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Canfor Pulp Products (TSE:CFX)
TSX:CFX
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Canfor Pulp Products
(TSX:CFX)
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Rating:45Neutral
Price Target:
C$0.50
▲(47.06% Upside)
The overall stock score is primarily influenced by significant financial challenges, including declining revenues and negative profitability. Technical indicators suggest a bearish trend, with the stock trading below key moving averages and approaching oversold conditions. Valuation metrics are weak, with a negative P/E ratio and no dividend yield. Despite some strategic initiatives highlighted in the earnings call, the overall sentiment remains cautious due to operational and market challenges.
Canfor Pulp Products (CFX) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$25.44M
Dividend YieldN/A
Average Volume (3M)63.49K
Price to Earnings (P/E)―
Beta (1Y)0.37
Revenue Growth-11.47%
EPS Growth-167.18%
CountryCA
Employees799
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)-0.19
Shares Outstanding65,233,560
10 Day Avg. Volume24,286
30 Day Avg. Volume63,491
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.28
Price to Sales (P/S)0.06
P/FCF Ratio6.52
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$0.58Price Target Upside70.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Canfor Pulp Products Business Overview & Revenue Model
Company DescriptionCanfor Pulp Products Inc. (CFX) is a leading producer of premium quality pulp and paper products, headquartered in Canada. The company operates primarily in the forestry sector, focusing on the production of northern bleached softwood kraft (NBSK) pulp, which is used in a variety of applications such as tissue, paper, and specialty products. Canfor Pulp also engages in the manufacturing of related products, including wood chips and energy, leveraging its sustainable forestry practices and commitment to environmental stewardship.
How the Company Makes MoneyCanfor Pulp Products generates revenue primarily through the sale of its NBSK pulp and other wood-based products. Its revenue model is largely driven by the demand for pulp in global markets, where it sells to various customers in the paper and packaging industries. Key revenue streams include sales of pulp to manufacturers of tissue and paper products, as well as the sale of by-products such as wood chips used in energy production. The company's financial performance is influenced by factors such as market prices for pulp, production capacity, operational efficiency, and the global demand for paper products. Additionally, Canfor Pulp benefits from strategic partnerships with other companies in the forestry and manufacturing sectors, which can enhance its market reach and operational capabilities.
Canfor Pulp Products Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mix of strategic growth initiatives and significant operational challenges. While Canfor is making progress in geographic diversification and maintaining a strong balance sheet, it faces ongoing challenges from facility closures, weak market conditions, and trade uncertainties. The sentiment is balanced with both positive and negative aspects present.Q2-2025 Updates
Positive Updates
Pending Acquisition in Sweden
Canfor announced the pending acquisition of three sawmills from Karl Hedin in Sweden, enhancing its ability to access global markets and diversify its lumber platform.
Strong Balance Sheet
Canfor reported a solid balance sheet with available liquidity of $1.3 billion, supporting strategic growth initiatives.
Lumber Business EBITDA Growth
Adjusted EBITDA for the lumber business increased to $68 million in Q2, up approximately $8 million from Q1, supported by strong earnings in Europe and the U.S. South.
Geographic Diversification
Following the acquisition, Canfor's lumber production will be diversified with 35% in the U.S. South, 35% in Sweden, and 30% in Western Canada.
Negative Updates
Facility Closures in North America
Canfor announced the closure of facilities in British Columbia and South Carolina, removing over 2 billion board feet of production due to high costs and weak market conditions.
Decline in Pulp Pricing
Canfor Pulp experienced a sharp decline in pricing, particularly in China where prices fell 7% in the quarter, contributing to lower sales realizations and reduced EBITDA.
Impact of Tariffs and Duties
Increased duty rates and ongoing trade uncertainties in the U.S. pose challenges to Canfor's operations, requiring adjustments to sales strategies.
Elevated Global Pulp Inventories
Weak demand and elevated global pulp inventories contributed to a decline in pricing and persistent market challenges.
Company Guidance
During the Canfor and Canfor Pulp's Second Quarter 2025 Analyst Call, the guidance provided highlighted several key metrics and strategic actions. Canfor Corporation announced the closure of facilities in South Carolina, reducing production capacity by over 2 billion board feet to align with market demand. Despite challenging market conditions, the company is leveraging its geographically diversified lumber platform to enhance competitiveness and generate stable cash flow. Canfor is set to acquire three sawmills in Sweden, expanding its operational reach and reducing reliance on the U.S. market, bringing its lumber production distribution to approximately 35% in the U.S. South, 35% in Sweden, and 30% in Western Canada. Financially, Canfor's lumber business generated an adjusted EBITDA of $62 million in Q2, with expectations of improved profitability due to geographic diversification and low operating costs. Canfor Pulp's adjusted EBITDA was $6 million, impacted by lower sales realizations and increased costs. The company maintains a strong balance sheet with a consolidated net debt of approximately $87 million and plans capital expenditures of $240 million in the lumber business and $45 million in Canfor Pulp for 2025.Canfor Pulp Products Financial Statement Overview
Summary
Canfor Pulp Products faces significant financial challenges with declining revenues and profitability. The income statement shows negative margins, and the balance sheet reflects poor return on equity. Cash flow generation is limited, indicating operational difficulties.Income Statement
The income statement shows declining revenue with a negative growth rate of -5.45% TTM. Gross profit margin is relatively stable at 23.57%, but net profit margin is deeply negative at -19.87%, indicating significant losses. EBIT and EBITDA margins are also negative, reflecting operational challenges.45
Neutral
Balance Sheet
The balance sheet indicates a moderate debt-to-equity ratio of 0.42 TTM, suggesting manageable leverage. However, return on equity is significantly negative at -71.45%, highlighting poor profitability. The equity ratio is not provided, but the company's equity position appears to be under pressure.55
Neutral
Cash Flow
Cash flow analysis reveals a decline in free cash flow growth by -19.57% TTM. The operating cash flow to net income ratio is 0.32, indicating some cash flow generation despite losses. Free cash flow to net income ratio is 0.28, showing limited cash flow relative to net losses.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 730.40M | 798.60M | 875.50M | 1.09B | 1.14B | 990.50M |
| Gross Profit | 160.80M | 165.00M | 101.00M | 218.80M | 282.80M | 186.00M |
| EBITDA | -154.10M | -148.40M | -34.90M | -4.90M | 29.60M | 55.20M |
| Net Income | -153.90M | -161.90M | -96.10M | -79.10M | -44.40M | -22.40M |
Balance Sheet | ||||||
| Total Assets | 435.30M | 452.90M | 675.80M | 756.00M | 841.70M | 920.80M |
| Cash, Cash Equivalents and Short-Term Investments | 1.30M | 15.30M | 21.10M | 14.70M | 73.30M | 6.80M |
| Total Debt | 76.60M | 99.90M | 109.20M | 67.80M | 52.90M | 52.50M |
| Total Liabilities | 258.50M | 276.90M | 338.70M | 328.60M | 346.70M | 388.30M |
| Stockholders Equity | 176.80M | 176.00M | 337.10M | 427.40M | 495.00M | 532.50M |
Cash Flow | ||||||
| Free Cash Flow | 14.80M | 7.60M | -24.20M | -67.30M | 70.20M | 22.70M |
| Operating Cash Flow | 53.30M | 58.40M | 36.30M | 45.30M | 148.90M | 96.00M |
| Investing Cash Flow | -36.70M | -41.90M | -59.80M | -112.20M | -78.10M | -72.80M |
| Financing Cash Flow | -39.30M | -22.30M | 29.90M | 8.30M | -4.30M | -22.40M |
Canfor Pulp Products Technical Analysis
Negative
0.34
Price Trends
0.43
Negative
0.55
Negative
0.64
Negative
Market Momentum
-0.02
Positive
30.68
Neutral
26.98
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 0.34 is below the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.43, and below the 200-day MA of 0.64, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 30.68 is Neutral, neither overbought nor oversold. The STOCH value of 26.98 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | C$256.93M | 16.89 | 4.46% | 9.58% | -28.86% | -48.20% | |
48 Neutral | C$6.58B | -19.16 | -3.61% | 2.19% | -6.67% | -168.27% | |
48 Neutral | $1.42B | -3.09 | -15.06% | ― | 1.76% | 34.61% | |
45 Neutral | C$25.44M | -0.17 | -60.90% | ― | -11.47% | -167.18% | |
45 Neutral | C$122.05M | -5.65 | -12.20% | ― | 2.06% | -46.23% | |
45 Neutral | $404.43M | ― | -11.53% | ― | -7.60% | 50.15% |
* Basic Materials Sector Average
TSE:CFX
Canfor Pulp Products
0.34
-0.61
-64.21%
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-28.63%
Canfor Pulp Products Corporate Events
Financial Disclosures
Canfor Pulp and Canfor Corp Announce Q3 Results Call
Neutral
Sep 29, 2025
Canfor Pulp Products Inc. and Canfor Corporation have announced a joint analyst conference call scheduled for November 6, 2025, to discuss their third-quarter financial and operating results. This announcement highlights the companies’ commitment to transparency and engagement with the investment community, providing stakeholders with insights into their financial performance and strategic direction.
The most recent analyst rating on (TSE:CFX) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Canfor Pulp Products stock, see the TSE:CFX Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.