Executive Summary
Canfor Corporation operates as an integrated forest products company in Canada and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Fair value with moderate growth potential.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.7%
CFP
6.0%
CA Forestry
0.3%
CA Market
1 Year Return
-13.0%
CFP
-8.5%
CA Forestry
5.5%
CA Market
Return vs Industry: CFP underperformed the Canadian Forestry industry which returned -9% over the past year.
Return vs Market: CFP underperformed the Canadian Market which returned 5.8% over the past year.
Shareholder returns
| CFP | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.7% | 6.0% | 0.3% |
| 30 Day | 1.4% | 3.5% | 0.5% |
| 90 Day | -13.3% | 3.5% | 3.5% |
| 1 Year | -13.0%-13.0% | -6.6%-8.5% | 8.8%5.5% |
| 3 Year | -22.7%-22.7% | 4.4%-2.9% | 14.8%4.5% |
| 5 Year | -54.0%-54.0% | -10.6%-17.3% | 34.1%14.5% |
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
8 months ago | Simply Wall St
What Does Canfor Corporation’s (TSE:CFP) 8.6% ROCE Say About The Business?8 months ago | Simply Wall St
Is It Time To Consider Buying Canfor Corporation (TSE:CFP)?9 months ago | Simply Wall St
How Canfor Corporation (TSE:CFP) Can Impact Your Portfolio VolatilityValuation
Is Canfor undervalued compared to its fair value and its price relative to the market?
37.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CFP (CA$13.84) is trading below our estimate of fair value (CA$22.22)
Significantly Below Fair Value: CFP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CFP is unprofitable, so we can't compare its PE Ratio to the Forestry industry average.
PE vs Market: CFP is unprofitable, so we can't compare its PE Ratio to the Canadian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate CFP's PEG Ratio to determine if it is good value.
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).
Next Steps
Future Growth
How is Canfor forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
113.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CFP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).
Earnings vs Market: CFP is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: CFP's is expected to become profitable in the next 3 years.
Revenue vs Market: CFP's revenue (4.6% per year) is forecast to grow slower than the Canadian market (5% per year).
High Growth Revenue: CFP's revenue (4.6% 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?
7.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CFP is currently unprofitable.
Growing Profit Margin: CFP is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: CFP is unprofitable, but has reduced losses over the past 5 years at a rate of 7.2% per year.
Accelerating Growth: Unable to compare CFP's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: CFP is unprofitable, making it difficult to compare its past year earnings growth to the Forestry industry (-13.1%).
Return on Equity
High ROE: CFP has a negative Return on Equity (-13.03%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Canfor's financial position?
Financial Position Analysis
Short Term Liabilities: CFP's short term assets (CA$1.5B) exceed its short term liabilities (CA$1.1B).
Long Term Liabilities: CFP's short term assets (CA$1.5B) exceed its long term liabilities (CA$1.5B).
Debt to Equity History and Analysis
Debt Level: CFP's debt to equity ratio (53.9%) is considered high.
Reducing Debt: CFP's debt to equity ratio has increased from 18.3% to 53.9% over the past 5 years.
Balance Sheet
Inventory Level: CFP has a high level of physical assets or inventory.
Debt Coverage by Assets: CFP's debt is covered by short term assets (assets are 1.3x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: CFP has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: CFP has been profitable on average in the past, therefore cash runway is not a concern.
Next Steps
Dividend
What is Canfor's current dividend yield, its reliability and sustainability?
1.08%
Forecast Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate CFP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate CFP's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?
4.6yrs
Average management tenure
CEO
Don Kayne (61yo)
8.8yrs
Tenure
CA$2,775,483
Compensation
Mr. Donald B. Kayne, also known as Don, has been the Chief Executive Officer of Canfor Pulp Products Inc., since September 30, 2012 and serves as its Director since 2017. Mr. Kayne has been the Chief Execu ...
CEO Compensation Analysis
Compensation vs Market: Don's total compensation ($USD2.10M) is about average for companies of similar size in the Canadian market ($USD2.15M).
Compensation vs Earnings: Don's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 8.8yrs | CA$2.78m | 0.017% CA$292.5k | |
| CFO & Executive VP of Finance | 8.8yrs | CA$1.61m | no data | |
| Senior Vice President of Sales & Marketing | 2.1yrs | CA$1.61m | 0.000020% CA$346.6 | |
| Senior Vice President of Canadian Operations | 4.3yrs | CA$1.33m | 0.0019% CA$33.4k | |
| President of Canfor Southern Pine | 5yrs | CA$1.53m | no data | |
| Vice President of Corporate Finance & Strategy | 1.8yrs | no data | no data | |
| Senior VP of Corporate Development & Legal Affairs and Corporate Secretary | 8.8yrs | CA$1.29m | no data | |
| Vice President People & Communications | 1.9yrs | no data | no data | |
| Senior Vice President of Global Supply Chain | 8.8yrs | CA$1.35m | 0.0040% CA$70.0k | |
| Chief Executive Officer at Vida Group | 1.1yrs | no data | 0.040% CA$692.0k |
4.6yrs
Average Tenure
Experienced Management: CFP's management team is considered experienced (4.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 8.8yrs | CA$2.78m | 0.017% CA$292.5k | |
| Independent Director | 8.8yrs | CA$134.25k | 0.016% CA$276.8k | |
| Non Independent Director | 10.8yrs | CA$131.88k | 0.0016% CA$27.7k | |
| Independent Chairman of the Board | 2.5yrs | CA$250.00k | 0.016% CA$276.8k | |
| Independent Director | 0.8yrs | CA$917.70k | 1.09% CA$18.9m | |
| Independent Director | 10.8yrs | CA$143.00k | 0.0040% CA$69.1k | |
| Director | 10.1yrs | no data | no data | |
| Independent Director | 12.3yrs | CA$135.50k | 0.0080% CA$138.5k | |
| Non Independent Director | 2.8yrs | CA$149.00k | no data | |
| Independent Director | 3.8yrs | CA$118.25k | 0.0088% CA$152.0k |
6.3yrs
Average Tenure
68.5yo
Average Age
Experienced Board: CFP's board of directors are considered experienced (6.3 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$1.733b
- Shares outstanding: 125.22m
- Website: https://www.canfor.com
Number of Employees
Location
- Canfor Corporation
- 100-1700 West 75th Avenue
- Vancouver
- British Columbia
- V6P 6G2
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CFP | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Sep 1983 |
| NKC | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Sep 1983 |
| CFPZ.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Sep 1983 |
Biography
Canfor Corporation operates as an integrated forest products company in 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/18 00:06 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.