Canfor
Canfor Corporation operates as an integrated forest products company in Canada and internationally. The last earnings update was 31 days ago. More info.
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- Canfor has significant price volatility in the past 3 months.
CFP Share Price and Events
7 Day Returns
1 Year Returns
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.
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Canfor.
| 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.
| 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.
| 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 | ||
| 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 |
| 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 |
| 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
Current Discount Checks
- 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?
| 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.
| 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?
| 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 .
| 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?
| 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 |
| 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.
Value checks
We assess Canfor's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Forestry industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Forestry industry average (and greater than 0)? (1 check) 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!
Earnings growth vs Low Risk Savings
- 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
| 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
| 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 |
| 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 |
| 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.
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.
| 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 |
| 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.
Future performance checks
We assess Canfor's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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
Past Earnings growth analysis
- 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
All data from Canfor Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| 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).
Past performance checks
We assess Canfor's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Forestry industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
- 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
Assets
Liabilities and shares
- 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.
All data from Canfor Company Filings, last reported 2 months ago.
| 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).
Financial health checks
We assess Canfor's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Canfor has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
If you bought
CA$2,000 of
Canfor
shares you are expected to receive
CA$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Canfor's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Canfor's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 6 Analyst Estimates (S&P Global) | See Below |
| Canada Forestry Industry Average Dividend Yield | Market Cap Weighted Average of 8 Stocks | 3% |
| Canada Market Average Dividend Yield | Market Cap Weighted Average of 331 Stocks | 3.6% |
| Canada Minimum Threshold Dividend Yield | 10th Percentile | 1.1% |
| Canada Bottom 25% Dividend Yield | 25th Percentile | 2% |
| Canada Top 25% Dividend Yield | 75th Percentile | 5.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in CA$) | 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.
Income/ dividend checks
We assess Canfor's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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
CEO
| 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:
- 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
President
CA$2M
60
7.8 yrs
Alan Nicholl
CFO & Executive VP of Finance
CA$1M
7.8 yrs
David Calabrigo
Senior VP of Corporate Development & Legal Affairs and Corporate Secretary
CA$1M
59
7.8 yrs
Mark Feldinger
Senior Vice President of Global Supply Chain
CA$1M
7.8 yrs
Fred Stimpson
President of Canfor Southern Pine
CA$1M
4.1 yrs
Pat Elliott
Vice President of Corporate Finance & Strategy
David Trent
Vice President of Technology & Digital
0.8 yrs
Katy Player
Vice President People & Communications
Kevin Pankratz
Senior Vice President of Sales & Marketing
1.2 yrs
Stephen MacKie
Senior Vice President of Canadian Operations
3.3 yrs
Board of Directors Tenure
Average tenure and age of the Canfor board of directors in years:
- The tenure for the Canfor board of directors is about average.
Board of Directors
Conrad Pinette
Chairman of the Board
CA$105K
78
Don Kayne
President
CA$2M
60
2.2 yrs
Peter J. Bentley
Chairman Emeritus
CA$115K
88
9.9 yrs
Ross Smith
Independent Director
CA$129K
79
9.8 yrs
Glen Clark
Independent Director
CA$116K
60
9.8 yrs
Mack Singleton
Independent Director
CA$111K
72
11.4 yrs
William Stinson
Independent Director
CA$128K
84
7.8 yrs
John Baird
Independent Director
CA$102K
48
2.9 yrs
Ryan Barrington-Foote
Non Independent Director
CA$93K
39
1.9 yrs
Dallas Ross
Director
0.9 yrs
Who owns this company?
Recent Insider Trading
- More shares have been bought than sold by Canfor insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (CA$) | 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 | ||
Management checks
We assess Canfor's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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 - – Full articleSome 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 - – Full articleCanfor 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 - – Full articleWhat 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 - – Full articleDoes 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 - – Full articleWho 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 - – Full articleA 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 - – Full articleWhat 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 - – Full articleAn 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 - – Full articleIs 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 - – Full articleCFP 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
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.
