Is WEST FRASER TIMBER CO., LTD (WFG) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 6.5% / 30% | 4.0% / 30% | 6.3% / 30% | 0.44% / 5% | ✓ HALAL |
| DJIM | 6.5% / 33% | 4.0% / 33% | 6.3% / 33% | 0.44% / 5% | ✓ HALAL |
| MSCI | 4.4% / 33% | 2.7% / 33% | 4.2% / 33% | 0.44% / 5% | ✓ HALAL |
| S&P | 6.5% / 33% | 4.0% / 33% | 6.3% / 33% | 0.44% / 5% | ✓ HALAL |
| FTSE | 4.4% / 33% | 2.7% / 33% | 4.2% / 50% | 0.44% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 23.4% | |
| Operating Margin | -18.8% | |
| Net Margin | -17.2% | |
| Return on Equity (ROE) | -14.6% | |
| Return on Assets (ROA) | -3.7% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $96M |
| Free Cash Flow | -$315M |
| Total Debt | $333M |
| Debt-to-Equity | 5.7 |
| Current Ratio | 2.1 |
| Total Assets | $7.6B |
Price & Trading
| Last Close | $63.48 |
| 50-Day MA | $68.08 |
| 200-Day MA | $68.15 |
| Avg Volume | 247K |
| Beta | 1.2 |
|
52-Week Range
$57.34
| |
About WEST FRASER TIMBER CO., LTD (WFG)
West Fraser Timber Co. Ltd., a diversified wood products company, engages in manufacturing, selling, marketing, and distributing lumber, engineered wood products, northern bleached softwood kraft pulp, newsprint, paper, wood chips and other residuals. It operates through four segments: Lumber, North America Engineered Wood Products, Pulp & Paper, and Europe Engineered Wood Products. The Lumber segment produces spruce, pine, fir and southern yellow pine lumber, douglas fir, hemlock, wood chips, and other residuals. The North America Engineered Wood Products segment manufactures oriented strand board, laminated veneer lumber, medium-density fibreboard, plywood, and particleboard, with OSB products marketed under brands such as Durastrand pointSIX, Pinnacle Stabledge, TruFlor pointSIX and TruFlor, Rimboard, SteadiTred, QuakeZone, Windstorm, TallWall and Trubord, and SolarBord, Trubord, TruDeck, StableDeck and StableWall, DuraSmart, Stable RVand NorCore; and MDF products under Ranger, WestPine, and EcoGold. The Pulp & Paper segment produces northern bleached softwood kraft pulp (NBSK), newsprint, and bleached chemithermomechanical pulp used to produce various paper products, including printing and writing papers, paper products, and tissue. The Europe Engineered Wood Products segment produces OSB, particleboard, and MDF applications including cabinet doors, mouldings and interior wall paneling under the SterlingOSB Zero, CaberFloor, and CaberMDF brands. It also provides bioenergy and green raw materials. Its products are used in home construction, repair and remodeling, paper, tissue, and box materials, and industrial applications. It sells its products to major retail chains, dealers, contractor supply yards, and wholesalers, as well as industrial customers for further processing or as components for other products in Canada, the United States, the United Kingdom, Europe, and internationally. The company was founded in 1955 and is headquartered in Vancouver, Canada.
Purification Calculator
As a halal stock with 0.44% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is WEST FRASER TIMBER CO., LTD (WFG) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), WEST FRASER TIMBER CO., LTD is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is WEST FRASER TIMBER CO., LTD's debt ratio?
WEST FRASER TIMBER CO., LTD's debt ratio is 6.5% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 4.4%.
Does WEST FRASER TIMBER CO., LTD require dividend purification?
Yes, WEST FRASER TIMBER CO., LTD has an impermissible income ratio of 0.44%, which means 0.44% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are WEST FRASER TIMBER CO., LTD's key financial metrics?
WEST FRASER TIMBER CO., LTD has a market capitalization of $5.0B, and revenue of $5.5B. The company maintains a gross margin of 23.4% and a net margin of -17.2%. Return on equity stands at -14.6%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.