TSX:CFP

Stock Analysis Report

Executive Summary

Canfor Corporation operates as an integrated forest products company in Canada and internationally.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.7%

CFP

6.0%

CA Forestry

0.3%

CA Market


1 Year Return

-13.0%

CFP

-8.5%

CA Forestry

5.5%

CA Market

Return vs Industry: CFP underperformed the Canadian Forestry industry which returned -9% over the past year.

Return vs Market: CFP underperformed the Canadian Market which returned 5.8% over the past year.


Shareholder returns

CFPIndustryMarket
7 Day2.7%6.0%0.3%
30 Day1.4%3.5%0.5%
90 Day-13.3%3.5%3.5%
1 Year-13.0%-13.0%-6.6%-8.5%8.8%5.5%
3 Year-22.7%-22.7%4.4%-2.9%14.8%4.5%
5 Year-54.0%-54.0%-10.6%-17.3%34.1%14.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

37.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CFP (CA$13.84) is trading below our estimate of fair value (CA$22.22)

Significantly Below Fair Value: CFP is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: CFP 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 CFP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CFP is good value based on its PB Ratio (1x) compared to the CA Forestry industry average (1.2x).


Next Steps

Future Growth

How is Canfor forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

113.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CFP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).

Earnings vs Market: CFP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CFP's is expected to become profitable in the next 3 years.

Revenue vs Market: CFP's revenue (4.6% per year) is forecast to grow slower than the Canadian market (5% per year).

High Growth Revenue: CFP's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Canfor performed over the past 5 years?

7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CFP is currently unprofitable.

Growing Profit Margin: CFP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CFP is unprofitable, but has reduced losses over the past 5 years at a rate of 7.2% per year.

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

Earnings vs Industry: CFP is unprofitable, making it difficult to compare its past year earnings growth to the Forestry industry (-13.1%).


Return on Equity

High ROE: CFP has a negative Return on Equity (-13.03%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Canfor's financial position?


Financial Position Analysis

Short Term Liabilities: CFP's short term assets (CA$1.5B) exceed its short term liabilities (CA$1.1B).

Long Term Liabilities: CFP's short term assets (CA$1.5B) exceed its long term liabilities (CA$1.5B).


Debt to Equity History and Analysis

Debt Level: CFP's debt to equity ratio (53.9%) is considered high.

Reducing Debt: CFP's debt to equity ratio has increased from 18.3% to 53.9% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: CFP's debt is covered by short term assets (assets are 1.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CFP has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: CFP has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

1.08%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage2.0%forecastin3Years1.1%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate CFP'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 CFP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CFP'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 CFP's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Don Kayne (61yo)

8.8yrs

Tenure

CA$2,775,483

Compensation

Mr. Donald B. Kayne, also known as Don, has been the Chief Executive Officer of Canfor Pulp Products Inc., since September 30, 2012 and serves as its Director since 2017. Mr. Kayne has been the Chief Execu ...


CEO Compensation Analysis

Compensation vs Market: Don's total compensation ($USD2.10M) is about average for companies of similar size in the Canadian market ($USD2.15M).

Compensation vs Earnings: Don's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Donald Kayne
President8.8yrsCA$2.78m0.017% CA$292.5k
Alan Nicholl
CFO & Executive VP of Finance8.8yrsCA$1.61mno data
Kevin Pankratz
Senior Vice President of Sales & Marketing2.1yrsCA$1.61m0.000020% CA$346.6
Stephen MacKie
Senior Vice President of Canadian Operations4.3yrsCA$1.33m0.0019% CA$33.4k
Frederick Stimpson
President of Canfor Southern Pine5yrsCA$1.53mno data
Patrick A. Elliott
Vice President of Corporate Finance & Strategy1.8yrsno datano data
David Calabrigo
Senior VP of Corporate Development & Legal Affairs and Corporate Secretary8.8yrsCA$1.29mno data
Katy Player
Vice President People & Communications1.9yrsno datano data
Mark Feldinger
Senior Vice President of Global Supply Chain8.8yrsCA$1.35m0.0040% CA$70.0k
Måns Johansson
Chief Executive Officer at Vida Group1.1yrsno data0.040% CA$692.0k

4.6yrs

Average Tenure

Experienced Management: CFP's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Donald Kayne
President8.8yrsCA$2.78m0.017% CA$292.5k
William Stinson
Independent Director8.8yrsCA$134.25k0.016% CA$276.8k
Glen Clark
Non Independent Director10.8yrsCA$131.88k0.0016% CA$27.7k
Conrad Pinette
Independent Chairman of the Board2.5yrsCA$250.00k0.016% CA$276.8k
Barbara Hislop
Independent Director0.8yrsCA$917.70k1.09% CA$18.9m
Ross Smith
Independent Director10.8yrsCA$143.00k0.0040% CA$69.1k
Stan Bracken-Horrocks
Director10.1yrsno datano data
J. Singleton
Independent Director12.3yrsCA$135.50k0.0080% CA$138.5k
Ryan Barrington-Foote
Non Independent Director2.8yrsCA$149.00kno data
John Baird
Independent Director3.8yrsCA$118.25k0.0088% CA$152.0k

6.3yrs

Average Tenure

68.5yo

Average Age

Experienced Board: CFP's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Canfor Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Canfor Corporation
  • Ticker: CFP
  • Exchange: TSX
  • Founded: 1938
  • Industry: Forest Products
  • Sector: Materials
  • Market Cap: CA$1.733b
  • Shares outstanding: 125.22m
  • Website: https://www.canfor.com

Number of Employees


Location

  • Canfor Corporation
  • 100-1700 West 75th Avenue
  • Vancouver
  • British Columbia
  • V6P 6G2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CFPTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1983
NKCDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1983
CFPZ.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1983

Biography

Canfor Corporation operates as an integrated forest products company in Canada and internationally. It operates through two segments, Lumber, and Pulp and Paper. The company manufactures and sells softwood lumber, pulp and paper products, remanufactured lumber products, engineered wood products, and wood pellets, as well as produces green energy. It also offers wood chips, logs, and kraft paper; and produces and sells pulp and paper products, including northern bleached softwood kraft and bleached chemi-thermo mechanical pulp. The company’s products are used in residential, commercial, and industrial construction. It also offers its products in Asia, the United States, and Europe. The company was founded in 1938 and is based in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 00:06
End of Day Share Price2020/02/14 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.