Resolute Forest Products Inc (RFP.CA) Fundamental Analysis & Valuation

TSX:RFP • US76117W1099

Current stock price

29.43 CAD
-1.8 (-5.76%)
Last:

This RFP.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. RFP.CA Profitability Analysis

1.1 Basic Checks

  • RFP had positive earnings in the past year.
  • 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

  • RFP has a Return On Assets (10.49%) which is comparable to the rest of the industry.
  • Looking at the Return On Equity, with a value of 20.09%, RFP is in line with its industry, outperforming 53.85% of the companies in the same industry.
  • RFP has a Return On Invested Capital of 12.71%. This is comparable to the rest of the industry: RFP outperforms 53.85% of its industry peers.
  • RFP had an Average Return On Invested Capital over the past 3 years of 7.33%. This is above the industry average of 4.12%.
  • The last Return On Invested Capital (12.71%) for RFP is above the 3 year average (7.33%), which is a sign of increasing profitability.
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 has a better Profit Margin (11.15%) than 61.54% of its industry peers.
  • RFP's Profit Margin has improved in the last couple of years.
  • RFP has a better Operating Margin (16.45%) than 61.54% of its industry peers.
  • In the last couple of years the Operating Margin of RFP has grown nicely.
  • RFP has a Gross Margin of 35.37%. This is amongst the best in the industry. RFP outperforms 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

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7

2. RFP.CA Health Analysis

2.1 Basic Checks

  • RFP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
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 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.
  • 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.
  • 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.
  • Looking at the Current ratio, with a value of 2.91, RFP is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
  • A Quick Ratio of 1.70 indicates that RFP should not have too much problems paying 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

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2

3. RFP.CA Growth Analysis

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.
  • RFP shows a small growth in Revenue. In the last year, the Revenue has grown by 5.89%.
  • 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.
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

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7

4. RFP.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 3.66, which indicates a rather cheap valuation of RFP.
  • Based on the Price/Earnings ratio, RFP is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of RFP to the average of the S&P500 Index (25.23), we can say RFP is valued rather cheaply.
  • RFP is valuated reasonably with a Price/Forward Earnings ratio of 9.94.
  • 92.31% of the companies in the same industry are more expensive than RFP, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.51, 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

  • 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 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.
  • A cheap valuation may be justified as RFP's earnings are expected to decrease with -28.92% in the coming years.
PEG (NY)N/A
PEG (5Y)0.02
EPS Next 2Y-42.65%
EPS Next 3Y-28.92%

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0

5. RFP.CA Dividend Analysis

5.1 Amount

  • No dividends for RFP!.
Industry RankSector Rank
Dividend Yield N/A

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RFP.CA Fundamentals: All Metrics, Ratios and Statistics

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 Fundamental Analysis 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%.