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Greenfirst Forest Products Inc. (TSE:GFP)
:GFP
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GreenFirst Forest Products
(OTC:GFP)
41Neutral
GreenFirst Forest Products (GFP) vs. S&P 500 (SPY)
Market Cap
C$77.30M
Dividend YieldN/A
Average Volume (3M)2.60K
Price to Earnings (P/E)―
Beta (1Y)0.52
Revenue Growth-19.88%
EPS Growth2.50%
CountryCA
Employees750
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)-2.51
Shares Outstanding22,602,750
10 Day Avg. Volume1,312
30 Day Avg. Volume2,599
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.25
Price to Cash Flow (P/CF)7.50
P/FCF Ratio2.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
GreenFirst Forest Products Business Overview & Revenue Model
Company DescriptionGreenFirst Forest Products (GFP) is a Canadian company operating in the forest products sector, primarily focused on sustainable forestry and wood products manufacturing. The company specializes in producing lumber, paper, and other wood-based products, catering to various industries including construction, packaging, and paper goods. With a commitment to environmentally responsible practices, GreenFirst emphasizes sustainable forest management and innovation in its production processes.
How the Company Makes MoneyGreenFirst Forest Products makes money through the sale of its wood-based products, primarily lumber and paper. The company's revenue model is centered around harvesting timber from responsibly managed forests, processing it into various products, and distributing these goods to industrial and commercial customers. Key revenue streams include the construction industry, which demands high volumes of lumber, and the packaging and printing sectors, which utilize paper products. Additionally, GFP engages in partnerships and contracts with distributors and retailers to expand its market reach and enhance its sales channels. The company's focus on sustainability and efficient production processes also helps in optimizing costs and maintaining competitive pricing in the market.
GreenFirst Forest Products Financial Statement Overview
Summary
GreenFirst Forest Products is facing financial challenges with declining revenues and profitability impacting cash flows. While the balance sheet shows manageable leverage, negative cash flow and operating losses highlight significant risks. The company needs operational improvements and revenue growth to stabilize financially.Income Statement
The company has faced significant challenges in generating positive income metrics. Over the past year, revenues have declined by approximately 8.2%, and gross profit margins have turned negative, indicating cost pressures. Additionally, the net profit margin has deteriorated, with the company reporting a significant net loss, which reflects ongoing profitability issues.45
Neutral
Balance Sheet
The balance sheet shows a relatively stable equity position, with a debt-to-equity ratio of 0.14, suggesting manageable leverage levels. However, the return on equity has been negative due to operating losses, indicating inefficient use of equity capital. The equity ratio of 66.7% highlights a strong equity buffer.60
Neutral
Cash Flow
Cash flow metrics are concerning, with negative operating cash flow and a significant decline in free cash flow year-over-year. The operating cash flow to net income ratio is negative, underscoring issues in converting sales into cash. These trends point to liquidity challenges and insufficient cash generation from operations.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 282.04M | 409.62M | 446.26M | 190.48M | 0.00 | 0.00 | Gross Profit |
| 1.41M | -12.45M | 43.08M | 28.25M | 0.00 | 0.00 | EBIT |
| -17.88M | -47.59M | 16.20M | 5.10M | -2.66M | -1.26M | EBITDA |
| -3.56M | -30.89M | 29.80M | 264.00K | 0.00 | 0.00 | Net Income Common Stockholders |
| -26.10M | -47.02M | -4.13M | -9.62M | -2.28M | 703.20K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.85M | 2.42M | 25.35M | 36.17M | 5.40M | 13.25M | Total Assets |
| 13.47M | 277.94M | 371.50M | 415.94M | 17.31M | 13.29M | Total Debt |
| 0.00 | 25.63M | 57.70M | 125.19M | 3.70M | 0.00 | Net Debt |
| -1.85M | 23.20M | 32.35M | 89.02M | -1.58M | -12.91M | Total Liabilities |
| 174.10K | 92.71M | 147.04M | 186.78M | 5.14M | 176.17K | Stockholders Equity |
| 13.30M | 185.24M | 224.46M | 229.16M | 12.18M | 13.11M |
| Cash Flow | Free Cash Flow | ||||
| -35.30M | -82.21M | 24.26M | -2.16M | -13.12M | -1.31M | Operating Cash Flow |
| -22.38M | -58.03M | 57.86M | 3.94M | -1.60M | -1.31M | Investing Cash Flow |
| -12.91M | 67.36M | 15.06M | -251.65M | -10.87M | 12.37M | Financing Cash Flow |
| 40.16M | -32.26M | -83.75M | 278.61M | 4.84M | 0.00 |
GreenFirst Forest Products Technical Analysis
Negative
3.42
Price Trends
4.13
Negative
4.73
Negative
4.88
Negative
Market Momentum
-0.22
Negative
37.75
Neutral
82.64
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GFP, the sentiment is Negative. The current price of 3.42 is below the 20-day moving average (MA) of 3.55, below the 50-day MA of 4.13, and below the 200-day MA of 4.88, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 37.75 is Neutral, neither overbought nor oversold. The STOCH value of 82.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GFP.
GreenFirst Forest Products Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | C$301.56M | 13.67 | 6.61% | 6.83% | 24.29% | -27.59% | |
60 Neutral | $8.19B | ― | 0.03% | 1.77% | -4.04% | ― | |
51 Neutral | $1.59B | ― | -18.83% | ― | -3.20% | -107.88% | |
49 Neutral | $1.96B | -1.42 | -21.96% | 3.81% | 0.71% | -27.38% | |
48 Neutral | $699.26M | ― | -18.73% | ― | -8.81% | -13.99% | |
44 Neutral | C$14.68M | ― | -29.58% | ― | -9.51% | 3.97% | |
41 Neutral | C$77.30M | ― | -23.75% | ― | -19.88% | 2.50% |
* Basic Materials Sector Average
Performance Comparison
TSE:GFP
GreenFirst Forest Products
3.42
-3.59
-51.23%
TSE:IFP
Interfor
13.59
-4.27
-23.91%
TSE:WFG
West Fraser Timber Co
100.77
-5.46
-5.14%
TSE:CFP
Canfor
12.78
-1.43
-10.06%
TSE:CFF
Conifex Timber
0.34
-0.34
-50.00%
TSE:ADN
Acadian Timber
16.99
0.94
5.86%
GreenFirst Forest Products Earnings Call Summary
Earnings Call Date: Mar 14, 2025 | % Change Since: -23.06% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a strong improvement in cash generation, debt position, and operational efficiency, with a notable increase in lumber prices. However, these positives were countered by a significant net loss, potential challenges from US tariffs, and a decrease in sales volume. The company has paused some strategic plans to better understand the tariff impacts, reflecting cautious optimism amid uncertainties.Highlights
Significant Cash Generation
Generated approximately $55 million in cash during Q4 2024 through a rights offering and asset sales.
Improved Debt Position
Significantly improved debt position with no drawdown on the ABL and $27 million in cash on the balance sheet by the end of Q4 2024.
EBITDA Improvement
Adjusted EBITDA improved from a loss of $4.9 million in Q3 2024 to a loss of $900,000 in Q4 2024.
Cost Reduction Achievements
Reduced cost of goods sold by $15 per thousand FDM and SG&A by $12 per thousand, with further savings expected in 2025.
Increase in Lumber Prices
Lumber futures rose to $680 per thousand, with significant price increases in Q4 compared to Q3.
Operational Efficiency
Achieved the lowest manufacturing cost in the company's history in Q2 2024 and surpassed 30 production records in 2024.
Positive Year-over-Year EBITDA Improvement
Reported a positive year-over-year EBITDA improvement of $38 million and net income improvement of $18 million versus 2023.
Improved Cash Flow Management
Improved liquidity with a year-over-year cash flow improvement of over $50 million.
Lowlights
Net Loss from Continuing Operations
Reported a net loss from continuing operations of $26.6 million in Q4 2024.
Impact of US Tariffs
Potential impact of the US tariff on cash flow and net income, leading to a pause in selected aspects of the strategic plan.
Decrease in Lumber Sales Volume
Volume of lumber sold down 12% due to weather-related conditions impacting the supply chain.
Negative Impact from Byproduct Sales
Sale of byproducts had a negative impact of $11 million for the year, driven by challenges in finding homes for chips.
Deferred Tax Expense
Incurred a deferred tax expense of $4 million due to adjustments related to the defined pension plan.
Challenges with US Tariffs
Concerns over the potential impact of new tariffs on cash flow, net income, and demand due to higher prices.
Company Guidance
In the GreenFirst Fourth Quarter and Year-End 2024 Earnings Conference Call, the company reported a net loss of $26.6 million from continuing operations in Q4 2024, with an adjusted EBITDA of negative $900,000 on total revenues of $70 million. Despite these losses, GreenFirst significantly improved its financial position by generating approximately $55 million in cash, including $25 million from a rights offering and selling assets worth $29 million. The company reduced its SG&A to $29 per thousand board feet and improved its production to $103 million FDM. Lumber prices increased from $606 to $680 per thousand board feet during Q4, and the company achieved a positive year-over-year EBITDA improvement of $38 million. GreenFirst plans to pause selected projects to assess potential impacts of US tariffs but remains committed to its strategic growth plans.GreenFirst Forest Products Corporate Events
Business Operations and StrategyFinancial Disclosures
GreenFirst Forest Products Reports Q4 2024 Financial Results Amid Strategic Restructuring
Negative
Mar 14, 2025
GreenFirst Forest Products reported a net loss of $26.6 million in Q4 2024, a significant decline from the previous quarter’s net income. Despite an increase in average lumber prices, the company faced challenges such as weather-related supply chain disruptions and potential tariffs on exports to the US. Strategic actions like the consolidation of shares, the spin-out of Kap Corporation, and a rights offering have improved liquidity and positioned the company for future growth.
Financial Disclosures
GreenFirst Forest Products to Discuss Fiscal 2024 Earnings
Neutral
Mar 12, 2025
GreenFirst Forest Products announced it will host a conference call on March 17, 2025, to discuss its fourth quarter and fiscal 2024 financial results, which will be released on March 14, 2025. This event is significant for stakeholders as it provides insights into the company’s financial performance and strategic positioning within the sustainable forestry and lumber production industry.
Business Operations and StrategyRegulatory Filings and Compliance
GreenFirst Forest Products Responds to U.S. Lumber Tariffs
Negative
Mar 5, 2025
GreenFirst Forest Products has expressed deep concern over the U.S. government’s decision to impose a 25% tariff on Canadian softwood lumber, a move that threatens the stability of the Ontario forestry sector. The tariff is expected to increase lumber prices, affecting the U.S. housing market by making homeownership more expensive. GreenFirst is working with government bodies to address the issue and has paused certain capital expenditures to maintain financial resilience. The company remains committed to its long-term vision and operational excellence while urging governmental support for the industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.