Westshore Terminals (WTE) AI Stock Analysis

• Market Cap: C$2.03B
• Dividend Yield: 5.63%
• Average Volume (3M): 90.25K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.32
• Revenue Growth: -4.67%
• EPS Growth: -22.54%
• Country: CA
• Employees: 423
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): -0.11
• Shares Outstanding: 61,769,768
• 10 Day Avg. Volume: 77,121
• 30 Day Avg. Volume: 90,249
• PEG Ratio: -0.85
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 4.98
• P/FCF Ratio: 18.65
• 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$34.00
• Price Target Upside: 3.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.33
• Revenue Forecast (FY): C$362.80M

• Rating: 70 Outperform
• Price Target: C$34.00 ▲(3.50% Upside)
• Action: Upgraded Date: 03/16/26
• Date: Action: Upgraded 03/16/26

The score is driven primarily by solid financial fundamentals (strong profitability and operating cash generation), tempered by 2025 revenue/margin weakening and rising leverage. Technicals are moderately supportive with a positive longer-term trend but mixed momentum signals. Valuation is a headwind due to a high P/E despite a strong dividend yield.

Positive Factors

Cash Generation

Reliable operating cash flow and a sharp improvement in free cash flow in 2025 indicate the business converts core operations into real liquidity. Durable cash generation supports reinvestment in the terminal, funds maintenance capex, services debt and underpins steady distributions even through volume cycles.

Profitability / Margins (historical)

Sustained gross and net margin strength provides a structural earnings buffer versus cyclical volume swings. High margins on terminal services imply scalable economics: fixed infrastructure costs spread over throughput, helping preserve earnings and fund returns when volumes temporarily soften.

Strategic Terminal Asset

Owning and operating Roberts Bank terminal creates structural competitive advantages: high barriers to entry, essential logistics for seaborne coal exports, and direct rail connectivity. These infrastructure characteristics drive predictable, contractable throughput revenues and long-term commercial relationships.

Negative Factors

Revenue Decline

An 11.4% revenue drop in 2025 shows demand sensitivity for terminal throughput tied to coal exports. Persistent or recurring volume declines would erode utilization, reduce fixed-cost absorption, and pressure cash flow and returns given the business model’s reliance on tonnage throughput.

Margin Compression

Sharp margin compression in 2025 demonstrates earnings vulnerability when volumes or pricing weaken. Lower gross and operating margins reduce free cash flow available for debt servicing, reinvestment and distributions, increasing sensitivity to future operational or market headwinds.

Rising Leverage & Capital Intensity

Higher leverage combined with a material asset base increase raises the bar for returns and reduces financial flexibility. Elevated debt levels amplify downside risk if volumes fall, limiting ability to fund capex or absorb shocks without cutting distributions or raising costly capital.

Westshore Terminals Business Overview & Revenue Model

Company Description

Westshore Terminals Investment Corporation operates a coal storage and loading terminal at Roberts Bank, British Columbia. The company has contracts to ship coal from mines in British Columbia, Alberta, and the Northwestern United States. Westshore Terminals Investment Corporation was founded in 1970 and is headquartered in Vancouver, Canada.

How the Company Makes Money

WTE makes money by charging customers (coal producers and marketers exporting through its terminal) for throughput and terminal services associated with moving coal from inbound railcars to outbound vessels. The core revenue stream is terminal handling fees tied to volumes handled, which generally include services such as railcar unloading, stockpiling/yard management, reclaiming, and shiploading. Revenue is therefore primarily driven by (1) coal export volumes moving through the terminal and (2) pricing/contract terms for terminal services, which may include a mix of committed (take-or-pay or minimum throughput) arrangements and variable fees linked to actual tonnage handled; specific contract structures beyond this are null. Additional revenue can come from ancillary services and cost recoveries related to terminal operations (e.g., demurrage-related or other service charges) where applicable; specific line-item details are null. Key factors influencing earnings include capacity utilization of the terminal, operating efficiency and costs, and demand for seaborne coal exports from Western Canadian producers, with volumes also affected by rail performance and broader market conditions. Material partnerships or customers are the coal mining companies and marketers that contract for export capacity, and the railway connections that deliver coal to Roberts Bank; specific counterparties are null.

Westshore Terminals Financial Statement Overview

Summary

Strong underlying profitability and robust operating cash flow support the score, with sharply improved free cash flow in 2025. Offsetting this, 2025 revenue declined (-11.4%), margins compressed versus 2024, leverage has risen versus 2021–2023, and free cash flow conversion to net income remains modest (~21%), implying more variable results.

Income Statement

Profitability remains a clear strength, with strong gross and net margins across the period. However, the latest year (2025) showed a meaningful step-down in revenue (-11.4%) and a sharp compression in gross and operating profitability versus 2024, indicating increased volatility and weaker near-term momentum despite still-solid earnings.

Balance Sheet

Leverage looks manageable with debt below equity (debt-to-equity ~0.60 in 2024–2025), and returns on equity remain healthy overall. The main concern is a notable increase in leverage compared with 2021–2023 levels, alongside a sizable jump in total assets in 2025, which may reflect heavier capital intensity and raises the bar for future returns.

Cash Flow

Cash generation is strong: operating cash flow is consistently robust and covers earnings well in each year, including 2025. Free cash flow improved sharply in 2025, but free cash flow conversion to net income remains modest (about ~21% in 2025), suggesting heavier reinvestment or working-capital/capex demands that can make cash returns less predictable year-to-year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	323.00M	404.73M	381.00M	291.96M	340.47M
Gross Profit	111.28M	198.28M	179.63M	114.05M	172.32M
EBITDA	130.39M	212.01M	191.00M	134.40M	186.98M
Net Income	90.70M	115.25M	116.56M	66.84M	107.81M
Balance Sheet
Total Assets	2.56B	1.85B	1.39B	1.26B	1.30B
Cash, Cash Equivalents and Short-Term Investments	125.88M	136.59M	164.75M	156.03M	243.49M
Total Debt	440.86M	441.41M	277.89M	280.57M	283.32M
Total Liabilities	1.82B	1.12B	665.09M	546.09M	508.38M
Stockholders Equity	739.09M	725.90M	729.55M	712.71M	788.47M
Cash Flow
Free Cash Flow	86.23M	98.07M	97.95M	36.27M	128.46M
Operating Cash Flow	406.70M	396.07M	189.59M	91.20M	136.57M
Investing Cash Flow	-324.20M	-298.01M	-91.64M	-54.93M	-8.11M
Financing Cash Flow	-93.20M	-126.22M	-88.27M	-123.74M	-86.40M

Westshore Terminals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WTE, the sentiment is Positive. The current price of 32.85 is above the 20-day moving average (MA) of 32.01, above the 50-day MA of 30.42, and above the 200-day MA of 27.13, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 63.13 is Neutral, neither overbought nor oversold. The STOCH value of 79.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WTE.

Westshore Terminals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTE	70 Outperform	C$2.03B	17.73	11.46%	5.63%	-4.67%	-22.54%
ARE	70 Outperform	C$2.69B	130.21	1.66%	2.38%	25.68%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RUS	63 Neutral	C$2.54B	14.57	10.04%	3.88%	8.15%	-3.57%
MTL	61 Neutral	C$1.55B	15.25	9.33%	5.21%	5.53%	-21.87%
TFII	60 Neutral	C$11.16B	27.16	11.65%	1.75%	-0.25%	-28.71%
AFN	48 Neutral	C$449.92M	10.96	-3.11%	2.62%	-5.64%	-121.91%

Westshore Terminals Corporate Events

Westshore Terminals Files 2025 Results, Declares Q1 2026 Dividend and Issues 2026 Volume Guidance

Westshore Terminals Investment Corporation has filed its audited consolidated financial statements for the year ended December 31, 2025, along with the accompanying management’s discussion and analysis with Canadian securities regulators, making them available on SEDAR+ and the company’s website. The filings provide investors with updated financial disclosure on the terminal operator’s performance and position heading into 2026.

The company also declared a Q1 2026 dividend of $0.375 per share, payable on or before April 15, 2026 to shareholders of record on March 31, 2026, designated as an eligible dividend for Canadian tax purposes. Management indicated that dividend levels will continue to be assessed against operational performance, market conditions, debt servicing, capital projects, and other corporate opportunities.

For 2026, Westshore projected throughput volumes of about 25.5 million tonnes and an average loading charge of approximately $13.00, providing guidance on expected activity and pricing at its terminal operations. These outlook figures help investors gauge anticipated revenue drivers and operational scale for the year, against which the company’s financial results and distribution capacity can be evaluated.

The most recent analyst rating on (TSE:WTE) stock is a Buy with a C$34.00 price target. To see the full list of analyst forecasts on Westshore Terminals stock, see the TSE:WTE Stock Forecast page.

Westshore Terminals Secures Expanded $165 Million Credit Facility to Back Potash Project and Operations

Westshore Terminals Investment Corporation has secured a new $165 million revolving credit facility for its Westshore Terminals Limited Partnership subsidiary with Royal Bank of Canada and The Bank of Nova Scotia, replacing and expanding a previously undrawn $40 million operating line. The facility, which matures in 2030 and is available in both Canadian and U.S. dollars, is intended for general corporate purposes, including funding commitments related to Westshore’s potash project.

Key terms include a step-down in the facility limit beginning in 2028, interest based on CORRA or SOFR plus a margin, and an EBITDA-based financial covenant requiring at least $75 million over the trailing 12 months, while capping distributions to shareholders at or below EBITDA. The credit line is secured by charges over Westshore’s and its guarantors’ assets, providing additional liquidity and financial flexibility that could support ongoing operations and capital projects while reinforcing the company’s balance sheet and its role in commodity export infrastructure.

The most recent analyst rating on (TSE:WTE) stock is a Buy with a C$34.00 price target. To see the full list of analyst forecasts on Westshore Terminals stock, see the TSE:WTE Stock Forecast page.