Interfor Corp (IFP.TO) Buy, Sell or Hold

Interfor Corp (IFP.TO)

14.93

-0.31 (2.03%)

as of Sep 23, 2026, 8:00:00 pm Market Open.

104 watching

HOLD

Should hold even though it has run up quite far. Lumber prices are astronomical, up 50% in the last quarter. Not a lot of factors that would stop or slow this. Home building is off the charts. New capacity is difficult due to covid. Will have excess cashflow. Not expensive at 4x enterprise value, 6x cashflow and 30% ROE. Still has more legs.

BUY ON WEAKNESS

Earnings expectations are for a $0.14 loss this year per share, compared to $1.23 from last year. The company has recovered to strongly on the US housing market recovery. Based on historic valuations relative to book value he sees a range of $11 to $16 for the share price. It has a good balance sheet. He is cautious.

BUY ON WEAKNESS

It has done phenomenally well off the bottom. It took him by surprise. With lower interest rates you should see more housing starts. It has had a good move, though. Lumber stocks are very cyclical in nature. A new cycle could accelerate these forestry stocks. He tends to trade around a position in this sector. (Analysts’ price target is $13.42)

DON'T BUY

WY-N vs. IFP-T. WY-N often looks the most expensive at the bottom of the cycle. It does not have great momentum. It beat on the recent quarter. Its balance sheet is okay. He would prefer this to, for example, IFP-T. He would not buy either until earnings come in.

WATCH

Refunding of tariffs It's on his shortlist as he watches the forestry group. The tariffs refund are definitely good. He wants to see longer-term stability in housing starts first. Reason is that a lot of housing are steel and concrete condos, not wooden houses. The whole sector is under a cloud, though bottoming now. He'd watch this another quarter.

BUY ON WEAKNESS

He owns IFP. It is very volatile. Now is not the time to sell. US housing has continued to be strong. He might consider buying on weakness. When risk appetite returns this could see a nice move higher. It could also become a future acquisition target.

RISKY

Forestry has been a declining business his entire career. They are very cyclical so you can make a lot of money on recovery. He thinks the US housing market is picking up and so there will be increased demand for lumber. (Analysts’ price target is $18.14)

DON'T BUY

From mid-2018 it's had a downtrend and the chart is still under pressure. Until this changes, this is dead money.

BUY

Canadian Forestry stocks. Here is an industry that is in a bit of oversupply. Curtailing production should be good in the short term. We are seeing all of these stocks selling towards their lows rather than highs. CFF is selling at a fraction of the book value. They have had negative earnings of late. WFT-T is 1.5 times book. IFP-T is at book value but has a much higher multiple. WEF-T is trading in the middle of the previous two but with a much more significant yield, possibly not as secure. They all have reasonable assets. They are a decent value play and could stand to do well if we get a building resurgence. You have to be patient.

BUY

It has been decimated. These companies are in way better shape than they ever have been. They paid down debt and now the equity price is up. He really likes the management team. There has always been speculation that they will get bought out. They have a much better balance sheet than they did before. You have to trade these stocks. This is a good entry point.

HOLD

Lumber stocks are challenging. He liked the leverage in the company and they have been paying down debt. Now that lumber prices have collapsed in the last year, he still will hold it, but would not rush out to add to his position. He likes management still. He would wait for a better entry.

WEAK BUY

WFT-T vs. IFP-T He is still cautious on lumber stocks. We have seen the peak in US housing. Canadian lumber stocks do better with the Canadian dollar down. IFP-T is a better play because at least 50% of the lumber is out of the US. There is probably going to be a bit of a cloud over the sector for some time.

BUY

What would you buy in the forest sector? He has little exposure here. Lumber stocks were hurt with American trade talk, though they benefit nicely from a lower Canadian dollar--and he thinks the CAD will decrease more. Buy IFP-T.

PAST TOP PICK

(A Top Pick Nov 3/17, Up 54%) They have all done really well. This one is the 4^th largest lumber player. The valuations now are not as cheap as when he bought them but the price momentum is still there. There is always a chance that someone takes them out. They have 60% production in the US so all tariffs would do is drive the price higher.

DON'T BUY

It is oily Alberta that has almost ‘stranded’ oil. It has been stagnating due to the Alberta problems with where do we go from here. He prefers EMB-T.

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Interfor Corp (IFP.TO)