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Canfor Pulp Products (STU:8CP) Financial Strength : 4 (As of Dec. 2024)


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What is Canfor Pulp Products Financial Strength?

Canfor Pulp Products has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Canfor Pulp Products's Interest Coverage for the quarter that ended in Dec. 2024 was 1.32. Canfor Pulp Products's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.15. As of today, Canfor Pulp Products's Altman Z-Score is -0.62.


Competitive Comparison of Canfor Pulp Products's Financial Strength

For the Paper & Paper Products subindustry, Canfor Pulp Products's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Canfor Pulp Products's Financial Strength Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Canfor Pulp Products's Financial Strength distribution charts can be found below:

* The bar in red indicates where Canfor Pulp Products's Financial Strength falls into.



Canfor Pulp Products Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Canfor Pulp Products's Interest Expense for the months ended in Dec. 2024 was €-2.1 Mil. Its Operating Income for the months ended in Dec. 2024 was €2.7 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was €0.8 Mil.

Canfor Pulp Products's Interest Coverage for the quarter that ended in Dec. 2024 is

Interest Coverage=-1*Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*2.748/-2.078
=1.32

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Canfor Pulp Products's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(66.16 + 0.804) / 437.316
=0.15

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Canfor Pulp Products has a Z-score of -0.62, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -0.62 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Canfor Pulp Products  (STU:8CP) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Canfor Pulp Products has the Financial Strength Rank of 4.


Canfor Pulp Products Financial Strength Related Terms

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Canfor Pulp Products Business Description

Traded in Other Exchanges
Address
230-1700 West 75th Avenue, Vancouver, BC, CAN, V6P 6G2
Canfor Pulp Products Inc produces and sells northern bleached softwood kraft pulp, or NBSK pulp and paper. The company also generates and sells electricity from biomass out of its pulp plants in Western Canada. The firm organizes itself into two segments based on product: pulp and paper. The pulp segment generates majority of the revenue, which is engaged in purchase of residual fibre, and production and sale of pulp products, including NBSK pulp and BCTMP as well as energy revenues. Geographically, the company generates majority of its revenue from Asia and rest from United States, Canada, Europe and other regions.

Canfor Pulp Products Headlines

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