Resolute Forest Products Inc (RFP.CA) Stock Fundamental Analysis

TSX:RFP • US76117W1099

29.43 CAD
-1.8 (-5.76%)
Last: Mar 2, 2023, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

RFP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 12 industry peers in the Paper & Forest Products industry. RFP has an excellent financial health rating, but there are some minor concerns on its profitability. RFP is cheap, but on the other hand it scores bad on growth. These ratings would make RFP suitable for value investing!


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year RFP was profitable.
  • In the past year RFP had a positive cash flow from operations.
RFP.CA Yearly Net Income VS EBIT VS OCF VS FCFRFP.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 200M 400M 600M

1.2 Ratios

  • The Return On Assets of RFP (10.49%) is comparable to the rest of the industry.
  • With a Return On Equity value of 20.09%, RFP perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
  • RFP has a Return On Invested Capital (12.71%) which is comparable to the rest of the industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for RFP is above the industry average of 4.52%.
  • The 3 year average ROIC (7.33%) for RFP is below the current ROIC(12.71%), indicating increased profibility in the last year.
Industry RankSector 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
RFP.CA Yearly ROA, ROE, ROICRFP.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 0 5 -5 10 15 20

1.3 Margins

  • RFP's Profit Margin of 11.15% is fine compared to the rest of the industry. RFP outperforms 61.54% of its industry peers.
  • RFP's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 16.45%, RFP is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
  • In the last couple of years the Operating Margin of RFP has grown nicely.
  • The Gross Margin of RFP (35.37%) is better than 84.62% of its industry peers.
  • RFP's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
RFP.CA Yearly Profit, Operating, Gross MarginsRFP.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 0 10 20 30

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

7

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.
  • Compared to 1 year ago, RFP has less shares outstanding
  • Compared to 1 year ago, RFP has an improved debt to assets ratio.
RFP.CA Yearly Shares OutstandingRFP.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 20M 40M 60M 80M
RFP.CA Yearly Total Debt VS Total AssetsRFP.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 1B 2B 3B 4B

2.2 Solvency

  • RFP has an Altman-Z score of 2.08. This is not the best score and indicates that RFP is in the grey zone with still only limited risk for bankruptcy at the moment.
  • RFP has a Altman-Z score of 2.08. This is in the lower half of the industry: RFP underperforms 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.
  • RFP has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
  • With a decent Debt to Equity ratio value of 0.14, RFP is doing good in the industry, outperforming 69.23% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF 0.54
Altman-Z 2.08
ROIC/WACC1.33
WACC9.55%
RFP.CA Yearly LT Debt VS Equity VS FCFRFP.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 0 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 2.91 indicates that RFP has no problem at all paying its short term obligations.
  • RFP has a better Current ratio (2.91) than 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 Quick ratio of 1.70. This is in the better half of the industry: RFP outperforms 76.92% of its industry peers.
Industry RankSector Rank
Current Ratio 2.91
Quick Ratio 1.7
RFP.CA Yearly Current Assets VS Current LiabilitesRFP.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 200M 400M 600M 800M 1B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

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%.
  • The Earnings Per Share has been growing by 164.80% on average over the past years. This is a very strong growth
  • RFP shows a small growth in Revenue. In the last year, the Revenue has grown by 5.89%.
  • The Revenue has been growing slightly by 0.66% on average over the past years.
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

  • RFP is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -28.92% yearly.
  • 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

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
RFP.CA Yearly Revenue VS EstimatesRFP.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B
RFP.CA Yearly EPS VS EstimatesRFP.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2 4 6

More info and screens

Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 3.66, which indicates a rather cheap valuation of RFP.
  • 69.23% of the companies in the same industry are more expensive than RFP, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of RFP to the average of the S&P500 Index (27.07), we can say RFP is valued rather cheaply.
  • A Price/Forward Earnings ratio of 9.94 indicates a reasonable valuation of RFP.
  • RFP's Price/Forward Earnings ratio is rather cheap when compared to the industry. RFP is cheaper than 92.31% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of RFP to the average of the S&P500 Index (28.05), we can say RFP is valued rather cheaply.
Industry RankSector Rank
PE 3.66
Fwd PE 9.94
RFP.CA Price Earnings VS Forward Price EarningsRFP.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, RFP is valued a bit cheaper than 76.92% of the companies in the same industry.
  • 84.62% of the companies in the same industry are more expensive than RFP, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 2.94
EV/EBITDA 1.94
RFP.CA Per share dataRFP.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • RFP does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

Find the best dividend stocksShow peers with best dividend

Resolute Forest Products Inc

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)N/A
Earnings (Next)02-03
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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 of Resolute Forest Products Inc (RFP.CA) stock?

ChartMill assigns a valuation rating of 8 / 10 to Resolute Forest Products Inc (RFP.CA). This can be considered as Undervalued.


What is the profitability of RFP stock?

Resolute Forest Products Inc (RFP.CA) has a profitability rating of 3 / 10.


What is the valuation of Resolute Forest Products Inc based on its PE and PB ratios?

The Price/Earnings (PE) ratio for Resolute Forest Products Inc (RFP.CA) is 3.66 and the Price/Book (PB) ratio is 0.77.


Is the dividend of Resolute Forest Products Inc sustainable?

The dividend rating of Resolute Forest Products Inc (RFP.CA) is 0 / 10 and the dividend payout ratio is 0%.