Topic: How To Invest

Q: Hi. What is your recommendation on Westshore Terminals? Thanks.

Article Excerpt

A: Westshore Terminals Investment Corp., $15.77, symbol WTE on Toronto (Shares outstanding: 64.8 million; Market cap: $1.0 billion; www.westshore.com), operates a coal storage and loading terminal on land leased from the Vancouver Port Authority at Roberts Bank, B.C. Westshore ships both metallurgical and thermal coal. Teck Resources is its largest customer, accounting for over 60% of sales. Over the past five years, Westshore’s revenue has shown steady, but slow growth—rising 8.1%, from $365.8 million in 2015 to $395.4 million in 2019. During that time, earnings fell 8.9%, from $152.9 million in 2015 to $139.4 million in 2019. The main reason for the decline was steadily rising costs. However, per-share earnings rose 1.5%, to $2.09 from $2.06, on fewer shares outstanding as the company continued to buy back its stock. In the three months ended June 30, 2020, Westshore’s revenue fell 1.9%, to $96.8 million from $98.7 million. Earnings also declined, falling 0.8% to $35.0 million from $34.7 million. Per-share earnings rose 1.9%, to $0.53…

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