Resolute Forest Products Inc (RFP.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RFP - US76117W1099 - Common Stock
29.43 CAD
-1.8 (-5.76%)
Taking everything into account, RFP scores 5 out of 10 in our fundamental rating. RFP was compared to 12 industry peers in the Paper & Forest Products industry. While RFP has a great health rating, its profitability is only average at the moment. RFP is cheap, but on the other hand it scores bad on growth. These ratings would make RFP suitable for value investing!
1. Profitability
1.1 Basic Checks
RFP had positive earnings in the past year.
RFP had a positive operating cash flow in the past year.
1.2 Ratios
The Return On Assets of RFP (10.49%) is comparable to the rest of the industry.
RFP has a Return On Equity (20.09%) which is in line with its industry peers.
RFP has a Return On Invested Capital (12.71%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for RFP is above the industry average of 4.04%.
The 3 year average ROIC (7.33%) for RFP is below the current ROIC(12.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.49% | ||
| ROE | 20.09% | ||
| ROIC | 12.71% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.33%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 11.15%, RFP is doing good in the industry, outperforming 61.54% of the companies in the same industry.
RFP's Profit Margin has improved in the last couple of years.
The Operating Margin of RFP (16.45%) is better than 61.54% of its industry peers.
In the last couple of years the Operating Margin of RFP has grown nicely.
RFP has a better Gross Margin (35.37%) than 84.62% of its industry peers.
In the last couple of years the Gross Margin of RFP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.45% | ||
| PM (TTM) | 11.15% | ||
| GM | 35.37% |
OM growth 3Y28.1%
OM growth 5Y75.76%
PM growth 3Y10.23%
PM growth 5YN/A
GM growth 3Y6.09%
GM growth 5Y10.25%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RFP is still creating some value.
RFP has less shares outstanding than it did 1 year ago.
The debt/assets ratio for RFP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.08 indicates that RFP is not a great score, but indicates only limited risk for bankruptcy at the moment.
RFP has a worse Altman-Z score (2.08) than 69.23% of its industry peers.
The Debt to FCF ratio of RFP is 0.54, which is an excellent value as it means it would take RFP, only 0.54 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.54, RFP belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that RFP is not too dependend on debt financing.
The Debt to Equity ratio of RFP (0.14) is better than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.54 | ||
| Altman-Z | 2.08 |
ROIC/WACC1.33
WACC9.55%
2.3 Liquidity
A Current Ratio of 2.91 indicates that RFP has no problem at all paying its short term obligations.
RFP's Current ratio of 2.91 is fine compared to the rest of the industry. RFP outperforms 61.54% of its industry peers.
RFP has a Quick Ratio of 1.70. This is a normal value and indicates that RFP is financially healthy and should not expect problems in meeting its short term obligations.
RFP has a better Quick ratio (1.70) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
RFP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.55%.
Measured over the past years, RFP shows a very strong growth in Earnings Per Share. The EPS has been growing by 164.80% on average per year.
Looking at the last year, RFP shows a small growth in Revenue. The Revenue has grown by 5.89% in the last year.
RFP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.66% yearly.
EPS 1Y (TTM)-11.55%
EPS 3Y49.2%
EPS 5Y164.8%
EPS Q2Q%28.57%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y-0.82%
Revenue growth 5Y0.66%
Sales Q2Q%19.22%
3.2 Future
The Earnings Per Share is expected to decrease by -28.92% on average over the next years. This is quite bad
RFP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.42% yearly.
EPS Next Y-9.24%
EPS Next 2Y-42.65%
EPS Next 3Y-28.92%
EPS Next 5YN/A
Revenue Next Year3.88%
Revenue Next 2Y-1.47%
Revenue Next 3Y-2.42%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 3.66, the valuation of RFP can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of RFP indicates a somewhat cheap valuation: RFP is cheaper than 69.23% of the companies listed in the same industry.
RFP is valuated cheaply when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
RFP is valuated reasonably with a Price/Forward Earnings ratio of 9.94.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RFP indicates a rather cheap valuation: RFP is cheaper than 92.31% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of RFP to the average of the S&P500 Index (23.84), we can say RFP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.66 | ||
| Fwd PE | 9.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RFP indicates a somewhat cheap valuation: RFP is cheaper than 76.92% of the companies listed in the same industry.
RFP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RFP is cheaper than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.94 | ||
| EV/EBITDA | 1.94 |
4.3 Compensation for Growth
RFP has a very decent profitability rating, which may justify a higher PE ratio.
RFP's earnings are expected to decrease with -28.92% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.02
EPS Next 2Y-42.65%
EPS Next 3Y-28.92%
5. Dividend
5.1 Amount
RFP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:RFP (3/2/2023, 7:00:00 PM)
29.43
-1.8 (-5.76%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners30.45%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.26B
Revenue(TTM)3.81B
Net Income(TTM)425.00M
Analysts44.44
Price Target31.13 (5.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.42%
Min EPS beat(2)20.5%
Max EPS beat(2)24.34%
EPS beat(4)3
Avg EPS beat(4)5.5%
Min EPS beat(4)-39.07%
Max EPS beat(4)24.34%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.47%
Min Revenue beat(2)1.51%
Max Revenue beat(2)3.42%
Revenue beat(4)2
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-5.74%
Max Revenue beat(4)3.42%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-0.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.66 | ||
| Fwd PE | 9.94 | ||
| P/S | 0.43 | ||
| P/FCF | 2.94 | ||
| P/OCF | 2.48 | ||
| P/B | 0.77 | ||
| P/tB | 0.83 | ||
| EV/EBITDA | 1.94 |
EPS(TTM)8.05
EY27.35%
EPS(NY)2.96
Fwd EY10.06%
FCF(TTM)9.99
FCFY33.96%
OCF(TTM)11.87
OCFY40.32%
SpS68.63
BVpS38.11
TBVpS35.55
PEG (NY)N/A
PEG (5Y)0.02
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.49% | ||
| ROE | 20.09% | ||
| ROCE | N/A | ||
| ROIC | 12.71% | ||
| ROICexc | 14.54% | ||
| ROICexgc | 15.24% | ||
| OM | 16.45% | ||
| PM (TTM) | 11.15% | ||
| GM | 35.37% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.33%
ROIC(5y)N/A
ROICexc(3y)7.12%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y27.4%
ROICexgc growth 5Y85.03%
ROICexc growth 3Y26.85%
ROICexc growth 5Y85.43%
OM growth 3Y28.1%
OM growth 5Y75.76%
PM growth 3Y10.23%
PM growth 5YN/A
GM growth 3Y6.09%
GM growth 5Y10.25%
F-Score7
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.54 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 73.24% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 130.59% | ||
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z | 2.08 |
F-Score7
WACC9.55%
ROIC/WACC1.33
Cap/Depr(3y)60.7%
Cap/Depr(5y)67.12%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.55%
EPS 3Y49.2%
EPS 5Y164.8%
EPS Q2Q%28.57%
EPS Next Y-9.24%
EPS Next 2Y-42.65%
EPS Next 3Y-28.92%
EPS Next 5YN/A
Revenue 1Y (TTM)5.89%
Revenue growth 3Y-0.82%
Revenue growth 5Y0.66%
Sales Q2Q%19.22%
Revenue Next Year3.88%
Revenue Next 2Y-1.47%
Revenue Next 3Y-2.42%
Revenue Next 5YN/A
EBIT growth 1Y-15.73%
EBIT growth 3Y27.05%
EBIT growth 5Y76.92%
EBIT Next Year5.31%
EBIT Next 3Y-15.9%
EBIT Next 5YN/A
FCF growth 1Y873.68%
FCF growth 3Y24.17%
FCF growth 5YN/A
OCF growth 1Y367.38%
OCF growth 3Y14.21%
OCF growth 5Y51.57%
Resolute Forest Products Inc / RFP.CA FAQ
What is the fundamental rating for RFP stock?
ChartMill assigns a fundamental rating of 4 / 10 to RFP.CA.
What is the valuation status for RFP stock?
ChartMill assigns a valuation rating of 8 / 10 to Resolute Forest Products Inc (RFP.CA). This can be considered as Undervalued.
How profitable is Resolute Forest Products Inc (RFP.CA) stock?
Resolute Forest Products Inc (RFP.CA) has a profitability rating of 3 / 10.
Can you provide the financial health for RFP stock?
The financial health rating of Resolute Forest Products Inc (RFP.CA) is 5 / 10.
How sustainable is the dividend of Resolute Forest Products Inc (RFP.CA) stock?
The dividend rating of Resolute Forest Products Inc (RFP.CA) is 0 / 10 and the dividend payout ratio is 0%.