Canfor (CFP) AI Stock Analysis

• Market Cap: $1.50B
• Dividend Yield: N/A
• Average Volume (3M): 109.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: -1.38%
• EPS Growth: -64.10%
• Country: CA
• Employees: 6,634
• Sector: Basic Materials
• Sector Strength: 55
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -0.56
• Shares Outstanding: 116,739,950
• 10 Day Avg. Volume: 122,855
• 30 Day Avg. Volume: 109,041
• 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: 1.71
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 2.48
• Enterprise Value/Ebitda: -7.79
• 1Y Price Target: $16.37
• Price Target Upside: 28.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 48 Neutral
• Price Target: C$12.50 ▼(-1.57% Downside)

Canfor's overall stock score is primarily impacted by its challenging financial performance and bearish technical indicators. While strategic acquisitions and a strong balance sheet are positives, significant profitability issues and weak market conditions weigh heavily on the score.

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 (CFP) is a leading integrated forest products company based in Canada, primarily engaged in the production of lumber, oriented strand board (OSB), and other wood products. The company operates in the forestry sector, with significant operations in Canada and the United States. Canfor's core products cater to the construction, renovation, and manufacturing industries, positioning it as a key player in the North American wood products market.

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 faces significant financial challenges, with declining revenues and profitability issues. The income statement shows negative EBIT and EBITDA, and the cash flow is negative, indicating operational inefficiencies. However, the balance sheet remains relatively stable with a manageable debt-to-equity ratio.

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	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: 12.70
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 12.7 is below the 20-day moving average (MA) of 13.46, below the 50-day MA of 13.96, and below the 200-day MA of 14.76, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 38.95 is Neutral, neither overbought nor oversold. The STOCH value of 22.75 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
WFG	52 Neutral	C$8.08B	3,150.31	-1.80%	1.75%	-8.31%	-191.58%
WEF	52 Neutral	C$131.66M	―	-3.84%	―	3.89%	49.05%
IFP	49 Neutral	$649.35M	―	-11.53%	―	-7.60%	50.15%
CFP	48 Neutral	$1.50B	―	-19.38%	―	-1.38%	-64.10%
GFP	44 Neutral	$67.81M	―	-13.50%	―	-23.09%	46.68%
CFF	44 Neutral	C$12.64M	―	-25.84%	―	-8.76%	16.86%
Sector *	43 Neutral	C$908.59M	-8.58	-0.02%	2.69%	23.40%	-43.40%

Canfor Corporate Events

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.

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.