Conifex Timber (CFF) AI Stock Analysis

• Market Cap: C$12.84M
• Dividend Yield: N/A
• Average Volume (3M): 9.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: -7.32%
• EPS Growth: 10.08%
• Country: CA
• Employees: 244
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -0.18
• Shares Outstanding: 40,767,710
• 10 Day Avg. Volume: 5,128
• 30 Day Avg. Volume: 9,746
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$0.50
• Price Target Upside: 56.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: C$0.50 ▲(56.25% Upside)

Conifex Timber's overall stock score is primarily impacted by its weak financial performance and poor valuation metrics. The company's ongoing losses and cash flow challenges are significant concerns. Technical analysis suggests a bearish trend, although oversold conditions may present a potential buying opportunity. Corporate events provide mixed signals, with operational challenges offset by positive shareholder actions.

Conifex Timber Business Overview & Revenue Model

Company Description

Conifex Timber Inc. primarily manufactures and sells lumber products in the United States, China, Canada, Japan, and internationally. It is involved in the timber harvesting, reforestation, and forest management activities; manufacture of finished softwood lumber from spruce, pine, and fir logs; manufacture, sale, and distribution of dimension lumber; processing logs into lumber and wood chips, as well as by-products or residues, such as trim blocks, sawdust, shavings, and barks; and providing value added lumber finishing services. It also develops bioenergy and bio products; and operates a 36 megawatt biomass power generation plant, which produces renewable energy for commercial sale. The company was formerly known as West Fourth Capital Inc. and changed its name to Conifex Timber Inc. in June 2010. Conifex Timber Inc. was incorporated in 2007 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Conifex Timber makes money primarily through the production and sale of softwood lumber. The company's revenue model is centered around the extraction and processing of timber into lumber products, which are then sold to a variety of markets, including construction, renovation, and industrial sectors. A significant portion of Conifex’s revenue is derived from export sales, as the company capitalizes on international demand for Canadian softwood lumber. Additionally, Conifex may generate revenue through strategic partnerships and agreements that enhance its market reach and operational efficiency. Factors such as timber supply agreements, market pricing, and exchange rates can also significantly impact the company's earnings.

Conifex Timber Financial Statement Overview

Summary

Conifex Timber faces significant financial challenges with consistent losses impacting profitability and cash flow. Improvements in gross profit margin are noted, but negative net income, cash flows, and increasing debt levels present risks. The balance sheet shows moderate leverage but declining equity, highlighting potential risks.

Income Statement

The company's income statement shows a challenging period with declining revenues and negative profitability metrics. The TTM (Trailing-Twelve-Months) revenue of $131.6M represents a slight growth from the previous annual figure. However, the gross profit margin improved to 10.2% for TTM from 3.0% the previous year, indicating better cost management. The net profit margin remains negative due to substantial losses. EBIT and EBITDA margins are also negative, indicating ongoing operating challenges. These factors contribute to a low income statement score.

Balance Sheet

The balance sheet reveals a moderately leveraged position with a debt-to-equity ratio of 0.97 TTM, which is manageable but requires caution. The equity ratio of 40.4% TTM indicates a reasonable level of financial stability. However, the declining stockholders' equity and increasing total debt are concerns. The return on equity is negative due to net losses, which impacts the score. Overall, the balance sheet reflects moderate financial health with some risks.

Cash Flow

The company's cash flow statement highlights a challenging environment with negative operating and free cash flows in the TTM period. The operating cash flow to net income ratio and free cash flow to net income ratio are negative, reflecting cash generation issues. Free cash flow growth is negative, indicating cash management difficulties. This results in a low cash flow score, suggesting the need for improved cash flow management.

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
EBITDA	-15.12M	-25.77M	46.71M	51.76M	9.72M
Net Income	-29.78M	-30.63M	24.49M	27.20M	-6.77M
Balance Sheet
Total Assets	203.88M	218.99M	257.26M	231.46M	216.76M
Cash, Cash Equivalents and Short-Term Investments	3.64M	4.19M	8.44M	6.35M	11.16M
Total Debt	77.32M	63.85M	62.80M	59.38M	63.40M
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

• Technical Analysis Sentiment: Negative
• Last Price: 0.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.32 is below the 20-day moving average (MA) of 0.33, below the 50-day MA of 0.33, and below the 200-day MA of 0.35, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.58 is Neutral, neither overbought nor oversold. The STOCH value of 13.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CFF.

Conifex Timber Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CFF	44 Neutral	C$12.84M	―	-24.89%	―	-7.32%	10.08%
Sector *	44 Neutral	C$925.20M	-8.84	-0.23%	2.69%	24.65%	-41.54%
ICLTF	―	$49.92M	―	-13.50%	―	―	―
ADN	68 Neutral	C$323.50M	22.40	4.24%	8.29%	-26.79%	-57.05%
WEF	53 Neutral	C$131.45M	―	-3.84%	―	3.89%	49.05%
CFX	44 Neutral	C$43.05M	―	-60.90%	―	-11.47%	-167.18%
CFPZF	―	$1.12B	―	-19.38%	―	―	―

Conifex Timber Corporate Events

Conifex Timber Reports Q2 2025 Loss Amid Log Supply Challenges

Conifex Timber Inc. reported a net loss of $8.3 million for the second quarter of 2025, a significant downturn from the previous quarter’s net income of $0.6 million. The company’s lumber production was adversely affected by reduced log availability, leading to a 24% decrease in production compared to the first quarter of 2025. Despite these challenges, shipments of Conifex-produced lumber increased by 2% from the previous quarter, indicating a strong demand for their products. The results highlight the operational challenges faced by Conifex due to supply chain issues, impacting their financial performance and industry positioning.

Conifex Timber to Release Q2 2025 Financial Results

Conifex Timber Inc. announced it will release its second quarter 2025 financial results on August 14, 2025, followed by a conference call to discuss the 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 markets.

Conifex Timber Inc. Announces Successful Director Elections and Auditor Appointment

Conifex Timber Inc. announced the successful election of all management nominees as directors at its annual general meeting. Shareholders also approved PricewaterhouseCoopers LLP as the company’s auditor for the upcoming year. This election and auditor appointment reflect shareholder confidence in the company’s leadership and financial oversight, potentially strengthening its market position and operational stability.