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Interfor (OTC) (TSE:IFP)
:IFP
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Interfor (IFP) AI Stock Analysis

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TSE:IFP

Interfor

(OTC:IFP)

Rating:57Neutral
Price Target:
C$13.50
▲(1.89% Upside)
Interfor's overall stock score reflects significant challenges in financial performance and valuation, offset by positive technical indicators and a cautiously optimistic earnings call. The company's strong liquidity and operational improvements provide some stability amidst market uncertainties.
Positive Factors
Financial Strategy
Income tax refunds, ongoing monetization of BC forest tenures, and lower capex should help lower financial leverage.
Market Potential
Interfor has significant torque to upswing in lumber prices.
Valuation
Valuation appears attractive at current levels — trading at 4.1x our mid-cycle EBITDA and 0.6x book value.
Negative Factors
Financial Performance
Adjusted 2Q EBITDA loss of C$16.7mm indicates financial struggles.
Industry Challenges
2024 is proving to be a challenging year for lumber producers with slowing housing demand and abundant supply as key issues.
Market Conditions
Lumber prices are depressed and most producers are below cash costs, though supply curtailments are expected to help improve the balance.

Interfor (IFP) vs. iShares MSCI Canada ETF (EWC)

Interfor Business Overview & Revenue Model

Company DescriptionInterfor 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 MoneyInterfor generates revenue primarily through the sale of lumber and engineered wood products, which are sold to various sectors including residential, commercial, and industrial markets. The company capitalizes on fluctuations in lumber prices and demand, which can significantly impact its earnings. Key revenue streams include sales from its sawmills, value-added products, and exports to international markets. Interfor also benefits from strategic partnerships with suppliers and distributors, enhancing its market reach and efficiency. Additionally, the company's focus on sustainable forestry practices and operational efficiency helps to reduce costs and improve profit margins, contributing to its overall financial performance.

Interfor Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
Interfor faced a challenging quarter with a decline in lumber prices and market uncertainty due to aggressive U.S. trade policies. However, the company managed to maintain positive EBITDA, improve production and shipment volumes, and secure a strong financial position with significant liquidity and operational efficiency gains. The outlook remains mixed with ongoing trade and demand challenges, but the company's diversified operations position it to navigate these uncertainties.
Q2-2025 Updates
Positive Updates
Positive EBITDA and Improved Production
Interfor generated positive adjusted EBITDA of $17 million in Q2, with a 4% improvement in production and increased shipment volumes compared to Q1.
Revenue and Shipment Growth
Total revenue increased by 6% quarter-over-quarter with a 13% increase in the volume of lumber shipped.
Strong Financial Position
Interfor has available liquidity of over $330 million, with improved financial leverage, and a flexible credit facility to navigate market volatility.
Operational Efficiency
Cost reductions and operational improvements led to a 3% decrease in production cost per unit of lumber quarter-over-quarter.
Negative Updates
Decline in Lumber Prices
The average realized lumber price dropped by 4% quarter-over-quarter, contributing to the decline in EBITDA.
Trade and Market Uncertainty
Aggressive U.S. trade policy and geopolitical events contribute to uncertainty, affecting demand and leading to a conservative outlook for 2025.
Duty and Tariff Impacts
Higher duty rates on Canadian lumber shipments to the U.S. and the threat of tariffs contribute to market volatility and demand weakness.
Company Guidance
During the Interfor Analyst Conference Call, Ian M. Fillinger provided guidance indicating a cautious yet strategically prepared outlook for 2025. The company reported a second-quarter adjusted EBITDA of $17 million, down from the previous quarter, with total revenue at $781 million. Despite a decline in lumber prices and a weaker U.S. dollar, shipment volumes increased by 13%, and production improved by 4% quarter-over-quarter. Net income was $11 million, bolstered by an unrealized foreign exchange gain of $19 million, while operating cash flow generated was $85 million, largely due to a $61 million reduction in working capital. Interfor's financial leverage improved to under 36% net debt to invested capital, supported by available liquidity exceeding $330 million. The company remains focused on improving efficiencies, costs, and margins across its operations, with 60% of its asset base in the U.S. and 75% of total production not subject to U.S. duties. Despite market volatility and geopolitical trade uncertainties, Interfor is positioned to navigate these challenges with its diversified and high-quality operations.

Interfor Financial Statement Overview

Summary
Interfor is facing significant financial challenges with declining revenues, negative profitability, and pressured cash flows. While the balance sheet suggests manageable debt, the overall financial health is weakened by consistent operating losses and reduced equity, posing risks to long-term stability.
Income Statement
35
Negative
Interfor's TTM financial performance shows significant challenges, with negative EBIT and net income indicating poor operational efficiency and profitability. Revenue has seen a downward trend from previous years, and margins are under pressure. The industry downturn is reflected in the weak gross profit margin and negative net profit margin.
Balance Sheet
55
Neutral
Interfor's balance sheet shows moderate financial leverage with a debt-to-equity ratio suggesting manageable debt levels. However, the declining equity ratio indicates reduced asset backing, potentially increasing financial risk. The company's equity has decreased over the years, reflecting the impact of consistent losses.
Cash Flow
45
Neutral
The cash flow statement reveals decreasing free cash flow growth, though operating cash flow remains positive, indicating some ability to generate cash from operations. However, the overall decline in free cash flow reflects the financial strain and capital expenditure commitments.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.96B3.02B3.32B4.58B3.29B2.18B
Gross Profit257.00M112.20M156.80M1.20B1.34B600.58M
EBITDA62.70M-62.00M-71.40M1.03B1.23B504.94M
Net Income-179.60M-304.30M-266.80M598.20M819.01M280.30M
Balance Sheet
Total Assets2.89B3.08B3.40B3.62B2.60B1.84B
Cash, Cash Equivalents and Short-Term Investments16.30M43.40M55.00M77.61M538.56M457.39M
Total Debt855.70M950.80M938.00M833.22M414.76M422.25M
Total Liabilities1.45B1.55B1.67B1.59B967.54M762.88M
Stockholders Equity1.45B1.53B1.73B2.03B1.64B1.08B
Cash Flow
Free Cash Flow113.60M70.20M-79.60M426.91M875.61M359.63M
Operating Cash Flow184.60M144.30M119.80M732.36M1.05B526.78M
Investing Cash Flow-28.60M-9.90M-189.80M-1.24B-656.49M-162.62M
Financing Cash Flow-233.50M-149.50M49.70M31.06M-316.25M86.60M

Interfor Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13.25
Price Trends
50DMA
12.89
Positive
100DMA
13.07
Positive
200DMA
14.99
Negative
Market Momentum
MACD
0.01
Negative
RSI
56.53
Neutral
STOCH
46.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IFP, the sentiment is Positive. The current price of 13.25 is above the 20-day moving average (MA) of 12.84, above the 50-day MA of 12.89, and below the 200-day MA of 14.99, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 56.53 is Neutral, neither overbought nor oversold. The STOCH value of 46.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:IFP.

Interfor Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$10.36B6.350.76%2.84%3.10%-36.03%
57
Neutral
C$681.76M-11.53%-7.60%50.15%
$46.57M-13.50%
$5.93B6,251.67-1.80%1.71%
60
Neutral
C$319.87M22.154.24%8.38%-26.79%-57.05%
48
Neutral
C$130.39M-3.84%3.89%49.05%
$1.15B-19.38%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:IFP
Interfor
13.25
-3.50
-20.90%
ICLTF
GreenFirst Forest Products
2.03
-0.70
-25.64%
WFG
West Fraser Timber Co
75.05
-11.26
-13.05%
TSE:ADN
Acadian Timber
17.65
1.59
9.90%
TSE:WEF
Western Forest Prod
12.35
-0.40
-3.14%
CFPZF
Canfor
9.85
-0.51
-4.92%

Interfor Corporate Events

Business Operations and StrategyFinancial Disclosures
Interfor Corporation Reports Q2 2025 Financial Turnaround Amid Market Challenges
Neutral
Aug 7, 2025

Interfor Corporation reported a significant turnaround in its financial performance for Q2 2025, with net earnings of $11.1 million compared to losses in previous quarters. The company achieved a reduction in inventory and improved its financial position through positive operating cash flow and the extension of its revolving term line. However, challenges remain with volatile lumber pricing and the imposition of anti-dumping duties by the U.S. Department of Commerce, which are expected to impact future financial results.

The most recent analyst rating on (TSE:IFP) stock is a Hold with a C$19.00 price target. To see the full list of analyst forecasts on Interfor stock, see the TSE:IFP Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Interfor Enhances Financial Flexibility with Credit Facility Renewal
Positive
Jul 28, 2025

Interfor Corporation has successfully renewed and extended its revolving credit facility with major Canadian and U.S. banks, maintaining a commitment amount of approximately C$560 million and extending the maturity to July 2029. This renewal, along with enhanced financial flexibility provisions, positions Interfor to pursue its strategic goals and manage potential market volatility. Additionally, the company renewed its private shelf note purchase agreement with PGIM Inc., allowing it to issue up to US$550 million of senior secured notes, further supporting its financial strategy.

The most recent analyst rating on (TSE:IFP) stock is a Hold with a C$19.00 price target. To see the full list of analyst forecasts on Interfor stock, see the TSE:IFP Stock Forecast page.

Financial Disclosures
Interfor to Release Q2 Financial Results in August
Neutral
Jul 7, 2025

Interfor Corporation is set to release its second quarter financial results on August 7, 2025, with an analyst conference call scheduled for the following day. This announcement is significant for stakeholders as it provides insights into the company’s financial health and market positioning, potentially impacting investor decisions and industry perceptions.

The most recent analyst rating on (TSE:IFP) stock is a Hold with a C$18.00 price target. To see the full list of analyst forecasts on Interfor stock, see the TSE:IFP Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Sep 07, 2025