West Fraser Timber Co (WFG) AI Stock Analysis

• Market Cap: $7.39B
• Dividend Yield: 1.96%
• Average Volume (3M): 230.90K
• Price to Earnings (P/E): 3150.3
• Beta (1Y): 0.89
• Revenue Growth: -6.67%
• EPS Growth: -168.27%
• Country: CA
• Employees: 9,700
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -3.68
• Shares Outstanding: 76,576,170
• 10 Day Avg. Volume: 217,124
• 30 Day Avg. Volume: 230,904
• PEG Ratio: 14.46
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 40.22
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 1.28
• Enterprise Value/Gross Profit: 4.62
• Enterprise Value/Ebitda: 15.91
• 1Y Price Target: $131.45
• Price Target Upside: 42.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 48 Neutral
• Price Target: C$91.00 ▼(-1.17% Downside)

West Fraser Timber Co's overall stock score is primarily impacted by financial performance challenges, including declining revenues and profitability. Technical analysis also indicates bearish momentum. While the company maintains a strong balance sheet, the negative earnings call sentiment and unattractive valuation metrics weigh heavily on the score.

West Fraser Timber Co Business Overview & Revenue Model

Company Description

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 and southern yellow pine lumber, treated wood products, medium density fiberboard panels and plywood, oriented strand board, and laminated veneer lumber wood products. The company also provides northern bleached softwood Kraft pulp and bleached chemical thermo-mechanical pulp used to produce various paper products, including printing and writing papers, specialty grades, and various tissue products. It 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, China, Europe, Asia, and other countries. West Fraser Timber Co. Ltd. was founded in 1955 and is based in Vancouver, Canada.

How the Company Makes Money

West Fraser Timber Co. generates revenue primarily through the sale of wood products, with key revenue streams including lumber sales, engineered wood products, and by-products such as wood chips and sawdust. The company benefits from its diversified product offerings, allowing it to serve a wide range of customers in the construction and manufacturing industries. Additionally, West Fraser engages in strategic partnerships and joint ventures that enhance its supply chain and market reach. Factors contributing to its earnings include fluctuations in lumber prices, demand in the housing market, and the company's ability to efficiently manage its production processes while maintaining sustainable forestry practices.

West Fraser Timber Co Financial Statement Overview

Summary

West Fraser Timber Co is facing financial headwinds with declining revenues and profitability. Despite a strong balance sheet with low leverage, negative return on equity and declining cash flows are concerning. The company needs to address operational inefficiencies and improve cash generation.

Income Statement

West Fraser Timber Co has experienced declining revenue and profitability over recent periods. The TTM data shows a negative net profit margin of -2.18% and a negative EBIT margin of -1.87%, indicating operational challenges. The gross profit margin remains moderate at 27.77%, but revenue growth has been negative, reflecting a contraction in sales.

Balance Sheet

The company's balance sheet is relatively stable with a low debt-to-equity ratio of 0.05, suggesting conservative leverage. However, the return on equity is negative at -1.82%, indicating inefficiencies in generating returns for shareholders. The equity ratio is strong, showing a solid foundation of equity relative to total assets.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, down by 43.95% in the TTM period. The operating cash flow to net income ratio is 0.80, indicating some challenges in converting income into cash. The free cash flow to net income ratio is 0.17, suggesting limited cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.84B	6.17B	6.44B	9.79B	10.43B	4.36B
Gross Profit	1.62B	1.84B	1.76B	4.60B	5.82B	1.81B
EBITDA	471.17M	654.38M	534.72M	3.23B	4.48B	1.02B
Net Income	-127.02M	―	-166.60M	1.99B	2.92B	586.09M
Balance Sheet
Total Assets	8.75B	8.75B	9.35B	10.07B	10.33B	4.17B
Cash, Cash Equivalents and Short-Term Investments	644.63M	640.62M	893.53M	1.17B	1.55B	459.83M
Total Debt	328.30M	228.86M	534.13M	541.26M	522.04M	513.09M
Total Liabilities	1.87B	1.80B	2.18B	2.38B	2.75B	1.70B
Stockholders Equity	6.88B	6.95B	7.17B	7.69B	7.58B	2.47B
Cash Flow
Free Cash Flow	112.08M	180.88M	72.15M	1.67B	2.83B	793.53M
Operating Cash Flow	553.54M	644.49M	556.89M	2.14B	3.46B	982.32M
Investing Cash Flow	-439.45M	-343.67M	-586.36M	-461.83M	-281.20M	-173.90M
Financing Cash Flow	-443.62M	-528.35M	-247.96M	-2.04B	-2.09B	-340.76M

West Fraser Timber Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 92.08
• 50DMA: Negative
• 100DMA: Negative
• 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:WFG, the sentiment is Negative. The current price of 92.08 is below the 20-day moving average (MA) of 94.77, below the 50-day MA of 98.52, and below the 200-day MA of 104.98, indicating a bearish trend. The MACD of -1.43 indicates Positive momentum. The RSI at 39.36 is Neutral, neither overbought nor oversold. The STOCH value of 32.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WFG.

West Fraser Timber Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SJ	78 Outperform	$4.42B	13.51	17.05%	1.53%	-0.26%	-4.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ADN	58 Neutral	C$289.43M	20.05	4.24%	8.93%	-26.79%	-57.05%
CFP	52 Neutral	$1.41B	―	-19.38%	―	-1.38%	-64.10%
WFG	48 Neutral	$7.39B	3,150.31	-3.61%	1.96%	-6.67%	-168.27%
WEF	46 Neutral	C$127.75M	―	-3.84%	―	3.89%	49.05%
IFP	44 Neutral	$421.92M	―	-11.53%	―	-7.60%	50.15%

West Fraser Timber Co Corporate Events

West Fraser Timber Reports Challenging Q3 2025 Results

West Fraser Timber Co. Ltd. is a diversified wood products company with over 50 facilities across Canada, the United States, the United Kingdom, and Europe, known for its sustainable forest practices and production of lumber, engineered wood products, pulp, and other materials used in construction and industrial applications. In its third-quarter 2025 earnings report, West Fraser announced a challenging financial performance with sales of $1.307 billion and a net loss of $204 million, reflecting ongoing supply and demand imbalances in the wood products market. Key financial metrics included an adjusted EBITDA of negative $144 million, with significant impacts from export duties and tariffs on Canadian softwood lumber. The company repurchased over half a million shares, reflecting a commitment to shareholder value despite the tough market conditions. Looking ahead, West Fraser remains focused on strategic investments and cost control to navigate the uncertain market environment, with an emphasis on maintaining flexibility and capital allocation to support long-term growth and shareholder value.

West Fraser Timber Reports Decline in Q3 2025 Earnings Amid Higher Export Duties

West Fraser Timber Co. Ltd. announced its third-quarter 2025 financial results on October 22, 2025, reporting a decline in sales and operating earnings compared to the previous year. The company faced challenges due to increased export duties and tariffs, which impacted its profitability. Despite these hurdles, West Fraser remains committed to optimizing its operations and maintaining its market position, although the financial performance indicates a need for strategic adjustments to address the current economic conditions.

The most recent analyst rating on (TSE:WFG) stock is a Buy with a C$92.00 price target. To see the full list of analyst forecasts on West Fraser Timber Co stock, see the TSE:WFG Stock Forecast page.

West Fraser Timber Co. Announces Q3 Results Conference Call

West Fraser Timber Co. Ltd. announced it will hold a conference call on October 23, 2025, to discuss its third quarter financial and operating results. This announcement indicates the company’s ongoing transparency and engagement with stakeholders, as it provides an opportunity for analysts to inquire about the company’s performance and strategic direction.

The most recent analyst rating on (TSE:WFG) stock is a Hold with a C$100.00 price target. To see the full list of analyst forecasts on West Fraser Timber Co stock, see the TSE:WFG Stock Forecast page.

West Fraser Timber Declares Quarterly Dividend for October 2025

On September 10, 2025, West Fraser Timber Co. Ltd. announced a quarterly dividend of US$0.32 per share for its Common and Class B Common shares, payable on October 14, 2025, to shareholders of record as of September 25, 2025. This declaration reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact investor sentiment and market positioning.

The most recent analyst rating on (TSE:WFG) stock is a Buy with a C$119.00 price target. To see the full list of analyst forecasts on West Fraser Timber Co stock, see the TSE:WFG Stock Forecast page.

West Fraser Timber Reports Q2 2025 Financial Results

West Fraser Timber Co. Ltd. is a diversified wood products company operating over 50 facilities across Canada, the United States, the United Kingdom, and Europe, specializing in sustainable forest practices and producing a variety of wood-based products for construction and industrial applications.

West Fraser Timber Faces Challenges Amidst Strong Financial Position

West Fraser Timber Co. Ltd. recently held its earnings call, revealing a quarter marked by significant challenges. The company faced decreased EBITDA in key segments, primarily due to macroeconomic pressures such as housing market difficulties and tariffs. Despite these hurdles, West Fraser showcased its financial resilience through strategic maneuvers aimed at preserving liquidity and flexibility.

West Fraser and Lake Babine Nation Strengthen B.C. Forest Sector with New Licence

On July 24, 2025, West Fraser Timber Co. Ltd. and the Lake Babine Nation Forestry Limited Partnership announced the approval of a new First Nations Woodland Licence in the Smithers area by the Government of British Columbia. This milestone strengthens their partnership and introduces a new model for timber tenures in B.C.’s forest sector. The collaboration aims to enhance economic opportunities for the Lake Babine Nation while ensuring sustainable forest management. West Fraser contributed portions of its licence volume to facilitate the creation of this area-based licence, reflecting a commitment to sustainable forestry and Indigenous partnerships. The initiative is expected to bring greater stability to the forest sector and secure a sustainable future for the region.

The most recent analyst rating on (TSE:WFG) stock is a Buy with a C$171.00 price target. To see the full list of analyst forecasts on West Fraser Timber Co stock, see the TSE:WFG Stock Forecast page.