West Fraser Timber’s Market Performance: A Recipe for Disaster?
West Fraser Timber’s stock price has been on a wild ride, swinging between $94.66 and $141.27 CAD over the past 52 weeks. But don’t be fooled by the recent close of $105.03 CAD - the company’s financials tell a different story.
The price-to-earnings ratio is a staggering -53.2, a clear indication that investors are not getting their money’s worth. This is a red flag, plain and simple. When a company’s earnings can’t even cover its expenses, it’s a recipe for disaster.
And if that’s not enough, the price-to-book ratio of 0.829 is equally concerning. This metric suggests that investors are willing to pay less than a dollar for every dollar of book value. It’s a sign that the market has lost faith in West Fraser Timber’s ability to generate returns.
Here are the cold, hard facts:
- Price-to-earnings ratio: -53.2
- Price-to-book ratio: 0.829
- 52-week price range: $94.66 - $141.27 CAD
- Last close price: $105.03 CAD
The writing is on the wall: West Fraser Timber’s market performance is a ticking time bomb. Investors would do well to take a hard look at these numbers and ask themselves: is this really a company worth betting on?
