How Interfor Corporation (TSE:IFP) Could Add Value To Your Portfolio

I’ve been keeping an eye on Interfor Corporation (TSE:IFP) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe IFP has a lot to offer. Basically, it is a company with great financial health as well as a a great history of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Interfor here.

Flawless balance sheet with solid track record

IFP delivered a bottom-line expansion of 84% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did IFP outperformed its past performance, its growth also surpassed the Forestry industry expansion, which generated a 70% earnings growth. This is an optimistic signal for the future. IFP is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that IFP has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. IFP appears to have made good use of debt, producing operating cash levels of 1.25x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

TSX:IFP Income Statement Export December 26th 18

Next Steps:

For Interfor, there are three fundamental aspects you should further examine:

1. Future Outlook: What are well-informed industry analysts predicting for IFP’s future growth? Take a look at our free research report of analyst consensus for IFP’s outlook.

2. Valuation: What is IFP worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether IFP is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of IFP? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.