wall Street analysts, the average 1-year price target for
WFG
is 99.35 CAD
with a low forecast of 78.79 CAD and a high forecast of 120.75 CAD.
Shareholder Return
WFG Price
West Fraser Timber Co Ltd
| Average Annual Return | 19.1% |
| Standard Deviation of Annual Returns | 32.75% |
| Max Drawdown | -65% |
| Market Capitalization | 8.8B CAD |
| Shares Outstanding | 81 590 387 |
| Percentage of Shares Shorted | 3.56% |
Company Profile
West Fraser Timber Co Ltd
Country
Industry
Market Cap
Dividend Yield
Description
West Fraser Timber Co. Ltd. is a diversified wood products company, which engages in producing lumber, engineered wood products (oriented strand board, laminated veneer lumber, medium density fiberboard, plywood, and particleboard), pulp, newsprint, wood chips, other residuals and renewable energy. The company is headquartered in Vancouver, British Columbia. The firm produces lumber, laminated veneer lumber (LVL), medium-density fiberboard (MDF), plywood, pulp, newsprint, wood chips, other residuals, and energy with facilities in western Canada and the southern United States. The firm's segments include Lumber, Panels, Pulp & Paper, and Corporate & Other. The company offers engineered wood products. The firm holds rights to timber resources that for supplying the fiber required by its Canadian operations and have agreements for the supply of fiber required by its United States operations. The company carries on its operations through subsidiaries and joint operations in British Columbia, Alberta and the southern United States. Its sawmills located in the southern United States produce SYP lumber and wood chips. Its subsidiary include, Norbord Inc., manufactures wood-based panels, oriented strand board (OSB), particleboard and related products.
Contact
IPO
Employees
Officers
The intrinsic value of one
WFG
stock under the Base Case scenario is
143.05
CAD.
Compared to the current market price of 107.29 CAD,
West Fraser Timber Co Ltd
is
Undervalued by 25%.
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