West Fraser Timber Co.Ltd (MEX:WFGN) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
West Fraser Timber Co.Ltd had a gross margin of 25.86% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
West Fraser Timber Co.Ltd Gross Margin % Related Terms
West Fraser Timber Co.Ltd Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:WFGN vs SSD, UFPI, BCC: Gross Margin % Comparison
For the Lumber & Wood Production subindustry, West Fraser Timber Co.Ltd's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
West Fraser Timber Co.Ltd Gross Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, West Fraser Timber Co.Ltd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where West Fraser Timber Co.Ltd's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
West Fraser Timber Co.Ltd (MEX:WFGN) has a Gross Margin % of 25.86% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on West Fraser Timber Co.Ltd and its competitors. This is 29% below median its historical median of 36.20. Over the past decade, West Fraser Timber Co.Ltd's Gross Margin % has ranged from 21.45 to 55.84. According to the industry distribution chart, West Fraser Timber Co.Ltd ranks #121 out of 279 companies in the Forest Products industry, placing it in the top 43.4%.
Is West Fraser Timber Co.Ltd's Gross Margin % too high?
West Fraser Timber Co.Ltd's current Gross Margin % of 25.86% is 29% below median its 10-year median of 36.20. Over the past 10 years, this metric has ranged from a low of 21.45 to a high of 55.84. The Forest Products industry median Gross Margin % is 19.05. West Fraser Timber Co.Ltd's value of 25.86% is 35.7% above this industry median. Based on the distribution chart, West Fraser Timber Co.Ltd ranks #121 out of 279 companies in the Forest Products industry, which is above the industry midpoint. Overall, West Fraser Timber Co.Ltd has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does West Fraser Timber Co.Ltd's Gross Margin % compare to SSD and UFPI?
According to the Forest Products industry distribution chart, West Fraser Timber Co.Ltd ranks #121 out of 279 companies for Gross Margin %. This puts West Fraser Timber Co.Ltd in the upper half of its industry. The industry median Gross Margin % is 19.05. West Fraser Timber Co.Ltd's value of 25.86% is 35.7% above this benchmark. Historically, West Fraser Timber Co.Ltd's own Gross Margin % has ranged from 21.45 to 55.84 over the past decade. While the company's 10-year median is 36.20 vs. the industry median of 19.05, West Fraser Timber Co.Ltd has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Forest Products company?
The median Gross Margin % among Forest Products companies is 19.05, based on 279 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. West Fraser Timber Co.Ltd's current Gross Margin % of 25.86% is 35.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on West Fraser Timber Co.Ltd and its competitors. For the Forest Products industry, the median Gross Margin % is 19.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. West Fraser Timber Co.Ltd's current Gross Margin % is 25.86%, which is 29% below median its own 10-year median of 36.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is West Fraser Timber Co.Ltd stock overvalued right now?
West Fraser Timber Co.Ltd (MEX:WFGN) has a current Gross Margin % of 25.86%. The stock's GF Value™ is MXN1,808.06, compared to a current price of MXN1,894.00 — trading 4.8% above its estimated fair value. The current Gross Margin % is 25.86%, which is 29% below median its 10-year median of 36.20 and 35.7% above the Forest Products industry median of 19.05. West Fraser Timber Co.Ltd's overall GF Score™ is 73/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For West Fraser Timber Co.Ltd (MEX:WFGN), the current Gross Margin % is 25.86% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is West Fraser Timber Co.Ltd (MEX:WFGN) Overvalued in 2026?
Based on GuruFocus' analysis, West Fraser Timber Co.Ltd stock appears to be overvalued.
The current stock price of MXN1,894.00 is trading 4.8% above its estimated GF Value™ of MXN1,808.06.
Key valuation signals for MEX:WFGN:
Gross Margin %: 25.86% (29% below median its 10-year median of 36.20)
GF Value™: MXN1,808.06 vs. price of MXN1,894.00 (4.8% above fair value)
Industry Position: 35.7% above the Forest Products median (#121 of 279)
No single metric tells the full story. See the MEX:WFGN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
West Fraser Timber is a softwood lumber company that also produces wood panels and pulp products. The company produces its wood products globally, with lumber mills in British Columbia, Alberta, Europe, and the Southeastern United States. Following its acquisition of Norbord in 2021, West Fraser is one of the largest oriented strand board producers in the world.
73GF Score
Get the complete analysis for MEX:WFGN
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:WFGN has been successfully added to your 
