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Interfor Corp T.IFP

Alternate Symbol(s):  IFSPF

Interfor Corporation is a Canada-based forest products company. The Company and its subsidiaries produce wood products in Canada and the United States for sale to markets around the world. It operates through the solid wood products segment. The Company’s product categories include Dimension Lumber, Specialty Lumber and Engineered Wood Products. Its products include Spruce-Pine-Fir, Douglas Fir-Larch, Hem-Fir, Southern Yellow Pine, Western Red Cedar, Douglas Fir-Larch, and P3-Joist. Its sawmills provide a diverse range of sustainable products to supply North American markets with a complete offering of framing materials. Its Western Red Cedar products include Elite Decking, Elite Fascia & Boards, Elite V-Joint Paneling, Elite Fineline Paneling, Elite Channel/Lap Siding, Elite Bevel Siding and Elite Shadow Gap Siding. It has an annual lumber production capacity of approximately 5.0 billion board feet and offers a diverse line of lumber products to customers around the world.


TSX:IFP - Post by User

Post by StefanSalvatoreon May 14, 2021 12:23am
234 Views
Post# 33201454

Some Insight to IFP

Some Insight to IFPI believe the dividend was a great way to allocate some of their capital, it adds a nice 5% return onto your gains. The past week the market has been down anyways so just ride out the volatility and you will be rewarded. 

As for the repurchasing of shares that is already underway and nobody has a crystal ball so it's best to be careful as lumber futures do have a chance of dropping rapidly. 

If investors believed that lumber futures were sustainable at this price the stock would have already been trading with an EV/EBITDA multiple of 5-7. Right now using the last quarter's Adjusted EBITDA annualized, IFP is trading at a multiple of 1.30. (yes they are on track to almost make their entire enterprise value in EBITDA this year)

CIBC's analyst Hamir Patel has a price target of $56 and that is very conservative and he even states that there is room for significant upside due to his price target being based on $650 mmbf.

You'd be surprised if you put a multiple of 5 on this one. Canadian forestry stocks tend to trade at EV/EBITDA multiples of 5-7, so once people realize $1000 lumber is here to stay we'll be seeing that. 
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