GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » West Fraser Timber Co.Ltd (TSX:WFG) » Definitions » Piotroski F-Score

West Fraser Timber Co.Ltd (TSX:WFG) Piotroski F-Score : 4 (As of Apr. 30, 2024)


View and export this data going back to 1986. Start your Free Trial

What is West Fraser Timber Co.Ltd Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

West Fraser Timber Co.Ltd has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for West Fraser Timber Co.Ltd's Piotroski F-Score or its related term are showing as below:

TSX:WFG' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 9
Current: 4

During the past 13 years, the highest Piotroski F-Score of West Fraser Timber Co.Ltd was 9. The lowest was 3. And the median was 6.


West Fraser Timber Co.Ltd Piotroski F-Score Historical Data

The historical data trend for West Fraser Timber Co.Ltd's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

West Fraser Timber Co.Ltd Piotroski F-Score Chart

West Fraser Timber Co.Ltd Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.00 8.00 8.00 6.00 4.00

West Fraser Timber Co.Ltd Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 3.00 4.00 4.00 4.00

Competitive Comparison of West Fraser Timber Co.Ltd's Piotroski F-Score

For the Lumber & Wood Production subindustry, West Fraser Timber Co.Ltd's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


West Fraser Timber Co.Ltd's Piotroski F-Score Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, West Fraser Timber Co.Ltd's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where West Fraser Timber Co.Ltd's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Net Income was -174.047 + 215.143 + -205.265 + 47.376 = C$-117 Mil.
Cash Flow from Operations was 361.379 + 480.35 + 128.794 + -55.498 = C$915 Mil.
Revenue was 2136.389 + 2307.035 + 2031.182 + 2202.307 = C$8,677 Mil.
Gross Profit was 550.04 + 780.739 + 532.615 + 688.982 = C$2,552 Mil.
Average Total Assets from the begining of this year (Mar23)
to the end of this year (Mar24) was
(13514.699 + 12908.678 + 13238.73 + 12631.164 + 12698.122) / 5 = C$12998.2786 Mil.
Total Assets at the begining of this year (Mar23) was C$13,515 Mil.
Long-Term Debt & Capital Lease Obligation was C$302 Mil.
Total Current Assets was C$3,199 Mil.
Total Current Liabilities was C$1,371 Mil.
Net Income was 975.665 + 288.122 + -126.34 + -57.469 = C$1,080 Mil.

Revenue was 3696.515 + 2785.183 + 2195.336 + 2226.224 = C$10,903 Mil.
Gross Profit was 1923.161 + 956.406 + 552.909 + 522.691 = C$3,955 Mil.
Average Total Assets from the begining of last year (Mar22)
to the end of last year (Mar23) was
(14090.58 + 12989.658 + 13500.402 + 13548.32 + 13514.699) / 5 = C$13528.7318 Mil.
Total Assets at the begining of last year (Mar22) was C$14,091 Mil.
Long-Term Debt & Capital Lease Obligation was C$717 Mil.
Total Current Assets was C$3,641 Mil.
Total Current Liabilities was C$995 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

West Fraser Timber Co.Ltd's current Net Income (TTM) was -117. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

West Fraser Timber Co.Ltd's current Cash Flow from Operations (TTM) was 915. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar23)
=-116.793/13514.699
=-0.00864192

ROA (Last Year)=Net Income/Total Assets (Mar22)
=1079.978/14090.58
=0.07664539

West Fraser Timber Co.Ltd's return on assets of this year was -0.00864192. West Fraser Timber Co.Ltd's return on assets of last year was 0.07664539. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

West Fraser Timber Co.Ltd's current Net Income (TTM) was -117. West Fraser Timber Co.Ltd's current Cash Flow from Operations (TTM) was 915. ==> 915 > -117 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar23 to Mar24
=301.853/12998.2786
=0.02322254

Gearing (Last Year: Mar23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Mar23
=716.989/13528.7318
=0.0529975

West Fraser Timber Co.Ltd's gearing of this year was 0.02322254. West Fraser Timber Co.Ltd's gearing of last year was 0.0529975. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Mar24)=Total Current Assets/Total Current Liabilities
=3198.557/1371.197
=2.33267503

Current Ratio (Last Year: Mar23)=Total Current Assets/Total Current Liabilities
=3641.046/994.754
=3.66024766

West Fraser Timber Co.Ltd's current ratio of this year was 2.33267503. West Fraser Timber Co.Ltd's current ratio of last year was 3.66024766. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

West Fraser Timber Co.Ltd's number of shares in issue this year was 81.679. West Fraser Timber Co.Ltd's number of shares in issue last year was 83.874. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=2552.376/8676.913
=0.29415715

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3955.167/10903.258
=0.36275093

West Fraser Timber Co.Ltd's gross margin of this year was 0.29415715. West Fraser Timber Co.Ltd's gross margin of last year was 0.36275093. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar23)
=8676.913/13514.699
=0.64203524

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar22)
=10903.258/14090.58
=0.77379767

West Fraser Timber Co.Ltd's asset turnover of this year was 0.64203524. West Fraser Timber Co.Ltd's asset turnover of last year was 0.77379767. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+0+1+1+0+1+0+0
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

West Fraser Timber Co.Ltd has an F-score of 4 indicating the company's financial situation is typical for a stable company.

West Fraser Timber Co.Ltd  (TSX:WFG) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


West Fraser Timber Co.Ltd Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of West Fraser Timber Co.Ltd's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


West Fraser Timber Co.Ltd (TSX:WFG) Business Description

Traded in Other Exchanges
Address
c/o West Fraser Group, 858 Beatty Street, Vancouver, BC, CAN, V6B 1C1
West Fraser Timber is a softwood lumber company that also produces wood panels and pulp products. The company produces its wood products globally, with lumber mills in British Columbia, Alberta, Europe, and the southeastern United States. Following its acquisition of Norbord in 2021, West Fraser is now one of the largest oriented strand board, or OSB, producers in the world.

West Fraser Timber Co.Ltd (TSX:WFG) Headlines

From GuruFocus

WEST FRASER DECLARES DIVIDEND

By PRNewswire PRNewswire 06-07-2023

WEST FRASER DECLARES DIVIDEND

By PRNewswire PRNewswire 12-06-2022

WEST FRASER TO ACQUIRE SPRAY LAKE SAWMILLS

By PRNewswire 09-06-2023

WEST FRASER ANNOUNCES RENEWAL OF NORMAL COURSE ISSUER BID

By PRNewswire PRNewswire 02-23-2023

CARIBOO PULP & PAPER PLANNED CURTAILMENT THIS SPRING AND FALL

By PRNewswire PRNewswire 02-07-2023