Stock In Focus – TAM Stock Screener – West Fraser Timber Co. Ltd (WFG)
Thursday, February 9, 2023 · Johnny Hopkins
As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is:
West Fraser Timber Co. Ltd (WFG)
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.
A quick look at the share price history (below) over the past twelve months shows that the price is down 5.7%. Here’s why the company is undervalued.
Summary
Market Cap: $7.504 Billion
Enterprise Value: $6.680 Billion
Operating Earnings
Operating Earnings: $3.092 Billion
Acquirer’s Multiple
Acquirer’s Multiple: 2.20
Free Cash Flow (TTM)
Free Cash Flow: $1.62 Billion
FCF/EV Yield %:
FCF/EV Yield: 20.87
Shareholder Yield %:
Shareholder Yield: 26.80
Other Indicators
F-Score: 3.00
ROA (5yrAvge %) : 31
Buy-Back Yield: 26.80