Canfor Valuation
| CFP Stock | CAD 14.99 0.26 1.77% |
At this time, the firm appears to be undervalued. Canfor shows a prevailing Real Value of C$17.69 per share. The current price of the firm is C$14.99. Our model approximates the value of Canfor from analyzing the firm fundamentals such as Return On Equity of -0.14, current valuation of 2.53 B, and Profit Margin of (0.09) % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Canfor's valuation include:
Undervalued
Today
Please note that Canfor's price fluctuation is not too volatile at this time. Calculation of the real value of Canfor is based on 3 months time horizon. Increasing Canfor's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Canfor is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Canfor Stock. However, Canfor's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 14.99 | Real 17.69 | Hype 9.78 | Naive 14.91 |
The intrinsic value of Canfor's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Canfor's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Canfor helps investors to forecast how Canfor stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Canfor more accurately as focusing exclusively on Canfor's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Canfor's intrinsic value based on its ongoing forecasts of Canfor's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Canfor's closest peers.
Canfor Cash |
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Canfor Total Value Analysis
Canfor is currently projected to have takeover price of 2.53 B with market capitalization of 1.75 B, debt of 703.6 M, and cash on hands of 259.3 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Canfor fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
2.53 B | 1.75 B | 703.6 M | 259.3 M |
Canfor Investor Information
About 55.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 0.59. Some equities with similar Price to Book (P/B) outperform the market in the long run. Canfor recorded a loss per share of 3.98. The entity last dividend was issued on the 11th of June 2003. The firm had 1:4 split on the 29th of December 2014. Based on the analysis of Canfor's profitability, liquidity, and operating efficiency, Canfor is not in a good financial situation at this time. It has a very high probability of going through financial hardship in February.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 385.2 M | 200.3 M |
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Canfor Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Canfor has an asset utilization ratio of 94.27 percent. This suggests that the Company is making C$0.94 for each dollar of assets. An increasing asset utilization means that Canfor is more efficient with each dollar of assets it utilizes for everyday operations.Canfor Profitability Analysis
Considering Canfor's profitability and operating efficiency indicators, Canfor may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in February. Profitability indicators assess Canfor's ability to earn profits and add value for shareholders.Net Loss | First Reported 1993-03-31 | Previous Quarter -202.8 M | Current Value -172.4 M | Quarterly Volatility 132.3 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.17 | 0.16 |
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For Canfor profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Canfor to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Canfor utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Canfor's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Canfor over time as well as its relative position and ranking within its peers.
Canfor Earnings per Share Projection vs Actual
By analyzing Canfor's earnings estimates, investors can diagnose different trends across Canfor's analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for Canfor is based on EPS before non-recurring items and includes expenses related to employee stock options.Canfor Ownership Allocation
Canfor holds a total of 116.43 Million outstanding shares. Canfor retains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Canfor Profitability Analysis
The company reported the revenue of 5.25 B. Net Loss for the year was (736.2 M) with profit before overhead, payroll, taxes, and interest of 994 M.About Canfor Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Canfor. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Canfor based exclusively on its fundamental and basic technical indicators. By analyzing Canfor's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Canfor's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Canfor. We calculate exposure to Canfor's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Canfor's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.1 B | 885.2 M | |
| Pretax Profit Margin | (0.17) | (0.16) | |
| Operating Profit Margin | (0.21) | (0.20) | |
| Net Loss | (0.13) | (0.11) | |
| Gross Profit Margin | 0.16 | 0.17 |
Other Information on Investing in Canfor Stock
Canfor financial ratios help investors to determine whether Canfor Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Canfor with respect to the benefits of owning Canfor security.