Canwel Building Materials Ltd.

CWX-T

TSE:CWX

6.18
0.11 (1.81%)
Founded in 1989, CanWel is headquartered in Vancouver, British Columbia and trades on the Toronto Stock Exchange under the symbol CWX, and is Canada’s only fully integrated national distributor in the building materials and related products sector.
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Analysis and Opinions about CWX-T

Signal
Opinion
Expert
COMMENT
COMMENT
November 25, 2019
It's illiquid. They've good managers, though, and the stock has moved up, maybe overextended. He likes the story, but it's too illiquid for him. Recent quarters have not been strong. This space had to become good operators when lumber prices went down, and is starting to find momentum with more housing starts.
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It's illiquid. They've good managers, though, and the stock has moved up, maybe overextended. He likes the story, but it's too illiquid for him. Recent quarters have not been strong. This space had to become good operators when lumber prices went down, and is starting to find momentum with more housing starts.
WAIT
WAIT
July 15, 2019
Likes the CEO who buys the stock and is good at making acquisitions. The problem here is low lumber prices. The dividend is good but exceeds earnings and can't last. The lumber price will come back, so be patient. He's not worried about American housing.
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Likes the CEO who buys the stock and is good at making acquisitions. The problem here is low lumber prices. The dividend is good but exceeds earnings and can't last. The lumber price will come back, so be patient. He's not worried about American housing.
DON'T BUY
DON'T BUY
January 16, 2019
A $400 million market cap company. Latest earnings were down 35% against only a fall of 3% in sales -- a red flag. Trading at 10 times PE and 11% ROE. If you get confidence in this it has good upside. He does not own it.
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A $400 million market cap company. Latest earnings were down 35% against only a fall of 3% in sales -- a red flag. Trading at 10 times PE and 11% ROE. If you get confidence in this it has good upside. He does not own it.
PAST TOP PICK
PAST TOP PICK
January 11, 2019
(A Top Pick Nov 16/17, Down 21%) The housing market took a dip and this hurt the stock. He still owns it and thinks recent job creation will help their returns. They have not dropped their dividend yet. He hopes the earnings will increase to sustain the dividend. He will continue to hold it. Yield 11%.
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(A Top Pick Nov 16/17, Down 21%) The housing market took a dip and this hurt the stock. He still owns it and thinks recent job creation will help their returns. They have not dropped their dividend yet. He hopes the earnings will increase to sustain the dividend. He will continue to hold it. Yield 11%.
DON'T BUY
DON'T BUY
August 3, 2018

He thinks it is fairly well run, but is concerned about the sustainability of the high dividend yield – especially in the cyclical sector of building products. He would like to see the debt reduced first. (Analysts’ price target is $7.90)

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He thinks it is fairly well run, but is concerned about the sustainability of the high dividend yield – especially in the cyclical sector of building products. He would like to see the debt reduced first. (Analysts’ price target is $7.90)

DON'T BUY
DON'T BUY
July 25, 2018

This lumber distributor sells to the large retail outlets. He does not like their debt levels after an acquisition in the US and thinks this is holding the dividend from being increased. The distribution business is very competitive and he would prefer not to hold this.

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This lumber distributor sells to the large retail outlets. He does not like their debt levels after an acquisition in the US and thinks this is holding the dividend from being increased. The distribution business is very competitive and he would prefer not to hold this.

BUY
BUY
June 20, 2018

Controlled by a Vancouver family who have done a good job of managing. Safe dividend, and he expects good growth numbers. Slightly levered. You're okay to own it. He needs to study this stock more. They have production in California, so he's not sure how tariffs--a nightmare to figure out in general--will effect them. Pays a 7.7% yield

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Controlled by a Vancouver family who have done a good job of managing. Safe dividend, and he expects good growth numbers. Slightly levered. You're okay to own it. He needs to study this stock more. They have production in California, so he's not sure how tariffs--a nightmare to figure out in general--will effect them. Pays a 7.7% yield

TOP PICK
TOP PICK
November 16, 2017

The CEO is superb. They are making some acquisitions in the US in hot markets. He likes the outlook. It is a place to park some money. Not a bad investment and dividend in a toppy market. There is commodity risk and weather risk in it, however. (Analysts’ target: $7.50).

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The CEO is superb. They are making some acquisitions in the US in hot markets. He likes the outlook. It is a place to park some money. Not a bad investment and dividend in a toppy market. There is commodity risk and weather risk in it, however. (Analysts’ target: $7.50).

DON'T BUY
DON'T BUY
September 7, 2017

[Caller concerned about over 9.2% dividend]. They are a distributor of wood products in Vancouver. They acquired a distributor in Hawaii. The issue is with the debt levels and payout ratio. There are onetime events like weather events in their favour. But until the debt and payout ratio comes down he would not own it.

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[Caller concerned about over 9.2% dividend]. They are a distributor of wood products in Vancouver. They acquired a distributor in Hawaii. The issue is with the debt levels and payout ratio. There are onetime events like weather events in their favour. But until the debt and payout ratio comes down he would not own it.

WAIT
WAIT
March 30, 2017

It broke out just prior to the equity deal they did. The balance sheet is considerably better now. It had improving price momentum. Good return on equity and they beat on their last quarter. It is not quite enough for him to own it yet.

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It broke out just prior to the equity deal they did. The balance sheet is considerably better now. It had improving price momentum. Good return on equity and they beat on their last quarter. It is not quite enough for him to own it yet.

BUY
BUY
September 29, 2016

He likes this story. He used to own some. He sold because it had done well. He is not buying it because he has so many housing related stories. But he likes it. He would continue to hold it.

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He likes this story. He used to own some. He sold because it had done well. He is not buying it because he has so many housing related stories. But he likes it. He would continue to hold it.

BUY
BUY
September 2, 2016

Too small-cap for what he does. Great price momentum, scores in the top 20%. Valuation is not bad in the top 30%, driven by really strong ROE of 31%. Reasonable Price to Book at around 1.5% at a 6X CE. It recently had a good earnings beat. The standout is probably its high yield of around 8% with a payout ratio of 162%, and they are going to have to backfill that. The only potential concern is a little bit high on EB on the EBITDA and the yield is not necessarily fully covered by earnings. Also, they recently issued stock to buy their convertibles back. The converts pay a lower yield than the stock, so they are using higher yield to buy back a lower yield piece of debt. Hopefully, they have something in the pipe in terms of acquisitions that can drive that, otherwise that was not a good financing move.

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Too small-cap for what he does. Great price momentum, scores in the top 20%. Valuation is not bad in the top 30%, driven by really strong ROE of 31%. Reasonable Price to Book at around 1.5% at a 6X CE. It recently had a good earnings beat. The standout is probably its high yield of around 8% with a payout ratio of 162%, and they are going to have to backfill that. The only potential concern is a little bit high on EB on the EBITDA and the yield is not necessarily fully covered by earnings. Also, they recently issued stock to buy their convertibles back. The converts pay a lower yield than the stock, so they are using higher yield to buy back a lower yield piece of debt. Hopefully, they have something in the pipe in terms of acquisitions that can drive that, otherwise that was not a good financing move.

COMMENT
COMMENT
August 16, 2016

Did a $60 million financing deal, which really solidifies their balance sheet. He really likes the company and the theme. The US housing construction and renovation market is pretty hot, which is where the majority of their earnings come from.

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Did a $60 million financing deal, which really solidifies their balance sheet. He really likes the company and the theme. The US housing construction and renovation market is pretty hot, which is where the majority of their earnings come from.

COMMENT
COMMENT
November 25, 2015

High yield of 12%, but a pretty bad balance sheet. This is not something that he would hold other than possibly as a Short.

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High yield of 12%, but a pretty bad balance sheet. This is not something that he would hold other than possibly as a Short.

DON'T BUY
DON'T BUY
April 27, 2015

(Market Call Minute) Very low margin. It is not going to go anywhere for years to come.

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(Market Call Minute) Very low margin. It is not going to go anywhere for years to come.

Showing 1 to 15 of 38 entries

Canwel Building Materials Ltd.(CWX-T) Rating

Ranking : 1 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 0

Stockchase rating for Canwel Building Materials Ltd. 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.

Canwel Building Materials Ltd.(CWX-T) Frequently Asked Questions

What is Canwel Building Materials Ltd. stock symbol?

Canwel Building Materials Ltd. is a Canadian stock, trading under the symbol CWX-T on the Toronto Stock Exchange (CWX-CT). It is usually referred to as TSX:CWX or CWX-T

Is Canwel Building Materials Ltd. a buy or a sell?

In the last year, there was no coverage of Canwel Building Materials Ltd. published on Stockchase.

Is Canwel Building Materials Ltd. a good investment or a top pick?

Canwel Building Materials Ltd. was recommended as a Top Pick by Peter Imhof on 2019-11-25. Read the latest stock experts ratings for Canwel Building Materials Ltd..

Why is Canwel Building Materials Ltd. 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 Canwel Building Materials Ltd. worth watching?

0 stock analysts on Stockchase covered Canwel Building Materials Ltd. In the last year. It is a trending stock that is worth watching.

What is Canwel Building Materials Ltd. stock price?

On 2020-08-05, Canwel Building Materials Ltd. (CWX-T) stock closed at a price of $6.18.