TSX:CFP

Stock Analysis Report

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Executive Summary

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


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

CFPIndustryMarket
7 Day-5.1%-4.2%-0.5%
30 Day1.8%-4.7%3.4%
90 Day50.0%26.4%12.3%
1 Year66.7%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 Year47.3%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

Valuation

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

NamePositionTenureCompensationOwnership
Donald Kayne
President9.67yrsCA$1.09m0.017%
CA$ 478.8k
Alan Nicholl
CFO and Executive VP of Finance & Canfor Pulp Operations9.67yrsCA$761.87kno data
David Calabrigo
Senior VP of Corporate Development & Legal Affairs and Corporate Secretary9.67yrsCA$726.09kno data
Kevin Pankratz
Senior Vice President of Sales & Marketing3yrsCA$774.69k0.000020%
CA$ 573.8
Patrick A. Elliott
Senior Vice President of Corporate Finance & Sustainability2.75yrsno datano data
Katy Player
Vice President People & Communications2.83yrsno datano data
Stephen MacKie
Executive Vice President of North American Operations5.17yrsCA$1.33m0.0019%
CA$ 55.4k
Darren Barker
Senior VP of Global Supply Chain & Chief Digital Officer0.42yrno datano data
Måns Johansson
Chief Executive Officer at Vida Group2yrsno data0.048%
CA$ 1.4m
Tony Sheffield
President of Canfor Southern Pineno datano datano data
Brian Yuen
Vice President of Pulp & Paper Sales and Marketing-Canfor Pulp Products Inc.no datano datano data

3.0yrs

Average Tenure

Experienced Management: CFP's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Donald Kayne
President9.67yrsCA$1.09m0.017%
CA$ 478.8k
William Stinson
Independent Director9.67yrsCA$141.00k0.016%
CA$ 458.1k
Glen Clark
Non Independent Director11.67yrsCA$133.33k0.0016%
CA$ 45.9k
Dieter Jentsch
Independent Director0.75yrno data0.016%
CA$ 458.1k
Conrad Pinette
Independent Chairman of the Board3.42yrsCA$316.00k0.024%
CA$ 687.4k
Anders Ohlner
Independent Director0.75yrno datano data
Barbara Hislop
Independent Director1.67yrsCA$144.75k1.01%
CA$ 29.0m
Ross Smith
Independent Director11.67yrsCA$143.83k0.0040%
CA$ 114.5k
Ryan Barrington-Foote
Non Independent Director3.75yrsCA$145.00kno data
John Baird
Independent Director4.75yrsCA$174.00k0.014%
CA$ 405.1k
M. H. Ross
Independent Director2.75yrsCA$186.33kno data
Dianne Watts
Independent Director2.58yrsCA$116.25kno 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

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

Biography

Canfor Corporation operates as an integrated forest products company in 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 00:26
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.