Interfor (IFP) AI Stock Analysis

• Market Cap: $645.23M
• Dividend Yield: N/A
• Average Volume (3M): 185.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: -10.70%
• EPS Growth: 10.74%
• Country: CA
• Employees: 4,419
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): <0.01
• Shares Outstanding: 51,453,735
• 10 Day Avg. Volume: 175,552
• 30 Day Avg. Volume: 185,729
• PEG Ratio: -0.12
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.70
• 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: $20.40
• Price Target Upside: 54.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 46 Neutral
• Price Target: C$13.00 ▼(-1.37%Downside)

Interfor's overall stock score is driven primarily by its weak financial performance and valuation. Despite a positive EBITDA and strong liquidity, the company's negative profitability, increased production costs, and market volatility pose significant risks. Technical analysis and valuation metrics further support a cautious outlook.

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 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 makes money primarily through the production and sale of lumber and wood products. Its revenue model is based on harvesting timber from company-owned or managed forests and processing it in their sawmills to produce finished lumber products. These products are then sold to a wide range of customers, including wholesalers, retailers, and industrial end-users, both domestically and internationally. Interfor's earnings are influenced by factors such as lumber prices, operational efficiency, and market demand. The company also engages in strategic partnerships and investments to enhance its market reach and operational capabilities, contributing to its overall financial performance.

Interfor Financial Statement Overview

Summary

Interfor is facing significant financial challenges across all fronts, 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

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

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

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.

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	136.20M	112.20M	156.80M	1.20B	1.34B	600.58M
EBITDA	-27.20M	-74.80M	-71.40M	1.03B	1.23B	504.94M
Net Income	-266.50M	-304.30M	-266.80M	598.20M	819.01M	280.30M
Balance Sheet
Total Assets	3.04B	3.08B	3.40B	3.62B	2.60B	1.84B
Cash, Cash Equivalents and Short-Term Investments	15.60M	43.40M	55.00M	77.61M	538.56M	457.39M
Total Debt	946.00M	950.80M	938.00M	833.22M	414.76M	422.25M
Total Liabilities	1.55B	1.55B	1.67B	1.59B	967.54M	762.88M
Stockholders Equity	1.49B	1.53B	1.73B	2.03B	1.64B	1.08B
Cash Flow
Free Cash Flow	68.70M	70.20M	-79.60M	426.91M	875.61M	359.63M
Operating Cash Flow	132.50M	144.30M	119.80M	732.36M	1.05B	526.78M
Investing Cash Flow	-10.20M	-9.90M	-189.80M	-1.24B	-656.49M	-162.62M
Financing Cash Flow	-207.70M	-149.50M	49.70M	31.06M	-316.25M	86.60M

Interfor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.18
• 50DMA: Positive
• 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 Positive. The current price of 13.18 is above the 20-day moving average (MA) of 12.97, above the 50-day MA of 13.17, and below the 200-day MA of 16.56, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 53.19 is Neutral, neither overbought nor oversold. The STOCH value of 30.53 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IFP	46 Neutral	$645.23M	―	-16.90%	―	-10.70%	10.74%
Sector *	43 Neutral	AU$1.40B	-6.18	-40.62%	4.19%	-4.78%	-42.91%
ICLTF		$61.10M	―	-16.05%	―	―	―
WFG		$6.13B	6,445.00	0.03%	1.65%	―	―
ADN	75 Outperform	C$318.37M	16.05	5.85%	6.52%	12.30%	-36.60%
WEF	52 Neutral	C$126.70M	―	-1.51%	―	9.47%	85.29%
CFPZF		$1.22B	―	-18.19%	―	―	―

Interfor Corporate Events

Interfor Announces AGM Voting Results and Board Elections

Interfor Corporation announced the voting results from its Annual General Meeting, where all nominees listed in the management information circular were elected as directors. Shareholders approved setting the number of directors at eleven, the appointment of the auditor, and a non-binding advisory resolution on executive compensation.

Interfor Reports Q1 2025 Financial Results Amid Market Challenges

Interfor Corporation reported a net loss of $35.1 million for Q1 2025, an improvement from previous quarters, with an adjusted EBITDA of $48.6 million on sales of $735.5 million. The company experienced improved lumber prices due to market-driven production curtailments and seasonal demand, but faced reduced shipments and challenges from tariffs and duties. Interfor also monetized some of its Coastal B.C. operations and completed the sale of its Quebec operations, impacting its financial position and operational strategy.

Interfor to Release Q1 Financial Results on May 8, 2025

Interfor Corporation is set to release its first quarter financial results on May 8, 2025, with an analyst conference call scheduled for May 9, 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.