TSX:CFX

Stock Analysis Report

Canfor Pulp Products

Executive Summary

Canfor Pulp Products Inc., together with its subsidiaries, produces and supplies pulp and paper products in North America, Europe, Asia, and internationally.

Snowflake

Fundamentals

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Canfor Pulp Products's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

CFX

0.9%

CA Forestry

-0.3%

CA Market


1 Year Return

-60.2%

CFX

-23.4%

CA Forestry

0.9%

CA Market

Return vs Industry: CFX underperformed the Canadian Forestry industry which returned -23.4% over the past year.

Return vs Market: CFX underperformed the Canadian Market which returned 0.9% over the past year.


Share holder returns

CFXIndustryMarket
7 Day0%0.9%-0.3%
30 Day-1.9%-3.4%-2.1%
90 Day-5.2%-1.4%-1.5%
1 Year-55.1%-60.2%-21.1%-23.4%4.4%0.9%
3 Year9.1%-6.8%4.3%-3.1%15.7%5.4%
5 Year8.6%-18.3%-2.1%-9.7%26.1%7.9%

Price Volatility Vs. Market

How volatile is Canfor Pulp Products's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

7.81x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: CFX (CA$9.39) is trading above our estimate of fair value (CA$3.87)

Significantly Undervalued: CFX is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: CFX is good value based on its PE Ratio (7.8x) compared to the Forestry industry average (17.7x).

PE vs Market: CFX is good value based on its PE Ratio (7.8x) compared to the Canadian market (13.7x).


Price Based on Expected Growth

Low PEG Ratio: CFX is good value based on its PEG Ratio (0.6x)


Price Based on Value of Assets

PB vs Industry: CFX is overvalued based on its PB Ratio (1x) compared to the CA Forestry industry average (1x).


Next Steps

Future Growth

How is Canfor Pulp Products expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: CFX's forecast earnings growth (13.8% per year) is above the savings rate (1.9%).

Earnings vs Market: CFX's earnings (13.8% per year) are forecast to grow faster than the Canadian market (13.3% per year).

High Growth Earnings: CFX's earnings are forecast to grow, but not significantly.

Revenue vs Market: CFX's revenue (8.2% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: CFX's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if CFX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Canfor Pulp Products performed over the past 5 years?

13.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CFX's earnings have grown by 13.9% per year over the past 5 years.

Accelerating Growth: CFX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CFX had negative earnings growth (-57.6%) over the past year, making it difficult to compare to the Forestry industry average (-57.6%).


Return on Equity

High ROE: CFX's Return on Equity (12.7%) is considered low.


Return on Assets

ROA vs Industry: CFX has a higher Return on Assets than the Forestry industry average last year.


Return on Capital Employed

ROCE Improving: CFX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Canfor Pulp Products's financial position?


Financial Position Analysis

Short Term Liabilities: CFX's short term assets (CA$353.8M) exceeds its short term liabilities (CA$163.5M)

Long Term Liabilities: CFX's short term assets (353.8M) exceeds its long term liabilities (155.6M)


Debt to Equity History and Analysis

Debt Level: CFX is debt free.

Reducing Debt: CFX has no debt compared to 5 years ago when its debt to equity ratio was 10.7%.

Debt Coverage: CFX has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CFX has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CFX has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CFX's debt is covered by short term assets.


Next Steps

Dividend

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

2.66%

Expected Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%2.0%markettop25%6.0%industryaverage5.7%forecastin3Years2.7%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: CFX's dividend (2.66%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: CFX's dividend (2.66%) is low compared to the top 25% of dividend payers in the Canadian market (5.98%).

Stable Dividend: CFX has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CFX has only been paying a dividend for 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.8%), CFX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

7.0yrs

Average management tenure


CEO

Don Kayne (61yo)

7.1yrs

Tenure

0

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 ...


Management Age and Tenure

7.0yrs

Average Tenure

Experienced Management: CFX's management team is seasoned and experienced (7 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

64yo

Average Age

Experienced Board: CFX's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$98,12027 Nov 18
Peter J. Bentley
EntityIndividual
Shares5,000
Max PriceCA$19.62
BuyCA$195,26626 Nov 18
Peter J. Bentley
EntityIndividual
Shares10,000
Max PriceCA$19.53

Ownership Breakdown


Management Team

  • David Calabrigo (60yo)

    Senior VP of Corporate Development & Legal Affairs and Corporate Secretary

    • Tenure: 0yrs
  • Don Kayne (61yo)

    CEO & Director

    • Tenure: 7.1yrs
  • Alan Nicholl

    CFO & Executive VP of Finance

    • Tenure: 7.1yrs
  • Mark Feldinger

    Senior Vice President of Global Supply Chain

    • Tenure: 1.5yrs
  • Martin Pudlas

    Vice President of Operations & Innovation

    • Tenure: 7yrs
    • Compensation: CA$1.28m
  • Corinne Stavness

    Senior Director of External Affairs & Communications

    • Tenure: 0yrs
  • Kevin Pankratz

    Senior Vice President of Sales & Marketing

    • Tenure: 0yrs

Board Members

  • William Stinson (85yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: CA$106.75k
  • Glen Clark (61yo)

    Director

    • Tenure: 10.4yrs
  • Conrad Pinette (79yo)

    Independent Chairman of the Board

    • Tenure: 2.2yrs
    • Compensation: CA$126.00k
  • Barbara Hislop (64yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: CA$122.50k
  • Don Kayne (61yo)

    CEO & Director

    • Tenure: 7.1yrs
  • Stan Bracken-Horrocks (75yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: CA$127.00k
  • John Baird (49yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: CA$94.25k

Company Information

Canfor Pulp Products Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Canfor Pulp Products Inc.
  • Ticker: CFX
  • Exchange: TSX
  • Founded: 2010
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: CA$612.543m
  • Shares outstanding: 65.23m
  • Website: https://www.canfor.com

Number of Employees


Location

  • Canfor Pulp Products Inc.
  • 230 - 1700 West 75th Avenue
  • Vancouver
  • British Columbia
  • V6P 6G2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CFXTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2011
CFPU.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2011
8CPDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2011

Biography

Canfor Pulp Products Inc., together with its subsidiaries, produces and supplies pulp and paper products in North America, Europe, Asia, and internationally. The company operates through two segments, Pulp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:28
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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