TSX:CFF

Stock Analysis Report

Executive Summary

Conifex Timber Inc. primarily manufactures and sells lumber products in the United States, China, Canada, and Japan.


Snowflake Analysis

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

How has Conifex Timber's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CFF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.9%

CFF

-3.9%

CA Forestry

-0.2%

CA Market


1 Year Return

-64.9%

CFF

-19.6%

CA Forestry

9.4%

CA Market

Return vs Industry: CFF underperformed the Canadian Forestry industry which returned -14.4% over the past year.

Return vs Market: CFF underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

CFFIndustryMarket
7 Day-3.9%-3.9%-0.2%
30 Day5.7%3.3%1.8%
90 Day42.3%-2.5%6.3%
1 Year-64.9%-64.9%-18.0%-19.6%12.9%9.4%
3 Year-75.0%-75.0%11.0%3.1%17.1%6.5%
5 Year-90.4%-90.4%-17.2%-23.4%37.3%17.2%

Price Volatility Vs. Market

How volatile is Conifex Timber's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Conifex Timber undervalued compared to its fair value and its price relative to the market?

0.12x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CFF's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CFF's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CFF is unprofitable, so we can't compare its PE Ratio to the Forestry industry average.

PE vs Market: CFF is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CFF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CFF is good value based on its PB Ratio (0.1x) compared to the CA Forestry industry average (1.1x).


Next Steps

Future Growth

How is Conifex Timber forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

69.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CFF is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CFF is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CFF is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CFF's revenue is expected to decline over the next 3 years (-40.9% per year).

High Growth Revenue: CFF's revenue is forecast to decline over the next 3 years (-40.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CFF's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Conifex Timber performed over the past 5 years?

-20.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CFF is currently unprofitable.

Growing Profit Margin: CFF is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CFF is unprofitable, and losses have increased over the past 5 years at a rate of -20.4% per year.

Accelerating Growth: Unable to compare CFF's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CFF is unprofitable, making it difficult to compare its past year earnings growth to the Forestry industry (-11.7%).


Return on Equity

High ROE: CFF has a negative Return on Equity (-20.37%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Conifex Timber's financial position?


Financial Position Analysis

Short Term Liabilities: CFF's short term assets (CA$100.8M) do not cover its short term liabilities (CA$213.1M).

Long Term Liabilities: CFF's short term assets (CA$100.8M) do not cover its long term liabilities (CA$135.1M).


Debt to Equity History and Analysis

Debt Level: CFF's debt to equity ratio (90.1%) is considered high.

Reducing Debt: CFF's debt to equity ratio has reduced from 95.6% to 90.1% over the past 5 years.

Debt Coverage: CFF's debt is well covered by operating cash flow (22.2%).

Interest Coverage: Insufficient data to determine if CFF's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: CFF has a high level of physical assets or inventory.

Debt Coverage by Assets: CFF's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Conifex Timber's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.5%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CFF's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CFF's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CFF's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CFF's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CFF's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Conifex Timber's salary, the management and board of directors tenure and is there insider trading?

9.6yrs

Average management tenure


CEO

Kenneth Shields (70yo)

9.6yrs

Tenure

CA$1,154,711

Compensation

Mr. Kenneth A. Shields serves as Chairman, Chief Executive Officer, President and Director at Conifex Timber Inc. He has served as Chairman and Chief Executive Officer of Conifex, Inc., a Canadian forest p ...


CEO Compensation Analysis

Compensation vs Market: Kenneth's total compensation ($USD883.81K) is above average for companies of similar size in the Canadian market ($USD165.67K).

Compensation vs Earnings: Kenneth's compensation has been consistent with company performance over the past year.


Management Age and Tenure

9.6yrs

Average Tenure

59yo

Average Age

Experienced Management: CFF's management team is seasoned and experienced (7.3 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

63yo

Average Age

Experienced Board: CFF's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Kenneth Shields (70yo)

    Chairman

    • Tenure: 9.6yrs
    • Compensation: CA$1.15m
  • Yuri Lewis (59yo)

    CFO & Corporate Secretary

    • Tenure: 9.6yrs
    • Compensation: CA$607.35k
  • Adam Infanti (39yo)

    Senior Vice President of Operations

    • Tenure: 0.4yrs
    • Compensation: CA$407.16k
  • Ryan Lepp

    General Manager of Sales & Marketing


    Board Members

    • Kenneth Shields (70yo)

      Chairman

      • Tenure: 9.6yrs
      • Compensation: CA$1.15m
    • Michael Costello (68yo)

      Independent Director

      • Tenure: 7.8yrs
      • Compensation: CA$88.02k
    • Charlie Miller (58yo)

      Independent Director

      • Tenure: 1.5yrs
      • Compensation: CA$25.91k
    • Tom Reed (70yo)

      Independent Director

      • Tenure: 3.9yrs
      • Compensation: CA$84.79k
    • George Judd (58yo)

      Independent Director

      • Tenure: 1.5yrs
      • Compensation: CA$45.91k
    • Janine North (58yo)

      Independent Director

      • Tenure: 2.9yrs
      • Compensation: CA$81.55k
    • Dave Roberts (77yo)

      Independent Director

      • Tenure: 9.7yrs
      • Compensation: CA$91.26k
    • Jim Jia (51yo)

      Independent Director

      • Tenure: 9.6yrs
      • Compensation: CA$71.83k

    Company Information

    Conifex Timber Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Conifex Timber Inc.
    • Ticker: CFF
    • Exchange: TSX
    • Founded: 2007
    • Industry: Forest Products
    • Sector: Materials
    • Market Cap: CA$34.724m
    • Shares outstanding: 46.92m
    • Website: https://www.conifex.com

    Number of Employees


    Location

    • Conifex Timber Inc.
    • 980-700 West Georgia Street
    • PO Box 10070
    • Vancouver
    • British Columbia
    • V7Y 1B6
    • Canada

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    CFFTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2010
    CFXT.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2010
    5CADB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2010

    Biography

    Conifex Timber Inc. primarily manufactures and sells lumber products in the United States, China, Canada, and Japan. It operates through two segments, Lumber and Bioenergy. The Lumber segment is involved in timber harvesting, reforestation, and forest management activities; processing logs into lumber and wood chips; and providing value added lumber finishing services. This segment also provides lumber by-products; and lumber distribution and logistics services. The Bioenergy segment generates electrical power, and develops bioenergy and bio products; and operates a 36 megawatt biomass power generation plant, which produces renewable energy for commercial sale. The company was formerly known as West Fourth Capital Inc. and changed its name to Conifex Timber Inc. in June 2010. Conifex Timber Inc. was incorporated in 2007 and is headquartered in Vancouver, Canada. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/26 00:49
    End of Day Share Price2020/01/24 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.