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    Canfor (TSX:CFP) Closes Northwood Mill, Is The Stock Still Cheap?

    Simply Wall St·07/17/2026 16:24:48
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    Why Canfor’s Northwood closure matters for shareholders

    Canfor (TSX:CFP) has moved to permanently close its Northwood pulp mill in Prince George, cutting about 300,000 tonnes of annual NBSK output and affecting roughly 300 employees.

    The decision stems from persistent fibre access issues and a structurally weak global pulp market, where added capacity and oversupply have pressured prices and contributed to ongoing financial losses in Canfor’s pulp operations.

    See our latest analysis for Canfor.

    At a share price of CA$14.57, Canfor has seen a 17.88% year to date share price return and a 13.12% 90 day share price return, while the 5 year total shareholder return is down 40.29%. This suggests that recent momentum contrasts with weaker longer term outcomes.

    If the Northwood decision has you reassessing where the next opportunities might be in cyclical sectors, it could be worth scanning for other resource linked ideas through the 33 elite gold producer stocks

    For Canfor, closing Northwood could be read as either a reset to reflect the core business reality or a move that sentiment has already priced in. How far does the current valuation already capture that shift?

    Preferred Price-to-Sales of 0.3x for Canfor: Is it justified?

    On a simple yardstick, Canfor trades on a P/S of 0.3x, which is well below both the global forestry industry average of 0.7x and a peer average of 1.6x at the last close of CA$14.57.

    The P/S ratio compares the company’s market value to its revenue, so a lower figure can indicate that each dollar of Canfor’s CA$5,280.6m in revenue is being valued more conservatively than for many peers in the sector. For a business that is currently reporting a net loss of CA$837.8m, investors often look at P/S when earnings are not yet a reliable reference point.

    Relative to the global forestry group, Canfor’s P/S sits at less than half the industry average. The stock also trades at a substantial discount to its peer group’s 1.6x figure. Against an estimated fair P/S ratio of 0.8x, the current 0.3x suggests the market is valuing the company at a level the fair ratio implies could move higher if sentiment and fundamentals were to line up with that benchmark.

    Explore the SWS fair ratio for Canfor

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

    However, Canfor’s loss of CA$837.8m and exposure to a structurally weak pulp market mean sentiment could turn quickly if fibre constraints or pricing pressures worsen.

    Find out about the key risks to this Canfor narrative.

    Next Steps

    With Canfor’s mix of pressure points and potential rewards in view, this may be a good moment to act promptly and test the story against your own expectations, starting with the company’s 2 key rewards

    Looking for more investment ideas beyond Canfor?

    If the Canfor story has sharpened your focus on risk, reward and timing, this is a smart moment to broaden your watchlist using structured stock ideas.

    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.