Executive Summary
Canfor Corporation operates as an integrated forest products company in the United States, Canada, Europe, Asia, and internationally. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 12.8% per year for the next 3 years
Snowflake Analysis
Adequate balance sheet with questionable track record.
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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: CFP's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-5.1%
CFP
-4.2%
CA Forestry
-0.5%
CA Market
1 Year Return
66.7%
CFP
28.1%
CA Forestry
1.7%
CA Market
Return vs Industry: CFP exceeded the Canadian Forestry industry which returned 34.2% over the past year.
Return vs Market: CFP exceeded the Canadian Market which returned 2.6% over the past year.
Shareholder returns
| CFP | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.1% | -4.2% | -0.5% |
| 30 Day | 1.8% | -4.7% | 3.4% |
| 90 Day | 50.0% | 26.4% | 12.3% |
| 1 Year | 66.7%66.7% | 30.2%28.1% | 5.3%1.7% |
| 3 Year | -19.7%-19.7% | -5.4%-11.5% | 13.0%2.3% |
| 5 Year | 47.3%47.3% | 57.2%43.2% | 66.2%40.7% |
Long-Term 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
1 year ago | Simply Wall St
What Does Canfor Corporation’s (TSE:CFP) 8.6% ROCE Say About The Business?1 year ago | Simply Wall St
Is It Time To Consider Buying Canfor Corporation (TSE:CFP)?1 year ago | Simply Wall St
How Canfor Corporation (TSE:CFP) Can Impact Your Portfolio VolatilityValuation
Is Canfor undervalued compared to its fair value and its price relative to the market?
15.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CFP (CA$22.75) is trading below our estimate of fair value (CA$26.9)
Significantly Below Fair Value: CFP is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: CFP is poor value based on its PE Ratio (16.8x) compared to the CA Forestry industry average (14.8x).
PE vs Market: CFP's PE Ratio (16.8x) is in line with the Canadian market.
Price to Earnings Growth Ratio
PEG Ratio: CFP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: CFP's PB Ratio (1.5x) is in line with the CA Forestry industry average.
Next Steps
Future Growth
How is Canfor forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
-12.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CFP's earnings are forecast to decline over the next 3 years (-12.8% per year).
Earnings vs Market: CFP's earnings are forecast to decline over the next 3 years (-12.8% per year).
High Growth Earnings: CFP's earnings are forecast to decline over the next 3 years.
Revenue vs Market: CFP's revenue (3.7% per year) is forecast to grow slower than the Canadian market (7.8% per year).
High Growth Revenue: CFP's revenue (3.7% 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?
-17.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CFP has high quality earnings.
Growing Profit Margin: CFP became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: CFP's earnings have declined by 17.1% per year over the past 5 years.
Accelerating Growth: CFP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: CFP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Forestry industry (31.1%).
Return on Equity
High ROE: CFP's Return on Equity (7.3%) is considered low.
Next Steps
Financial Health
How is Canfor's financial position?
Financial Position Analysis
Short Term Liabilities: CFP's short term assets (CA$1.4B) exceed its short term liabilities (CA$687.8M).
Long Term Liabilities: CFP's short term assets (CA$1.4B) do not cover its long term liabilities (CA$1.6B).
Debt to Equity History and Analysis
Debt Level: CFP's debt to equity ratio (31.2%) is considered satisfactory.
Reducing Debt: CFP's debt to equity ratio has increased from 23.7% to 31.2% over the past 5 years.
Debt Coverage: CFP's debt is well covered by operating cash flow (117%).
Interest Coverage: CFP's interest payments on its debt are well covered by EBIT (5.6x coverage).
Balance Sheet
Next Steps
Dividend
What is Canfor current dividend yield, its reliability and sustainability?
0.66%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CFP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CFP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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?
3.0yrs
Average management tenure
CEO
Don Kayne (62 yo)
9.67yrs
Tenure
CA$1,089,375
Compensation
Mr. Donald B. Kayne, also known as Don, has been the Chief Executive Officer of Canfor Pulp Products Inc., since September 30, 2012 and serves as its Director since 2017. Mr. Kayne has been the Chief Execu...
CEO Compensation Analysis
Compensation vs Market: Don's total compensation ($USD855.38K) is below average for companies of similar size in the Canadian market ($USD2.06M).
Compensation vs Earnings: Don's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 9.67yrs | CA$1.09m | 0.017% CA$ 478.8k | |
| CFO and Executive VP of Finance & Canfor Pulp Operations | 9.67yrs | CA$761.87k | no data | |
| Senior VP of Corporate Development & Legal Affairs and Corporate Secretary | 9.67yrs | CA$726.09k | no data | |
| Senior Vice President of Sales & Marketing | 3yrs | CA$774.69k | 0.000020% CA$ 573.8 | |
| Senior Vice President of Corporate Finance & Sustainability | 2.75yrs | no data | no data | |
| Vice President People & Communications | 2.83yrs | no data | no data | |
| Executive Vice President of North American Operations | 5.17yrs | CA$1.33m | 0.0019% CA$ 55.4k | |
| Senior VP of Global Supply Chain & Chief Digital Officer | 0.42yr | no data | no data | |
| Chief Executive Officer at Vida Group | 2yrs | no data | 0.048% CA$ 1.4m | |
| President of Canfor Southern Pine | no data | no data | no data | |
| Vice President of Pulp & Paper Sales and Marketing-Canfor Pulp Products Inc. | no data | no data | no data |
3.0yrs
Average Tenure
Experienced Management: CFP's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 9.67yrs | CA$1.09m | 0.017% CA$ 478.8k | |
| Independent Director | 9.67yrs | CA$141.00k | 0.016% CA$ 458.1k | |
| Non Independent Director | 11.67yrs | CA$133.33k | 0.0016% CA$ 45.9k | |
| Independent Director | 0.75yr | no data | 0.016% CA$ 458.1k | |
| Independent Chairman of the Board | 3.42yrs | CA$316.00k | 0.024% CA$ 687.4k | |
| Independent Director | 0.75yr | no data | no data | |
| Independent Director | 1.67yrs | CA$144.75k | 1.01% CA$ 29.0m | |
| Independent Director | 11.67yrs | CA$143.83k | 0.0040% CA$ 114.5k | |
| Non Independent Director | 3.75yrs | CA$145.00k | no data | |
| Independent Director | 4.75yrs | CA$174.00k | 0.014% CA$ 405.1k | |
| Independent Director | 2.75yrs | CA$186.33k | no data | |
| Independent Director | 2.58yrs | CA$116.25k | no data |
3.6yrs
Average Tenure
62yo
Average Age
Experienced Board: CFP's board of directors are considered experienced (3.6 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$2.869b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CFP | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Sep 1983 |
| NKC | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Sep 1983 |
| CFPZ.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Sep 1983 |
Biography
Canfor Corporation operates as an integrated forest products company in the United States, Canada, Europe, Asia, and internationally. It operates in two segments, Lumber, and Pulp and Paper. The company ma...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 00:26 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.