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Conifex Timber (TSE:CFF)
TSX:CFF
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Conifex Timber
(TSX:CFF)
Rating:49Neutral
Price Target:
C$0.50
▲( 35.14% Upside)
Conifex Timber (CFF) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$15.08M
Dividend YieldN/A
Average Volume (3M)8.85K
Price to Earnings (P/E)―
Beta (1Y)1.11
Revenue Growth-7.32%
EPS Growth10.08%
CountryCA
Employees244
SectorBasic Materials
Sector Strength64
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)0.01
Shares Outstanding40,767,710
10 Day Avg. Volume17,222
30 Day Avg. Volume8,846
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.15
Price to Sales (P/S)0.00
P/FCF Ratio-1.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Conifex Timber Business Overview & Revenue Model
Company DescriptionConifex Timber Inc. (CFF) is a publicly traded forestry company based in Canada, specializing in the production of softwood lumber. The company operates primarily in the forest products sector, focusing on the harvesting of timber and the manufacturing of lumber products. Conifex Timber is committed to sustainable forest management and utilizes advanced technologies to maximize efficiency and product quality in its operations.
How the Company Makes MoneyConifex Timber Inc. generates revenue primarily through the sale of softwood lumber products. The company's revenue model is driven by its timber harvesting operations, which supply raw materials for its lumber manufacturing facilities. Conifex's key revenue streams include domestic and international sales of lumber, with a focus on markets in North America and Asia. The company may also engage in strategic partnerships or joint ventures to enhance its market reach and operational capabilities. Additionally, factors such as lumber prices, demand for housing and construction, and forest management practices significantly influence Conifex's earnings.
Conifex Timber Financial Statement Overview
Summary
Conifex Timber faces significant financial challenges. The income statement indicates declining revenues and profitability issues, with negative EBIT and EBITDA margins. The balance sheet displays moderate stability with manageable debt levels, but cash flow analysis reveals negative free cash flow and operating cash flow, posing substantial risks.Income Statement
Conifex Timber's income statement shows significant challenges. The company has experienced a declining gross profit margin and negative net income in the most recent year. Revenue has also declined considerably over the past few years, indicating operational difficulties. Negative EBIT and EBITDA margins further highlight profitability issues.35
Negative
Balance Sheet
The balance sheet reflects moderate stability with a debt-to-equity ratio that is manageable but indicates some financial leverage. The company's equity ratio has decreased over time, pointing to increased reliance on debt. However, the presence of equity still provides a cushion against liabilities.50
Neutral
Cash Flow
Cash flow analysis reveals a challenging scenario with negative free cash flow and operating cash flow. The inability to generate positive cash flow from operations in the latest year is concerning. There is also a significant decrease in free cash flow compared to previous periods, suggesting cash management issues.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 127.74M | 141.16M | 231.27M | 250.53M | 128.71M | Gross Profit |
| 3.84M | -5.82M | 65.55M | 72.44M | 28.11M | EBIT |
| -25.86M | -38.73M | 27.46M | 38.43M | 4.65M | EBITDA |
| -15.12M | -25.77M | 46.71M | 51.76M | 9.72M | Net Income Common Stockholders |
| -29.78M | -30.63M | 24.49M | 27.20M | -6.77M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.64M | 4.19M | 8.44M | 6.35M | 11.16M | Total Assets |
| 203.88M | 218.99M | 257.26M | 231.46M | 216.76M | Total Debt |
| 77.32M | 63.85M | 62.80M | 59.38M | 63.40M | Net Debt |
| 73.67M | 59.66M | 54.36M | 53.03M | 52.24M | Total Liabilities |
| 118.04M | 103.49M | 111.00M | 101.63M | 100.34M | Stockholders Equity |
| 85.84M | 115.50M | 146.27M | 129.83M | 116.42M |
| Cash Flow | Free Cash Flow | |||
| -10.70M | -2.99M | 11.31M | 20.33M | -8.52M | Operating Cash Flow |
| -6.62M | 3.62M | 24.83M | 26.74M | -6.30M | Investing Cash Flow |
| -4.08M | -5.20M | -12.81M | -5.81M | 221.48M | Financing Cash Flow |
| 10.15M | -2.67M | -9.94M | -25.73M | -207.41M |
Conifex Timber Technical Analysis
Negative
0.37
Price Trends
0.34
Positive
0.33
Positive
0.37
Negative
Market Momentum
0.01
Negative
47.43
Neutral
35.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CFF, the sentiment is Negative. The current price of 0.37 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.34, and above the 200-day MA of 0.37, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 47.43 is Neutral, neither overbought nor oversold. The STOCH value of 35.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CFF.
Conifex Timber Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$320.70M | 16.17 | 5.85% | 6.49% | 12.30% | -36.60% | |
59 Neutral | C$126.70M | ― | -1.51% | ― | 9.47% | 85.29% | |
52 Neutral | $92.90M | ― | -16.05% | ― | -23.94% | 24.31% | |
51 Neutral | C$48.93M | ― | -59.20% | ― | -9.60% | -92.59% | |
50 Neutral | $1.99B | -1.06 | -21.34% | 3.71% | 2.03% | -30.65% | |
49 Neutral | C$15.08M | ― | -24.89% | ― | -7.32% | 10.08% | |
49 Neutral | $1.53B | ― | -18.19% | ― | -2.51% | -157.38% |
* Basic Materials Sector Average
Performance Comparison
TSE:CFF
Conifex Timber
0.34
-0.23
-40.35%
TSE:GFP
GreenFirst Forest Products
4.11
-0.95
-18.84%
TSE:CFP
Canfor
13.00
-2.61
-16.72%
TSE:WEF
Western Forest Prod
0.40
-0.10
-20.00%
TSE:CFX
Canfor Pulp Products
0.75
-0.88
-53.99%
TSE:ADN
Acadian Timber
17.84
1.54
9.45%
Conifex Timber Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q3-2024)
| % Change Since: 12.12%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted improvements in EBITDA loss, strengthening lumber prices, and surplus sawlogs availability as positive factors. However, challenges such as reductions in the allowable annual cut, legal issues with BC Hydro, and limited borrowing capacity to expand operations were noted. Overall, the sentiment leans towards optimism with significant progress made but also acknowledges existing hurdles.Q3-2024 Updates
Positive Updates
Improvement in EBITDA Loss
Negative EBITDA of $3.9 million in Q3 2024, lower than the $7.1 million loss in Q2 and $6.7 million loss in Q3 2023.
Strengthening Lumber Prices
Average lumber selling price realizations increased to CAD 512 per thousand board feet in Q4, a 17.5% improvement over Q3.
Potential Positive EBITDA in Q4
Expectations to record a dramatically reduced EBITDA loss or potentially positive EBITDA in Q4 due to firm lumber prices.
Surplus of Sawlogs in Mackenzie TSA
The Mackenzie Timber Supply Area has a large surplus of sawlogs, ensuring no challenges in securing sawlogs for future operations.
Reduction in Delivered Log Costs
Achieved a modest reduction in delivered log costs due to adjustments by the Ministry of Forests and changes in supply demand dynamics.
Negative Updates
Reduction in Allowable Annual Cut
The new allowable annual cut for the Mackenzie Timber Supply Area was set at 2.39 million cubic meters, a 20% reduction from past levels.
Legal Challenges with BC Hydro
Facing legal challenges due to BC Hydro suspending electric power interconnection transactions, with an appeal pending in the Supreme Court of BC.
Limited Borrowing Headroom
Lack of borrowing headroom is preventing the move to a 2-shift operation at the sawmill complex, limiting potential production increases.
Company Guidance
During the Q3 2024 earnings call for Conifex Timber Inc., CEO Ken Shields discussed several key metrics and developments. The company reported a negative EBITDA of $3.9 million for the quarter, which was an improvement from the $7.1 million loss in Q2 and the $6.7 million EBITDA loss in Q3 2023. The average lumber selling price realizations for the third quarter were CAD 436 per thousand board feet, with shipments of 29.3 million board feet, and prices improved to CAD 512 per thousand board feet in the early fourth quarter, marking a 17.5% increase. Shields highlighted the company's progress in reducing log costs and improving their position on the North American industry cost curve for SPF lumber, contributing to lower EBITDA losses compared to 2023. Looking ahead, Conifex aims to move to a two-shift operation in 2025, which would enhance their ability to achieve positive EBITDA. The company is also appealing a legal decision concerning power interconnection projects and anticipates a court hearing before the end of the year.Conifex Timber Corporate Events
Business Operations and StrategyFinancial Disclosures
Conifex Timber Inc. Reports Profitable First Quarter 2025
Positive
May 12, 2025
Conifex Timber Inc. reported a profitable first quarter in 2025, with a net income of $0.6 million, a significant turnaround from the previous quarter’s net loss of $7.8 million. The company achieved an EBITDA of $4.9 million, reflecting improved operational efficiency and increased lumber production, which rose by 87% compared to the previous quarter. Despite logistical challenges affecting shipments, Conifex’s operational adjustments, including resuming a two-shift configuration, have positioned it for continued growth in the upcoming quarters.
Financial Disclosures
Conifex Timber to Announce Q1 2025 Financial Results
Neutral
May 2, 2025
Conifex Timber Inc. has announced that it will release its first quarter 2025 financial results on May 12, 2025, before the market opens. The company has scheduled a conference call on the same day to discuss these results, which could provide insights into its financial health and strategic direction, potentially impacting its stakeholders and market positioning.
Financial Disclosures
Conifex Timber Reports Improved Financial Results Despite Losses
Neutral
Mar 13, 2025
Conifex Timber Inc. reported a negative EBITDA of $2.1 million for the fourth quarter and $13.6 million for the year 2024, showing an improvement from the previous year’s figures. Despite the negative financial results, the company has managed to reduce its net loss per share from $0.77 to $0.73, indicating a slight improvement in financial performance.
Financial Disclosures
Conifex Timber to Announce Q4 2024 Financial Results
Neutral
Mar 11, 2025
Conifex Timber Inc. has announced it will release its fourth quarter 2024 financial results on March 12, 2025, followed by a conference call on March 13, 2025, to discuss these results. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic positioning in the timber and bioenergy sectors.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.