Canfor Corp
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
CAD 74.00 | Xfjm | Pdzpfxn |
Canfor’s Q4 Results Were Hampered by Softening Demand but Capacity Curtailments Should Calm Supply
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.