Canfor (CFP) AI Stock Analysis

• Market Cap: $1.64B
• Dividend Yield: N/A
• Average Volume (3M): 92.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• Revenue Growth: -2.51%
• EPS Growth: -157.38%
• Country: CA
• Employees: 6,634
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -0.32
• Shares Outstanding: 116,996,810
• 10 Day Avg. Volume: 98,237
• 30 Day Avg. Volume: 92,641
• PEG Ratio: -0.55
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.67
• 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: $16.54
• Price Target Upside: 16.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 52 Neutral
• Price Target: C$14.50 ▲(1.97%Upside)

Canfor's overall stock score of 52 reflects significant financial challenges, balanced by positive strategic transformations and corporate developments. The major risks include profitability issues and external market uncertainties, while strategic diversification efforts and strong shareholder support provide some positive outlook.

Positive Factors

Negative Factors

Export Duties

Higher export duties are likely to pressure Canfor's EBITDA.

Financial Performance

Canfor has generated a significant EBITDA loss in its North American lumber operations.

Financial Strain

Canfor has experienced a significant net cash reduction from C$1.3bn to C$262mm, indicating financial strain.

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 makes money primarily through the production and sale of wood products and pulp & paper. The company's revenue model is centered on its lumber segment, which involves harvesting timber from its forest lands and processing it into various wood products for construction, renovation, and industrial applications. Key revenue streams include sales of lumber, plywood, and other engineered wood products to both domestic and international markets. Additionally, Canfor generates income from its pulp and paper segment by producing pulp used in the manufacturing of tissue, paper, and other products. The company's earnings are influenced by factors such as global demand for wood products, lumber prices, and trade relationships. Strategic partnerships and acquisitions also play a significant role in expanding its market reach and enhancing its revenue potential.

Canfor Financial Statement Overview

Summary

Canfor faces significant financial challenges, with declining revenues and profitability issues. The income statement shows negative EBIT and EBITDA, while the balance sheet remains moderately stable. Cash flow struggles are evident with a negative free cash flow, highlighting operational inefficiencies and financial risk.

Income Statement

Canfor's income statement reveals significant challenges, with negative EBIT and EBITDA in the most recent TTM. The gross profit margin stands at 12.99%, and the net profit margin is -12.02%, indicating profitability struggles. Revenue growth has declined by -2.57% compared to the previous year, highlighting a downward trend in sales performance.

Balance Sheet

The balance sheet shows a moderate level of stability, with a debt-to-equity ratio of 0.23, suggesting manageable leverage. The equity ratio is 58.05%, indicating a strong capital structure. However, the return on equity is negative due to recent losses, impacting overall profitability.

Cash Flow

Cash flow analysis indicates challenges in generating free cash flow, with a negative free cash flow of -$365.8 million in the latest TTM. The operating cash flow to net income ratio is -0.28, showing inefficiency in converting profits into cash. The free cash flow to net income ratio is -0.58, further highlighting cash flow struggles.

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

Canfor Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Neutral. The current price of 14.22 is below the 20-day moving average (MA) of 14.41, above the 50-day MA of 13.98, and below the 200-day MA of 15.06, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 49.13 is Neutral, neither overbought nor oversold. The STOCH value of 27.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CFP.

Canfor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.49B	10.77	1.52%	2.68%	2.24%	-33.79%
CFP	52 Neutral	$1.64B	―	-18.19%	―	-2.51%	-157.38%
ICLTF	―	$52.17M	―	-16.05%	―	―	―
WFG	―	$5.57B	6,251.67	-1.80%	0.02%	―	―
CFF	54 Neutral	C$13.86M	―	-24.89%	―	-7.32%	10.08%
WEF	52 Neutral	C$131.45M	―	-1.51%	―	9.47%	85.29%
IFSPF	―	$492.58M	―	-16.90%	―	―	―

Canfor Corporate Events

Canfor’s Vida AB Expands Production Capacity with Swedish Acquisition

Canfor Corporation announced that its subsidiary, Vida AB, will acquire AB Karl Hedin Sågverk for $164 million, expanding its operations into Central Sweden. This acquisition will increase Vida’s annual production capacity by 230 million board feet, reaching a total of approximately 2.1 billion board feet. The strategic move is expected to yield annual synergies of $15 million within three years, enhancing Vida’s operating platform and diversifying its presence in Sweden. The transaction will be financed largely through cash on hand and new equity from minority Vida AB shareholders, and is subject to customary closing conditions and regulatory approvals.

The most recent analyst rating on (TSE:CFP) stock is a Hold with a C$16.00 price target. To see the full list of analyst forecasts on Canfor stock, see the TSE:CFP Stock Forecast page.

Canfor to Close Estill and Darlington Sawmills Amid Market Challenges

Canfor Corporation announced the permanent closure of its Estill and Darlington sawmills in South Carolina, effective August 2025, due to prolonged weak market conditions and financial losses. This decision will affect approximately 290 employees and reduce the company’s U.S. lumber production capacity by 350 million board feet annually. Canfor is committed to supporting affected employees through severance payments and potential redeployment opportunities within the company.

The most recent analyst rating on (TSE:CFP) stock is a Hold with a C$16.00 price target. To see the full list of analyst forecasts on Canfor stock, see the TSE:CFP Stock Forecast page.

Canfor Corporation Reports Strong Shareholder Support in Director Elections

Canfor Corporation announced the voting results from its Annual General Meeting held on May 8, 2025, in Vancouver. Shareholders voted in favor of all business items, including the election of all director nominees, with a significant 84.86% of outstanding shares represented. This outcome reflects strong shareholder support and is likely to reinforce Canfor’s strategic direction and governance, potentially impacting its market position positively.

The most recent analyst rating on (TSE:CFP) stock is a Hold with a C$16.00 price target. To see the full list of analyst forecasts on Canfor stock, see the TSE:CFP Stock Forecast page.

Canfor Corporation Reports First Quarter 2025 Results Amid Global Challenges

Canfor Corporation reported a first-quarter operating loss of $29 million for 2025, with a net loss of $31 million. Despite improved North American lumber prices due to supply constraints, the company faces challenges from global economic uncertainties and US softwood lumber duties. However, Canfor’s diversified operations in Western Canada and Europe have shown improved results, particularly in the lumber and pulp segments. The company remains focused on operating efficiently and working closely with customers to navigate the uncertain market conditions.