West Fraser Return On Equity vs. EBITDA
| WFG Stock | USD 99.44 4.98 5.27% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (0.02) | Current Value (0.02) | Quarterly Volatility 0.12738407 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.22 | 0.2741 |
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For West Fraser profitability analysis, we use financial ratios and fundamental drivers that measure the ability of West Fraser to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well West Fraser Timber utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between West Fraser's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of West Fraser Timber over time as well as its relative position and ranking within its peers.
West |
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.
Please note, there is a significant difference between West Fraser's value and its price as these two are different measures arrived at by different 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.
West Fraser Timber EBITDA vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining West Fraser's current stock value. Our valuation model uses many indicators to compare West Fraser value to that of its competitors to determine the firm's financial worth. West Fraser Timber is rated second in return on equity category among its peers. It is rated first in ebitda category among its peers . At this time, West Fraser's Return On Equity is most likely to increase slightly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value West Fraser by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.West EBITDA vs. Return On Equity
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.
West Fraser |
| = | -0.0131 |
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.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
West Fraser |
| = | 337 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
West EBITDA Comparison
West Fraser is currently under evaluation in ebitda category among its peers.
West Fraser Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in West Fraser, profitability is also one of the essential criteria for including it into their portfolios because, without profit, West Fraser will eventually generate negative long term returns. The profitability progress is the general direction of West Fraser's change in net profit over the period of time. It can combine multiple indicators of West Fraser, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -297 M | -282.1 M | |
| Operating Income | -284 M | -269.8 M | |
| Income Before Tax | -228 M | -216.6 M | |
| Total Other Income Expense Net | 56 M | 58.8 M | |
| Net Loss | -167 M | -158.7 M | |
| Income Tax Expense | -62.1 M | -59 M | |
| Interest Income | 74 M | 77.7 M | |
| Net Income Applicable To Common Shares | 2.3 B | 1.1 B | |
| Net Interest Income | 51 M | 53.5 M | |
| Net Loss | -167 M | -158.7 M | |
| Change To Netincome | -370.8 M | -352.3 M | |
| Net Loss | (2.01) | (1.91) | |
| Income Quality | (3.14) | (2.99) | |
| Net Income Per E B T | 0.73 | 0.59 |
West Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on West Fraser. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of West Fraser position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the West Fraser's important profitability drivers and their relationship over time.
Use West Fraser in pair-trading
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.West Fraser Pair Trading
West Fraser Timber Pair Trading Analysis
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.Use Investing Themes to Complement your West Fraser position
In addition to having West Fraser in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Chemicals Thematic Idea Now
Chemicals
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Chemicals theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Chemicals Theme or any other thematic opportunities.
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Check out Your Current Watchlist. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
To fully project West Fraser's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of West Fraser Timber at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include West Fraser's income statement, its balance sheet, and the statement of cash flows.