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West Fraser Timber

DB:WFC
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WFC
DB
CA$4B
Market Cap
  1. Home
  2. DE
  3. Materials
Company description

West Fraser Timber Co. Ltd. produces and sells lumber, panels, and pulp and paper in western Canada and the southern United States. The last earnings update was 87 days ago. More info.


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WFC Share Price and Events
7 Day Returns
-0.6%
DB:WFC
6.5%
Europe Forestry
2.8%
DE Market
1 Year Returns
-18.7%
DB:WFC
-11.9%
Europe Forestry
3%
DE Market
WFC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
West Fraser Timber (WFC) -0.6% 3.4% -6.5% -18.7% 29.1% 0.6%
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
  • WFC underperformed the Forestry industry which returned -11.9% over the past year.
  • WFC underperformed the Market in Germany which returned 3% over the past year.
Price Volatility
WFC
Industry
5yr Volatility vs Market

WFC Value

 Is West Fraser Timber 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 West Fraser Timber 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 West Fraser Timber.

DB:WFC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.7%
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:WFC
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%) (26.19%))
1.423
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.42
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.423 * 5.96%)
8.71%

Discounted Cash Flow Calculation for DB:WFC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for West Fraser Timber is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:WFC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 8.71%)
2020 231.38 Analyst x5 212.85
2021 126.40 Est @ -45.37% 106.97
2022 86.35 Est @ -31.69% 67.22
2023 67.25 Est @ -22.11% 48.16
2024 56.89 Est @ -15.41% 37.47
2025 50.79 Est @ -10.72% 30.78
2026 47.01 Est @ -7.44% 26.21
2027 44.60 Est @ -5.14% 22.87
2028 43.02 Est @ -3.53% 20.30
2029 41.99 Est @ -2.4% 18.22
Present value of next 10 years cash flows CA$591.00
DB:WFC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$41.99 × (1 + 0.23%) ÷ (8.71% – 0.23%)
CA$496.39
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$496.39 ÷ (1 + 8.71%)10
CA$215.41
DB:WFC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$591.00 + CA$215.41
CA$806.41
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$806.41 / 68.66
CA$11.75
DB:WFC Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:WFC represents 0.68022x of TSX:WFT
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.68022x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (CAD) x Listing Adjustment Factor
= CA$ 11.75 x 0.68022
€7.99
Value per share (EUR) From above. €7.99
Current discount Discount to share price of €34.80
= -1 x (€34.80 - €7.99) / €7.99
-335.6%

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

  • The current share price of West Fraser Timber 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 West Fraser Timber's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are West Fraser Timber's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:WFC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in CAD CA$2.90
TSX:WFT Share Price ** TSX (2019-10-11) in CAD CA$51.16
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 West Fraser Timber.

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

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

= 51.16 ÷ 2.90

17.66x

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

  • West Fraser Timber is overvalued based on earnings compared to the Europe Forestry industry average.
  • West Fraser Timber is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does West Fraser Timber's expected growth come at a high price?
Raw Data
DB:WFC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.66x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
89.4%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:WFC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.66x ÷ 89.4%

0.2x

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

  • West Fraser Timber is good value based on expected growth next year.
Price based on value of assets
What value do investors place on West Fraser Timber's assets?
Raw Data
DB:WFC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in CAD CA$38.18
TSX:WFT Share Price * TSX (2019-10-11) in CAD CA$51.16
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:WFC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 51.16 ÷ 38.18

1.34x

* Primary Listing of West Fraser Timber.

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

  • West Fraser Timber is overvalued based on assets compared to the Europe Forestry industry average.
X
Value checks
We assess West Fraser Timber'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. West Fraser Timber 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.

WFC Future Performance

 How is West Fraser Timber expected to perform in the next 1 to 3 years based on estimates from 5 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
89.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is West Fraser Timber expected to grow at an attractive rate?
  • West Fraser Timber's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • West Fraser Timber's earnings growth is expected to exceed the Germany market average.
  • West Fraser Timber's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:WFC Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:WFC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 89.4%
DB:WFC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 4.3%
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:WFC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:WFC Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31
2020-12-31 5,428 563 311 5
2019-12-31 5,022 278 -92 5
2019-10-13
DB:WFC Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-06-30 5,478 370 204
2019-03-31 5,995 738 608
2018-12-31 6,118 909 810
2018-09-30 6,220 1,152 988
2018-06-30 5,821 1,048 870
2018-03-31 5,309 879 670
2017-12-31 5,134 902 596
2017-09-30 4,865 829 468
2017-06-30 4,773 783 455
2017-03-31 4,562 678 407
2016-12-31 4,450 689 326
2016-09-30 4,356 479 232

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • West Fraser Timber's earnings are expected to grow significantly at over 20% yearly.
  • West Fraser Timber's revenue is expected to grow by 4.3% 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:WFC 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 5 Analyst Estimates (S&P Global) See Below

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

DB:WFC Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 5.38 7.51 4.11 3.00
2019-12-31 -1.41 -1.02 -1.70 3.00
2019-10-13
DB:WFC Past Financials Data
Date (Data in CAD Millions) EPS *
2019-06-30 2.90
2019-03-31 8.40
2018-12-31 10.88
2018-09-30 12.94
2018-06-30 11.21
2018-03-31 8.59
2017-12-31 7.63
2017-09-30 5.98
2017-06-30 5.79
2017-03-31 5.14
2016-12-31 4.06
2016-09-30 2.86

*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 West Fraser Timber will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess West Fraser Timber'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.
West Fraser Timber has a total score of 3/6, 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.

WFC Past Performance

  How has West Fraser Timber 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 West Fraser Timber'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.
  • West Fraser Timber has delivered over 20% year on year earnings growth in the past 5 years.
  • West Fraser Timber's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • West Fraser Timber's 1-year earnings growth is negative, it can't be compared to the Europe Forestry industry average.
Earnings and Revenue History
West Fraser Timber'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 West Fraser Timber Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:WFC 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 5,478.00 204.00 972.00
2019-03-31 5,995.00 608.00 989.00
2018-12-31 6,118.00 810.00 970.00
2018-09-30 6,220.00 988.00 970.00
2018-06-30 5,821.00 870.00 920.00
2018-03-31 5,309.00 670.00 879.00
2017-12-31 5,134.00 596.00 882.00
2017-09-30 4,865.00 468.00 881.00
2017-06-30 4,773.00 455.00 878.00
2017-03-31 4,562.00 407.00 822.00
2016-12-31 4,450.00 326.00 807.00
2016-09-30 4,356.00 232.00 814.00
2016-06-30 4,245.00 181.00 741.00
2016-03-31 4,163.00 97.00 778.00
2015-12-31 4,100.00 104.00 763.00
2015-09-30 4,051.00 162.00 736.00
2015-06-30 4,037.00 176.00 791.00
2015-03-31 4,061.00 236.00 784.00
2014-12-31 3,856.00 259.00 744.00
2014-09-30 3,725.00 334.00 718.00
2014-06-30 3,573.00 319.00 702.00
2014-03-31 3,420.00 354.00 650.00
2013-12-31 3,474.00 349.00 686.00
2013-09-30 3,414.00 251.00 693.00
2013-06-30 3,308.00 248.00 673.00
2013-03-31 3,182.00 163.00 688.00
2012-12-31 3,000.00 77.00 662.00

*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.
  • West Fraser Timber has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • West Fraser Timber used its assets less efficiently than the Europe Forestry industry average last year based on Return on Assets.
  • West Fraser Timber's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess West Fraser Timber'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.
West Fraser Timber has a total score of 1/6, 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.

WFC Health

 How is West Fraser Timber'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 West Fraser Timber's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • West Fraser Timber is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • West Fraser Timber's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of West Fraser Timber'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 1.4x 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 West Fraser Timber Company Filings, last reported 3 months ago.

DB:WFC Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 2,621.00 910.00 16.00
2019-03-31 2,775.00 1,005.00 34.00
2018-12-31 2,896.00 753.00 160.00
2018-09-30 2,986.00 657.00 282.00
2018-06-30 3,034.00 668.00 302.00
2018-03-31 2,881.00 735.00 125.00
2017-12-31 2,726.00 636.00 258.00
2017-09-30 2,554.00 632.00 132.00
2017-06-30 2,445.00 399.00 231.00
2017-03-31 2,365.00 517.00 86.00
2016-12-31 2,241.00 413.00 50.00
2016-09-30 2,101.00 449.00 52.00
2016-06-30 2,021.00 539.00 27.00
2016-03-31 2,041.00 691.00 19.00
2015-12-31 2,147.00 601.00 13.00
2015-09-30 2,124.00 448.00 21.00
2015-06-30 2,132.00 413.00 30.00
2015-03-31 2,078.00 542.00 12.00
2014-12-31 2,029.00 457.00 21.00
2014-09-30 2,029.00 386.00 18.00
2014-06-30 1,990.00 455.00 26.00
2014-03-31 2,026.00 398.00 49.00
2013-12-31 1,947.00 328.00 162.00
2013-09-30 1,768.00 317.00 221.00
2013-06-30 1,678.00 317.00 220.00
2013-03-31 1,506.00 306.00 61.00
2012-12-31 1,492.00 300.00 102.00
  • West Fraser Timber's level of debt (34.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (22.8% vs 34.7% today).
  • Debt is well covered by operating cash flow (40.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.7x coverage).
X
Financial health checks
We assess West Fraser Timber'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. West Fraser Timber has a total score of 4/6, 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.

WFC Dividends

 What is West Fraser Timber'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
1.56%
Current annual income from West Fraser Timber dividends. Estimated to be 1.38% next year.
If you bought €2,000 of West Fraser Timber shares you are expected to receive €31 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?
  • West Fraser Timber's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • West Fraser Timber's dividend is below 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:WFC 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 5 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:WFC Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31 0.72 5.00
2019-12-31 0.69 5.00
2019-10-13
DB:WFC Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-06-11 0.800 1.525
2019-04-25 0.800 1.359
2018-12-11 0.800 1.170
2018-09-06 0.800 1.125
2018-06-12 0.600 0.693
2018-02-14 0.600 0.666
2017-12-12 0.440 0.535
2017-09-12 0.440 0.577
2017-06-12 0.280 0.445
2017-03-15 0.280 0.480
2016-12-06 0.280 0.562
2016-09-08 0.280 0.645
2016-06-14 0.280 0.678
2015-12-08 0.280 0.624
2015-09-15 0.280 0.584
2015-06-17 0.280 0.479
2014-12-09 0.280 0.425
2014-09-05 0.280 0.494
2014-06-17 0.280 0.548
2013-12-10 0.280 0.537
2013-09-10 0.280 0.609
2013-06-10 0.280 0.655
2013-02-14 0.280 0.661
2012-12-06 0.280 0.732
2012-09-11 0.280 0.922
2012-06-12 0.280 1.061
2012-02-16 0.280 1.228
2011-12-08 0.280 1.265
2011-09-14 0.280 1.348
2011-06-14 0.280 1.271
2011-02-17 0.280 1.083
2010-06-15 0.060 0.292
2010-02-12 0.060 0.301
2009-12-10 0.060 0.354
2009-09-15 0.060 0.415
2009-05-29 0.060 0.483
2009-02-19 0.280 2.203
2008-12-09 0.280 1.917

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of West Fraser Timber's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.6x 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 West Fraser Timber'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 West Fraser Timber afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. West Fraser Timber has a total score of 3/6, see the detailed checks below.


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

WFC Management

 What is the CEO of West Fraser Timber'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
Ray Ferris
COMPENSATION CA$2,972,250
AGE 56
TENURE AS CEO 0.3 years
CEO Bio

Mr. Raymond W. Ferris, also known as Ray, has been President since April 19, 2018 and Chief Executive Officer since July 1, 2019 and served as the Chief Operating Officer of West Fraser Timber Co. Ltd. since February 15, 2016 until July 2019. He served as Executive Vice President of West Fraser Timber Co. Ltd. since February 15, 2016 until April 19, 2018 and served as its Vice President of Solid Wood Products since September 2009. Mr. Ferris has been with West Fraser Timber Co. Ltd. since 1997. Mr. Ferris has extensive manufacturing experience in the forest industry. Mr. Ferris served as Vice President of Lumber Operations of West Fraser Timber Co. Ltd., until December 2008. He is Corporate Director at West Fraser Timber Co. Ltd. since April 23, 2019. Mr. Ferris holds a Bachelor of Science Degree in Engineering from the University of New Brunswick.

CEO Compensation
  • Ray's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Ray's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure of the West Fraser Timber management team in years:

2.4
Average Tenure
  • The tenure for the West Fraser Timber management team is about average.
Management Team

Ray Ferris

TITLE
CEO, President & Corporate Director
COMPENSATION
CA$3M
AGE
56
TENURE
0.3 yrs

Chris Virostek

TITLE
CFO & VP of Finance
COMPENSATION
CA$1M
AGE
46
TENURE
2.5 yrs

Chris McIver

TITLE
Vice-President of Sales & Marketing
COMPENSATION
CA$1M
TENURE
3.7 yrs

Tom Theodorakis

TITLE
Corporate Secretary
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the West Fraser Timber board of directors in years:

3.5
Average Tenure
62
Average Age
  • The tenure for the West Fraser Timber board of directors is about average.
Board of Directors

Hank Ketcham

TITLE
Chairman
COMPENSATION
CA$450K
AGE
70
TENURE
3.5 yrs

Ray Ferris

TITLE
CEO, President & Corporate Director
COMPENSATION
CA$3M
AGE
56
TENURE
0.5 yrs

Bob Phillips

TITLE
Lead Director
COMPENSATION
CA$210K
AGE
68
TENURE
11.7 yrs

Reid Carter

TITLE
Corporate Director
COMPENSATION
CA$162K
AGE
62
TENURE
3.5 yrs

Brian Kenning

TITLE
Corporate Director
COMPENSATION
CA$155K
AGE
70
TENURE
2.5 yrs

Gerry Miller

TITLE
Corporate Director
COMPENSATION
CA$155K
AGE
64
TENURE
7.5 yrs

Janice Rennie

TITLE
Corporate Director
COMPENSATION
CA$158K
AGE
62
TENURE
15.5 yrs

John Ketcham

TITLE
Corporate Director
COMPENSATION
CA$155K
AGE
58
TENURE
4.5 yrs

John Floren

TITLE
Corporate Director
COMPENSATION
CA$160K
AGE
60
TENURE
3.5 yrs

Gill Winckler

TITLE
Corporate Director
COMPENSATION
CA$155K
AGE
56
TENURE
2.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
15. May 19 Buy Keith Carter Individual 13. May 19 13. May 19 1,320 €39.74 €52,215
15. May 19 Buy Raymond Ferris Individual 15. May 19 15. May 19 4,500 €39.38 €175,952
11. Mar 19 Buy Keith Carter Individual 07. Mar 19 07. Mar 19 960 €42.35 €40,644
11. Mar 19 Buy Brian Balkwill Individual 05. Mar 19 11. Mar 19 1,414 €47.24 €66,205
06. Mar 19 Buy Sean McLaren Individual 06. Mar 19 06. Mar 19 1,000 €42.67 €42,669
28. Feb 19 Buy Charles Watkins Individual 28. Feb 19 28. Feb 19 1,000 €43.67 €43,607
28. Feb 19 Buy Raymond Ferris Individual 28. Feb 19 28. Feb 19 1,600 €42.79 €68,459
19. Feb 19 Buy Brian Kenning Individual 19. Feb 19 19. Feb 19 1,200 €46.80 €56,156
15. Feb 19 Buy Raymond Ferris Individual 15. Feb 19 15. Feb 19 3,120 €47.63 €148,133
28. Dec 18 Buy Sean McLaren Individual 26. Dec 18 26. Dec 18 1,000 €43.78 €43,781
19. Dec 18 Buy Keith Carter Individual 19. Dec 18 19. Dec 18 750 €42.71 €32,025
19. Dec 18 Buy Keith Carter Individual 18. Dec 18 18. Dec 18 700 €41.53 €29,072
19. Dec 18 Buy Christopher Virostek Individual 18. Dec 18 18. Dec 18 2,350 €42.77 €100,516
X
Management checks
We assess West Fraser Timber'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. West Fraser Timber 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.

WFC News

Simply Wall St News

WFC Company Info

Description

West Fraser Timber Co. Ltd. produces and sells lumber, panels, and pulp and paper in western Canada and the southern United States. The company offers spruce-pine-fir and southern yellow pine lumber, as well as newsprint, wood chips, and other residuals and energy products. It also provides treated wood, medium density fiberboard panels, laminated veneer lumber panels, and plywood; northern bleached softwood Kraft pulp used to produce various paper products, including printing and writing papers, specialty grades, and various tissue products; and bleached chemical thermo-mechanical pulp that is used to produce coated board grades, printing and writing paper, and paper towel/napkin grades, as well as specialty papers and tissue grades. The company was founded in 1955 and is based in Vancouver, Canada.

Details
Name: West Fraser Timber Co. Ltd.
WFC
Exchange: DB
Founded: 1955
CA$2,413,301,415
68,657,940
Website: http://www.westfraser.com
Address: West Fraser Timber Co. Ltd.
858 Beatty Street,
Suite 501,
Vancouver,
British Columbia, V6B 1C1,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX WFT Common Shares The Toronto Stock Exchange CA CAD 07. May 1986
OTCPK WFTB.F Common Shares Pink Sheets LLC US USD 07. May 1986
DB WFC Common Shares Deutsche Boerse AG DE EUR 07. May 1986
Number of employees
Current staff
Staff numbers
0
West Fraser Timber employees.
Industry
Forest Products
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/13 22:43
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/10/10
Last earnings filing: 2019/07/18
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.