Western Forest Price To Sales vs. EBITDA
| WEF Stock | CAD 0.42 0.01 2.33% |
Western Forest Price To Sales Ratio |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.0472 | 0.0497 |
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For Western Forest profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Western Forest to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Western Forest Products utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Western Forest's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Western Forest Products over time as well as its relative position and ranking within its peers.
Western |
Western Forest Products EBITDA vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Western Forest's current stock value. Our valuation model uses many indicators to compare Western Forest value to that of its competitors to determine the firm's financial worth. Western Forest Products is rated below average in price to sales category among its peers. It is rated fifth in ebitda category among its peers . At this time, Western Forest's Price To Sales Ratio is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Western Forest by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Western Forest's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Western EBITDA vs. Price To Sales
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Western Forest |
| = | 0.13 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Western Forest |
| = | (35.1 M) |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Western EBITDA Comparison
Western Forest is currently under evaluation in ebitda category among its peers.
Western Forest Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Western Forest, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Western Forest will eventually generate negative long term returns. The profitability progress is the general direction of Western Forest's change in net profit over the period of time. It can combine multiple indicators of Western Forest, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 1.9 M | 2 M | |
| Operating Income | -83.4 M | -79.2 M | |
| Income Before Tax | -95.1 M | -90.3 M | |
| Total Other Income Expense Net | -11.7 M | -12.3 M | |
| Net Loss | -70.1 M | -66.6 M | |
| Income Tax Expense | -25 M | -23.8 M | |
| Net Loss | -70.1 M | -66.6 M | |
| Net Income Applicable To Common Shares | 55.5 M | 60.4 M | |
| Interest Income | 3.8 M | 3.9 M | |
| Net Interest Income | -3 M | -3.1 M | |
| Change To Netincome | -87.2 M | -82.8 M | |
| Net Loss | (0.22) | (0.23) | |
| Income Quality | 0.48 | 0.46 | |
| Net Income Per E B T | 0.72 | 0.99 |
Western Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Western Forest. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Western Forest position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Western Forest's important profitability drivers and their relationship over time.
Use Western Forest in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Western Forest position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Western Forest will appreciate offsetting losses from the drop in the long position's value.Western Forest Pair Trading
Western Forest Products Pair Trading Analysis
The ability to find closely correlated positions to Western Forest could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Western Forest when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Western Forest - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Western Forest Products to buy it.
The correlation of Western Forest is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Western Forest moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Western Forest Products moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Western Forest can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Western Forest position
In addition to having Western Forest in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Machinery Thematic Idea Now
Machinery
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Machinery theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Machinery Theme or any other thematic opportunities.
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Other Information on Investing in Western Stock
To fully project Western Forest's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Western Forest Products at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Western Forest's income statement, its balance sheet, and the statement of cash flows.