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Upturn AI SWOT - About
West Fraser Timber Co Ltd (WFG)
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Upturn Advisory Summary
02/20/2025: WFG (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -43.82% | Avg. Invested days 28 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 02/20/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 6.18B USD | Price to earnings Ratio - | 1Y Target Price 106.17 |
Price to earnings Ratio - | 1Y Target Price 106.17 | ||
Volume (30-day avg) 194687 | Beta 2.11 | 52 Weeks Range 73.08 - 101.60 | Updated Date 04/2/2025 |
52 Weeks Range 73.08 - 101.60 | Updated Date 04/2/2025 | ||
Dividends yield (FY) 1.64% | Basic EPS (TTM) -0.07 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Geography
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -0.08% | Operating Margin (TTM) 0.07% |
Management Effectiveness
Return on Assets (TTM) 0.73% | Return on Equity (TTM) -0.07% |
Valuation
Trailing PE - | Forward PE 16 | Enterprise Value 5732940708 | Price to Sales(TTM) 1 |
Enterprise Value 5732940708 | Price to Sales(TTM) 1 | ||
Enterprise Value to Revenue 0.93 | Enterprise Value to EBITDA 9.34 | Shares Outstanding 77281200 | Shares Floating 55018495 |
Shares Outstanding 77281200 | Shares Floating 55018495 | ||
Percent Insiders 31.8 | Percent Institutions 50.62 |
Analyst Ratings
Rating 4.29 | Target Price 114.5 | Buy 3 | Strong Buy 3 |
Buy 3 | Strong Buy 3 | ||
Hold 1 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
West Fraser Timber Co Ltd
Company Overview
History and Background
West Fraser Timber Co. Ltd. was founded in 1955 in Quesnel, British Columbia, Canada. Initially a small lumber operation, it has grown through strategic acquisitions and expansions to become one of the largest lumber producers in North America.
Core Business Areas
- Lumber: Production and sale of softwood lumber used in residential construction, repair, and remodeling, as well as industrial applications. This includes various species and grades.
- Engineered Wood Products (EWP): Manufacturing of plywood, laminated veneer lumber (LVL), and other engineered wood products used for structural applications. Offerings may include I-joists.
- Pulp & Paper: Production of pulp and paper products.
Leadership and Structure
West Fraser is led by Raymond Ferris, the President and Chief Executive Officer. The company has a typical corporate structure with a board of directors and executive leadership team overseeing various operational and functional areas.
Top Products and Market Share
Key Offerings
- Product Name 1: Softwood Lumber: Key product, Competitors include Canfor, Resolute Forest Products. Market share data is difficult to ascertain precisely but West Fraser is among the largest softwood lumber producers in North America, thus having a significant share.
- Product Name 2: Engineered Wood Products (EWP): Includes LVL and plywood. Competitors include Boise Cascade and Georgia-Pacific. West Fraser has a significant market presence in EWP.
Market Dynamics
Industry Overview
The lumber industry is cyclical and influenced by housing starts, renovation activity, and economic growth. North American demand fluctuates based on these factors.
Positioning
West Fraser is one of the largest and most diversified forest products companies in North America. Their competitive advantages include scale, efficient operations, and a wide range of products and geographic locations.
Total Addressable Market (TAM)
The North American lumber market is valued in the tens of billions of dollars annually. West Fraser is positioned to capture a significant share of this market due to its production capacity and market presence.
Upturn SWOT Analysis
Strengths
- Large-scale operations
- Diversified product portfolio
- Efficient production facilities
- Strong balance sheet
Weaknesses
- Exposure to cyclical market conditions
- Dependence on timber supply
- Commodity price volatility
- Geographic concentration in North America
Opportunities
- Increased housing construction
- Growing demand for sustainable building materials
- Expansion into new geographic markets
- Strategic acquisitions
Threats
- Economic downturns
- Trade restrictions and tariffs
- Forest fires and natural disasters
- Increasing competition
Competitors and Market Share
Key Competitors
- LPX
- WY
- RYAM
Competitive Landscape
West Fraser's advantages include its scale and efficient operations. Disadvantages include exposure to commodity price volatility.
Major Acquisitions
Norbord Inc.
- Year: 2021
- Acquisition Price (USD millions): 3100
- Strategic Rationale: Expanded West Fraser's product portfolio into oriented strand board (OSB) and diversified its geographic presence.
Growth Trajectory and Initiatives
Historical Growth: West Fraser has grown significantly through acquisitions and organic expansion, particularly in lumber production.
Future Projections: Future growth projections are based on analyst estimates and market conditions.
Recent Initiatives: Recent initiatives may include capacity expansions, mill modernizations, and sustainability efforts.
Summary
West Fraser is a significant player in the lumber industry, benefiting from its large scale and diversified product portfolio. However, it faces risks related to commodity price volatility and cyclical market conditions. Recent acquisitions have strengthened its market position. The company must manage its timber supply and adapt to changing market demands to maintain its competitive edge.
Similar Companies
LPX
Louisiana-Pacific Corporation
LPX
Louisiana-Pacific Corporation
RYAM
Rayonier Advanced Materials
RYAM
Rayonier Advanced Materials
WY
Weyerhaeuser Company
WY
Weyerhaeuser Company
Sources and Disclaimers
Data Sources:
- Company Filings
- Industry Reports
- Financial News Outlets
Disclaimers:
This analysis is based on available information and general industry knowledge. Market conditions and company performance can change rapidly. This is not financial advice.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About West Fraser Timber Co Ltd
Exchange NYSE | Headquaters Vancouver, BC, Canada | ||
IPO Launch date 2007-07-13 | CEO, President & Director Mr. Sean P. McLaren | ||
Sector Basic Materials | Industry Lumber & Wood Production | Full time employees 9700 | Website https://www.westfraser.com |
Full time employees 9700 | Website https://www.westfraser.com | ||
West Fraser Timber Co. Ltd., a diversified wood products company, engages in manufacturing, selling, marketing, and distributing lumber, engineered wood products, pulp, newsprint, wood chips, and other residuals and renewable energy. It offers spruce-pine-fir, douglas fir-larch, hem-fir, and southern yellow pine lumber, treated wood products, medium density fiberboard panels and plywood, oriented strand board, and laminated veneer lumber wood products, as well as particleboards. In addition, the company provides northern bleached softwood Kraft pulp and bleached chemical thermo-mechanical pulp used to produce various paper products, including printing and writing papers, paperboard products, tissue and towel products, and a variety of other paper grades. Further, it offers bioproducts, including bioenergy and biomaterial. Its products are used in home construction, repair and remodeling, papers, tissue, and box materials, and industrial applications. The company sells its products to major retail chains, contractor supply yards, and wholesalers, as well as industrial customers for further processing or as components for other products in Canada, the United States, the United Kingdom, Europe, and internationally. West Fraser Timber Co. Ltd. was founded in 1955 and is headquartered in Vancouver, Canada.
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