CANFOR PULP PRODUCTS Narrows Q1 Adjusted Loss Despite Overall Company Loss and Sales Decline
May 12, 2023
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Canfor Pulp Products ($TSX:CFX) saw a narrowing of their adjusted loss for Q1, despite a decrease in overall sales and the fact that their parent company, Canfor Corporation, swung to an adjusted loss. CANFOR PULP PRODUCTS is a global leader in the production of market northern bleached softwood kraft (NBSK) pulp, which is used in a range of paper and tissue products. Despite this, overall sales were down due to the decrease in pulp prices for most of the quarter. While the market for pulp prices showed signs of stability towards the end of the quarter, this was offset by the effect of the weaker Canadian dollar.
Despite these losses, Canfor Pulp Products is continuing to focus on controlling their costs while maintaining high quality product standards. This quarter they continued their capital investment program which is designed to upgrade some of their mills and equipment, allowing them to remain competitive in the market.
Stock Price
On Thursday, CANFOR PULP PRODUCTS saw their stock open at CA$1.9 and close at CA$1.8, representing a 2.1% dip from the previous closing price. This data shows a promising turn of events, as the company works towards a brighter financial future and increased profitability. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CFX. More…
| Total Revenues | Net Income | Net Margin |
| 1.11k | -78 | -3.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CFX. More…
| Operations | Investing | Financing |
| 89.6 | -105.7 | 1.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CFX. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 739.5 | 328.9 | 6.55 |
Key Ratios Snapshot
Some of the financial key ratios for CFX are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.5% | -50.7% | -8.8% |
| FCF Margin | ROE | ROA |
| -1.5% | -14.6% | -8.3% |
Analysis
At GoodWhale, we’ve conducted an extensive analysis of CANFOR PULP PRODUCTS’ financials. After careful consideration, we have assigned CANFOR PULP PRODUCTS a Risk Rating of medium risk. This rating takes into account all aspects of their financial and business performance. Our analysis also found two risk warnings in the income sheet and balance sheet. These warnings could present a challenge to the company’s future. Our risk rating accounts for these issues, but if you would like further information, you should register with us to get full access to our findings. More…
Peers
ENCE Energia y Celulosa SA is a Spanish company that produces cellulose, paper, and board. Suzano SA is a Brazilian company that produces wood pulp, paper, and packaging products. Cheng Loong Corp is a Taiwanese company that produces paper products.
– ENCE Energia y Celulosa SA ($LTS:0K96)
Energia y Celulosa SA, a pulp and paper company, engages in the manufacture and sale of paper and paperboard products in Argentina. The company operates in two segments, Pulp and Paper, and Energy. The Pulp and Paper segment produces and sells bleached eucalyptus kraft pulp; and paper and paperboard products, such as folding carton, coated unbleached kraft, and recycled paperboard, as well as markets energy. This segment also produces lignin sulfonate, which is used as a raw material for the textile, mining, and industrial detergent industries, as well as for oil drilling. The Energy segment produces and sells electricity from biomass-based cogeneration plants in Argentina. The company also generates wind power. Energia y Celulosa SA was founded in 1949 and is headquartered in Buenos Aires, Argentina.
– Suzano SA ($NYSE:SUZ)
Suzano SA is a Brazilian market cap of 13.51B as of 2022 and has a Return on Equity of 61.56%. The company is a pulp and paper manufacturer and is one of the largest in the world. The company has operations in Brazil, Europe, and Asia.
– Cheng Loong Corp ($TWSE:1904)
Cheng Loong Corp is a Taiwan-based company principally engaged in the manufacture and sale of paper products. The Company operates its business through three segments. The Paper segment is engaged in the manufacture and sale of paper products, including corrugating medium paper, high-strength corrugating medium paper, offset printing paper, coated paper, copying paper, tissue paper, industrial packaging paper and other paper products. The Pulp segment is engaged in the production and sale of wood pulp. The Investments segment is engaged in investments in shares and securities. The Company operates businesses mainly in Taiwan, Mainland China, Europe, the United States, Southeast Asia and other regions.
Summary
The company saw a modest improvement in their operational and financial performance due to an increase in pulp prices. Despite the losses, with a focus on cost control and operational efficiency, Canfor Pulp Products has managed to reduce their total operating costs while maintaining an overall competitive edge in the market.
Additionally, the company has grown its cash balance, set aside funds for potential future needs and increased the quantity of liquid assets it holds. From an investing perspective, Canfor Pulp Products is looking towards a stronger second half of the year, considering the improved market conditions and resilient performance in the face of difficult times. With a stable outlook, investors may find attractive opportunities in Canfor Pulp Products.
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