Bullboard - Stock Discussion Forum Canfor Pulp Products Inc T.CFX

Alternate Symbol(s): CFPUF

Canfor Pulp Products Inc. is a Canada-based global supplier of pulp and paper products with operations in the central interior of British Columbia (BC). The Company operates through two segments: pulp and paper. The pulp segment includes purchase of residual fiber, and production and sale of pulp products, including Northern Bleached Softwood Kraft (NBSK) pulp and Bleached Chemi-Thermo... see more

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TSX:CFX - Post Discussion

Canfor Pulp Products Inc > Free Cash Flow

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Post by Catscratch on Oct 30, 2023 10:29am

Free Cash Flow

Despite what seems to be management and board's best efforts to tank stock (or just poor investor relations and a severe lack of share ownership by management and board), CFX did generate positive free cash flow in Q2. Yes, this includes changes in working capital but inventory balances going into Q3 were still good. Q3 results are certainly going to be challenged with maintenance downtime and weak NBSK prices. But we've seen stronger NBSK pricing so far in Q4.

In a strong pricing environment CFX could generate $100M in Free Cash Flow in a couple quarters. In the current NBSK pricing/FX environment CFX should at minimum be free cash flow break even (without the working capital draw).

This doesn't justify a market cap of just slightly over $100M.

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