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Canadian (TSX) Paper and Forestry Products Industry Analysis

UpdatedDec 02, 2021
DataAggregated Company Financials
Companies12
  • 7D3.2%
  • 3M4.6%
  • 1Y29.8%
  • YTD25.0%

Over the last 7 days, the Paper and Forestry Products industry has risen 3.2%, driven by gains from West Fraser Timber of 3.0%. Meanwhile, Canfor Pulp Products actually underperformed within the industry, shrinking 5.7% in the last week. This takes the industry's 12 month performance to a gain of 30%.

Industry Valuation and Performance

Has the Canadian Paper and Forestry Products Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPE
Sun, 05 Dec 2021CA$20.9bCA$29.7bCA$6.9b6.1x
Tue, 02 Nov 2021CA$20.4bCA$29.3bCA$6.8b6.1x
Thu, 30 Sep 2021CA$22.2bCA$28.2bCA$6.7b5.9x
Sat, 28 Aug 2021CA$21.2bCA$27.9bCA$6.6b6.1x
Sun, 04 Jul 2021CA$21.4bCA$27.9bCA$6.6b5.8x
Wed, 07 Apr 2021CA$21.5bCA$21.8bCA$3.6b8.6x
Sat, 09 Jan 2021CA$14.7bCA$18.5bCA$1.8b11.5x
Fri, 02 Oct 2020CA$11.3bCA$16.8bCA$781.4m11.5x
Mon, 06 Jul 2020CA$8.9bCA$15.4b-CA$178,867,251.5916.8x
Thu, 09 Apr 2020CA$6.1bCA$15.9b-CA$418,779,261.8111.8x
Wed, 01 Jan 2020CA$10.4bCA$16.0b-CA$436,803,198.0015.7x
Sat, 05 Oct 2019CA$10.7bCA$16.3b-CA$321,934,969.0016.7x
Tue, 09 Jul 2019CA$11.4bCA$17.4bCA$373.5m18.4x
Mon, 01 Apr 2019CA$12.5bCA$18.4bCA$1.2b12.6x
Thu, 03 Jan 2019CA$12.8bCA$18.8bCA$1.7b9.2x
PE Ratio

9.2x

Total Market Cap: CA$12.8bTotal Earnings: CA$1.7bTotal Revenue: CA$18.8b0%0%0%3 Year10 Year
20202021

Current Industry PE: Investors are more pessimistic on the industry, considering it's trading at a PE ratio of 6.0x which is lower than its 3-year average PE of 12.5x. Given that earnings are expected to decline by 49%, the lower than average PE seems justified.

Past Earnings Growth: The earnings for companies in the Forestry industry have grown 60% per year over the last three years, and revenues for these companies have grown 17% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the Canadian Paper and Forestry Products industry?

Forestry Products3.39%
Paper Products-6.03%

Industry PE: Investors are most optimistic about the Paper Products industry even though it's trading below its 3-year average PE ratio of 18.4x. However analysts are expecting annual earnings growth of 11%, which is lower than the prior year's growth of 95% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Forestry Products industry, which is trading below its 3-year average of 13.8x.

Forecasted Growth: Analysts are most optimistic on the Paper Products industry, expecting annual earnings growth of 11% over the next 5 years. However this is lower than its past earnings growth rate of 95% per year. Meanwhile, the Forestry Products industry is expected to see its earnings decline by 51% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

Company7D1YValuation
WFG West Fraser Timber3.0%+CA$344.1m36.6%PE3.1x
CFP Canfor5.2%+CA$178.0m38.2%PE2.1x
IFP Interfor7.2%+CA$139.8m62.5%PE2.3x
SJ Stella-Jones1.1%+CA$29.7m-9.2%PE11x
WEF Western Forest Products2.7%+CA$17.1m84.3%PE3.1x
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SXP

CA$2.52

Supremex

7D

-7.4%

1Y

48.2%

CFP

CA$28.77

Canfor

7D

5.2%

1Y

38.2%