West Fraser Timber Stock Operating Margin
| WFG Stock | CAD 131.91 1.53 1.15% |
West Fraser Timber fundamentals help investors to digest information that contributes to West Fraser's financial success or failures. It also enables traders to predict the movement of West Stock. The fundamental analysis module provides a way to measure West Fraser's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to West Fraser stock.
| Last Reported | Projected for Next Year | ||
| Operating Profit Margin | (0.04) | (0.04) |
West | Operating Margin |
West Fraser Timber Company Operating Margin Analysis
West Fraser's Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Current West Fraser Operating Margin | (0.06) % |
Most of West Fraser's fundamental indicators, such as Operating Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, West Fraser Timber is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
West Operating Margin Driver Correlations
Understanding the fundamental principles of building solid financial models for West Fraser is extremely important. It helps to project a fair market value of West Stock properly, considering its historical fundamentals such as Operating Margin. Since West Fraser's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of West Fraser's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of West Fraser's interrelated accounts and indicators.
Click cells to compare fundamentals
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
| Competition |
West Pretax Profit Margin
Pretax Profit Margin |
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Based on the recorded statements, West Fraser Timber has an Operating Margin of -0.0619%. This is 95.76% lower than that of the Paper & Forest Products sector and 100.3% lower than that of the Materials industry. The operating margin for all Canada stocks is 98.88% lower than that of the firm.
West Operating Margin Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses West Fraser's direct or indirect competition against its Operating Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of West Fraser could also be used in its relative valuation, which is a method of valuing West Fraser by comparing valuation metrics of similar companies.West Fraser is currently under evaluation in operating margin category among its peers.
West Fundamentals
| Return On Equity | -0.0131 | ||||
| Return On Asset | 0.0034 | ||||
| Profit Margin | (0.02) % | ||||
| Operating Margin | (0.06) % | ||||
| Current Valuation | 9.93 B | ||||
| Shares Outstanding | 77.96 M | ||||
| Shares Owned By Insiders | 33.73 % | ||||
| Shares Owned By Institutions | 47.35 % | ||||
| Number Of Shares Shorted | 499.29 K | ||||
| Price To Earning | 9.69 X | ||||
| Price To Book | 1.06 X | ||||
| Price To Sales | 1.68 X | ||||
| Revenue | 6.45 B | ||||
| Gross Profit | 4.56 B | ||||
| EBITDA | 612 M | ||||
| Net Income | (167 M) | ||||
| Cash And Equivalents | 456 M | ||||
| Cash Per Share | 12.52 X | ||||
| Total Debt | 538 M | ||||
| Debt To Equity | 0.06 % | ||||
| Current Ratio | 3.36 X | ||||
| Book Value Per Share | 88.70 X | ||||
| Cash Flow From Operations | 525 M | ||||
| Short Ratio | 2.73 X | ||||
| Earnings Per Share | (1.61) X | ||||
| Target Price | 104.24 | ||||
| Number Of Employees | 10.8 K | ||||
| Beta | 2.05 | ||||
| Market Capitalization | 10.59 B | ||||
| Total Asset | 9.41 B | ||||
| Retained Earnings | 4.91 B | ||||
| Working Capital | 1.33 B | ||||
| Annual Yield | 0.01 % | ||||
| Five Year Return | 1.06 % | ||||
| Net Asset | 9.41 B | ||||
| Last Dividend Paid | 1.24 |
About West Fraser Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze West Fraser Timber's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of West Fraser using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of West Fraser Timber based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with West Fraser
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if West Fraser position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in West Fraser will appreciate offsetting losses from the drop in the long position's value.Moving together with West Stock
| 0.67 | AG | First Majestic Silver | PairCorr |
| 0.66 | IE | Ivanhoe Energy | PairCorr |
| 0.76 | FDY | Faraday Copper Corp | PairCorr |
Moving against West Stock
The ability to find closely correlated positions to West Fraser could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace West Fraser when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back West Fraser - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling West Fraser Timber to buy it.
The correlation of West Fraser is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as West Fraser moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if West Fraser Timber moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for West Fraser can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in West Fraser Timber. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.