Canfor (CFP) AI Stock Analysis

• Market Cap: $1.54B
• Dividend Yield: N/A
• Average Volume (3M): 178.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• Revenue Growth: -2.51%
• EPS Growth: -157.38%
• Country: CA
• Employees: 6,634
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -0.32
• Shares Outstanding: 118,405,080
• 10 Day Avg. Volume: 167,275
• 30 Day Avg. Volume: 178,014
• PEG Ratio: -0.51
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.43
• 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: $17.15
• Price Target Upside: 31.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 49 Neutral
• Price Target: C$13.50 ▲( 3.85% Upside)

Canfor's overall stock score reflects significant financial challenges, with declining revenues, profitability issues, and cash flow pressures as primary concerns. Technical analysis indicates bearish momentum, while valuation metrics are unfavorable due to negative earnings. Despite these challenges, strategic shifts and a strong balance sheet provide some support. The company's efforts to transform and diversify operations and recent corporate activities like share repurchases also contribute positively, though not enough to offset prevailing challenges.

Positive Factors

Negative Factors

Export Duties

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

Financial Health

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

Financial Performance

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

Canfor Business Overview & Revenue Model

Company Description

Canfor Corporation (CFP) is a leading integrated forest products company based in Canada. The company operates primarily in the lumber and pulp & paper sectors. Canfor's core products include high-quality wood products, such as lumber, plywood, and engineered wood, as well as pulp and paper products. With operations across North America and a significant presence in international markets, Canfor is dedicated to sustainable forestry practices and innovation in wood products manufacturing.

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, particularly with declining revenues and profitability issues. The income statement shows negative EBIT and EBITDA, and the balance sheet, while stable, is impacted by recent losses. Cash flow struggles further highlight operational inefficiencies and heightened 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
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
686.90M	946.70M	904.00M	2.63B	3.51B	1.92B
	EBIT
-762.80M	-942.20M	-531.60M	1.07B	1.91B	727.30M
	EBITDA
-90.10M	-487.80M	-34.40M	1.53B	2.30B	1.15B
	Net Income Common Stockholders
-635.50M	-669.00M	-326.10M	787.30M	1.34B	544.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
128.50M	259.30M	627.40M	1.27B	1.35B	419.20M
	Total Assets
5.73B	5.57B	6.13B	6.74B	6.17B	5.11B
	Total Debt
768.10M	703.60M	399.30M	392.40M	335.80M	773.70M
	Net Debt
639.60M	444.30M	-228.10M	-876.30M	-1.02B	354.50M
	Total Liabilities
2.13B	1.99B	1.85B	1.98B	2.16B	2.48B
	Stockholders Equity
3.33B	3.31B	3.82B	4.22B	3.48B	2.21B
Cash Flow		Free Cash Flow
-365.80M	-352.90M	-432.30M	487.70M	1.49B	872.10M
	Operating Cash Flow
180.00M	174.20M	154.70M	1.11B	1.91B	1.07B
	Investing Cash Flow
-695.00M	-672.20M	-603.70M	-1.05B	-468.40M	-246.90M
	Financing Cash Flow
203.10M	124.10M	-185.60M	-179.40M	-504.10M	-463.00M

Canfor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.00
• 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:CFP, the sentiment is Negative. The current price of 13 is below the 20-day moving average (MA) of 13.40, below the 50-day MA of 13.97, and below the 200-day MA of 15.36, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 41.74 is Neutral, neither overbought nor oversold. The STOCH value of 9.77 is Positive, 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
WFG	63 Neutral	C$7.97B	3,084.66	0.03%	1.75%	-4.04%	―
WEF	59 Neutral	C$126.70M	―	-1.51%	―	9.47%	85.29%
GFP	52 Neutral	C$92.90M	―	-16.05%	―	-23.94%	24.31%
Sector *	50 Neutral	$1.99B	-1.06	-21.34%	3.71%	2.03%	-30.65%
CFF	49 Neutral	C$13.86M	―	-24.89%	―	-7.32%	10.08%
CFP	49 Neutral	$1.54B	―	-18.19%	―	-2.51%	-157.38%
IFP	44 Neutral	$630.31M	―	-16.90%	―	-10.70%	10.74%

Canfor Corporate Events

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.

Canfor Corporation Schedules AGM and Q1 2025 Results Call

Canfor Corporation announced its Annual General Meeting scheduled for May 8, 2025, to be conducted virtually, allowing shareholders to participate and ask questions. Additionally, Canfor will hold a joint conference call with Canfor Pulp Products Inc. on May 9, 2025, to discuss their Q1 2025 financial and operating results, providing insights into the company’s performance and future outlook.

Canfor Corporation Schedules Annual Meeting and Q1 Results Call

Canfor Corporation has announced the timing of its Annual General Meeting and Q1 2025 Results Conference Call. The Annual General Meeting will be held virtually on May 8, 2025, and the joint analyst conference call with Canfor Pulp Products Inc. will take place on May 9, 2025. The announcement is significant for stakeholders as it provides an opportunity for shareholders and analysts to engage with the company’s management regarding its financial and operational performance.

Canfor Corporation Schedules Annual General Meeting and Q1 2025 Results Call

Canfor Corporation has announced its upcoming Annual General Meeting, which will be held virtually on May 8, 2025, followed by a joint analyst conference call with Canfor Pulp Products Inc. on May 9, 2025, to discuss Q1 2025 financial and operating results. These events are significant as they provide stakeholders with insights into the company’s performance and strategic direction, potentially impacting investor confidence and market positioning.

Canfor Renews Share Repurchase Program

Canfor Corporation has announced the renewal of its normal course issuer bid, allowing the company to repurchase up to 5% of its outstanding shares by March 2026. This strategic move is seen as an effective use of financial resources and aligns with the company’s interests, potentially impacting its market positioning and shareholder value positively.