Resolute Forest Products Inc (RFP.CA) Stock Fundamental Analysis
Canada - TSX:RFP - US76117W1099 - Common Stock
29.43 CAD
-1.8 (-5.76%)
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
RFP had positive earnings in the past year.
In the past year RFP had a positive cash flow from operations.
1.2 Ratios
RFP has a Return On Assets (10.49%) which is in line with its industry peers.
RFP has a Return On Equity of 20.09%. This is comparable to the rest of the industry: RFP outperforms 53.85% of its industry peers.
The Return On Invested Capital of RFP (12.71%) is comparable to the rest of the industry.
RFP had an Average Return On Invested Capital over the past 3 years of 7.33%. This is above the industry average of 4.00%.
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 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
RFP has a Profit Margin of 11.15%. This is in the better half of the industry: RFP outperforms 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.
RFP's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 35.37%, RFP belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RFP 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.
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.
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.
RFP has a better Debt to FCF ratio (0.54) than 84.62% of its industry peers.
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
RFP has a Current Ratio of 2.91. This indicates that RFP is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.91, RFP is doing good in the industry, outperforming 61.54% of the companies in the same industry.
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.
With a decent Quick ratio value of 1.70, RFP is doing good in 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.
RFP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 164.80% yearly.
Looking at the last year, RFP shows a small growth in Revenue. The Revenue has grown by 5.89% in the last 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
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.
4. Valuation
4.1 Price/Earnings Ratio
With a 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's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.02.
A Price/Forward Earnings ratio of 9.94 indicates a reasonable valuation of RFP.
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.
The average S&P500 Price/Forward Earnings ratio is at 22.57. RFP is valued rather cheaply when compared to this.
| 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.
Based on the Price/Free Cash Flow ratio, RFP is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
| 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.
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%
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
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%