West Fraser Timber Co. Ltd. (WFG) AI Stock Analysis

West Fraser Timber Co. Ltd. manufactures, sells, markets, and distributes wood products globally. Its portfolio includes spruce-pine-fir and southern yellow pine lumber, treated wood, medium density fiberboard panels, plywood, oriented strand board, and laminated veneer lumber. The company also produces pulp, newsprint, wood chips, and other residuals used in renewable energy production. Its pulp products, including northern bleached softwood Kraft and bleached chemical thermo-mechanical pulp, supply paper, specialty grade, and tissue manufacturers. Founded in 1955, the Vancouver-based company distributes products across Canada, the United States, China, Europe, and Asia through major retail chains, contractor supply yards, wholesalers, and industrial customers.

West Fraser Timber's revenue decreased from $10.52B in FY2021 to $5.55B in FY2025, reflecting a 5-year revenue CAGR of -0.0%. Annual profitability shifted from net income of $2.95B in FY2021 to a net loss of -$952.6M in FY2025, with gross margin dropping to -0.6% and operating margin declining to -8.7%. Free cash flow turned negative at -$315.0M in FY2025 compared to $2.92B in FY2021. For the trailing twelve months, revenue stood at $5.24B with an EPS of -$15.36. In the latest quarter ended June 30, 2026, quarterly revenue fell 6.4% year-over-year, while quarterly earnings grew 10.3%.

As of June 30, 2026, West Fraser Timber held $73.9M in cash and short-term investments against total debt of $379.5M, resulting in net debt of $305.6M. The company maintains a current ratio of 2.06 and a debt-to-equity ratio of 0.07 alongside shareholders' equity of $5.56B. Operating cash flow in FY2025 was $96.0M. During FY2025, capital expenditures totaled $411.0M, share buybacks absorbed $129.0M, and dividends paid were $101.0M, contributing to a 26.5% reduction in share count over 5 years.

At a last close of $65.40, West Fraser Timber had a market capitalization of $5.12B and an enterprise value of $6.03B. The stock trades at a forward P/E of 51.8x, compared to the median of 13.4x for its US-listed Basic Materials peers. Its EV to EBITDA ratio is 11.7x versus the peer median of 10.5x, while its price-to-sales of 1.0x sits below the peer median of 1.8x. Over the trailing 1-year period, the stock fell 0.7%, underperforming the S&P 500 (SPY) return of 16.8%. Over 5 years, the stock returned -22.4% against an 83.0% gain for the S&P 500.

West Fraser Timber pays a forward annual dividend of $1.28 per share, which represents a 1.96% dividend yield. The payout ratio stands at 75.8%, with payments distributed on a quarterly basis. The company has paid dividends for 15 consecutive years, achieving a 5-year annualized dividend growth rate of 16.2%. The last ex-dividend date occurred on September 29, 2026.

Wall Street coverage includes 2 Strong Buy, 4 Buy, and 1 Hold ratings, with no Sell or Strong Sell recommendations. The mean price target of $85.83 implies a 31.2% premium over the last close of $65.40. For the fiscal year ending December 31, 2026, consensus estimates project an EPS of -$4.00 on revenue of $5.56B. For the next fiscal year, 3 analysts project revenue of $6.09B and EPS of $1.73. The company beat EPS estimates in 1 of the last 4 quarters, and its next earnings date is October 29, 2026.

This page is an AI-written research summary of West Fraser Timber Co. Ltd. (WFG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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