Canfor Corp
TSX:CFP

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Canfor Corp
TSX:CFP
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Price: 12.67 CAD -0.63%
Market Cap: CA$1.5B

EV/OCF

31.2
Current
150%
More Expensive
vs 3-y average of 12.5

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
31.2
=
Enterprise Value
CA$2.3B
/
Operating Cash Flow
CA$69.5m

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
31.2
=
Enterprise Value
CA$2.3B
/
Operating Cash Flow
CA$69.5m

Valuation Scenarios

Canfor Corp is trading above its 3-year average

If EV/OCF returns to its 3-Year Average (12.5), the stock would be worth CA$5.07 (60% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-79%
Maximum Upside
No Upside Scenarios
Average Downside
66%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 31.2 CA$12.67
0%
3-Year Average 12.5 CA$5.07
-60%
5-Year Average 6.5 CA$2.63
-79%
Industry Average 11.7 CA$4.76
-62%
Country Average 11.9 CA$4.86
-62%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close
P/E Multiple
Earnings Growth PEG
CA
Canfor Corp
TSX:CFP
Average P/E: 563.1
Negative Multiple: -1.9
N/A N/A
SE
Svenska Cellulosa SCA AB
STO:SCA B
23.9
9%
2.7
CN
Chengxin Lithium Group Co Ltd
SZSE:002240
Negative Multiple: -50.4 N/A N/A
CA
West Fraser Timber Co Ltd
TSX:WFG
Negative Multiple: -5.5 N/A N/A
US
Louisiana-Pacific Corp
NYSE:LPX
35.7
37%
1
CA
Stella-Jones Inc
TSX:SJ
13.4
8%
1.7
CN
Zhongfu Straits Pingtan Development Co Ltd
SZSE:000592
Negative Multiple: -194 N/A N/A
IN
C
Century Plyboards (India) Ltd
NSE:CENTURYPLY
73.5
48%
1.5
CN
Dehua TB New Decoration Material Co Ltd
SZSE:002043
15.8
18%
0.9
BR
Dexco SA
BOVESPA:DXCO3
3 776.6
710%
5.3
ZA
Y
York Timber Holdings Ltd
JSE:YRK
2.8
N/A N/A

Market Distribution

Higher than 83% of companies in Canada
Percentile
83nd
Based on 1 926 companies
83nd percentile
31.2
Low
0 — 7.9
Typical Range
7.9 — 19.5
High
19.5 —
Distribution Statistics
Canada
Min 0
30th Percentile 7.9
Median 11.9
70th Percentile 19.5
Max 22 577.3

Canfor Corp
Glance View

Market Cap
1.5B CAD
Industry
Paper & Forest

In the lush, sprawling forests of British Columbia, Canfor Corp. has carved out a distinguished presence as a titan in the forestry products industry. Founded in 1938, this Canadian company has matured into a leading global supplier of sustainable wood products, priding itself on its commitment to high-quality lumber and pulp production. At the heart of Canfor's operations is its mastery in transforming raw timber into a myriad of formidable products, pivotal for construction, packaging, and numerous other industries. From its sawmills to its pulp and paper mills, Canfor employs state-of-the-art technology to ensure efficiency and environmental stewardship. As a result, it sits at the crossroads of tradition and innovation, leveraging its expertise to cater to the ever-evolving demands of global markets. Canfor’s financial prosperity is deeply entwined with its robust international footprint and strategic operations across the US, Canada, and Europe. The company derives its revenue primarily from the sale of softwood lumber, a sought-after material for residential, commercial, and industrial construction. Additionally, its diversified product portfolio extends to the production of high-value specialty papers and bleached kraft pulp, which further cement its competitive edge. This diversification acts as a buffer against market volatility, providing the company with a stable revenue stream even amid changing economic conditions. With a firm focus on sustainability, Canfor positions itself not only as a leader in the timber industry but also as an advocate of eco-friendly business practices, influencing both industry standards and consumer preferences worldwide.

CFP Intrinsic Value
22.16 CAD
Undervaluation 43%
Intrinsic Value
Price CA$12.67
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