Resolute Forest Products Inc (RFP.CA) Stock Fundamental Analysis
TSX:RFP - Toronto Stock Exchange - US76117W1099 - Common Stock - Currency: CAD
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. While RFP has a great health rating, its profitability is only average at the moment. RFP is valued quite cheap, but it does not seem to be growing. With these ratings, RFP could be worth investigating further for value investing!.
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.
1.2 Ratios
With a Return On Assets value of 10.49%, RFP perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
RFP has a Return On Equity (20.09%) which is in line with its industry peers.
With a Return On Invested Capital value of 12.71%, RFP perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
RFP had an Average Return On Invested Capital over the past 3 years of 7.33%. This is above the industry average of 4.47%.
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
Looking at the Profit Margin, with a value of 11.15%, RFP is in the better half of 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.
Compared to 1 year ago, RFP has less shares outstanding
The debt/assets ratio for RFP has been reduced compared to a year ago.
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's Altman-Z score of 2.08 is on the low side compared to the rest of the industry. RFP is outperformed by 69.23% of its industry peers.
RFP has a debt to FCF ratio of 0.54. This is a very positive value and a sign of high solvency as it would only need 0.54 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.54, RFP belongs to the best 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.
RFP has a better Debt to Equity ratio (0.14) 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 has a Current ratio of 2.91. This is in the better half of the industry: RFP outperforms 61.54% of its industry peers.
A Quick Ratio of 1.70 indicates that RFP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.70, RFP is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
The earnings per share for RFP have decreased strongly by -11.55% in the last year.
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.
The Revenue has been growing slightly by 5.89% in the past year.
Measured over the past years, RFP shows a small growth in Revenue. The Revenue has been growing by 0.66% on average per year.
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
Based on estimates for the next years, RFP will show a very negative growth in Earnings Per Share. The EPS will decrease by -28.92% on average per year.
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.
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
The Price/Earnings ratio is 3.66, which indicates a rather cheap valuation of RFP.
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 26.57, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.94, the valuation of RFP can be described as reasonable.
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 (22.41), we can say RFP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.66 | ||
| Fwd PE | 9.94 |
4.2 Price Multiples
76.92% of the companies in the same industry are more expensive than RFP, based on the Enterprise Value to EBITDA ratio.
84.62% of the companies in the same industry are more expensive than RFP, based on the Price/Free Cash Flow ratio.
| 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
No dividends for RFP!.
| 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
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
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
ROICexcg growth 3Y27.4%
ROICexcg 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%