West Fraser Timber Stock Return On Equity
| WFG Stock | CAD 138.40 0.80 0.57% |
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.
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West Fraser Timber Company Return On Equity Analysis
West Fraser's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current West Fraser Return On Equity | -0.0131 |
Most of West Fraser's fundamental indicators, such as Return On Equity, 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.
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
| Competition |
Based on the latest financial disclosure, West Fraser Timber has a Return On Equity of -0.0131. This is 101.44% lower than that of the Paper & Forest Products sector and 100.33% lower than that of the Materials industry. The return on equity for all Canada stocks is 95.77% lower than that of the firm.
West Return On Equity 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 Return On Equity 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 return on equity 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 | 10.51 B | |||
| Shares Outstanding | 77.96 M | |||
| Shares Owned By Insiders | 33.73 % | |||
| Shares Owned By Institutions | 47.38 % | |||
| Number Of Shares Shorted | 257.87 K | |||
| Price To Earning | 9.69 X | |||
| Price To Book | 1.13 X | |||
| Price To Sales | 1.78 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 | 1.48 X | |||
| Earnings Per Share | (1.60) X | |||
| Target Price | 104.24 | |||
| Number Of Employees | 10.8 K | |||
| Beta | 2.05 | |||
| Market Capitalization | 11.17 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
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.