Canfor (CFP) AI Stock Analysis

• Market Cap: $1.41B
• Dividend Yield: N/A
• Average Volume (3M): 219.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: -1.38%
• EPS Growth: -64.10%
• Country: CA
• Employees: 6,634
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): N/A
• Shares Outstanding: 116,713,160
• 10 Day Avg. Volume: 163,822
• 30 Day Avg. Volume: 219,473
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 2.48
• Enterprise Value/Ebitda: -7.79
• 1Y Price Target: $16.25
• Price Target Upside: 35.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 52 Neutral
• Price Target: C$13.50 ▲(12.22% Upside)

Canfor's overall stock score is primarily impacted by its challenging financial performance and valuation issues. While strategic acquisitions and a strong balance sheet are positives, the company faces significant operational challenges and market uncertainties. Technical indicators suggest a bearish trend, further weighing on the stock's outlook.

Positive Factors

Negative Factors

Canfor Business Overview & Revenue Model

Company Description

Canfor Corporation operates as an integrated forest products company in the United States, Asia, Canada, Europe, and internationally. It operates through two segments, Lumber, and Pulp and Paper. The company manufactures and sells finger-jointed lumber, engineered wood products, wood chips and pellets, and logs, as well as custom specialty products, including strength-rated trusses, beams, and tongue-and-groove timber; and generates green energy. It also produces and sells pulp and paper products, including bleached and unbleached softwood kraft pulp, as well as bleached, colored, and unbleached kraft paper. The company was founded in 1938 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Canfor generates revenue primarily through the sale of its wood products, including dimensional lumber, OSB, and specialty products. The company benefits from a diversified revenue model that includes both domestic and international sales, with a significant portion of its products exported to markets in Asia and Europe. Key revenue streams include the lumber segment, which is influenced by housing demand, and the panel products segment, which serves the construction and industrial sectors. Additionally, Canfor engages in partnerships and joint ventures that enhance its operational efficiency and product offerings, contributing to its overall financial performance. Factors such as market demand, timber prices, and production costs play crucial roles in shaping Canfor's earnings, alongside its strategic investments in technology and sustainability initiatives that bolster its competitive edge.

Canfor Financial Statement Overview

Summary

Canfor is experiencing financial difficulties with declining revenues, negative profit margins, and cash flow challenges. The balance sheet shows controlled leverage, but profitability and cash generation need improvement for financial stability.

Income Statement

Canfor's income statement reveals a challenging period with declining revenues and negative profit margins. The TTM data shows a gross profit margin of 12.99% and a net profit margin of -12.02%, indicating significant profitability issues. Revenue has decreased by 4% compared to the previous period, and the EBIT and EBITDA margins are negative, reflecting operational struggles. The company needs to address these declines to improve financial health.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.23, suggesting manageable leverage levels. However, the return on equity is negative at -18.86%, indicating that the company is not generating returns for shareholders. The equity ratio stands at 56.06%, which is a positive sign of financial stability. Overall, while leverage is under control, profitability remains a concern.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth by 19.74% in the TTM period, highlighting cash generation challenges. The operating cash flow to net income ratio is 0.16, and the free cash flow to net income ratio is -2.03, reflecting cash flow issues relative to earnings. The company needs to enhance cash flow management to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.29B	5.25B	5.43B	7.43B	7.68B	5.45B
Gross Profit	1.03B	946.70M	904.00M	2.63B	3.51B	1.92B
EBITDA	-328.90M	-487.80M	-34.40M	1.53B	2.30B	1.15B
Net Income	-647.20M	-669.00M	-326.10M	787.30M	1.34B	544.40M
Balance Sheet
Total Assets	5.42B	5.57B	6.13B	6.74B	6.17B	5.11B
Cash, Cash Equivalents and Short-Term Investments	112.90M	259.30M	627.40M	1.27B	1.35B	419.20M
Total Debt	725.00M	703.60M	399.30M	392.40M	335.80M	773.70M
Total Liabilities	2.11B	1.99B	1.85B	1.98B	2.16B	2.48B
Stockholders Equity	3.04B	3.31B	3.82B	4.22B	3.48B	2.21B
Cash Flow
Free Cash Flow	-293.60M	-352.90M	-432.30M	487.70M	1.49B	872.10M
Operating Cash Flow	132.70M	174.20M	154.70M	1.11B	1.91B	1.07B
Investing Cash Flow	-560.30M	-672.20M	-603.70M	-1.05B	-468.40M	-246.90M
Financing Cash Flow	104.50M	124.10M	-185.60M	-179.40M	-504.10M	-463.00M

Canfor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CFP, the sentiment is Negative. The current price of 12.03 is below the 20-day moving average (MA) of 12.42, below the 50-day MA of 12.83, and below the 200-day MA of 13.87, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 38.73 is Neutral, neither overbought nor oversold. The STOCH value of 23.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CFP.

Canfor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CFP	―	$1.41B	―	-19.38%	―	-1.38%	-64.10%
WFG	―	$7.39B	3,150.31	-3.61%	2.09%	-6.67%	-168.27%
WEF	―	C$126.91M	-5.87	-3.84%	―	3.89%	49.05%
IFP	―	$396.19M	―	-11.53%	―	-7.60%	50.15%
GFP	―	$50.86M	―	-13.50%	―	-23.09%	46.68%
CFF	―	C$9.38M	―	-25.84%	―	-8.76%	16.86%

Canfor Corporate Events

Canfor Announces Q3 2025 Results Conference Call

Canfor Corporation and Canfor Pulp Products Inc. have announced a joint analyst conference call scheduled for November 6, 2025, to discuss their third-quarter financial and operating results. This call will provide insights into the companies’ performance and strategies, potentially impacting investor perceptions and market positioning.

The most recent analyst rating on (TSE:CFP) stock is a Hold with a C$13.50 price target. To see the full list of analyst forecasts on Canfor stock, see the TSE:CFP Stock Forecast page.

Canfor Corp. Navigates Transition with Strategic Moves

The recent earnings call for Canfor Corp. painted a picture of a company in transition, with a focus on strategic acquisitions and geographic diversification. Despite challenges such as facility closures and weak pulp sales, the company maintains a strong balance sheet, which supports its growth ambitions. However, market uncertainties and increased duties continue to pose challenges.

Canfor Corp Faces Challenges Amid Weak Lumber Markets

Canfor Corporation, a global leader in manufacturing high-value forest products, reported a challenging second quarter of 2025, with significant losses attributed to weak North American lumber markets and global economic uncertainties. The company faced an operating loss of $251 million and a net loss of $203 million, largely due to sustained weak lumber pricing and the permanent closure of two sawmills in South Carolina. Despite solid earnings from its European operations, Canfor’s North American segment struggled with sluggish demand and pricing pressures. The pulp and paper segment also faced difficulties, with an operating loss driven by declining demand from China and increased manufacturing costs. Looking ahead, Canfor remains focused on leveraging its diversified global operations to navigate ongoing market challenges and improve financial performance.

Canfor Corporation Reports Q2 2025 Losses Amid Market Challenges

Canfor Corporation reported a significant operating loss of $251 million in the second quarter of 2025, driven by weak lumber pricing in North America and economic uncertainties affecting global pulp markets. The company announced the permanent closure of two sawmills in South Carolina due to sustained financial losses, reflecting the challenging conditions in the US South. Despite solid earnings from European operations, Canfor faces ongoing challenges from US softwood lumber duties and trade uncertainties, particularly impacting its pulp business with China.

The most recent analyst rating on (TSE:CFP) stock is a Hold with a C$17.00 price target. To see the full list of analyst forecasts on Canfor stock, see the TSE:CFP Stock Forecast page.