Canfor Pulp Products (CFX) AI Stock Analysis

• Market Cap: C$44.36M
• Dividend Yield: N/A
• Average Volume (3M): 21.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: -9.60%
• EPS Growth: -92.59%
• Country: CA
• Employees: 799
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -0.10
• Shares Outstanding: 65,233,560
• 10 Day Avg. Volume: 23,425
• 30 Day Avg. Volume: 21,102
• PEG Ratio: -0.06
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.59
• 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$0.82
• Price Target Upside: 20.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• Price Target: C$0.50 ▼(-26.47%Downside)

The overall stock score of 48 reflects significant financial difficulties, with declining revenues and profitability. While technical analysis and valuation present challenges, recent corporate events show some positive operational trends and strong shareholder support, offering a glimmer of stability. However, these positives are overshadowed by fundamental financial weaknesses.

Canfor Pulp Products Business Overview & Revenue Model

Company Description

Canfor Pulp Products Inc., together with its subsidiaries, engages in the production and supply of pulp and paper products in Canada, Europe, Asia, the United States, and internationally. It operates in two segments, Pulp and Paper. The company offers bleached and unbleached softwood kraft pulps; and bleached, unbleached, and coloured kraft papers. It also produces green energy. The company is headquartered in Vancouver, Canada. Canfor Pulp Products Inc. is a subsidiary of Canadian Forest Products Ltd.

How the Company Makes Money

Canfor Pulp Products generates revenue primarily through the manufacturing and sale of Northern Bleached Softwood Kraft (NBSK) pulp, which is utilized in the production of a variety of paper products, including tissues, printing and writing paper, and specialty products. The company also earns income from the sale of paper products and green energy, which is produced as a by-product of the pulp-making process. Key revenue streams include long-term contracts with major paper manufacturers and spot market sales. The company's earnings are influenced by global pulp prices, operational efficiencies, and strategic partnerships, particularly in the Asian market, which is a significant consumer of its products.

Canfor Pulp Products Financial Statement Overview

Summary

Canfor Pulp Products faces significant financial challenges with declining revenue and negative profitability margins. However, the balance sheet shows a stable debt profile, and cash flow indicators are relatively strong with positive operating cash flow and improving free cash flow.

Income Statement

The income statement shows a concerning trajectory with declining revenues and worsening profitability. The TTM (Trailing-Twelve-Months) gross profit margin is 23.57%, but net profit margins are negative, indicating losses. EBIT and EBITDA margins are also negative, reflecting operational challenges. The revenue growth rate is negative, emphasizing this downward trend.

Balance Sheet

While the balance sheet indicates some stability with a debt-to-equity ratio of 0.42, which is manageable, the equity ratio has declined to 41.56%, signaling decreased financial strength. Return on equity is negative, reflecting ongoing profitability issues. Despite these weaknesses, the company maintains a moderate level of debt compared to its equity.

Cash Flow

The cash flow statement presents a mixed picture. Operating cash flow remains positive, providing a buffer despite the company's net losses. The free cash flow growth rate is substantial at 142.11%, indicating improved cash management. Additionally, the operating cash flow to net income ratio is positive, suggesting efficient cash conversion despite profitability challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	798.60M	875.50M	1.09B	1.14B	990.50M
Gross Profit	165.00M	101.00M	218.80M	282.80M	186.00M
EBITDA	-148.40M	-34.90M	-4.90M	29.60M	55.20M
Net Income	-161.90M	-96.10M	-79.10M	-44.40M	-22.40M
Balance Sheet
Total Assets	452.90M	675.80M	756.00M	841.70M	920.80M
Cash, Cash Equivalents and Short-Term Investments	15.30M	21.10M	14.70M	73.30M	6.80M
Total Debt	99.90M	109.20M	67.80M	52.90M	52.50M
Total Liabilities	276.90M	338.70M	328.60M	346.70M	388.30M
Stockholders Equity	176.00M	337.10M	427.40M	495.00M	532.50M
Cash Flow
Free Cash Flow	7.60M	-24.20M	-67.30M	70.20M	22.70M
Operating Cash Flow	58.40M	36.30M	45.30M	148.90M	96.00M
Investing Cash Flow	-41.90M	-59.80M	-112.20M	-78.10M	-72.80M
Financing Cash Flow	-22.30M	29.90M	8.30M	-4.30M	-22.40M

Canfor Pulp Products Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.68
• 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:CFX, the sentiment is Negative. The current price of 0.68 is below the 20-day moving average (MA) of 0.69, below the 50-day MA of 0.71, and below the 200-day MA of 0.78, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.51 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CFX.

Canfor Pulp Products Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADN	75 Outperform	C$326.64M	16.46	5.85%	8.15%	12.30%	-36.60%
Sector *	71 Outperform	¥178.15B	10.68	6.29%	3.19%	3.83%	1.90%
WEF	56 Neutral	C$144.12M	―	-1.51%	―	9.47%	85.30%
CFX	48 Neutral	C$44.36M	―	-59.20%	―	-9.60%	-92.59%
WFG	―	$5.61B	6,251.67	-1.80%	1.84%	―	―
IFSPF	―	$474.00M	―	-16.90%	―	―	―
CFPZF	―	$1.17B	―	-18.19%	―	―	―

Canfor Pulp Products Corporate Events

Canfor Pulp Announces AGM Voting Results, Reaffirms Leadership

Canfor Pulp Products Inc. announced the voting results from its Annual General Meeting, where shareholders voted in favor of all business items, including the election of director nominees. The meeting saw 79.34% of outstanding shares voted, reflecting strong shareholder engagement and support for the company’s leadership. This outcome reinforces the company’s stable governance and could positively impact its strategic direction and stakeholder confidence.

The most recent analyst rating on (TSE:CFX) stock is a Hold with a C$1.25 price target. To see the full list of analyst forecasts on Canfor Pulp Products stock, see the TSE:CFX Stock Forecast page.

Canfor Pulp Products Reports Positive Q1 2025 Amid Market Uncertainties

Canfor Pulp Products Inc. reported a positive first quarter in 2025 with an operating income of $11 million and a net income of $6 million. The company experienced a 6% increase in pulp production due to improved operational reliability. Despite some positive momentum in market conditions early in the quarter, global economic and trade uncertainties affected the pulp market later on. The company remains focused on enhancing operational reliability and managing costs amidst anticipated subdued global softwood pulp markets.