Westshore Terminals (WTE) AI Stock Analysis

• Market Cap: C$2.01B
• Dividend Yield: 5.63%
• Average Volume (3M): 90.25K
• Price to Earnings (P/E): 29.2
• Beta (1Y): 0.42
• Revenue Growth: -4.67%
• EPS Growth: -22.54%
• Country: CA
• Employees: 423
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): 0.25
• Shares Outstanding: 61,769,768
• 10 Day Avg. Volume: 77,121
• 30 Day Avg. Volume: 90,249
• PEG Ratio: 0.00
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 3.46
• P/FCF Ratio: 14.26
• 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$29.00
• Price Target Upside: -9.74% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.33
• Revenue Forecast (FY): C$362.80M

• Rating: 68 Neutral
• Price Target: C$33.00 ▲(2.71% Upside)
• Action: Downgraded Date: 12/19/25
• Date: Action: Downgraded 12/19/25

Westshore Terminals' stock is supported by strong profitability and stable financial health, despite challenges in revenue and cash flow growth. Positive technical indicators and a fair valuation further enhance the stock's appeal. However, attention to cash flow management and revenue growth is crucial for future stability.

Positive Factors

High profitability and margins

Westshore generates very high operating and EBITDA margins, reflecting favorable terminal economics and scale. Those margins provide durable earnings power, support reinvestment and distributions, and help the business absorb cyclical volume swings while maintaining long-term cash generation.

Stable balance sheet and solid ROE

A moderate leverage profile with a 0.61 debt/equity and mid-teens ROE indicates disciplined capital structure and efficient equity use. This balance provides financial flexibility to fund maintenance capex, withstand transport or commodity cycles, and maintain strategic optionality over months.

Defensive infrastructure business model

As an essential terminal operator with long-lived assets and fee-for-throughput revenue, Westshore benefits from structural barriers to entry and contracted minimums. This creates predictable, fee-based cash flows tied to volumes rather than commodity price exposure, supporting medium-term resilience.

Negative Factors

Declining revenue trends

Revenue has trended down, reducing terminal utilization and straining the volume-linked fee model. Persisting volume declines would erode fixed-cost absorption, pressure margins and distributable cash, and force operational or pricing adjustments to restore long-term revenue stability.

Weak free cash flow conversion

An 83% drop in free cash flow and very low FCF-to-net-income ratio signal difficulties converting accounting profits into spendable cash. This impairs capital allocation, dividend sustainability and funding for maintenance or growth projects, increasing financial risk over the medium term.

Concentration to coal volumes and logistics risk

Revenue dependence on seaborne coal and rail logistics concentrates exposure to commodity demand shifts, transport disruptions, and regulatory/market transitions away from coal. Structural declines or logistic bottlenecks could materially reduce throughput and cash flow over several months to years.

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

Westshore Terminals generates revenue primarily through the loading and handling of coal for various mining companies. The company's revenue model is based on charging fees for its terminal services, which include the receipt, storage, and loading of coal onto bulk carriers. Key revenue streams come from contracts with coal producers that stipulate specific loading rates and volumes, often secured through long-term agreements, which provide stability and predictability in revenue. Additionally, the company benefits from economies of scale, as its large terminal capacity allows it to handle significant volumes, thereby reducing per-unit costs. Partnerships with major coal producers and consistent demand from international markets also contribute significantly to its earnings.

Westshore Terminals Financial Statement Overview

Summary

Westshore Terminals demonstrates strong profitability with high margins and a stable balance sheet. However, challenges in revenue growth and a significant drop in free cash flow generation are concerning. The company needs to address these issues to maintain financial health.

Income Statement

Westshore Terminals shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth by 7.07%, which is concerning. However, the company maintains strong profitability with a gross profit margin of 49.53% and a net profit margin of 26.12%. The EBIT and EBITDA margins are also robust at 41.46% and 50.03%, respectively, indicating efficient operations despite the revenue decline.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.61. The return on equity is solid at 14.32%, showcasing effective use of equity to generate profits. The equity ratio stands at 29.94%, indicating a balanced approach to financing through equity and debt.

Cash Flow

Cash flow analysis reveals challenges, with a significant drop in free cash flow growth by 83.18% in the TTM period. The operating cash flow to net income ratio is healthy at 2.01, suggesting strong cash generation relative to net income. However, the free cash flow to net income ratio is lower at 0.17, highlighting potential issues in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	364.71M	404.73M	381.00M	291.96M	340.47M	368.41M
Gross Profit	168.19M	198.28M	179.63M	114.05M	172.32M	200.57M
EBITDA	166.78M	212.01M	191.00M	134.40M	186.98M	212.08M
Net Income	81.67M	115.25M	116.56M	66.84M	107.81M	126.92M
Balance Sheet
Total Assets	2.40B	1.85B	1.39B	1.26B	1.30B	1.25B
Cash, Cash Equivalents and Short-Term Investments	68.87M	136.59M	164.75M	156.03M	243.49M	201.43M
Total Debt	441.00M	441.41M	277.89M	280.57M	283.32M	285.99M
Total Liabilities	1.68B	1.12B	665.09M	546.09M	508.38M	510.82M
Stockholders Equity	719.08M	725.90M	729.55M	712.71M	788.47M	740.58M
Cash Flow
Free Cash Flow	11.96M	98.07M	97.95M	36.27M	128.46M	159.51M
Operating Cash Flow	350.30M	396.07M	189.59M	91.20M	136.57M	176.39M
Investing Cash Flow	-338.34M	-298.01M	-91.64M	-54.93M	-8.11M	-16.07M
Financing Cash Flow	-90.36M	-126.22M	-88.27M	-123.74M	-86.40M	-90.75M

Westshore Terminals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 32.13 is above the 20-day moving average (MA) of 31.32, above the 50-day MA of 29.10, and above the 200-day MA of 26.75, indicating a bullish trend. The MACD of 0.91 indicates Positive momentum. The RSI at 63.72 is Neutral, neither overbought nor oversold. The STOCH value of 74.63 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	68 Neutral	C$2.01B	29.22	11.46%	5.63%	-4.67%	-22.54%
TFII	65 Neutral	C$13.25B	27.16	11.61%	1.75%	-0.25%	-28.71%
ARE	65 Neutral	C$2.39B	9.42	0.92%	2.38%	25.68%	―
RUS	65 Neutral	C$2.65B	14.57	10.04%	3.88%	8.15%	-3.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MTL	61 Neutral	C$1.65B	15.25	9.33%	5.21%	5.53%	-21.87%
AFN	48 Neutral	C$534.93M	10.96	-2.30%	2.62%	-5.64%	-121.91%

Westshore Terminals Corporate Events

Westshore Terminals Releases Q3 Earnings and Declares Q4 Dividend

Westshore Terminals Investment Corporation has released its third-quarter earnings report for 2025 and announced a fourth-quarter dividend of $0.375 per share, payable by January 15, 2026, to shareholders recorded by December 31, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may influence investor perceptions positively, reinforcing its stable financial performance and market position.

The most recent analyst rating on (TSE:WTE) stock is a Hold with a C$28.00 price target. To see the full list of analyst forecasts on Westshore Terminals stock, see the TSE:WTE Stock Forecast page.