Is West Fraser Stock a Good Investment?
West Fraser Investment Advice | WFG |
- Examine West Fraser's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research West Fraser's leadership team and their track record. Good management can help West Fraser navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Paper & Forest Products space and any emerging trends that could impact West Fraser's business and its evolving consumer preferences.
- Compare West Fraser's performance and market position to its competitors. Analyze how West Fraser is positioned in terms of product offerings, innovation, and market share.
- Check if West Fraser pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about West Fraser's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in West Fraser Timber stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if West Fraser Timber is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine West Fraser Stock
Researching West Fraser's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 34.0% of the company outstanding shares are owned by insiders. The company has Price to Book (P/B) ratio of 1.05. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. West Fraser Timber has Price/Earnings To Growth (PEG) ratio of 0.13. The entity recorded a loss per share of 1.15. The firm last dividend was issued on the 26th of September 2024. West Fraser had 2:1 split on the 14th of January 2014.
To determine if West Fraser is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding West Fraser's research are outlined below:
| The company reported the last year's revenue of 6.45 B. Reported Net Loss for the year was (167 M) with profit before taxes, overhead, and interest of 4.56 B. | |
| About 34.0% of the company outstanding shares are owned by insiders | |
| On 11th of October 2024 West Fraser paid $ 0.32 per share dividend to its current shareholders | |
| Latest headline from news.google.com: PCJ Investment Counsel Ltd. Invests 974,000 in West Fraser Timber Co. Ltd. - MarketBeat |
West Fraser uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in West Fraser Timber. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to West Fraser's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 14th of February 2024 Upcoming Quarterly Report | View | |
| 23rd of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 14th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact West Fraser's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises West Fraser's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
1998-04-20 | 1998-03-31 | 0.02 | 0.01 | -0.01 | 50 | ||
2002-02-28 | 2001-12-31 | 0.06 | 0.04 | -0.02 | 33 | ||
1999-02-17 | 1998-12-31 | 0.09 | 0.07 | -0.02 | 22 | ||
2003-10-16 | 2003-09-30 | 0.15 | 0.12 | -0.03 | 20 | ||
2009-02-19 | 2008-12-31 | -0.32 | -0.36 | -0.04 | 12 | ||
1997-02-13 | 1996-12-31 | 0.32 | 0.28 | -0.04 | 12 | ||
2005-02-15 | 2004-12-31 | 0.13 | 0.18 | 0.05 | 38 | ||
2001-04-25 | 2001-03-31 | 0.16 | 0.21 | 0.05 | 31 |
Know West Fraser's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as West Fraser is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading West Fraser Timber backward and forwards among themselves. West Fraser's institutional investor refers to the entity that pools money to purchase West Fraser's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Thrivent Financial For Lutherans | 2024-09-30 | 939.1 K | Manning & Napier Advisors, Llc | 2024-09-30 | 743.6 K | Van Lanschot Kempen Investment Management Nv | 2024-06-30 | 692.5 K | Vontobel Holding Ltd. | 2024-06-30 | 531.9 K | Grantham, Mayo, Van Otterloo & Co., Llc | 2024-09-30 | 502.4 K | Goldman Sachs Group Inc | 2024-06-30 | 452.2 K | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 448.8 K | Connor Clark & Lunn Inv Mgmt Ltd | 2024-06-30 | 362 K | Legal & General Group Plc | 2024-06-30 | 357.9 K | Royal Bank Of Canada | 2024-06-30 | 3.1 M | Vanguard Group Inc | 2024-09-30 | 2.8 M |
West Fraser's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 7.51 B.Market Cap |
|
West Fraser's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.02) | (0.02) | |
| Return On Capital Employed | (0.03) | (0.03) | |
| Return On Assets | (0.02) | (0.02) | |
| Return On Equity | (0.02) | (0.02) |
Determining West Fraser's profitability involves analyzing its financial statements and using various financial metrics to determine if West Fraser is a good buy. For example, gross profit margin measures West Fraser's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of West Fraser's profitability and make more informed investment decisions.
Evaluate West Fraser's management efficiency
The West Fraser's current Return On Tangible Assets is estimated to increase to -0.02. The West Fraser's current Return On Capital Employed is estimated to increase to -0.03. At this time, West Fraser's Other Current Assets are most likely to increase significantly in the upcoming years. The West Fraser's current Total Current Assets is estimated to increase to about 2.5 B, while Other Assets are forecasted to increase to (950 K). West Fraser's management efficiency ratios could be used to measure how well West Fraser manages its routine affairs as well as how well it operates its assets and liabilities.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 86.82 | 91.16 | |
| Tangible Book Value Per Share | 54.56 | 57.28 | |
| Enterprise Value Over EBITDA | 20.05 | 21.06 | |
| Price Book Value Ratio | 0.99 | 0.94 | |
| Enterprise Value Multiple | 20.05 | 21.06 | |
| Price Fair Value | 0.99 | 0.94 | |
| Enterprise Value | 5.5 B | 5.8 B |
The strategic decisions made by West Fraser management significantly impact its financial stability and market performance. Evaluating these factors helps determine whether the stock is a worthwhile investment.
Dividend Yield 0.0137 | Forward Dividend Yield 0.0137 | Forward Dividend Rate 1.28 | Beta 2.054 |
Basic technical analysis of West Stock
As of the 22nd of November, West Fraser maintains the Downside Deviation of 1.52, mean deviation of 1.18, and Market Risk Adjusted Performance of 0.1938. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of West Fraser Timber, as well as the relationship between them. Please check out West Fraser Timber jensen alpha, potential upside, as well as the relationship between the Potential Upside and skewness to decide if West Fraser Timber is priced fairly, providing market reflects its latest price of 95.49 per share. Given that West Fraser Timber has jensen alpha of 0.0744, we strongly advise you to confirm West Fraser Timber's prevalent market performance to make sure the company can sustain itself at a future point.West Fraser's Outstanding Corporate Bonds
West Fraser issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. West Fraser Timber uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most West bonds can be classified according to their maturity, which is the date when West Fraser Timber has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand West Fraser's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing West Fraser's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0765 | |||
| Market Risk Adjusted Performance | 0.1938 | |||
| Mean Deviation | 1.18 | |||
| Semi Deviation | 1.42 | |||
| Downside Deviation | 1.52 | |||
| Coefficient Of Variation | 1056.72 | |||
| Standard Deviation | 1.57 | |||
| Variance | 2.48 | |||
| Information Ratio | 0.034 | |||
| Jensen Alpha | 0.0744 | |||
| Total Risk Alpha | (0.04) | |||
| Sortino Ratio | 0.0353 | |||
| Treynor Ratio | 0.1838 | |||
| Maximum Drawdown | 8.29 | |||
| Value At Risk | (2.80) | |||
| Potential Upside | 2.56 | |||
| Downside Variance | 2.3 | |||
| Semi Variance | 2.01 | |||
| Expected Short fall | (1.29) | |||
| Skewness | 0.0411 | |||
| Kurtosis | 1.01 |
| Risk Adjusted Performance | 0.0765 | |||
| Market Risk Adjusted Performance | 0.1938 | |||
| Mean Deviation | 1.18 | |||
| Semi Deviation | 1.42 | |||
| Downside Deviation | 1.52 | |||
| Coefficient Of Variation | 1056.72 | |||
| Standard Deviation | 1.57 | |||
| Variance | 2.48 | |||
| Information Ratio | 0.034 | |||
| Jensen Alpha | 0.0744 | |||
| Total Risk Alpha | (0.04) | |||
| Sortino Ratio | 0.0353 | |||
| Treynor Ratio | 0.1838 | |||
| Maximum Drawdown | 8.29 | |||
| Value At Risk | (2.80) | |||
| Potential Upside | 2.56 | |||
| Downside Variance | 2.3 | |||
| Semi Variance | 2.01 | |||
| Expected Short fall | (1.29) | |||
| Skewness | 0.0411 | |||
| Kurtosis | 1.01 |
Consider West Fraser's intraday indicators
West Fraser intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of West Fraser stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
West Fraser Corporate Filings
6K | 23rd of October 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
West Stock media impact
Far too much social signal, news, headlines, and media speculation about West Fraser that are available to investors today. That information is available publicly through West media outlets and privately through word of mouth or via West internal channels. However, regardless of the origin, that massive amount of West data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of West Fraser news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of West Fraser relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to West Fraser's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive West Fraser alpha.
West Fraser Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards West Fraser can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
West Fraser Corporate Management
| Keith Carter | Vice President - Pulp and Energy Operations | Profile | |
| Alan Caputo | Vice President - Human Resources | Profile | |
| James Gorman | Vice President - Corporate and Government Relations | Profile | |
| Janice Rennie | Independent Director | Profile | |
| Alan McMeekin | Vice President European Engineered Wood Products | Profile | |
| Scott Stubbington | Vice President Sales Engineered Wood Products | Profile | |
| Charles Watkins | Vice President - Capital and Technology | Profile |
Already Invested in West Fraser Timber?
The danger of trading West Fraser Timber is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of West Fraser is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than West Fraser. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile West Fraser Timber is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether West Fraser Timber is a strong investment it is important to analyze West Fraser's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact West Fraser's future performance. For an informed investment choice regarding West Stock, refer to the following important reports: 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 census. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Is Paper & Forest Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of West Fraser. If investors know West will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about West Fraser listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.27) | Dividend Share 1.24 | Earnings Share (1.15) | Revenue Per Share 77.23 | Quarterly Revenue Growth (0.16) |
The market value of West Fraser Timber is measured differently than its book value, which is the value of West that is recorded on the company's balance sheet. Investors also form their own opinion of West Fraser's value that differs from its market value or its book value, called intrinsic value, which is West Fraser's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because West Fraser's market value can be influenced by many factors that don't directly affect West Fraser's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between West Fraser's value and its price, as these two are different measures arrived at by various means. Investors typically determine if West Fraser is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, West Fraser's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.