Western Forest Prod (WEF) AI Stock Analysis

• Market Cap: C$140.64M
• Dividend Yield: N/A
• Average Volume (3M): 13.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: 9.47%
• EPS Growth: 85.30%
• Country: CA
• Employees: 2,051
• Sector: Basic Materials
• Sector Strength: 55
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.20
• Shares Outstanding: 10,558,185
• 10 Day Avg. Volume: 17,700
• 30 Day Avg. Volume: 13,416
• PEG Ratio: -0.24
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.88
• 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$14.00
• Price Target Upside: 5.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: C$14.00 ▲(5.11%Upside)

Western Forest Products has shown some financial and operational improvements, particularly in reduced debt and strategic initiatives. However, ongoing profitability issues and external challenges, such as potential tariffs and operational disruptions, weigh down the overall score. The technical analysis indicates positive momentum, yet the valuation remains a concern with a negative P/E ratio.

Western Forest Prod Business Overview & Revenue Model

Company Description

Western Forest Products Inc. engages in the timber harvesting, sawmilling logs into specialty lumber, value-added lumber remanufacturing, and lumber purchasing and wholesaling businesses. Its products have applications in outdoor living; exterior appearance; interior living; and structural applications. 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.

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 Products faces ongoing profitability challenges with negative net profit margins and operational inefficiencies, despite a stable balance sheet and some cash flow improvements.

Income Statement

The company's TTM (Trailing-Twelve-Months) gross profit margin stands at 6.21%, which is significantly lower compared to historical figures, indicating declining profitability. The net profit margin is negative due to ongoing net losses, reflecting continued financial strain. Revenue growth is modest at 2.16% compared to the previous year-end, but EBIT and EBITDA margins remain negative, pointing to operational challenges.

Balance Sheet

The debt-to-equity ratio is 0.08, indicating low leverage and financial stability. However, the return on equity is negative due to net losses, impacting overall investor returns. The equity ratio is 66.45%, which shows a strong equity base relative to assets, providing a buffer against potential liabilities.

Cash Flow

The TTM free cash flow is positive but marginal at $4.7 million, showing some improvement from the previous negative trend. Operating cash flow to net income ratio is positive, suggesting better cash generation relative to net income. However, free cash flow growth rate is not particularly strong, indicating potential liquidity constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.09B	1.06B	1.02B	1.44B	1.42B	964.90M
Gross Profit	67.50M	90.20M	50.60M	254.50M	399.00M	171.60M
EBITDA	19.70M	13.70M	-35.10M	137.00M	317.70M	107.00M
Net Income	-8.70M	-30.40M	-68.50M	61.70M	201.40M	33.10M
Balance Sheet
Total Assets	860.70M	915.50M	915.40M	932.80M	959.00M	852.20M
Cash, Cash Equivalents and Short-Term Investments	4.80M	7.90M	2.30M	15.80M	130.00M	2.90M
Total Debt	45.90M	105.00M	104.60M	20.60M	18.30M	93.70M
Total Liabilities	280.90M	349.20M	347.50M	281.10M	341.80M	346.60M
Stockholders Equity	571.90M	558.20M	565.00M	647.20M	612.10M	504.50M
Cash Flow
Free Cash Flow	4.70M	-13.30M	-78.20M	-56.80M	248.50M	61.70M
Operating Cash Flow	42.40M	20.10M	-33.80M	-10.30M	281.60M	80.40M
Investing Cash Flow	38.30M	3.00M	-38.60M	-59.90M	38.70M	-14.50M
Financing Cash Flow	-78.40M	-17.50M	58.90M	-44.00M	-193.20M	-65.10M

Western Forest Prod Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WEF, the sentiment is Positive. The current price of 13.32 is above the 20-day moving average (MA) of 12.30, above the 50-day MA of 12.11, and above the 200-day MA of 12.73, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 64.89 is Neutral, neither overbought nor oversold. The STOCH value of 82.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WEF.

Western Forest Prod Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEF	56 Neutral	C$140.64M	―	-1.51%	―	9.47%	85.30%
Sector *	44 Neutral	C$963.51M	-6.97	-14.61%	2.60%	17.59%	-32.64%
ICLTF	―	$50.34M	―	-16.05%	―	―	―
WFG	―	$5.47B	6,251.67	-1.80%	1.84%	―	―
ADN	75 Outperform	C$325.49M	16.27	5.85%	8.15%	12.30%	-36.60%
IFSPF	―	$474.00M	―	-16.90%	―	―	―
CFPZF	―	$1.15B	―	-18.19%	―	―	―

Western Forest Prod Corporate Events

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.

Western Forest Products Announces Shareholder Meeting Results and Share Consolidation Approval

Western Forest Products Inc. held its Annual General and Special Meeting of Shareholders, where the re-election of its board of directors was confirmed, and a special resolution was approved to authorize a share consolidation. The share consolidation, which aims to adjust the company’s share structure, will be executed at a ratio determined by the board within a range of one post-consolidation share for every 25 to 40 pre-consolidation shares, subject to market conditions and regulatory approval. This move is expected to impact the company’s market operations and shareholder value, with further details to be provided in future communications.

Western Forest Products Reports Strong Q1 2025 Results Amid Market Challenges

Western Forest Products Inc. reported a significant improvement in its financial performance for the first quarter of 2025, achieving a net income of $13.8 million compared to a net loss in the previous year. The company reduced its net debt substantially through non-core asset sales, enhancing its liquidity and financial flexibility. Additionally, Western is advancing its transition to higher-value products by investing in continuous dry kilns and has extended its credit facility maturity to 2028. However, the company faces potential challenges from increased countervailing and anti-dumping rates announced by the US Department of Commerce, which could impact its export expenses.

Western Forest Products Extends $250 Million Credit Facility

Western Forest Products Inc. has announced the amendment and extension of its $250 million syndicated credit facility, now maturing on July 21, 2028. This move ensures financial stability and supports the company’s strategic operations in the competitive global softwood market, maintaining unchanged security and financial covenants.