Westshore Terminals (WTE) AI Stock Analysis

• Market Cap: C$1.52B
• Dividend Yield: 6.09%
• Average Volume (3M): 164.99K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.79
• Revenue Growth: 7.98%
• EPS Growth: -0.29%
• Country: CA
• Employees: 423
• Sector: Industrials
• Sector Strength: 68
• Industry: Marine Shipping
• EPS (TTM): 1.86
• Shares Outstanding: 61,769,768
• 10 Day Avg. Volume: 144,085
• 30 Day Avg. Volume: 164,989
• PEG Ratio: 1.21
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.80
• Price to Cash Flow (P/CF): 2.90
• P/FCF Ratio: 2.90
• 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$25.00
• Price Target Upside: 4.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Westshore Terminals is well-positioned financially, with strong profitability and cash flow, which are bolstered by a favorable valuation and technical indicators that suggest further price appreciation. Despite some concerns over increasing debt and operational efficiency, the company's ongoing projects and commitment to shareholder returns provide a solid investment case.

Westshore Terminals Business Overview & Revenue Model

Company Description

Westshore Terminals (WTE) operates as a coal handling and export facility located at Roberts Bank in Delta, British Columbia, Canada. As one of the largest coal export terminals on the Pacific Coast of North America, the company primarily serves the coal mining industry by providing efficient and reliable logistics solutions for the storage and shipment of coal. Westshore Terminals plays a crucial role in facilitating the export of metallurgical and thermal coal to international markets, particularly in Asia.

How the Company Makes Money

Westshore Terminals generates revenue through the handling and storage of coal at its terminal. The company charges fees for services such as unloading coal from trains, storing it onsite, and loading it onto ships for export. These fees are typically structured based on the volume of coal handled and the specific services provided. Westshore Terminals has long-term agreements with major coal producers, ensuring a steady stream of coal shipments and, consequently, a stable revenue base. The company benefits from strategic partnerships with these producers, as well as its advantageous location for accessing key Asian markets, which are significant consumers of coal. Additionally, fluctuations in global coal demand and pricing can impact Westshore's revenues, as these factors influence the volume of coal handled at the terminal.

Westshore Terminals Financial Statement Overview

Summary

Westshore Terminals exhibits strong financial health characterized by solid profitability margins and effective cash flow management. Despite the moderate revenue growth, the company maintains operational efficiency and a manageable debt profile. Attention should be given to the rising debt and equity dynamics to ensure long-term financial health.

Income Statement

Westshore Terminals has demonstrated stable revenue with a slight increase in the TTM period. Gross profit margin stands at 45.92% and net profit margin at 27.75%, indicating strong profitability. However, the revenue growth has been moderate, suggesting limited top-line expansion. EBIT and EBITDA margins are healthy, reflecting efficient operational management.

Balance Sheet

The company maintains a balanced capital structure with a debt-to-equity ratio of 0.62, which is manageable. The equity ratio is 35.69%, indicating a stable equity position. However, the rise in total debt over the TTM period and slightly declining stockholder's equity are points of concern for long-term financial sustainability.

Cash Flow

Westshore Terminals has shown robust operating cash flow with a significant increase in free cash flow over the TTM period. The operating cash flow to net income ratio of 3.06 suggests strong cash generation capabilities. Free cash flow growth is commendable, underpinning the company’s ability to generate cash post capital expenditures.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
382.57M	381.00M	291.96M	340.47M	368.41M	395.42M
	Gross Profit
175.66M	179.63M	114.05M	172.32M	200.57M	218.71M
	EBIT
160.69M	160.47M	104.17M	158.56M	185.90M	202.70M
	EBITDA
195.86M	192.87M	134.40M	186.98M	212.08M	227.57M
	Net Income Common Stockholders
106.16M	116.56M	66.84M	107.81M	126.92M	139.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
50.05M	164.75M	156.03M	243.49M	201.43M	131.86M
	Total Assets
842.82M	1.39B	1.26B	1.30B	1.25B	1.21B
	Total Debt
291.07M	277.89M	280.57M	283.32M	285.99M	288.57M
	Net Debt
241.02M	113.14M	124.55M	39.83M	84.56M	156.71M
	Total Liabilities
205.32M	665.09M	546.09M	508.38M	510.82M	497.47M
	Stockholders Equity
637.50M	729.55M	712.71M	788.47M	740.58M	709.84M
Cash Flow		Free Cash Flow
114.50M	97.95M	36.27M	128.46M	159.51M	142.48M
	Operating Cash Flow
324.81M	189.59M	91.20M	136.57M	176.39M	164.02M
	Investing Cash Flow
-210.96M	-91.64M	-54.93M	-8.11M	-16.07M	-20.71M
	Financing Cash Flow
-129.03M	-88.27M	-123.74M	-86.40M	-90.75M	-61.49M

Westshore Terminals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.84
• 50DMA: Negative
• 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 Negative. The current price of 23.84 is below the 20-day moving average (MA) of 24.40, below the 50-day MA of 23.96, and above the 200-day MA of 22.85, indicating a neutral trend. The MACD of 0.30 indicates Negative momentum. The RSI at 54.59 is Neutral, neither overbought nor oversold. The STOCH value of 34.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WTE.

Westshore Terminals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CP	78 Outperform	$92.64B	24.94	8.36%	0.78%	15.86%	-5.49%
WTE	75 Outperform	C$1.52B	13.26	15.84%	6.09%	7.98%	-0.29%
CNR	71 Outperform	$86.80B	19.74	21.72%	2.51%	1.30%	-18.15%
TFII	68 Neutral	$9.01B	15.60	16.05%	2.25%	13.32%	-13.75%
AC	67 Neutral	$4.75B	2.83	112.28%	―	1.93%	-24.67%
Sector *	62 Neutral	$8.08B	13.63	3.82%	3.13%	3.58%	-14.35%
CN	46 Neutral	C$17.64M	―	-5.28%	―	―	-353.33%

Westshore Terminals Corporate Events

Westshore Terminals Declares Q1 Dividend and Updates on Potash Project Progress

Westshore Terminals announced a Q1 2025 dividend of $0.375 per share, reflecting its ongoing commitment to shareholder returns amidst a projected throughput of 26.5 million tonnes for the year. The company is advancing its potash project with BHP’s Jansen Mine, having spent $545 million to date, with future costs expected to be covered by cash reserves and borrowing. Despite cost overruns due to inflation and engineering delays, the project remains on track for completion in 2026, with significant revenue anticipated in 2027.

Westshore Terminals Releases 2024 Financial Statements

Westshore Terminals Investment Corporation has filed its audited consolidated financial statements for the year ending December 31, 2024, along with the management’s discussion and analysis with Canadian regulatory authorities. This filing is a routine disclosure that provides transparency and insight into the company’s financial health, which is crucial for stakeholders and investors in assessing the company’s performance and future prospects.

Westshore Terminals Reveals 2024 Load Figures and 2025 Projections Amidst Operational Challenges

Westshore Terminals reported loading 26.8 million tonnes of product in 2024, with operations disrupted by severe weather and maintenance issues in the fourth quarter. For 2025, the company projects a slight decrease in loading volume to 26.5 million tonnes, with a marginally lower average loading rate. Despite a recent fire impacting one of its stacker-reclaimers, Westshore anticipates no significant productivity loss due to operational adjustments.