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Canfor Pulp Products (TSE:CFX)
TSX:CFX
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Canfor Pulp Products
(TSX:CFX)
48Neutral
Canfor Pulp Products (CFX) vs. S&P 500 (SPY)
Market Cap
C$46.32M
Dividend YieldN/A
Average Volume (3M)17.31K
Price to Earnings (P/E)―
Beta (1Y)0.47
Revenue Growth-8.78%
EPS Growth-68.46%
CountryCA
Employees1,004
SectorBasic Materials
Sector Strength63
IndustryForestry
Share Statistics
EPS (TTM)-2.48
Shares Outstanding65,233,560
10 Day Avg. Volume12,189
30 Day Avg. Volume17,307
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.06
Price to Cash Flow (P/CF)0.40
P/FCF Ratio0.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$1.08Price Target Upside52.11% Upside
Rating ConsensusHold
Number of Analyst Covering3
Canfor Pulp Products Business Overview & Revenue Model
Company DescriptionCanfor Pulp Products Inc. (CFX) is a leading global producer of pulp and paper products, headquartered in Vancouver, Canada. The company operates in the forest products sector, with a focus on the manufacturing and distribution of high-quality Northern Bleached Softwood Kraft (NBSK) pulp, paper, and related products. Its offerings are primarily used in the production of a wide range of paper products, including tissue, printing, and writing papers, as well as specialty products.
How the Company Makes MoneyCanfor Pulp Products generates revenue through the sale of its pulp and paper products to a diverse customer base across the globe. The company's primary revenue stream comes from its Northern Bleached Softwood Kraft (NBSK) pulp, which is sold to manufacturers for use in producing tissue, printing papers, and other specialty paper products. Additionally, Canfor Pulp Products benefits from strategic partnerships and long-term supply agreements with key global customers, ensuring a steady demand for its products. The company also engages in the sale of energy generated from its biomass-based operations, contributing to its earnings and supporting sustainable practices.
Canfor Pulp Products Financial Statement Overview
Summary
Canfor Pulp Products is facing financial challenges with declining revenues and increasing leverage. However, positive operating cash flows provide some stability despite high debt levels and shrinking equity.Income Statement
Canfor Pulp Products has faced declining revenues over the past few years, with a significant drop of 8.77% in 2024. The company has struggled with profitability, as indicated by negative EBIT and net income margins. The gross profit margin has decreased from 16.31% in 2020 to 20.66% in 2024, reflecting cost pressures. Overall, the income statement reflects challenges in maintaining profitability and revenue growth.45
Neutral
Balance Sheet
The balance sheet reveals a declining trend in stockholders' equity, from $532.5 million in 2020 to $176 million in 2024. The debt-to-equity ratio has increased, indicating higher leverage, which could be risky given the ongoing losses. The equity ratio has also decreased, reflecting lower asset coverage by equity. This suggests potential financial instability and increased reliance on debt.40
Negative
Cash Flow
The cash flow statement shows positive operating cash flow, though it has decreased over time. Free cash flow turned positive in 2024, after negative figures in 2023 and 2022. The operating cash flow to net income ratio indicates that cash generation is better than net income suggests. However, the cash flow situation is still tight, with limited free cash flow relative to past investment needs.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 798.60M | 875.50M | 1.09B | 1.14B | 990.50M | Gross Profit |
| 165.00M | 101.00M | 218.80M | 282.80M | 186.00M | EBIT |
| -226.50M | -127.50M | -43.80M | 38.80M | -25.30M | EBITDA |
| -148.40M | -34.90M | -4.90M | 29.60M | 55.20M | Net Income Common Stockholders |
| -161.90M | -96.10M | -79.10M | -44.40M | -22.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 15.30M | 21.10M | 14.70M | 73.30M | 6.80M | Total Assets |
| 452.90M | 675.80M | 756.00M | 841.70M | 920.80M | Total Debt |
| 99.90M | 109.20M | 67.80M | 52.90M | 52.50M | Net Debt |
| 84.60M | 88.10M | 53.10M | -20.40M | 45.70M | Total Liabilities |
| 276.90M | 338.70M | 328.60M | 346.70M | 388.30M | Stockholders Equity |
| 176.00M | 337.10M | 427.40M | 495.00M | 532.50M |
| Cash Flow | Free Cash Flow | |||
| 7.60M | -24.20M | -67.30M | 70.20M | 22.70M | Operating Cash Flow |
| 58.40M | 36.30M | 45.30M | 148.90M | 96.00M | Investing Cash Flow |
| -41.90M | -59.80M | -112.20M | -78.10M | -72.80M | Financing Cash Flow |
| -22.30M | 29.90M | 8.30M | -4.30M | -22.40M |
Canfor Pulp Products Technical Analysis
Negative
0.71
Price Trends
0.79
Negative
0.84
Negative
0.96
Negative
Market Momentum
-0.03
Positive
41.80
Neutral
48.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CFX, the sentiment is Negative. The current price of 0.71 is below the 20-day moving average (MA) of 0.76, below the 50-day MA of 0.79, and below the 200-day MA of 0.96, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.80 is Neutral, neither overbought nor oversold. The STOCH value of 48.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CFX.
Canfor Pulp Products Peers Comparison
Overall Rating
UnderperformOutperform
Sector (46)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | C$8.76B | ― | -0.07% | 1.64% | -2.95% | 94.75% | |
60 Neutral | C$304.76M | 13.78 | 6.61% | 6.80% | 24.29% | -27.59% | |
50 Neutral | C$788.79M | ― | -18.73% | ― | -8.81% | -13.99% | |
48 Neutral | C$46.32M | ― | -63.11% | ― | -8.78% | -68.46% | |
48 Neutral | $1.74B | ― | -18.83% | ― | -3.20% | -107.88% | |
46 Neutral | $2.64B | -3.89 | -29.36% | 3.33% | 2.89% | -29.66% |
* Basic Materials Sector Average
Performance Comparison
TSE:CFX
Canfor Pulp Products
0.71
-0.95
-57.23%
TSE:IFP
Interfor
15.33
-5.11
-25.00%
TSE:WFG
West Fraser Timber Co
109.93
1.71
1.58%
TSE:CFP
Canfor
14.73
-1.55
-9.52%
TSE:ADN
Acadian Timber
17.10
1.59
10.25%
Canfor Pulp Products Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: 1.43% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company that has made significant strategic adjustments to improve its cost structure and diversify its operations, resulting in stronger financial performance. However, ongoing challenges with trade disputes, tariffs, and fibre supply constraints continue to pose significant risks to the business.Highlights
Successful Strategic Priorities Execution
In 2024, Canfor successfully executed several strategic priorities, including the closure of high-cost assets in British Columbia and the US South, and the completion of a second greenfield sawmill in Alabama and a major brownfield investment in Arkansas. This has resulted in an improved operating cost base and enhanced geographic diversification.
Improved Financial Performance
Canfor's lumber business generated an adjusted EBITDA of $22 million in Q4, an increase of $64 million from the previous quarter, due to increased lumber prices and modest cost structure improvements.
Strong Pulp Business Performance
Canfor Pulp generated solid financial results in Q4, supported by stable global pulp markets and strong performance in the paper business, despite ongoing fibre supply uncertainty.
Anticipated Cost Structure Improvements
Looking ahead to 2025, Canfor anticipates further improvements to its cost structure following the closure of high-cost assets and the ramp-up of low-cost capacity in the US South.
Lowlights
Challenges with Trade Disputes
The company faces significant challenges due to elevated duties and the implementation of tariffs, which are impacting the company's operations and profitability.
Decline in Pulp EBITDA
Canfor Pulp's adjusted EBITDA decreased by $7 million from the prior quarter, largely reflecting a 22% reduction in shipments following the wind-down of one production line at Northwood.
Uncertainty in Fibre Supply
There remains uncertainty with respect to fibre supply in 2025 due to elevated softwood lumber duties and potential additional tariffs, impacting Canfor Pulp.
Company Guidance
In the fourth quarter of fiscal year 2024, Canfor and Canfor Pulp provided several key metrics and strategic insights during their analyst call. The companies reported a marked improvement in their financial health, with Canfor's lumber business generating an adjusted EBITDA of $22 million, signifying a $64 million increase from the previous quarter. This was attributed to rising lumber prices in North America and steady earnings in Europe. Canfor Pulp saw adjusted EBITDA of $12 million, though down by $7 million from the previous quarter due to a 22% reduction in shipments. The company's strategic focus on optimizing their cost structure and enhancing geographic diversification was emphasized, with 70% of their lumber business now located outside Canada. Canfor anticipates a modest capital expenditure of $250 million for the lumber business in 2025 and a $50 million spend for Canfor Pulp, with plans to opportunistically repurchase shares. Despite facing ongoing challenges like elevated duties and potential tariffs, the company remains confident about its robust balance sheet and improved market positioning, with only 20% of sales exposed to duties or tariffs.Canfor Pulp Products Corporate Events
Financial Disclosures
Canfor Pulp Products Inc. to Host Q4 2024 Results Conference Call
Neutral
Feb 19, 2025
Canfor Pulp Products Inc. and Canfor Corporation have announced a joint analyst conference call to discuss their Q4 2024 financial and operating results, scheduled for March 7, 2025. This call will provide insights into the company’s performance, potentially impacting its operations and market positioning, while allowing analysts and investors to engage with management on key financial metrics.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.