Canfor Corp. (CFP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Acadian Timber Corp.

Stella-Jones, Inc.

Canfor Corp.

Interfor Corp.

West Fraser Timber Co. Ltd.

G2 Energy Corp.

Western Forest Products, Inc.

Atlas Engineered Products Ltd.

GreenFirst Forest Products, Inc.

Conifex Timber, Inc.

Maple Leaf Green World, Inc.

Why is Canfor Corp. ?

Flat results in Jun 26

NET PROFIT(9M) At CAD -98.7 MM has Grown at -215.34%
DEBT-EQUITY RATIO (HY) Highest at 32.19 %
INTEREST(Q) At CAD 31.2 MM has Grown at 23.32%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 17.70%, its profits have fallen by -394.4%

Underperformed the market in the last 1 year

The stock has generated a return of 17.70% in the last 1 year, much lower than market (S&P/TSX 60) returns of 28.13%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Canfor Corp. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Canfor Corp.

23.4%

0.75

36.04%

S&P/TSX 60

28.13%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.24%

EBIT Growth (5y)

-173.85%

EBIT to Interest (avg)

26.47

Debt to EBITDA (avg)

2.49

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

1.40

Tax Ratio

11.33%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

17.33%

ROE (avg)

20.09%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.67

EV to EBIT

-8.00

EV to EBITDA

26.78

EV to Capital Employed

0.76

EV to Sales

0.48

PEG Ratio

Dividend Yield

ROCE (Latest)

-9.45%

ROE (Latest)

-12.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

17What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1,805.71% (YoY

NET SALES(Q)

Highest at CAD 1,526.4 MM

OPERATING PROFIT(Q)

Highest at CAD 157.5 MM

OPERATING PROFIT MARGIN(Q)

Highest at 10.32 %

PRE-TAX PROFIT(Q)

Highest at CAD 39.6 MM

NET PROFIT(Q)

Highest at CAD 42.3 MM

EPS(Q)

Highest at CAD -0.16

-14What is not working for the Company

NET PROFIT(9M)

At CAD -98.7 MM has Grown at -215.34%

DEBT-EQUITY RATIO (HY)

Highest at 32.19 %

INTEREST(Q)

At CAD 31.2 MM has Grown at 23.32%

Here's what is working for Canfor Corp.

Pre-Tax Profit

At CAD 39.6 MM has Grown at 137.89%

over average net sales of the previous four periods of CAD -104.52 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 42.3 MM has Grown at 182.26%

over average net sales of the previous four periods of CAD -51.42 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Net Sales

Highest at CAD 1,526.4 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 157.5 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 10.32 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CAD 39.6 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 42.3 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD -0.16

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Raw Material Cost

Fallen by -1,805.71% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Canfor Corp.

Interest

At CAD 31.2 MM has Grown at 23.32%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Debt-Equity Ratio

Highest at 32.19 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio