Western Forest Prod (WEF) AI Stock Analysis

• Market Cap: C$130.92M
• Dividend Yield: N/A
• Average Volume (3M): 25.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: 3.89%
• EPS Growth: 49.05%
• Country: CA
• Employees: 2,051
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -1.62
• Shares Outstanding: 10,558,183
• 10 Day Avg. Volume: 24,786
• 30 Day Avg. Volume: 25,716
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$12.00
• Price Target Upside: -1.96% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 48 Neutral
• Price Target: C$12.00 ▼(-1.96% Downside)

Western Forest Prod's overall stock score is primarily impacted by its financial performance challenges, including declining revenues and profitability. Technical analysis indicates a bearish trend, while valuation metrics are unattractive due to negative earnings. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Sustainable Forest Management

The company's focus on sustainable practices ensures long-term resource availability and compliance with environmental regulations, enhancing its reputation and access to premium markets.

Strategic Partnerships

Strong partnerships and client relationships expand market reach and stabilize revenue streams, providing a competitive edge in the forestry sector.

Low Leverage

Low leverage enhances financial stability and flexibility, allowing the company to navigate economic fluctuations and invest in growth opportunities.

Negative Factors

Declining Profitability

Sustained negative profitability indicates operational challenges and may hinder the company's ability to reinvest in its business and maintain competitive positioning.

Cash Flow Volatility

Volatile cash flows can strain operational liquidity and limit the company's ability to fund new projects or manage debt, impacting long-term financial health.

Negative Revenue Growth

Declining revenue growth suggests weakening demand for products, which could affect market share and long-term business sustainability if not addressed.

Western Forest Prod Business Overview & Revenue Model

Company Description

Western Forest Products Inc. (WEF) is a Canadian forest products company based in British Columbia. The company operates primarily in the forestry sector, focusing on the sustainable harvesting and production of a diverse array of timber and wood products. Its core products include high-quality lumber, logs, and wood chips, which are utilized in various industries such as construction, furniture, and pulp and paper. Western Forest Products is committed to sustainable forest management practices and serves both domestic and international markets.

How the Company Makes Money

Western Forest Products generates revenue through its comprehensive portfolio of wood-based products. The company's primary revenue streams include the sale of lumber, logs, and wood chips. Lumber sales are a significant contributor to its earnings, with products tailored for construction, industrial, and specialty markets. Timber harvested from its forest tenure and private lands is sold as logs, targeting both domestic lumber mills and international buyers. Additionally, wood chips, a byproduct of lumber processing, are sold primarily to pulp and paper manufacturers. The company benefits from strategic partnerships and long-term relationships with clients across North America and Asia, enhancing its market reach and revenue potential. Furthermore, Western Forest Products' focus on sustainable forest management and certification helps it maintain a competitive advantage and access premium markets.

Western Forest Prod Financial Statement Overview

Summary

Western Forest Prod faces financial difficulties with declining revenues and profitability. The income statement shows negative net profit and EBIT margins, while the balance sheet is stable with low leverage. Cash flow volatility is a concern, indicating the need for strategic adjustments.

Income Statement

Western Forest Prod has faced declining revenue and profitability over recent periods. The TTM data shows a negative net profit margin and EBIT margin, indicating operational challenges. Revenue growth has been negative, reflecting a downturn in sales. However, the company has maintained a positive EBITDA margin, suggesting some operational efficiency.

Balance Sheet

The company's balance sheet shows a relatively low debt-to-equity ratio, indicating conservative leverage. However, the return on equity has been negative in recent periods, reflecting challenges in generating returns for shareholders. The equity ratio remains stable, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals significant volatility, with negative free cash flow growth in the TTM period. The operating cash flow to net income ratio is positive, but free cash flow to net income is low, indicating cash flow challenges. Historical data shows better cash flow management, but recent trends are concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.07B	1.06B	1.02B	1.44B	1.42B	964.90M
Gross Profit	72.20M	90.20M	50.60M	254.50M	399.00M	171.60M
EBITDA	-4.70M	13.70M	-35.10M	137.00M	317.70M	107.00M
Net Income	-21.60M	-30.40M	-68.50M	61.70M	201.40M	33.10M
Balance Sheet
Total Assets	837.60M	915.50M	915.40M	932.80M	959.00M	852.20M
Cash, Cash Equivalents and Short-Term Investments	4.20M	7.90M	2.30M	15.80M	130.00M	2.90M
Total Debt	50.30M	105.00M	104.60M	20.60M	18.30M	93.70M
Total Liabilities	279.30M	349.20M	347.50M	281.10M	341.80M	346.60M
Stockholders Equity	550.70M	558.20M	565.00M	647.20M	612.10M	504.50M
Cash Flow
Free Cash Flow	-400.00K	-13.30M	-78.20M	-56.80M	248.50M	61.70M
Operating Cash Flow	34.90M	20.10M	-33.80M	-10.30M	281.60M	80.40M
Investing Cash Flow	39.80M	3.00M	-38.60M	-59.90M	38.70M	-14.50M
Financing Cash Flow	-74.80M	-17.50M	58.90M	-44.00M	-193.20M	-65.10M

Western Forest Prod Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.24
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WEF, the sentiment is Negative. The current price of 12.24 is below the 20-day moving average (MA) of 12.44, below the 50-day MA of 12.38, and below the 200-day MA of 12.45, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 27.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WEF.

Western Forest Prod Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.29B	7.21	-0.06%	2.89%	2.87%	-36.73%
WEF	48 Neutral	C$130.92M	―	-3.84%	―	3.89%	49.05%
ICLTF	―	$45.15M	―	-13.50%	―	―	―
WFG	―	$5.84B	6,251.67	-1.80%	1.73%	―	―
ADN	60 Neutral	C$311.54M	21.58	4.24%	8.61%	-26.79%	-57.05%
IFSPF	―	$496.13M	―	-11.53%	―	―	―
CFPZF	―	$1.16B	―	-19.38%	―	―	―

Western Forest Prod Corporate Events

Western Forest Products Faces Financial and Operational Challenges in Q2 2025

Western Forest Products Inc. reported a challenging second quarter of 2025, with an adjusted EBITDA of $0.5 million, significantly down from $9.4 million in the same period last year, primarily due to a $3.6 million inventory provision expense. The company faced a net loss of $17.4 million, compared to a net loss of $5.7 million in the previous year, amid declining lumber prices and operational challenges, including a fire at the Columbia Vista Sawmill and a strike at the La-kwa sa muqw Forestry Limited Partnership. Western is focusing on transitioning to higher-value products by advancing construction of continuous dry kilns, although some projects have been deferred to maintain financial stability. The company is also dealing with the impact of the US Department of Commerce’s antidumping rates, which could lead to significant export tax expenses.

The most recent analyst rating on (TSE:WEF) stock is a Hold with a C$15.00 price target. To see the full list of analyst forecasts on Western Forest Prod stock, see the TSE:WEF Stock Forecast page.

Western Forest Products Announces Share Consolidation Effective Date

Western Forest Products Inc. announced the effective date for the consolidation of its common shares, which will reduce the number of issued and outstanding shares from approximately 316.7 million to about 10.6 million. The Toronto Stock Exchange has approved this share consolidation, and trading on a post-consolidation basis will commence on July 28, 2025. This move is expected to streamline the company’s share structure, potentially impacting shareholder value and market perception. The consolidation will involve adjustments to stock options and other share units, with Computershare acting as the exchange agent to facilitate the process for shareholders.

The most recent analyst rating on (TSE:WEF) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Western Forest Prod stock, see the TSE:WEF Stock Forecast page.

Western Forest Products to Release Q2 2025 Results and Host Conference Call

Western Forest Products Inc. announced the release date for its second quarter 2025 financial and operating results, which will be available on August 7, 2025. The company will host a conference call on August 8, 2025, featuring discussions by key executives, including the CEO, CFO, and Senior Vice President, on the results and a Q&A session with analysts. This announcement is significant for stakeholders as it provides insights into the company’s performance and strategic direction, potentially impacting its market position and investor confidence.

The most recent analyst rating on (TSE:WEF) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Western Forest Prod stock, see the TSE:WEF Stock Forecast page.

Western Forest Products Announces Share Consolidation

Western Forest Products Inc. has announced the implementation of a share consolidation, consolidating its common shares on a 1-for-30 basis, following shareholder approval. This move, pending final regulatory approval, aims to streamline the company’s share structure, potentially impacting its market positioning and shareholder value.

The most recent analyst rating on (TSE:WEF) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Western Forest Prod stock, see the TSE:WEF Stock Forecast page.

Fire Renders Western Forest Products’ Columbia Vista Sawmill Inoperable

Western Forest Products Inc. announced that its Columbia Vista Division sawmill in Vancouver, Washington, has been extensively damaged by a fire, rendering it inoperable. The mill, which produced 53 million board feet of lumber in 2024, primarily focused on Douglas Fir specialty products for Japan and U.S. markets. While no injuries were reported, the incident may impact the company’s operations and market supply, necessitating an investigation and assessment to determine the next steps.

The most recent analyst rating on (TSE:WEF) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Western Forest Prod stock, see the TSE:WEF Stock Forecast page.