Western Forest Prod (WEF) AI Stock Analysis

• Market Cap: C$122.05M
• Dividend Yield: N/A
• Average Volume (3M): 35.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: 2.06%
• EPS Growth: -46.23%
• Country: CA
• Employees: 2,051
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -5.71
• Shares Outstanding: 10,558,183
• 10 Day Avg. Volume: 33,267
• 30 Day Avg. Volume: 35,762
• PEG Ratio: 0.07
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -9.55
• 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$13.00
• Price Target Upside: 16.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: C$11.50 ▲(3.42% Upside)

Western Forest Prod faces significant financial and operational challenges, reflected in its poor financial performance and valuation metrics. Technical indicators suggest bearish momentum, and while the company has made some strategic improvements, these are overshadowed by ongoing market and operational difficulties. The cautious sentiment from the earnings call further underscores the risks.

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 primarily through the sale of lumber and logs, which are used in residential and commercial construction, as well as in various industrial applications. The company operates sawmills and remanufacturing facilities that convert raw timber into finished wood products, enabling it to capture higher margins. Key revenue streams include the sale of dimensional lumber, specialty products, and wood chips, with a significant portion of sales coming from exports to international markets, particularly the United States and Asia. Additionally, WEF benefits from long-term partnerships with various distributors and manufacturers, which help stabilize demand and pricing for its products. The company also engages in forest management and harvesting operations, providing additional revenue through sustainable logging practices and the sale of timber rights.

Western Forest Prod Financial Statement Overview

Summary

Western Forest Prod is experiencing financial difficulties, with declining revenues and profitability impacting its income statement. The balance sheet remains stable with low leverage, but returns are under pressure. Cash flow volatility presents additional risks, highlighting the need for strategic adjustments to improve financial health.

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	23.20M	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: 11.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 11.12 is below the 20-day moving average (MA) of 11.67, below the 50-day MA of 12.19, and below the 200-day MA of 12.31, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 32.28 is Neutral, neither overbought nor oversold. The STOCH value of 18.08 is Positive, 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	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ADN	58 Neutral	C$256.93M	16.89	4.46%	9.58%	-28.86%	-48.20%
WFG	48 Neutral	$6.67B	-19.59	-3.61%	2.14%	-6.67%	-168.27%
CFP	48 Neutral	$1.42B	-3.09	-15.06%	―	1.76%	34.61%
WEF	45 Neutral	C$122.05M	-5.65	-12.20%	―	2.06%	-46.23%
GFP	45 Neutral	$52.21M	-1.69	-73.85%	―	-17.95%	-97.06%
IFP	45 Neutral	$404.43M	―	-20.72%	―	-3.63%	31.61%

Western Forest Prod Corporate Events

Western Forest Products Faces Financial Challenges Amid Tariffs and Duty Expenses

Western Forest Products Inc. reported a significant financial downturn in the third quarter of 2025, with an adjusted EBITDA of negative $65.9 million, largely due to a non-cash export duty expense of $59.5 million. The company also faced a net loss of $61.3 million, exacerbated by ongoing challenges such as the US Department of Commerce’s final antidumping and countervailing duty rates, and a new 10% tariff on imported lumber products imposed by the US government. Despite these setbacks, Western is working on strategic initiatives, including the construction of two continuous dry kilns to transition to higher value products, and has improved its liquidity and reduced net debt.

The most recent analyst rating on (TSE:WEF) stock is a Hold with a C$14.00 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 to Curtail Lumber Production Amid Market Challenges

Western Forest Products Inc. announced temporary curtailments at its British Columbia sawmills, reducing lumber production by approximately 50 million board feet in the second half of 2025. This decision is due to weak market conditions, increased U.S. softwood lumber duties, and challenges in the B.C. operating environment, including log supply issues and labor strikes. The company will adjust operations based on market conditions and log supply, impacting its operations and potentially affecting stakeholders such as employees and local communities.

The most recent analyst rating on (TSE:WEF) stock is a Hold with a C$12.00 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 to Release Q3 2025 Results and Host Conference Call

Western Forest Products Inc. announced the release date for its third quarter 2025 financial and operating results, scheduled for November 5, 2025. The company will hold an analyst conference call on November 6, 2025, to discuss the results, featuring key executives including the CEO and CFO. This announcement highlights Western’s commitment to transparency and engagement with stakeholders, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:WEF) stock is a Hold with a C$12.00 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 Expands Credit Facility with New $30 Million Agreement

Western Forest Products has amended its $250 million syndicated credit facility to include a new US$30 million bilateral letter of credit facility with the Royal Bank of Canada. This facility, guaranteed by the Export Development Corporation of Canada, is expected to enhance Western’s financial flexibility and support its operations, potentially strengthening its position in the global softwood market.

The most recent analyst rating on (TSE:WEF) stock is a Hold with a C$12.00 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 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.