One-glance verdict
Overvalued
$34.46 our estimate vs market $65.40
Wall Street consensus: $85.83 (149.1% higher than our fair-value estimate)
90% above our estimate, beyond the bull case
Fundamentals snapshot
West Fraser Timber Co. Ltd.
WFG · NYQ · Basic Materials · Lumber & Wood Production
Current price
$65.40
52-week range
$57.34 - $76.99
Market cap
$5.12B
Balance sheet
Distressed
-25.00x Concerning
Net debt $317.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Free cash flow was positive in 3/10 years.
- Reward Dividend yield is 2.0% with 14-year payout history.
- Risk Operating margin compressed from 27.0% to -5.6% over 3 years.
- Risk Return on equity was -19.3% last year — the company lost money on shareholders' equity.
What this company does
West Fraser Timber Co. Ltd.
West Fraser Timber Co. Ltd. makes and sells wood products like lumber, engineered wood for construction, and pulp for paper. The majority of its money comes from selling lumber and engineered wood, which are key building materials for homes and other projects. This matters because the demand for these products is tied to how much new housing is being built and how many people are fixing up their homes.
Overview
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Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $34.46 vs current price $65.40
Wall Street consensus is the average analyst price target: $85.83 (149.1% higher than our fair-value estimate).
Our most-likely fair value is $34.46 a share — about 47.3% below today's price of $65.40, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $317.0M. Interest coverage -25.0x.
Net debt
$317.00M
Interest coverage
-25.00x
West Fraser Timber Co. Ltd.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
WFG
BASELINE
West Fraser Timber Co. Ltd.
Total debt $391.00M Interest coverage -25.00x This is the baseline the peer rows are being compared against.
Total debt $5.45B Interest coverage 1.64x This peer still has a real interest-payment cushion, while WFG does not.
Total debt $377.00M Interest coverage 18.50x This peer still has a real interest-payment cushion, while WFG does not.
Total debt $408.40M Interest coverage 33.62x This peer still has a real interest-payment cushion, while WFG does not.
Total debt $723.35M Interest coverage -4.25x Neither company has much profit cushion over interest right now.
What you should know
The case for and against WFG
2 Rewards
2 Risks
Rewards
-
Free cash flow was positive in 3/10 years.
-
Dividend yield is 2.0% with 14-year payout history.
Risks
-
Operating margin compressed from 27.0% to -5.6% over 3 years.
-
Return on equity was -19.3% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
37.80x
P/B
0.92x
P/S
0.98x
EV/EBITDA
-22.66x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
21.8%
Operating margin
-5.6%
Net margin
-23.0%
ROE
-19.3%
ROA
-6.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.07x
Current ratio
2.06x
Quick ratio
0.75x
Total debt
$391.00M
Total cash
$74.00M
Growth
How the business has been compounding
Revenue TTM
$5.24B
Revenue 5Y CAGR
-17.4%
EPS TTM
-15.36
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$96.00M
Free CF TTM
$-315.00M
FCF margin
-6.0%
Dividend
Shareholder payout
Yield
2.0%
Payout ratio
75.8%
Last ex-div date
2026-09-29