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Measuring the past performance of Western Forest Products Inc. (TSE: WEF) is an interesting exercise for investors. This allows us to determine whether the company has met or exceeded expectations, which is a powerful signal for future performance. Below, I will evaluate the recent performance of WEF announced on December 31, 2018 and compare these figures with its historical trend and developments in the sector.
See our latest badysis for Western Forest Products
Despite a decline, has the WEF underperformed the long-term trend and the sector?
Revenues for the last twelve months of the WEF (as of December 31, 2018), amounting to $ 69 million
decreased by -7.0% compared to the previous year.
In addition, this one-year growth rate is 6.0% below its average earnings growth rate over the last five years, indicating that the WEF growth rate has slowed.
What could happen here?
Well, let's look at what's going on
past
with margins and
if
the
the rest of
industry
know the shot too.
In terms of return on investment, Western Forest Products has
failed to achieve a return on equity (ROE) of 20%, or 12% instead.
In addition, its return on badets of 8.3% is lower than that of CA Forester 8.8%, indicating that Western Forest Products is used less effectively.
However, its return on capital (CDR), which also represents Western Forest Products' level of debt, has risen over the past three years, from 12% to 13%.
This corresponds to a decrease in debt, with the debt / equity ratio rising from 23% to 1.0% over the last five years.
What does it mean?
Although Western Forest Products' earlier data is useful, this is just one aspect of my investment thesis.
In some cases,
companies that
face
a stretched
period of
decreasing
the gains are
go through
a kind of reinvestment phase
in order to follow
with the
latest
industry
disruption and growth.
I suggest you
continue to search Western Forest Products for a
best picture
from stock watching:
- Future prospects: What do well-informed industry badysts predict for WEF's future growth? Check out our free research report on badyst consensus regarding WEF perspectives.
- Financial health: Are WEF operations financially viable? Balance sheets can be difficult to badyze, which is why we have done it for you. Check out our financial health check here.
- Other performing stocks: Are there other stocks offering better prospects with proven track records? Explore our free list of these large stocks here.
NB: The figures in this article are calculated using data from the last twelve months as of December 31, 2018. This may not correspond to the figures in the annual reports for the entire year. .
Our goal is to provide you with a long-term research badysis based on fundamental data. Note that our badysis may not take into account the latest price sensitive business announcements or qualitative information.
If you notice an error that needs to be corrected, please contact the publisher at [email protected]. This article from Simply Wall St is of a general nature. This is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. Simply Wall St has no position on the actions mentioned. Thanks for the reading.
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