Interfor (IFP) AI Stock Analysis

• Market Cap: $404.43M
• Dividend Yield: N/A
• Average Volume (3M): 513.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: -3.63%
• EPS Growth: 31.61%
• Country: CA
• Employees: 4,419
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -3.01
• Shares Outstanding: 51,453,735
• 10 Day Avg. Volume: 356,202
• 30 Day Avg. Volume: 513,268
• PEG Ratio: -0.20
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 12.30
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $11.82
• Price Target Upside: 45.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: C$8.00 ▼(-1.84% Downside)

Interfor's overall stock score reflects significant financial and operational challenges, with declining revenues and profitability being the most impactful factors. Technical indicators suggest a bearish trend, and valuation metrics are unattractive due to negative earnings. The earnings call further highlighted strategic challenges, contributing to a low overall score.

Positive Factors

Financial Flexibility

The equity raise enhances financial flexibility, providing Interfor with the liquidity needed to navigate market challenges and invest in strategic opportunities.

Cost Discipline

Maintaining top quartile EBITDA margins through cost discipline positions Interfor to sustain profitability and competitiveness even in challenging market conditions.

Market Adaptation

Proactive market adaptation ensures Interfor can adjust operations efficiently, mitigating risks from market volatility and enhancing long-term resilience.

Negative Factors

Revenue Decline

Declining revenues and negative profit margins highlight operational challenges, necessitating strategic adjustments to restore growth and profitability.

Increased U.S. Duties

Higher U.S. duties significantly impact Interfor's cost structure and competitiveness in a key market, potentially reducing margins and market share.

Cash Flow Pressure

Declining free cash flow growth limits Interfor's ability to invest in growth initiatives and manage debt, affecting long-term financial stability.

Interfor Business Overview & Revenue Model

Company Description

Interfor Corporation, together with its subsidiaries, produces and sells wood products in Canada, the United States, Japan, China, Taiwan, and internationally. The company offers lumber products for decking, fascia and trims, framings, furniture, industrial packaging, Japan Zairai, millworks, paneling, sidings, trusses, and windows and doors. It also provides logs, wood chips, and other residuals. The company was formerly known as International Forest Products Limited and changed its name to Interfor Corporation in May 2014. Interfor Corporation was incorporated in 1963 and is headquartered in Burnaby, Canada.

How the Company Makes Money

Interfor generates revenue primarily through the production and sale of lumber and related wood products. The company's main revenue streams include the sale of dimensional lumber to wholesalers, retailers, and construction companies, as well as specialty products that cater to specific market needs. Interfor benefits from economies of scale, operating multiple sawmills to maximize production efficiency and reduce costs. Additionally, the company engages in exporting its products to international markets, which further diversifies its revenue sources. Significant partnerships with suppliers and distributors enhance its market reach and contribute to its earnings. Factors such as timber prices, housing market dynamics, and construction industry trends also play a crucial role in influencing Interfor's revenue performance.

Interfor Financial Statement Overview

Summary

Interfor faces challenges with declining profitability and increasing leverage, as seen in the income statement and balance sheet. However, the cash flow statement provides a glimmer of hope with positive free cash flow growth, suggesting potential for financial recovery. Strategic focus on improving profitability and managing debt levels will be crucial for future stability and growth.

Income Statement

Interfor's income statement reveals a challenging period with declining revenues and profitability. The TTM data shows a significant revenue growth of 31.6%, but this is overshadowed by negative profit margins, with a net profit margin of -9.05% and an EBIT margin of -7.87%. The company has struggled to maintain profitability, as evidenced by the negative net income and EBIT figures. Historical data indicates a downward trend in revenue growth and profitability since 2021, highlighting the need for strategic improvements.

Balance Sheet

The balance sheet shows moderate financial stability. The debt-to-equity ratio has increased to 0.63 in the TTM period, indicating a rise in leverage, though it remains manageable. The return on equity is negative at -17.32%, reflecting the company's recent losses. However, the equity ratio remains healthy, suggesting a solid asset base. Overall, while the balance sheet is stable, the increasing leverage and negative ROE are concerns.

Cash Flow

Cash flow analysis shows some positive trends, with a significant free cash flow growth of 65.36% in the TTM period. The operating cash flow to net income ratio is 0.42, indicating that operating cash flow covers a portion of the net losses. The free cash flow to net income ratio is 0.52, suggesting that despite losses, the company generates positive free cash flow. This indicates potential for recovery if profitability improves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.95B	3.02B	3.32B	4.58B	3.29B	2.18B
Gross Profit	258.60M	112.20M	156.80M	1.20B	1.34B	600.58M
EBITDA	-51.00M	-62.00M	-72.50M	1.03B	1.23B	504.94M
Net Income	-289.70M	-304.30M	-266.80M	598.20M	819.01M	280.30M
Balance Sheet
Total Assets	2.91B	3.08B	3.40B	3.62B	2.60B	1.84B
Cash, Cash Equivalents and Short-Term Investments	20.40M	43.40M	55.00M	77.61M	538.56M	457.39M
Total Debt	958.10M	950.80M	938.00M	833.22M	414.76M	422.25M
Total Liabilities	1.66B	1.55B	1.67B	1.59B	967.54M	762.88M
Stockholders Equity	1.25B	1.53B	1.73B	2.03B	1.64B	1.08B
Cash Flow
Free Cash Flow	32.90M	70.20M	-79.60M	426.91M	875.61M	359.63M
Operating Cash Flow	120.20M	144.30M	119.80M	732.36M	1.05B	526.78M
Investing Cash Flow	-55.40M	-9.90M	-189.80M	-1.24B	-656.49M	-162.62M
Financing Cash Flow	-77.80M	-149.50M	49.70M	31.06M	-316.25M	86.60M

Interfor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.15
• 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:IFP, the sentiment is Negative. The current price of 8.15 is above the 20-day moving average (MA) of 8.08, below the 50-day MA of 8.23, and below the 200-day MA of 12.07, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.30 is Neutral, neither overbought nor oversold. The STOCH value of 35.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:IFP.

Interfor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADN	69 Neutral	C$256.93M	16.89	4.46%	7.20%	-28.86%	-48.20%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CFP	53 Neutral	$1.30B	―	-15.06%	―	1.76%	34.61%
WFG	48 Neutral	$6.82B	-20.03	-3.61%	2.18%	-6.67%	-168.27%
WEF	47 Neutral	C$122.05M	-5.65	-12.20%	―	2.06%	-46.23%
IFP	46 Neutral	$404.43M	―	-20.72%	―	-3.63%	31.61%
GFP	45 Neutral	$52.21M	-1.69	-73.85%	―	-17.95%	-97.06%

Interfor Corporate Events

Interfor Faces Financial Challenges Amid Weak Lumber Market

Interfor Corporation reported a significant financial downturn in Q3 2025, with an adjusted EBITDA loss of $184 million and a net loss of $216 million, largely impacted by non-cash duty items and weak lumber market conditions. The company has implemented production curtailments to address ongoing market challenges, while also maintaining a stable financial position through strategic financial maneuvers, including a bought deal equity offering and the monetization of certain assets.

Interfor Announces Further Lumber Production Cuts Amid Weak Market Conditions

Interfor Corporation has announced further temporary reductions in lumber production for the fourth quarter of 2025 due to weak market conditions and economic uncertainty. The curtailments, affecting operations in British Columbia, Ontario, the US Pacific Northwest, and the US South, will reduce production by approximately 250 million board feet, or 26%, compared to the second quarter of 2025. This decision reflects Interfor’s strategy to align production with market demand, acknowledging the impact on employees, contractors, suppliers, and communities.

Interfor to Release Q3 Financial Results and Host Analyst Call

Interfor Corporation will release its third-quarter financial results on November 6, 2025, followed by an analyst conference call on November 7, 2025. This announcement is crucial for stakeholders as it provides insights into the company’s financial performance and strategic positioning in the forest products industry.

Interfor Closes $144 Million Bought Deal Offering

Interfor Corporation has successfully closed a $144 million bought deal offering of common shares, including the full exercise of the over-allotment option. The proceeds from this offering will be used to pay down existing debt and for general corporate purposes, potentially strengthening the company’s financial position and operational flexibility.

Interfor Launches $125 Million Share Offering to Bolster Financial Flexibility

Interfor Corporation has announced a $125 million bought deal offering of common shares, led by RBC Capital Markets and Scotiabank. The proceeds from this offering are intended to reduce existing debt and support general corporate purposes, providing the company with increased flexibility amidst current market challenges, including a significant decline in lumber prices and increased U.S. softwood lumber duties.