Canfor Corp

CFP: XTSE (CAN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	CAD 97.00	Gtn	Scyhtsyd

Canfor’s Q4 Results Were Hampered by Softening Demand but Capacity Curtailments Should Calm Supply

Spencer Liberman

Mar 1, 2023

No-moat-rated Canfor reported lackluster fourth-quarter results as lower lumber prices and softening demand continued to weigh on the company’s financial performance. Slowing housing demand caused lumber prices to decline in the second half of 2022 and pressured Canfor’s shipments. Canfor reported a $308 million operating loss in the fourth quarter, compared with a $69 million loss a year ago, largely due to lower selling prices and lumber shipments, which led to an increase in per unit costs. We've decreased our fair value estimate to CAD 30 from CAD 35 per share due to reduced near-term revenue growth and profitability in our forecast.

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