Western Forest Products and the Insane Lumber Industry

This company is creates specialty wood products for outdoor living, home components and other applications. They hav around 6 million cubic metres of allowable annual cut in British Columbia Last year they reported over $1.1 Billion in revenues. They currently make most of their money from specialty lumber productsas well as logs and commodity lumber. They also sell internationally. A huge reason as to why I believe that this company has large short-term upside potential is because of the lumber market. As a result of COVID-19, people are looking to move and the US and Canadian housing markets have surged. Not only that but interest rates are at an all-time low. All of this has led to US-housing starts being at an all time high as of last month. This in turn has led to lumber prices being at an all time high. A company that makes their money through selling lumber is bound to profit greatly. I currently believe that this company alot of room to grow. They grew their revenues by 19.5% in 2020 and with the current lumber prices I believe it is set to increase by even more this year. This company is also has very little debt and currently sports a Current Ratio of 2.1 and they have lowered their debt by over 55% in the last 3 quarters. They are also committed to running a sustainable business and have planted over 20 million treee seedlings over the past 3 years. This is not necessarily an important point but it is good to note that sustainable companies tend to perform better than other companies.

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Western Forest Products and the Insane Lumber Industry

Apr 17, 2021

bullish

general Analysis

[1 min Read]

This company is creates specialty wood products for outdoor living, home components and other applications. They hav around 6 million cubic metres of allowable annual cut in British Columbia

Last year they reported over $1.1 Billion in revenues. They currently make most of their money from specialty lumber productsas well as logs and commodity lumber. They also sell internationally.

A huge reason as to why I believe that this company has large short-term upside potential is because of the lumber market. As a result of COVID-19, people are looking to move and the US and Canadian housing markets have surged. Not only that but interest rates are at an all-time low. All of this has led to US-housing starts being at an all time high as of last month.

This in turn has led to lumber prices being at an all time high. A company that makes their money through selling lumber is bound to profit greatly.

I currently believe that this company alot of room to grow. They grew their revenues by 19.5% in 2020 and with the current lumber prices I believe it is set to increase by even more this year.

This company is also has very little debt and currently sports a Current Ratio of 2.1 and they have lowered their debt by over 55% in the last 3 quarters.

They are also committed to running a sustainable business and have planted over 20 million treee seedlings over the past 3 years. This is not necessarily an important point but it is good to note that sustainable companies tend to perform better than other companies.

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WEF.TO

Western Forest Products Inc.

1.45

0.02
1.40%

Return

-33.18%
Change % Since Posting
-0.72
Change Since Posting
2.17
Price When Posted

Metrics

3.00
Target Price
8/ 10
Confidence
6-12 Months
Timeframe
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