- Interfor is one of the larger lumber companies out there with high-quality natural assets in the southern US.
- While rates are going to take their toll on housing, the housing shortage remains a secular force, and Interfor isn't too leveraged to housing dynamics anyway.
- Moreover, lumber prices have a margin to fall, and we aren't even at the optimal point in the building cycle at the moment.
- Interfor has very high operating leverage, and trends point somewhat down, but the multiple is so low that it remains an interesting speculative idea.
For further details see:
Interfor Has Operating Leverage, But Also Housing Slowdown Mitigants