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    Canfor (TSX:CFP) Closes Fox Creek Sawmill, Is The Stock Still Undervalued?

    Simply Wall St·08/04/2026 18:43:02
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    Canfor (TSX:CFP) is in focus after a busy late July. The company reported second quarter 2026 results that included another net loss, alongside the decision to permanently close its Fox Creek sawmill in Alberta.

    See our latest analysis for Canfor.

    Following the Fox Creek closure announcement and the second quarter results, Canfor’s share price has moved to CA$15.01, with a 90 day share price return of 21.05% but a 5 year total shareholder return that is still down 41.09%. This recent share price strength suggests investors are reassessing short term risks and potential, even as longer term total shareholder returns remain under pressure.

    If you are weighing Canfor’s recent moves against other opportunities in materials and resources, this can be a useful moment to see what else is on the market through the 8 top copper producer stocks

    Canfor’s share price has jumped while analysts’ targets still sit higher, and recent losses keep the story complicated. Is the stock already pricing in the Fox Creek closure and slimmer operations, or is there still a valuation gap?

    Preferred Price-to-Sales Multiple of 0.3x: Is It Justified?

    On a simple revenue lens, Canfor trades on a P/S of 0.3x at a CA$15.01 share price, which screens as low compared with both peers and the wider forestry industry.

    The P/S ratio compares the company’s market value to its annual revenue. For a business like Canfor that is currently loss making, this can be a more practical yardstick than P/E because it focuses on the top line rather than profits that are currently in the red.

    Canfor is viewed as good value relative to its own peer set on this measure, with the current 0.3x P/S described as attractive compared with a peer average P/S of 1.6x. Against the global forestry industry average P/S of 0.7x, the same 0.3x ratio still looks restrained and suggests the market is pricing the stock below the revenue multiples often seen across the sector.

    The fair P/S ratio estimate sits at 0.8x, which is described as the level the market could move toward if Canfor’s revenue profile and risks were priced more in line with that model.

    Explore the SWS fair ratio for Canfor

    Result: Price-to-Sales ratio of 0.3x (UNDERVALUED)

    However, there are still clear risks for Canfor, including ongoing net losses of CA$653.5m and the recent Fox Creek closure, which highlights operational pressure.

    Find out about the key risks to this Canfor narrative.

    Next Steps

    With mixed signals around Canfor, it makes sense to move quickly and judge the balance of risks and rewards for yourself. To understand what the market seems optimistic about right now, review the 2 key rewards.

    Looking for more investment ideas beyond Canfor?

    If Canfor has you rethinking your portfolio mix, this can be a time to widen your search with data backed stock ideas tailored to different priorities.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.