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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

Comment by StefanSalvatoreon Jun 01, 2021 1:27pm
137 Views
Post# 33303883

RE:RE:Stocks trading at 1 x EBITDA

RE:RE:Stocks trading at 1 x EBITDAI agree mostly with your points as it is unwise to look at their low p/e multiple and their low EV/EBITDA multiple to think it it is a good buy. Low multiples suggest that we are at the top of the cycle. Even though we're in the midst of a supercycle lumber stocks are still highly clyclical. If these lumber prices persist into Q3 then maybe the multiples should push higher.

Usually forestry stocks recieve EV/EBITDA multiples of 4 - 7 but it is innapropriate to give such a multiple to their 2021 EBITDA estimate at the top of the cycle. 

I'm riding out the volatility regardless, full disclosure I have 45k riding on this. ~88% of my portfolio with the rest being cash ready to buy on market overreactions. I'm confident lumber prices wont fall as much as analysts and the market are suggesting. There's a good chance lumber stocks can break out of the cycle when lumber finds a new floor.

My belief is coming this August/September will be the make it or break it period for these lumber stocks. We'll see how demand plays out after the summer and how it affects lumber prices. 
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