Western Forest Prod (WEF) AI Stock Analysis

• Market Cap: C$123.53M
• Dividend Yield: N/A
• Average Volume (3M): 309.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: 4.63%
• EPS Growth: 55.62%
• Country: CA
• Employees: 2,051
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): N/A
• Shares Outstanding: 316,745,540
• 10 Day Avg. Volume: 409,742
• 30 Day Avg. Volume: 309,988
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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$0.51
• Price Target Upside: 30.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

Western Forest Products faces significant financial challenges, with negative profitability and liquidity issues reflected in its low financial performance score. Technical analysis and valuation metrics are also weak, suggesting potential further downside. Despite some positive signals from recent earnings call improvements and strategic initiatives, external challenges such as tariffs and market uncertainties weigh heavily on the score.

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 Inc. generates revenue primarily through the sale of its wood products. The company's key revenue streams include the harvesting and sale of logs, as well as the production and sale of lumber products. It operates several sawmills and remanufacturing facilities, enabling it to produce a wide array of wood products tailored to customer needs in various sectors, such as construction and homebuilding. The company benefits from its access to high-quality timber resources in British Columbia and leverages strategic partnerships and long-term customer relationships to maintain a steady demand for its products. Additionally, Western Forest Products' focus on sustainable forestry practices and certifications helps enhance its market position and appeal to environmentally conscious buyers.

Western Forest Prod Financial Statement Overview

Summary

Western Forest Prod is currently navigating through financial difficulties with negative profitability and cash flow concerns. While the balance sheet remains relatively strong, the income statement and cash flow statement highlight significant operational and liquidity challenges that the company must address to stabilize its financial health.

Income Statement

Western Forest Prod's revenue has experienced significant volatility with a sharp decline from 2022 to 2023, before a modest recovery in 2024. The gross profit margin has improved slightly in 2024, yet net profit margins remain negative due to continued net losses. EBIT and EBITDA margins indicate operating challenges, signaling ongoing financial stress.

Balance Sheet

The balance sheet reflects a stable equity position with a debt-to-equity ratio remaining manageable, though slightly increasing. The equity ratio showcases a solid capital structure with a significant portion of assets financed by equity. However, return on equity is negative, highlighting profitability issues.

Cash Flow

Cash flow analysis reveals improvement in operating cash flow from 2023 to 2024, yet free cash flow remains negative. The company struggles with generating sufficient cash to cover capital expenditures and net income, indicating liquidity challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.06B	1.02B	1.44B	1.42B	964.90M
	Gross Profit
90.20M	50.60M	254.50M	399.00M	171.60M
	EBIT
-45.40M	-83.40M	84.30M	267.10M	53.90M
	EBITDA
13.20M	-35.10M	137.00M	317.70M	107.00M
	Net Income Common Stockholders
-30.40M	-68.50M	61.70M	201.40M	33.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.90M	2.30M	15.80M	130.00M	2.90M
	Total Assets
915.50M	915.40M	932.80M	959.00M	852.20M
	Total Debt
105.00M	104.60M	20.60M	18.30M	93.70M
	Net Debt
97.10M	102.30M	4.80M	-111.70M	90.80M
	Total Liabilities
349.20M	347.50M	281.10M	341.80M	346.60M
	Stockholders Equity
558.20M	565.00M	647.20M	612.10M	504.50M
Cash Flow		Free Cash Flow
-13.30M	-78.20M	-56.80M	248.50M	61.70M
	Operating Cash Flow
20.10M	-33.80M	-10.30M	281.60M	80.40M
	Investing Cash Flow
3.00M	-38.60M	-59.90M	38.70M	-14.50M
	Financing Cash Flow
-17.50M	58.90M	-44.00M	-193.20M	-65.10M

Western Forest Prod Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 0.39 is above the 20-day moving average (MA) of 0.38, below the 50-day MA of 0.41, and below the 200-day MA of 0.44, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.57 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 is Negative, 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
ADN	70 Outperform	C$310.65M	14.08	6.61%	6.65%	24.29%	-27.59%
WEF	50 Neutral	C$123.53M	―	-5.41%	―	4.63%	55.62%
Sector *	49 Neutral	$1.95B	-1.32	-21.23%	3.72%	0.87%	-29.37%

Western Forest Prod Corporate Events

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.

Spark’s Take on TSE:WEF Stock

According to Spark, TipRanks’ AI Analyst, TSE:WEF is a Neutral.

Western Forest Products faces significant financial challenges with negative profitability and liquidity issues, reflected in a low financial performance score. Technical analysis and valuation metrics are also weak, suggesting potential further downside. Despite some positive signals from recent earnings call improvements and strategic initiatives, external challenges such as tariffs and market uncertainties weigh heavily on the score.

To see Spark’s full report on TSE:WEF stock, click here.

Western Forest Products Proposes Share Consolidation to Boost Investor Interest

Western Forest Products Inc. has announced a proposal for a share consolidation to be considered at its upcoming Annual and Special Meeting of Shareholders. The Board of Directors believes this move will attract interest from new and existing investors and improve the trading liquidity of the company’s common shares. If approved, the Board will have the discretion to determine the consolidation ratio and timing within a year. The number of common shares will be proportionately reduced, with fractional shares rounded to the nearest whole number.

Spark’s Take on TSE:WEF Stock

According to Spark, TipRanks’ AI Analyst, TSE:WEF is a Neutral.

Western Forest Products shows signs of operational improvement and strategic reinvestment, yet financial and market challenges remain. The stock’s valuation metrics are unattractive, and technical indicators suggest potential further downside. The company’s positive earnings call highlights progress, but significant external challenges persist, impacting the overall score.

To see Spark’s full report on TSE:WEF stock, click here.

Western Forest Products to Announce Q1 2025 Results

Western Forest Products Inc. announced the release date for its first quarter 2025 financial and operating results, set for May 6, 2025, with an analyst conference call scheduled for May 7, 2025. The call will feature discussions led by key executives, including the CEO, CFO, and Senior VP of Sales, Marketing, and Manufacturing, followed by a Q&A session with analysts. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting its market positioning and investor confidence.

Western Forest Products Reports Improved Fiscal 2024 Results

Western Forest Products Inc. reported a significant improvement in its financial performance for the fourth quarter and fiscal year 2024 compared to the previous year. The company achieved an adjusted EBITDA of $14.4 million in Q4 2024, in stark contrast to the negative figures from the previous periods. This financial upturn is attributed to better lumber market conditions, a stronger mix of cedar and industrial lumber sales, and favorable exchange rates. The improved results indicate enhanced market positioning and operational efficiency, likely benefiting stakeholders with a more robust financial outlook.

Western Forest Products Sells Vancouver Island Land to Eastwood for $69.2 Million

Western Forest Products has sold 14,500 hectares of land on northern Vancouver Island to Eastwood Climate Smart Forestry Fund for $69.2 million. This sale aligns with Western’s strategy to optimize its BC operations by reducing debt and investing in higher value product manufacturing. Eastwood aims to manage the land with a focus on sustainable forestry and climate change mitigation, while building relationships with local stakeholders to ensure positive ecological and economic impacts.