Interfor (IFP) AI Stock Analysis

• Market Cap: C$530.49M
• Dividend Yield: N/A
• Average Volume (3M): 513.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$12.01
• Price Target Upside: 17.82% 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$10.00 ▼(-1.86% 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

Product and Operational Diversification

Interfor's mix of dimensional lumber, engineered and treated products across sawmills and remanufacturing provides durable revenue diversification. Value‑added products typically command better margins and reduce exposure to commodity lumber cycles, supporting more stable long-term earnings.

Scale and Geographic Revenue Diversification

Multiple mill footprints and export channels create economies of scale and broaden demand sources. Geographic diversification lowers dependence on any single housing market cycle, improving resilience to regional construction slowdowns and enabling steadier utilization and margin retention over time.

Strengthened Liquidity and Financial Flexibility

The $144M equity raise materially bolstered liquidity and reduced near-term solvency risk, lowering net leverage to 35.2% of invested capital. Stronger liquidity supports disciplined capital allocation, weathering cyclical downturns, and funding operational adjustments without excessive debt reliance.

Negative Factors

Revenue Decline and Negative Margins

Sustained revenue contraction with negative margins signals structural demand or pricing issues and operational inefficiencies. Persistent losses erode equity and limit reinvestment capacity, making it harder to restore competitive positioning or fund margin-enhancing initiatives over the medium term.

Material Free Cash Flow Weakness

A 71% fall in free cash flow materially reduces the company's ability to self-fund capital expenditures, service obligations, or return capital. Weak FCF constrains strategic investments and increases reliance on external financing, heightening vulnerability during prolonged cyclical downturns.

Increased U.S. Duties on Canadian Lumber

A regulatory jump to >35% duties is a structural headwind that raises landed costs and erodes competitiveness in the U.S. market for a meaningful share of shipments. This reduces long-term margin potential and may force enduring shifts in sourcing, pricing, or market allocation strategies.

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: Positive
• Last Price: 10.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 10.19 is above the 20-day moving average (MA) of 8.77, above the 50-day MA of 8.30, and below the 200-day MA of 11.35, indicating a neutral trend. The MACD of 0.41 indicates Negative momentum. The RSI at 73.86 is Negative, neither overbought nor oversold. The STOCH value of 87.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$299.90M	19.71	4.46%	7.35%	-28.86%	-48.20%
GDL	62 Neutral	C$99.98M	15.80	3.12%	5.01%	3.81%	-50.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
WFG	48 Neutral	C$7.59B	-22.58	-3.61%	2.21%	-6.67%	-168.27%
CFP	48 Neutral	C$1.63B	-3.59	-15.06%	―	1.76%	34.61%
WEF	47 Neutral	C$144.12M	-2.30	-12.20%	―	2.06%	-46.23%
IFP	46 Neutral	C$530.49M	-1.81	-20.72%	―	-3.63%	31.61%

Interfor Corporate Events

Interfor Sets February Dates to Unveil Q4 and Fiscal 2025 Results

Interfor Corporation has announced it will release its fourth quarter and full-year 2025 financial results on February 12, 2026, followed by an analyst conference call on February 13, 2026 at 8:00 a.m. Pacific Time. The call will include a summary of the company’s financial performance by management and a Q&A session with analysts, and both live and recorded access will be provided, underscoring Interfor’s ongoing efforts to maintain transparency and engagement with the investment community as it navigates market conditions in the forest products sector.

The most recent analyst rating on (TSE:IFP) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Interfor stock, see the TSE:IFP Stock Forecast page.

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.

The most recent analyst rating on (TSE:IFP) stock is a Hold with a C$8.00 price target. To see the full list of analyst forecasts on Interfor stock, see the TSE:IFP Stock Forecast page.

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.

The most recent analyst rating on (TSE:IFP) stock is a Hold with a C$17.00 price target. To see the full list of analyst forecasts on Interfor stock, see the TSE:IFP Stock Forecast page.