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Western Forest Products

DB:NWF
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NWF
DB
CA$443M
Market Cap
  1. Home
  2. DE
  3. Materials
Company description

Western Forest Products Inc. operates as an integrated forest products company. The last earnings update was 73 days ago. More info.


Add to Portfolio Compare Print
  • Western Forest Products has significant price volatility in the past 3 months.
NWF Share Price and Events
7 Day Returns
-6.5%
DB:NWF
6.5%
Europe Forestry
2.8%
DE Market
1 Year Returns
-38.2%
DB:NWF
-11.9%
Europe Forestry
3%
DE Market
NWF Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Western Forest Products (NWF) -6.5% -13.2% -28% -38.2% -44% -44.4%
Europe Forestry 6.5% 1.9% 8.8% -11.9% 1% 49.9%
DE Market 2.8% 0.2% 1.3% 3% 8% 23.6%
1 Year Return vs Industry and Market
  • NWF underperformed the Forestry industry which returned -11.9% over the past year.
  • NWF underperformed the Market in Germany which returned 3% over the past year.
Price Volatility
NWF
Industry
5yr Volatility vs Market

Value

 Is Western Forest Products undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Western Forest Products to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Western Forest Products.

DB:NWF Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-06-30) in CAD CA$ 0.09
Payout Ratio Company Filings (2019-06-30) 4053.1%
Discount Rate (Cost of Equity) See below 10.9%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:NWF
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Forestry Unlevered Beta Simply Wall St/ S&P Global 1.37
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.367 (1 + (1- 26.5%) (31.99%))
1.796
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.796 * 5.96%)
10.93%

Discounted Cash Flow Calculation for DB:NWF using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Western Forest Products is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

DB:NWF Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= CA$0.09 / (10.93% - 0.23%)
CA$0.37
DB:NWF Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:NWF represents 0.66526x of TSX:WEF
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.66526x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (CAD) x Listing Adjustment Factor
= CA$ 0.84 x 0.66526
€0.56
Value per share (EUR) From above. €0.56
Current discount Discount to share price of €0.79
= -1 x (€0.79 - €0.56) / €0.56
-40.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Western Forest Products is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Western Forest Products's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Western Forest Products's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:NWF PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in CAD CA$0.06
TSX:WEF Share Price ** TSX (2019-10-10) in CAD CA$1.18
Europe Forestry Industry PE Ratio Median Figure of 31 Publicly-Listed Forestry Companies 10.37x
Germany Market PE Ratio Median Figure of 417 Publicly-Listed Companies 19.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Western Forest Products.

DB:NWF PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:WEF Share Price ÷ EPS (both in CAD)

= 1.18 ÷ 0.06

20.83x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Western Forest Products is overvalued based on earnings compared to the Europe Forestry industry average.
  • Western Forest Products is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Western Forest Products's expected growth come at a high price?
Raw Data
DB:NWF PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.83x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
55.2%per year
Europe Forestry Industry PEG Ratio Median Figure of 19 Publicly-Listed Forestry Companies 0.3x
Germany Market PEG Ratio Median Figure of 265 Publicly-Listed Companies 1.39x

*Line of best fit is calculated by linear regression .

DB:NWF PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.83x ÷ 55.2%

0.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Western Forest Products is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Western Forest Products's assets?
Raw Data
DB:NWF PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in CAD CA$1.45
TSX:WEF Share Price * TSX (2019-10-10) in CAD CA$1.18
Europe Forestry Industry PB Ratio Median Figure of 39 Publicly-Listed Forestry Companies 1.17x
Germany Market PB Ratio Median Figure of 598 Publicly-Listed Companies 1.74x
DB:NWF PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:WEF Share Price ÷ Book Value per Share (both in CAD)

= 1.18 ÷ 1.45

0.81x

* Primary Listing of Western Forest Products.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Western Forest Products is good value based on assets compared to the Europe Forestry industry average.
X
Value checks
We assess Western Forest Products's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Forestry industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Forestry industry average (and greater than 0)? (1 check)
  5. Western Forest Products has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Western Forest Products expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
55.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Western Forest Products expected to grow at an attractive rate?
  • Western Forest Products's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Western Forest Products's earnings growth is expected to exceed the Germany market average.
  • Western Forest Products's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:NWF Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:NWF Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 55.2%
DB:NWF Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 10.3%
Europe Forestry Industry Earnings Growth Rate Market Cap Weighted Average 3.2%
Europe Forestry Industry Revenue Growth Rate Market Cap Weighted Average 1.2%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:NWF Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:NWF Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31
2020-12-31 1,213 65 34 2
2019-12-31 938 79 4 2
2019-10-13
DB:NWF Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-06-30 1,163 27 22
2019-03-31 1,181 63 49
2018-12-31 1,197 118 69
2018-09-30 1,195 116 83
2018-06-30 1,188 109 81
2018-03-31 1,147 112 80
2017-12-31 1,143 134 74
2017-09-30 1,153 179 92
2017-06-30 1,191 188 95
2017-03-31 1,205 168 93
2016-12-31 1,187 128 94
2016-09-30 1,160 134 68

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Western Forest Products's earnings are expected to grow significantly at over 20% yearly.
  • Western Forest Products's revenue is expected to grow by 10.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:NWF Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Western Forest Products Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:NWF Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 0.15 0.21 0.09 2.00
2019-12-31 0.01 0.01 0.00 2.00
2019-10-13
DB:NWF Past Financials Data
Date (Data in CAD Millions) EPS *
2019-06-30 0.06
2019-03-31 0.13
2018-12-31 0.18
2018-09-30 0.21
2018-06-30 0.21
2018-03-31 0.20
2017-12-31 0.19
2017-09-30 0.23
2017-06-30 0.24
2017-03-31 0.24
2016-12-31 0.24
2016-09-30 0.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Western Forest Products will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Western Forest Products's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Western Forest Products has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Western Forest Products performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Western Forest Products's growth in the last year to its industry (Forestry).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Western Forest Products's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Western Forest Products's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Western Forest Products's 1-year earnings growth is negative, it can't be compared to the Europe Forestry industry average.
Earnings and Revenue History
Western Forest Products's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Western Forest Products Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:NWF Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 1,163.30 21.80 127.80
2019-03-31 1,180.80 49.40 125.50
2018-12-31 1,196.70 69.20 123.50
2018-09-30 1,195.00 82.90 122.10
2018-06-30 1,187.70 81.40 129.10
2018-03-31 1,147.30 79.90 131.50
2017-12-31 1,143.40 74.40 137.10
2017-09-30 1,153.30 91.70 139.40
2017-06-30 1,190.80 94.90 136.00
2017-03-31 1,205.20 93.10 132.40
2016-12-31 1,187.30 94.20 125.70
2016-09-30 1,159.90 67.80 118.70
2016-06-30 1,115.70 68.10 115.20
2016-03-31 1,103.10 63.40 114.10
2015-12-31 1,081.90 64.60 111.90
2015-09-30 1,048.90 67.60 108.70
2015-06-30 1,032.50 53.20 111.80
2015-03-31 1,039.50 63.30 115.30
2014-12-31 1,036.90 68.40 117.20
2014-09-30 1,046.30 105.40 124.10
2014-06-30 1,023.60 119.90 120.70
2014-03-31 989.70 126.40 117.40
2013-12-31 977.50 125.90 116.30
2013-09-30 966.70 90.50 114.90
2013-06-30 946.70 75.40 112.00
2013-03-31 935.80 50.50 114.70
2012-12-31 925.40 29.30 118.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Western Forest Products has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Western Forest Products used its assets less efficiently than the Europe Forestry industry average last year based on Return on Assets.
  • Western Forest Products's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Western Forest Products's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Forestry industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Western Forest Products has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Western Forest Products's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Western Forest Products's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Western Forest Products is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Western Forest Products's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Western Forest Products's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Western Forest Products Company Filings, last reported 3 months ago.

DB:NWF Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 547.70 119.40 5.30
2019-03-31 565.60 83.10 10.70
2018-12-31 572.90 6.00 8.40
2018-09-30 586.60 0.00 42.80
2018-06-30 589.10 0.00 42.10
2018-03-31 574.40 0.00 46.90
2017-12-31 562.70 0.00 35.30
2017-09-30 555.30 0.00 65.20
2017-06-30 547.50 0.00 51.10
2017-03-31 530.50 0.00 34.60
2016-12-31 522.50 34.40 19.00
2016-09-30 488.10 58.40 18.60
2016-06-30 479.50 71.50 7.40
2016-03-31 466.60 58.30 10.40
2015-12-31 455.90 63.20 9.40
2015-09-30 445.60 73.20 14.90
2015-06-30 439.00 75.60 4.90
2015-03-31 425.90 73.10 6.00
2014-12-31 408.10 79.70 1.80
2014-09-30 411.10 78.00 15.40
2014-06-30 416.30 82.90 17.40
2014-03-31 396.80 88.60 9.70
2013-12-31 382.40 88.50 5.60
2013-09-30 334.00 88.60 9.50
2013-06-30 419.80 98.60 119.00
2013-03-31 379.70 4.90 9.70
2012-12-31 357.70 33.80 18.80
  • Western Forest Products's level of debt (21.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (19.9% vs 21.8% today).
  • Debt is well covered by operating cash flow (22.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.9x coverage).
X
Financial health checks
We assess Western Forest Products's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Western Forest Products has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Western Forest Products's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.63%
Current annual income from Western Forest Products dividends. Estimated to be 7.63% next year.
If you bought €2,000 of Western Forest Products shares you are expected to receive €153 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Western Forest Products's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • Western Forest Products's dividend is above the markets top 25% of dividend payers in Germany (3.86%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:NWF Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Europe Forestry Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 4.4%
Germany Market Average Dividend Yield Market Cap Weighted Average of 337 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:NWF Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31 0.09 2.00
2019-12-31 0.09 2.00
2019-10-13
DB:NWF Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-08-01 0.090 7.226
2019-05-01 0.090 5.685
2019-02-13 0.090 4.824
2018-11-08 0.090 4.676
2018-08-03 0.090 4.260
2018-08-02 0.090 3.782
2018-05-02 0.090 3.352
2018-02-16 0.080 2.947
2017-11-02 0.080 3.077
2017-08-03 0.080 3.020
2017-05-03 0.080 3.493
2017-02-16 0.080 3.755
2016-11-03 0.080 4.220
2016-08-04 0.080 3.830
2016-05-06 0.080 3.711
2016-02-22 0.080 3.674
2015-11-23 0.080 3.892
2015-08-10 0.080 4.215
2015-05-11 0.080 3.770
2015-02-20 0.080 4.088
2014-11-17 0.080 3.203
2014-08-13 0.080 3.411
2014-05-13 0.080 3.553
2014-02-24 0.080 3.386
2013-11-25 0.080 3.891
2013-07-31 0.080 5.388

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Western Forest Products has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Western Forest Products only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of Western Forest Products's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.6x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Western Forest Products's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Western Forest Products afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Western Forest Products has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Western Forest Products's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Don Demens
COMPENSATION CA$2,385,366
AGE 57
TENURE AS CEO 6.7 years
CEO Bio

Mr. Donald Eugene Demens, also known as Don, has been the Chief Executive Officer and President at Western Forest Products Inc. since February 21, 2013 and since July 31, 2012 respectively. Mr. Demens has coastal forest industry experience including time spent in Japan. He served as the Chief Operating Officer at Western Forest Products Inc. since June 23, 2011 and its Senior Vice President of Sales and Manufacturing since August 2009. He served as Senior Vice President of Western Red Cedar and Custom Cut since April 2009. He served as General Manager for Andersen Pacific Products from January 2008 to December 2008. He was a Forest Industry Consultant from November 2006 to January 2008. From July 2004 to July 2006, Mr. Demens served as General Manager, Whitewood for International Forest Products Ltd. Mr. Demens serves as Non-Independent Director of Western Forest Products Inc. since February 21, 2013. Mr. Demens is Chairman of the Coast Forest Products Association and is a Director of the Softwood Lumber Board. Mr. Demens holds a Bachelor of Commerce degree from the University of British Columbia.

CEO Compensation
  • Don's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Don's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure of the Western Forest Products management team in years:

5.6
Average Tenure
  • The average tenure for the Western Forest Products management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Don Demens

TITLE
CEO, President & Non Independent Director
COMPENSATION
CA$2M
AGE
57
TENURE
6.7 yrs

Steve Williams

TITLE
Executive VP & CFO
COMPENSATION
CA$1M
TENURE
5 yrs

Jennifer Foster

TITLE
Vice President of Human Resources
COMPENSATION
CA$717K
TENURE
3.8 yrs

Dallyn Willis

TITLE
Senior Director of Finance & Administration
TENURE
2.5 yrs

Alyce Harper

TITLE
Senior Director of Legal & Corporate Secretary
TENURE
2.5 yrs

Babita Khunkhun

TITLE
Senior Director of Communications

Bruce Alexander

TITLE
Senior Vice President of Sales

Shannon Janzen

TITLE
VP & Chief Forester
COMPENSATION
CA$728K
TENURE
6.3 yrs

Morris Mandziuk

TITLE
Treasurer
TENURE
15.3 yrs

Dave Ingram

TITLE
General Manager of Pulp Operations & Director of Western Pulp Ltd
COMPENSATION
CA$222K
TENURE
16 yrs
Board of Directors Tenure

Average tenure and age of the Western Forest Products board of directors in years:

5.4
Average Tenure
60
Average Age
  • The tenure for the Western Forest Products board of directors is about average.
Board of Directors

Michael Waites

TITLE
Independent Chairman of the Board
COMPENSATION
CA$133K
AGE
65
TENURE
0.7 yrs

Don Demens

TITLE
CEO, President & Non Independent Director
COMPENSATION
CA$2M
AGE
57
TENURE
6.7 yrs

Dave Ingram

TITLE
General Manager of Pulp Operations & Director of Western Pulp Ltd
COMPENSATION
CA$222K
TENURE
15.3 yrs

Lee Doney

TITLE
Non- Independent Director
COMPENSATION
CA$251K
AGE
69
TENURE
15.3 yrs

Daniel Nocente

TITLE
Independent Director
COMPENSATION
CA$144K
AGE
64
TENURE
5.4 yrs

Jane Bird

TITLE
Independent Director
COMPENSATION
CA$122K
AGE
57
TENURE
4.2 yrs

Jim Arthurs

TITLE
Independent Director
COMPENSATION
CA$128K
AGE
60
TENURE
15.3 yrs

Laura Cillis

TITLE
Independent Director
AGE
60
TENURE
0.6 yrs

Cheri Phyfer

TITLE
Independent Director
AGE
47
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Western Forest Products individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
30. Aug 19 Buy Daniel Nocente Individual 30. Aug 19 30. Aug 19 20,000 €0.81 €16,134
29. Aug 19 Buy Jane Bird Individual 29. Aug 19 29. Aug 19 13,000 €0.80 €10,429
28. Aug 19 Buy Shannon Janzen Individual 25. Sep 15 09. May 19 60,186 €1.25 €68,835
27. Aug 19 Buy Donald Demens Individual 27. Aug 19 27. Aug 19 30,000 €0.79 €23,825
27. Aug 19 Buy Michael Waites Individual 27. Aug 19 27. Aug 19 50,000 €0.79 €39,390
20. Aug 19 Buy Shannon Janzen Individual 20. Aug 19 20. Aug 19 20,000 €0.84 €16,783
12. Aug 19 Buy Stephen Williams Individual 12. Aug 19 12. Aug 19 25,000 €0.87 €21,865
08. Aug 19 Buy Michael Waites Individual 08. Aug 19 08. Aug 19 50,000 €0.84 €42,047
19. Jun 19 Buy Donald McGregor Individual 27. Nov 18 11. Jun 19 80,000 €1.29 €94,287
29. May 19 Buy Stephen Williams Individual 29. May 19 29. May 19 11,000 €1.06 €11,614
29. May 19 Buy Shannon Janzen Individual 27. May 19 27. May 19 7,500 €1.06 €7,979
28. May 19 Buy Shannon Janzen Individual 27. May 19 27. May 19 7,500 €1.06 €7,979
16. May 19 Buy Stephen Williams Individual 16. May 19 16. May 19 15,000 €1.11 €16,580
13. May 19 Buy Laura Cillis Individual 10. May 19 10. May 19 60,000 €1.09 €65,569
09. May 19 Buy Stephen Williams Individual 09. May 19 09. May 19 20,000 €1.10 €22,034
09. May 19 Buy Laura Cillis Individual 09. May 19 09. May 19 60,000 €1.10 €65,705
06. May 19 Buy Laura Cillis Individual 06. May 19 06. May 19 54,000 €1.20 €64,538
27. Mar 19 Buy Daniel Nocente Individual 16. Mar 18 14. Dec 18 4,762 €1.82 €8,160
15. Mar 19 Buy Shannon Janzen Individual 14. Mar 19 14. Mar 19 5,800 €1.23 €7,126
13. Mar 19 Buy Stephen Williams Individual 13. Mar 19 13. Mar 19 25,000 €1.25 €31,335
12. Mar 19 Buy Stephen Williams Individual 12. Mar 19 12. Mar 19 25,400 €1.27 €32,286
11. Mar 19 Buy Laura Cillis Individual 11. Mar 19 11. Mar 19 25,700 €1.26 €32,298
13. Dec 18 Buy Jennifer Foster Individual 10. Dec 18 10. Dec 18 26,000 €1.18 €30,570
04. Dec 18 Buy Stephen Williams Individual 04. Dec 18 04. Dec 18 25,000 €1.21 €30,201
30. Nov 18 Buy Michael Waites Individual 28. Nov 18 28. Nov 18 65,000 €1.23 €79,737
28. Nov 18 Buy Stephen Williams Individual 26. Nov 18 27. Nov 18 50,000 €1.34 €65,351
X
Management checks
We assess Western Forest Products's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Western Forest Products has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Western Forest Products Inc. operates as an integrated forest products company. The company is involved in timber harvesting, sawmilling logs into specialty lumber, and value-added lumber remanufacturing. It offers various products for outdoor living space, such as structures, decking, landscaping, and fencing; home components, including appearance, Japanese housing, and framing, as well as siding, paneling, trim, and soffits; and furniture, moldings, and decorative purpose, as well as doors, windows, and stair components. Western Forest Products Inc. also offers its products for cross arms and transmission arms, mat stock, bridges, docks and railway ties, and packaging and crating; and architectural fixtures, lam stock, and timbers. The company sells its products in Canada, the United States, China, Japan, Europe, and internationally. Western Forest Products Inc. was founded in 1955 and is headquartered in Vancouver, Canada.

Details
Name: Western Forest Products Inc.
NWF
Exchange: DB
Founded: 1955
CA$304,367,767
375,427,766
Website: http://www.westernforest.com
Address: Western Forest Products Inc.
Royal Centre Building,
Suite 800,
Vancouver,
British Columbia, V6E 3P3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX WEF Common Shares The Toronto Stock Exchange CA CAD 03. Aug 2004
OTCPK WFST.F Common Shares Pink Sheets LLC US USD 03. Aug 2004
DB NWF Common Shares Deutsche Boerse AG DE EUR 03. Aug 2004
BST NWF Common Shares Boerse-Stuttgart DE EUR 03. Aug 2004
Number of employees
Current staff
Staff numbers
2,182
Western Forest Products employees.
Industry
Forest Products
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/13 22:30
End of day share price update: 2019/10/10 00:00
Last estimates confirmation: 2019/10/10
Last earnings filing: 2019/08/01
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.