Loading...

Canfor

TSX:CFP
Snowflake Description

Undervalued with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CFP
TSX
CA$2B
Market Cap
  1. Home
  2. CA
  3. Materials
Company description

Canfor Corporation operates as an integrated forest products company in Canada and internationally. The last earnings update was 31 days ago. More info.


Add to Portfolio Compare Print
  • Canfor has significant price volatility in the past 3 months.
CFP Share Price and Events
7 Day Returns
-3.8%
TSX:CFP
-1.7%
CA Forestry
-0%
CA Market
1 Year Returns
-52.8%
TSX:CFP
-27%
CA Forestry
2.6%
CA Market
CFP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Canfor (CFP) -3.8% -13.3% -14.8% -52.8% -14.6% -47.4%
CA Forestry -1.7% -5.1% 1% -27% 12.3% 2.7%
CA Market -0% 0.5% 15.3% 2.6% 16.8% 5.3%
1 Year Return vs Industry and Market
  • CFP underperformed the Forestry industry which returned -27% over the past year.
  • CFP underperformed the Market in Canada which returned 2.6% over the past year.
Price Volatility
CFP
Industry
5yr Volatility vs Market

CFP Value

 Is Canfor undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Canfor to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Canfor.

TSX:CFP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:CFP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Forestry Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.898 (1 + (1- 26.5%) (23.88%))
1.037
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.037 * 5.96%)
8.13%

Discounted Cash Flow Calculation for TSX:CFP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Canfor is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:CFP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 8.13%)
2019 282.13 Analyst x3 260.93
2020 235.63 Analyst x4 201.53
2021 225.88 Est @ -4.14% 178.68
2022 220.66 Est @ -2.31% 161.43
2023 218.38 Est @ -1.03% 147.75
2024 218.08 Est @ -0.14% 136.45
2025 219.14 Est @ 0.49% 126.81
2026 221.16 Est @ 0.92% 118.36
2027 223.89 Est @ 1.23% 110.81
2028 227.13 Est @ 1.45% 103.97
Present value of next 10 years cash flows CA$1,546.72
TSX:CFP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$227.13 × (1 + 1.95%) ÷ (8.13% – 1.95%)
CA$3,746.21
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$3,746.21 ÷ (1 + 8.13%)10
CA$1,714.81
TSX:CFP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$1,546.72 + CA$1,714.81
CA$3,261.53
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$3,261.53 / 125.22
CA$26.05
TSX:CFP Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$26.05
Current discount Discount to share price of CA$13.66
= -1 x (CA$13.66 - CA$26.05) / CA$26.05
47.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Canfor is available for.
Intrinsic value
48%
Share price is CA$13.66 vs Future cash flow value of CA$26.05
Current Discount Checks
For Canfor to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Canfor's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Canfor's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Canfor's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Canfor's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:CFP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CAD CA$2.78
TSX:CFP Share Price ** TSX (2019-03-22) in CAD CA$13.66
Canada Forestry Industry PE Ratio Median Figure of 10 Publicly-Listed Forestry Companies 7.74x
Canada Market PE Ratio Median Figure of 555 Publicly-Listed Companies 14.94x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Canfor.

TSX:CFP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:CFP Share Price ÷ EPS (both in CAD)

= 13.66 ÷ 2.78

4.92x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Canfor is good value based on earnings compared to the CA Forestry industry average.
  • Canfor is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Canfor's expected growth come at a high price?
Raw Data
TSX:CFP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 4.92x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
-17%per year
Canada Forestry Industry PEG Ratio Median Figure of 8 Publicly-Listed Forestry Companies -0.3x
Canada Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.22x

*Line of best fit is calculated by linear regression .

TSX:CFP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 4.92x ÷ -17%

-0.29x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Canfor earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Canfor's assets?
Raw Data
TSX:CFP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CAD CA$16.42
TSX:CFP Share Price * TSX (2019-03-22) in CAD CA$13.66
Canada Forestry Industry PB Ratio Median Figure of 13 Publicly-Listed Forestry Companies 1.2x
Canada Market PB Ratio Median Figure of 2,355 Publicly-Listed Companies 1.57x
TSX:CFP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:CFP Share Price ÷ Book Value per Share (both in CAD)

= 13.66 ÷ 16.42

0.83x

* Primary Listing of Canfor.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Canfor is good value based on assets compared to the CA Forestry industry average.
X
Value checks
We assess Canfor's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Forestry industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Forestry industry average (and greater than 0)? (1 check)
  5. Canfor has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CFP Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-17%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Canfor expected to grow at an attractive rate?
  • Canfor's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Canfor's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.
  • Canfor's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:CFP Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:CFP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts -17%
TSX:CFP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 3.8%
Canada Forestry Industry Earnings Growth Rate Market Cap Weighted Average -11.7%
Canada Forestry Industry Revenue Growth Rate Market Cap Weighted Average 0.3%
Canada Market Earnings Growth Rate Market Cap Weighted Average 18.2%
Canada Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:CFP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:CFP Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 5,414 550 247 6
2019-12-31 5,137 491 162 6
TSX:CFP Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-12-31 5,044 536 355
2018-09-30 5,268 800 539
2018-06-30 5,087 726 480
2018-03-31 4,787 610 392
2017-12-31 4,563 610 345
2017-09-30 4,451 615 252
2017-06-30 4,410 636 236
2017-03-31 4,272 606 191
2016-12-31 4,235 584 151
2016-09-30 4,244 458 115
2016-06-30 4,133 369 46
2016-03-31 4,063 272 21

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Canfor's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Canfor's revenue is expected to grow by 3.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:CFP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Canfor Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CFP Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 2.01 2.37 1.78 3.00
2019-12-31 1.59 2.49 1.06 4.00
TSX:CFP Past Financials Data
Date (Data in CAD Millions) EPS *
2018-12-31 2.78
2018-09-30 4.19
2018-06-30 3.71
2018-03-31 3.00
2017-12-31 2.63
2017-09-30 1.90
2017-06-30 1.78
2017-03-31 1.44
2016-12-31 1.14
2016-09-30 0.86
2016-06-30 0.35
2016-03-31 0.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Canfor is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Canfor's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Canfor has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CFP Past Performance

  How has Canfor performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Canfor's growth in the last year to its industry (Forestry).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Canfor has delivered over 20% year on year earnings growth in the past 5 years.
  • Canfor's 1-year earnings growth is less than its 5-year average (2.8% vs 27.3%)
  • Canfor's earnings growth has not exceeded the CA Forestry industry average in the past year (2.8% vs 8.9%).
Earnings and Revenue History
Canfor's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Canfor Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CFP Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 5,044.40 354.90 760.00
2018-09-30 5,267.80 539.10 795.70
2018-06-30 5,087.00 480.00 782.00
2018-03-31 4,787.10 391.50 774.50
2017-12-31 4,563.30 345.40 762.80
2017-09-30 4,450.80 251.60 751.20
2017-06-30 4,409.50 236.30 757.80
2017-03-31 4,272.20 191.00 742.80
2016-12-31 4,234.90 150.90 749.40
2016-09-30 4,244.40 114.50 784.40
2016-06-30 4,133.10 46.30 779.90
2016-03-31 4,063.20 21.40 780.70
2015-12-31 3,925.30 24.70 756.90
2015-09-30 3,732.70 53.00 699.40
2015-06-30 3,580.80 115.80 673.80
2015-03-31 3,535.70 159.00 669.90
2014-12-31 3,347.60 175.20 633.50
2014-09-30 3,296.70 173.30 640.00
2014-06-30 3,214.60 156.20 627.50
2014-03-31 3,150.50 212.20 606.70
2013-12-31 3,194.90 228.60 620.30
2013-09-30 3,085.70 221.90 598.40
2013-06-30 2,993.50 214.00 586.70
2013-03-31 2,835.30 106.30 576.50
2012-12-31 2,642.80 26.40 565.10
2012-09-30 2,518.70 -39.00 545.10
2012-06-30 2,457.10 -81.10 540.90
2012-03-31 2,391.20 -81.60 531.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Canfor has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Canfor used its assets more efficiently than the CA Forestry industry average last year based on Return on Assets.
  • Canfor has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Canfor's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Forestry industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Canfor has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CFP Health

 How is Canfor's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Canfor's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Canfor is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Canfor's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Canfor's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Canfor Company Filings, last reported 2 months ago.

TSX:CFP Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,339.90 408.40 252.70
2018-09-30 2,450.60 393.90 591.30
2018-06-30 2,379.30 398.60 572.80
2018-03-31 2,168.70 392.90 296.10
2017-12-31 2,001.00 385.70 288.20
2017-09-30 1,833.20 430.20 278.80
2017-06-30 1,851.90 440.40 302.90
2017-03-31 1,810.00 487.50 164.20
2016-12-31 1,738.50 476.00 156.60
2016-09-30 1,676.10 537.60 141.80
2016-06-30 1,608.60 568.40 157.50
2016-03-31 1,618.80 645.10 132.70
2015-12-31 1,627.70 614.20 97.50
2015-09-30 1,628.50 380.20 86.70
2015-06-30 1,638.00 370.90 143.90
2015-03-31 1,622.50 411.90 214.20
2014-12-31 1,637.60 296.60 158.30
2014-09-30 1,633.10 298.40 146.40
2014-06-30 1,556.70 296.20 107.70
2014-03-31 1,635.20 335.30 87.90
2013-12-31 1,597.40 227.70 89.50
2013-09-30 1,549.70 216.30 89.90
2013-06-30 1,520.40 218.70 171.70
2013-03-31 1,386.30 327.90 6.20
2012-12-31 1,311.90 311.10
2012-09-30 1,289.40 299.00
2012-06-30 1,295.40 305.50 6.00
2012-03-31 1,315.20 378.80 8.70
  • Canfor's level of debt (17.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (14.3% vs 17.5% today).
  • Debt is well covered by operating cash flow (131.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 37.1x coverage).
X
Financial health checks
We assess Canfor's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Canfor has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CFP Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Canfor dividends. Estimated to be 1.1% next year.
If you bought CA$2,000 of Canfor shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Canfor's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Canfor's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:CFP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Canada Forestry Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 3%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:CFP Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.15 1.00
2019-12-31 0.15 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Canfor has not reported any payouts.
  • Unable to verify if Canfor's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Canfor's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Canfor has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (13.6x coverage).
X
Income/ dividend checks
We assess Canfor's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Canfor afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Canfor has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CFP Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Don Kayne
COMPENSATION CA$2,110,000
AGE 60
TENURE AS CEO 7.8 years
CEO Bio

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 Executive Officer, Director since 2017 and President of Canfor Corp. since May 5, 2011. He served as the Chief Executive Officer of Canfor Pulp Holding Inc. at Canfor Pulp Limited Partnership and since September 30, 2012. He spent 10 years as Vice President of Wood Products Marketing and Sales at Canfor from January 2001 to May 5, 2011. Prior to this, he served as a General Manager of Wood Products Sales and Marketing at Canfor for six years. He began his career with Canfor as a regional sales representative in 1979 and has held a variety of sales and marketing roles in its Wood Products Group. Prior to being appointed CEO, Don spent 10 years as Canfor’s Vice President of Sales and Marketing, and is one of the lead architects of the market for British Columbia lumber in China. He completed the Forestry and Business Administration program at the British Columbia Institute of Technology. He has been an Independent Director at Cameco Corporation since January 1, 2016. In 2014, he was appointed to the bi-national Softwood Lumber Board. He is a director and past chair of the Forest Products Association of Canada, Council of Forest Industries, Alberta Forest Products Association and the BC Lumber Trade Council. Mr. Kayne is also chair of the Educating Girls of Rural China Foundation, a charitable organization that works to improve the lives of women in rural areas of western China by providing access to education.

CEO Compensation
  • Don's compensation has increased by more than 20% in the past year.
  • Don's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Canfor management team in years:

6
Average Tenure
  • The average tenure for the Canfor management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Don Kayne

TITLE
President
COMPENSATION
CA$2M
AGE
60
TENURE
7.8 yrs

Alan Nicholl

TITLE
CFO & Executive VP of Finance
COMPENSATION
CA$1M
TENURE
7.8 yrs

David Calabrigo

TITLE
Senior VP of Corporate Development & Legal Affairs and Corporate Secretary
COMPENSATION
CA$1M
AGE
59
TENURE
7.8 yrs

Mark Feldinger

TITLE
Senior Vice President of Global Supply Chain
COMPENSATION
CA$1M
TENURE
7.8 yrs

Fred Stimpson

TITLE
President of Canfor Southern Pine
COMPENSATION
CA$1M
TENURE
4.1 yrs

Pat Elliott

TITLE
Vice President of Corporate Finance & Strategy

David Trent

TITLE
Vice President of Technology & Digital
TENURE
0.8 yrs

Katy Player

TITLE
Vice President People & Communications

Kevin Pankratz

TITLE
Senior Vice President of Sales & Marketing
TENURE
1.2 yrs

Stephen MacKie

TITLE
Senior Vice President of Canadian Operations
TENURE
3.3 yrs
Board of Directors Tenure

Average tenure and age of the Canfor board of directors in years:

7.8
Average Tenure
72
Average Age
  • The tenure for the Canfor board of directors is about average.
Board of Directors

Conrad Pinette

TITLE
Chairman of the Board
COMPENSATION
CA$105K
AGE
78

Don Kayne

TITLE
President
COMPENSATION
CA$2M
AGE
60
TENURE
2.2 yrs

Peter J. Bentley

TITLE
Chairman Emeritus
COMPENSATION
CA$115K
AGE
88
TENURE
9.9 yrs

Ross Smith

TITLE
Independent Director
COMPENSATION
CA$129K
AGE
79
TENURE
9.8 yrs

Glen Clark

TITLE
Independent Director
COMPENSATION
CA$116K
AGE
60
TENURE
9.8 yrs

Mack Singleton

TITLE
Independent Director
COMPENSATION
CA$111K
AGE
72
TENURE
11.4 yrs

William Stinson

TITLE
Independent Director
COMPENSATION
CA$128K
AGE
84
TENURE
7.8 yrs

John Baird

TITLE
Independent Director
COMPENSATION
CA$102K
AGE
48
TENURE
2.9 yrs

Ryan Barrington-Foote

TITLE
Non Independent Director
COMPENSATION
CA$93K
AGE
39
TENURE
1.9 yrs

Dallas Ross

TITLE
Director
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Canfor insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
31. Jan 19 Buy Mark Feldinger Individual 31. Dec 18 31. Dec 18 1,587 CA$26.78 CA$42,500
07. Dec 18 Buy John Baird Individual 05. Dec 18 05. Dec 18 5,985 CA$16.71 CA$99,997
26. Nov 18 Buy Solo Estates Limited Company 26. Nov 18 26. Nov 18 10,000 CA$19.07 CA$190,700
19. Nov 18 Buy Conrad Pinette Individual 19. Nov 18 19. Nov 18 5,000 CA$18.24 CA$91,195
19. Nov 18 Buy William Stinson Individual 19. Nov 18 19. Nov 18 6,000 CA$18.50 CA$109,757
30. Apr 18 Buy John Baird Individual 30. Apr 18 30. Apr 18 5,000 CA$29.82 CA$149,121
X
Management checks
We assess Canfor's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Canfor has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CFP News

Simply Wall St News

Does Canfor Corporation's (TSE:CFP) P/E Ratio Signal A Buying Opportunity?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at Canfor Corporation's (TSE:CFP) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Some Canfor (TSE:CFP) Shareholders Have Copped A Big 52% Share Price Drop

To wit the share price is down 52% in that time. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During the unfortunate twelve months during which the Canfor share price fell, it actually saw its earnings per share (EPS) improve by 5.7%.

Simply Wall St -

Canfor Corporation (TSE:CFP) Delivered A Better ROE Than Its Industry

We'll use ROE to examine Canfor Corporation (TSE:CFP), by way of a worked example. … One way to conceptualize this, is that for each CA$1 of shareholders' equity it has, the company made CA$0.19 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Kind Of Shareholders Own Canfor Corporation (TSE:CFP)?

Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. … It has a market capitalization of CA$2.0b, which means it would generally expect to see some institutions on the share registry.

Simply Wall St -

Does The Canfor Corporation (TSE:CFP) Share Price Fall With The Market?

If you're interested in Canfor Corporation (TSE:CFP), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider.

Simply Wall St -

Who Has Been Buying Canfor Corporation (TSE:CFP) Shares?

The Last 12 Months Of Insider Transactions At Canfor. … In the last twelve months, the biggest single purchase by an insider was when Independent Director John Baird bought CA$149k worth of shares at a price of CA$29.82 per share. … That means that even when the share price was higher, an insider wanted to purchase shares

Simply Wall St -

A Look At Canfor Corporation's (TSE:CFP) Exceptional Fundamentals

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.

Simply Wall St -

What Can We Make Of Canfor Corporation’s (TSE:CFP) High Return On Capital?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

An Intrinsic Calculation For Canfor Corporation (TSE:CFP) Shows It's 48.29% Undervalued

Today I will be providing a simple run through of a valuation method used to estimate the attractiveness of Canfor Corporation (TSE:CFP) as an investment opportunity. … by taking the expected future cash flows and discounting them to today's value. … Discounted Cash Flows (DCF).

Simply Wall St -

Is Canfor Corporation's (TSE:CFP) P/E Ratio Really That Good?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … To keep it practical, we'll show how Canfor Corporation's (TSE:CFP) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

CFP Company Info

Description

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.

Details
Name: Canfor Corporation
CFP
Exchange: TSX
Founded: 1938
CA$1,710,496,662
125,219,375
Website: http://www.canfor.com
Address: Canfor Corporation
100-1700 West 75th Avenue,
Vancouver,
British Columbia, V6P 6G2,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX CFP Common Shares The Toronto Stock Exchange CA CAD 22. Sep 1983
OTCPK CFPZ.F Common Shares Pink Sheets LLC US USD 22. Sep 1983
DB NKC Common Shares Deutsche Boerse AG DE EUR 22. Sep 1983
Number of employees
Current staff
Staff numbers
6,240
Canfor employees.
Industry
Forest Products
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/24 23:59
End of day share price update: 2019/03/22 00:00
Last estimates confirmation: 2019/03/11
Last earnings filing: 2019/02/21
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.