TSE:WTE

22.98
0.47 (2.00%) 1d
0

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Investor Insights

This summary was created by AI, based on 1 opinions in the last 12 months.

Westshore Terminals Inc. (WTE-T) operates a coal storage and unloading/loading terminal in British Columbia with contracts to ship coal from mines in British Columbia, Alberta, and the United States. The stock has a high yield of 5.84% and a relatively cheap forward price-to-earnings ratio of 14.9x. While the stock price has remained flat with a slight decline, the high yield has provided some gains. However, forecasts suggest a decline in EPS and revenue over the next few years, and the company pays out a high percentage of free cash flows in dividends. Despite growth in dividends, declining results and size risk are cause for concern. WTE is seeking to diversify its product shipping to reduce dependence on coal.

Consensus
Mixed
Valuation
Fair Value
Similar
Teck Resources Limited,TCK
HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

De-globalization is an issue, as WTE's port facility is a major route to Asia. But we think on-shoring is mostly for industrial companies, and we are not particularly concerned about commodity shipment declining in volume. WTE has a nice advantage in location, but it should be considered an income, not a growth, stock. Yield is 6.5% and may vary. It has paid three special dividends in the last four years as well (totalling $2.35 per share). The balance sheet is OK but growth is low. EPS for 2025 is expected to be $1.56, slightly less than it was in 2016. We would consider it 'ok' but not really exciting. But for income investors willing to hold a smaller, somewhat cyclical company, we think it would be suitable. 
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INDUSTRIAL PRODUCTS
HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

WTE operates a coal storage and unloading/loading terminal in British Columbia. The company has contracts to ship coal from mines in British Columbia, Alberta, and the United States. WTE pays a high yield of 5.84%, and has a relatively cheap forward price-to-earnings ratio of 14.9x. The stock price has been essentially flat over the last year with a small decline, while the high yield has created slight gains. Forecasts suggest that WTE will see a decline across EPS and revenue over the next few years. WTE pays out a high percentage of free cash flows in dividends at about 86% over the last twelve months, while also paying out 46% of cash from operations. Debt is moderate and the company has also paid special dividends the last two years and will do so again this year. We think it is an OK income option that has grown it's dividend at nearly a 30% annualized rate over the last three years. Declining results are cause for concern in the future in addition to size risk, but WTE performed well in 2023 displaying top and bottom line growth. It is seeking to ship/load new products to alleviate its dependence on one. 
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INDUSTRIAL PRODUCTS
PARTIAL BUY
Back to longer term support level. If you're using stop levels, he doesn't mind it here. Add in staggered tranches. Big run from the pandemic, and then a pullback. If it ticks lower, he'd take the position off. As an industrial, should benefit from the start of this cyclical bull market.
INDUSTRIAL PRODUCTS
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A fairly unique company in Canada that is in the shipping and port sector. The stock has done very well this year, and is still cheap. Would be okay to buy here for income investors. Unlock Premium - Try 5i Free

INDUSTRIAL PRODUCTS
WATCH
He follows it. There are concerns over ESG since they ship coal through their main terminal. Recently, they signed a deal to ship a lot of potash from Saskatchewan. WTE raised their dividend and guidance recently. There's been a lot of shorting here, but the business is resilient. Those shorts have been squeezed in recent months.
INDUSTRIAL PRODUCTS
HOLD
Participating in the commodities boom but not doing as well as others. There are competitors in the space. A big shipper in metallurgical coal. The production of steel will be needed and this company will profit. There will be a strong market for it. The stock is more cyclical than the underlying business.
INDUSTRIAL PRODUCTS
SELL
Market's pleased with recent results, dividend increase, special dividend, 2021 guidance. Still good value. A valuable asset. Challenge is that coal is viewed negatively from an environmental perspective. So what's the long-term viability? Speculation if coal could be replaced by shipping other commodities. He sold.
INDUSTRIAL PRODUCTS
PAST TOP PICK

(A Top Pick Oct 25/19, Down 31%) They have been in deep negotiations with TECK.B-T. The market was pricing in a $16 stock for them. This is the base case for this stock. There has been tax loss selling. They are now in negotiations with other bulk commodities companies. He still likes it.

INDUSTRIAL PRODUCTS
PAST TOP PICK
(A Top Pick Jun 26/19, Down 15%) Caught up in the cyclical/value selloff. Have infrastructure that can't be replicated. Extremely good valuation. 8x price to earnings. Great balance sheet. Low payout ratio. Sold off, but it's coming back. Iron ore and steel prices are coming back. Beneficiary of inflation.
INDUSTRIAL PRODUCTS
HOLD
Dividend safe? They are in a good position as a port infrastructure company. He assumes coal shipments will be sustained. They changed their structure a few times and he thinks they will do okay longer term.
INDUSTRIAL PRODUCTS
PAST TOP PICK

(A Top Pick Jul 26/19, Down 23%) They had some difficulties with TECK.B-T not long after it was a Top Pick. It is still the leading coal export terminal on the west coast. It is a challenge that their largest customer is looking to renegotiate and move volumes elsewhere. It scores in the top 1% on valuation. It still yields over 4% with a low payout ratio and has a solid balance sheet. It is a relatively stable stock relative to other commodity stocks. It is still on his buy list.

INDUSTRIAL PRODUCTS
PAST TOP PICK

(A Top Pick Aug 21/19, Down 27%) He still owns it and still likes it down here for the same reasons. The negative performance is mostly because the market still wants to see a deal between them and TECK.B-T, which seems to be playing a bit of hardball. He would expect that they come back to the table some time this year and formalize an agreement for some tonnage.

INDUSTRIAL PRODUCTS
BUY
Competition from Teck? Teck has announced it will potentially be increasing shipments in competition against them. This has moved the valuations right to the top of his list of buy prospects. It trades at 8 times earnings. A cheap cyclical stock with a low dividend payout ratio. Most of their coal them move is for steel manufacture than for thermal purposes, so it seems like the environmental concerns are over blown. Yield 4%
INDUSTRIAL PRODUCTS
WATCH

Why the selloff today? Teck may be expanding its deal with a competitor causing a sizable share price sell off (over 10% today) -- this may double Teck's capacity. People may also be concerned about future coal demand and exports. There just not seem to be any catalysts to spark his interest. It is not wise to panic on this, there will be time for recovery to allow you to assess the situation.

INDUSTRIAL PRODUCTS
TOP PICK
This could be a take over by a private equity name. The largest coal export facility on the west coast of North America. It has no debt. The market is worried by the Teck contract, but he does not think it will be an issue. He thinks this is a $30 stock and the dividend will go up. A potential 30-40% upside. Yield 2.95% (Analysts’ price target is $25.75)
INDUSTRIAL PRODUCTS
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Westshore Terminals Inc.(WTE-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 2

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 2

Stockchase rating for Westshore Terminals Inc. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Westshore Terminals Inc.(WTE-T) Frequently Asked Questions

What is Westshore Terminals Inc. stock symbol?

Westshore Terminals Inc. is a Canadian stock, trading under the symbol WTE-T on the Toronto Stock Exchange (WTE-CT). It is usually referred to as TSX:WTE or WTE-T

Is Westshore Terminals Inc. a buy or a sell?

In the last year, 2 stock analysts published opinions about WTE-T. 0 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Westshore Terminals Inc..

Is Westshore Terminals Inc. a good investment or a top pick?

Westshore Terminals Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Westshore Terminals Inc..

Why is Westshore Terminals Inc. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Westshore Terminals Inc. worth watching?

2 stock analysts on Stockchase covered Westshore Terminals Inc. In the last year. It is a trending stock that is worth watching.

What is Westshore Terminals Inc. stock price?

On 2024-07-23, Westshore Terminals Inc. (WTE-T) stock closed at a price of $22.98.