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 Canada, Europe, Asia, the United States, and internationally.


Snowflake Analysis

Adequate 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

Stable Share Price: CFX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.4%

CFX

10.1%

CA Forestry

7.1%

CA Market


1 Year Return

-70.7%

CFX

-51.8%

CA Forestry

-25.3%

CA Market

Return vs Industry: CFX underperformed the Canadian Forestry industry which returned -51.8% over the past year.

Return vs Market: CFX underperformed the Canadian Market which returned -25.3% over the past year.


Shareholder returns

CFXIndustryMarket
7 Day-7.4%10.1%7.1%
30 Day-42.8%-41.7%-24.1%
90 Day-48.9%-44.6%-26.7%
1 Year-69.9%-70.7%-50.7%-51.8%-22.9%-25.3%
3 Year-57.6%-63.9%-47.4%-51.1%-15.6%-23.4%
5 Year-60.8%-70.7%-49.2%-53.2%-3.2%-17.5%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CFX (CA$4.36) is trading below our estimate of fair value (CA$13.34)

Significantly Below Fair Value: CFX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CFX is unprofitable, so we can't compare its PE Ratio to the Forestry industry average.

PE vs Market: CFX 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 CFX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CFX is good value based on its PB Ratio (0.5x) compared to the CA Forestry industry average (0.7x).


Next Steps

Future Growth

How is Canfor Pulp Products forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

7.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CFX's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if CFX's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CFX's revenue (7.6% per year) is forecast to grow faster than the Canadian market (3.9% per year).

High Growth Revenue: CFX's revenue (7.6% 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 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?

-0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CFX is currently unprofitable.

Growing Profit Margin: CFX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CFX is unprofitable, and losses have increased over the past 5 years at a rate of -0.7% per year.

Accelerating Growth: Unable to compare CFX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CFX is unprofitable, making it difficult to compare its past year earnings growth to the Forestry industry (4.5%).


Return on Equity

High ROE: CFX has a negative Return on Equity (-5.46%), as it is currently unprofitable.


Next Steps

  • Explore strong past performing companies in the Materials industry.

Financial Health

How is Canfor Pulp Products's financial position?


Financial Position Analysis

Short Term Liabilities: CFX's short term assets (CA$331.3M) exceed its short term liabilities (CA$157.2M).

Long Term Liabilities: CFX's short term assets (CA$331.3M) exceed its long term liabilities (CA$205.3M).


Debt to Equity History and Analysis

Debt Level: CFX's debt to equity ratio (11.5%) is considered satisfactory.

Reducing Debt: CFX's debt to equity ratio has increased from 10.2% to 11.5% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: CFX's debt is covered by short term assets (assets are 5.2x 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: CFX has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: CFX has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

5.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CFX's dividend (5.73%) is higher than the bottom 25% of dividend payers in the Canadian market (2.75%).

High Dividend: CFX's dividend (5.73%) is low compared to the top 25% of dividend payers in the Canadian market (8.79%).


Stability and Growth of Payments

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: CFX is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: CFX's dividends in 3 years are forecast to be well covered by earnings (38.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.4yrs

Average management tenure


CEO

Don Kayne (61yo)

7.5s

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Donald Kayne
CEO & Director7.5yrsno data0.0086% CA$26.4k
Alan Nicholl
CFO & Executive VP of Finance7.5yrsno datano data
Martin Pudlas
Vice President of Operations & Innovation7.42yrsCA$1.28mno data
David Calabrigo
Senior VP of Corporate Development & Legal Affairs and Corporate Secretaryno datano datano data
Corinne Stavness
Senior Director of External Affairs & Communicationsno datano datano data
Kevin Pankratz
Senior Vice President of Sales & Marketingno datano datano data
Mark Feldinger
Senior Vice President of Global Supply Chain1.92yrsno datano data
Brian Yuen
Vice President of Pulp & Paper Sales and Marketing1.17yrsno data0.0034% CA$10.4k

7.4yrs

Average Tenure

Experienced Management: CFX's management team is seasoned and experienced (7.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Donald Kayne
CEO & Director7.5yrsno data0.0086% CA$26.4k
William Stinson
Independent Director8.17yrsCA$106.75k0.15% CA$448.4k
Conrad Pinette
Independent Chairman of the Board2.58yrsCA$126.00k0.0061% CA$18.9k
Stan Bracken-Horrocks
Independent Director10.17yrsCA$127.00k0.0031% CA$9.5k
John Baird
Independent Director3.92yrsCA$94.25k0.0031% CA$9.5k

3.9yrs

Average Tenure

75yo

Average Age

Experienced Board: CFX's board of directors are considered experienced (3.9 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$307.902m
  • Shares outstanding: 65.23m
  • Website: https://www.canfor.com

Number of Employees


Location

  • Canfor Pulp Products Inc.
  • 100- 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 Canada, Europe, Asia, the United States, and internationally. The company operates through two segments, Pulp and Paper. It offers solid wood; bleached and unbleached softwood pulp; and bleached and unbleached kraft, and coloured kraft papers. The company also supplies fiber products; and produces green energy. The company was incorporated in 2010 and is headquartered in Vancouver, Canada. Canfor Pulp Products Inc. is a subsidiary of Canadian Forest Products Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 03:35
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.