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CFP

CanforTSX:CFP Stock Report

Last Price

CA$28.25

Market Cap

CA$3.5b

7D

-12.0%

1Y

16.1%

Updated

26 Jan, 2022

Data

Company Financials +
CFP fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends0/6

CFP Stock Overview

Canfor Corporation operates as an integrated forest products company in Canada, Asia, the United States, Europe, and internationally.

Canfor Competitors

West Fraser Timber

TSX:WFG

CA$12.2b

Stella-Jones

TSX:SJ

CA$2.5b

Interfor

TSX:IFP

CA$2.3b

Western Forest Products

TSX:WEF

CA$674.0m

Price History & Performance

Summary of all time highs, changes and price drops for Canfor
Historical stock prices
Current Share PriceCA$28.25
52 Week HighCA$35.53
52 Week LowCA$22.46
Beta1.93
1 Month Change-3.49%
3 Month Change5.65%
1 Year Change16.06%
3 Year Change57.03%
5 Year Change100.21%
Change since IPO117.31%

Recent News & Updates

Jan 26
These 4 Measures Indicate That Canfor (TSE:CFP) Is Using Debt Safely

These 4 Measures Indicate That Canfor (TSE:CFP) Is Using Debt Safely

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Dec 29
Here's Why We Think Canfor (TSE:CFP) Is Well Worth Watching

Here's Why We Think Canfor (TSE:CFP) Is Well Worth Watching

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Dec 12
Returns on Capital Paint A Bright Future For Canfor (TSE:CFP)

Returns on Capital Paint A Bright Future For Canfor (TSE:CFP)

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

CFPCA ForestryCA Market
7D-12.0%-6.9%-2.9%
1Y16.1%22.1%16.1%

Return vs Industry: CFP underperformed the Canadian Forestry industry which returned 21.4% over the past year.

Return vs Market: CFP exceeded the Canadian Market which returned 15% over the past year.

Price Volatility

Is CFP's price volatile compared to industry and market?
CFP volatility
CFP Average Weekly Movement5.6%
Forestry Industry Average Movement5.9%
Market Average Movement9.8%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market3.7%

Stable Share Price: CFP is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CFP's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19667,111Don Kaynehttps://www.canfor.com

Canfor Corporation operates as an integrated forest products company in Canada, Asia, the United States, Europe, and internationally. It operates through Lumber, and Pulp and Paper segments. The company manufactures and sells finger-jointed lumber, higher-grade MSR lumber, premium one-inch boards, engineered wood products, wood chips, wood pellets, logs, strength-rated trusses, beams, and tongue-and-groove timber, as well as generates green energy.

Canfor Fundamentals Summary

How do Canfor's earnings and revenue compare to its market cap?
CFP fundamental statistics
Market CapCA$3.52b
Earnings (TTM)CA$1.70b
Revenue (TTM)CA$7.73b

2.1x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CFP income statement (TTM)
RevenueCA$7.73b
Cost of RevenueCA$4.10b
Gross ProfitCA$3.63b
ExpensesCA$1.93b
EarningsCA$1.70b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)13.66
Gross Margin46.91%
Net Profit Margin21.99%
Debt/Equity Ratio6.6%

How did CFP perform over the long term?

See historical performance and comparison

Valuation

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

40.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CFP (CA$28.25) is trading below our estimate of fair value (CA$47.36)

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


Price To Earnings Ratio

PE vs Industry: CFP is good value based on its PE Ratio (2.1x) compared to the Canadian Forestry industry average (6.8x).

PE vs Market: CFP is good value based on its PE Ratio (2.1x) compared to the Canadian market (12.6x).


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


Future Growth

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

-63.0%

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 (-63% per year).

Earnings vs Market: CFP's earnings are forecast to decline over the next 3 years (-63% per year).

High Growth Earnings: CFP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CFP's revenue is expected to decline over the next 3 years (-8.8% per year).

High Growth Revenue: CFP's revenue is forecast to decline over the next 3 years (-8.8% 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


Past Performance

How has Canfor performed over the past 5 years?

33.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CFP has high quality earnings.

Growing Profit Margin: CFP's current net profit margins (22%) are higher than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: CFP's earnings have grown significantly by 33.9% per year over the past 5 years.

Accelerating Growth: CFP's earnings growth over the past year (901.9%) exceeds its 5-year average (33.9% per year).

Earnings vs Industry: CFP earnings growth over the past year (901.9%) exceeded the Forestry industry 172.7%.


Return on Equity

High ROE: CFP's Return on Equity (45.4%) is considered outstanding.


Financial Health

How is Canfor's financial position?


Financial Position Analysis

Short Term Liabilities: CFP's short term assets (CA$3.2B) exceed its short term liabilities (CA$1.2B).

Long Term Liabilities: CFP's short term assets (CA$3.2B) exceed its long term liabilities (CA$1.1B).


Debt to Equity History and Analysis

Debt Level: CFP has more cash than its total debt.

Reducing Debt: CFP's debt to equity ratio has reduced from 32% to 6.6% over the past 5 years.

Debt Coverage: CFP's debt is well covered by operating cash flow (808%).

Interest Coverage: CFP's interest payments on its debt are well covered by EBIT (299.6x coverage).


Balance Sheet


Dividend

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


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?

3.4yrs

Average management tenure


CEO

Don Kayne (63 yo)

10.67yrs

Tenure

CA$2,454,190

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 has been its Director since 2017. Mr. Kayne has been the President and...


CEO Compensation Analysis

Compensation vs Market: Don's total compensation ($USD1.94M) is below average for companies of similar size in the Canadian market ($USD2.85M).

Compensation vs Earnings: Don's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: CFP's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: CFP's board of directors are considered experienced (5.4 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 employee growth, exchange listings and data sources


Key Information

  • Name: Canfor Corporation
  • Ticker: CFP
  • Exchange: TSX
  • Founded: 1966
  • Industry: Forest Products
  • Sector: Materials
  • Implied Market Cap: CA$3.517b
  • Shares outstanding: 124.49m
  • Website: https://www.canfor.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 00:58
End of Day Share Price2022/01/25 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.