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. RFP is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. RFP has a bad growth rate and is valued cheaply. This makes RFP very considerable 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
RFP has a Return On Assets of 10.49%. This is comparable to the rest of the industry: RFP outperforms 53.85% of its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 12.71%, RFP is in line with its industry, outperforming 53.85% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RFP is above the industry average of 4.00%.
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
RFP has a better Profit Margin (11.15%) than 61.54% of its industry peers.
In the last couple of years the Profit Margin of RFP has grown nicely.
The Operating Margin of RFP (16.45%) is better than 61.54% of its industry peers.
RFP's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.37%, RFP belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
RFP's Gross Margin has improved in the last couple of years.
| 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.
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 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.
RFP has a better Debt to FCF ratio (0.54) than 84.62% of its industry peers.
RFP has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
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.
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.
The Quick ratio of RFP (1.70) is better than 76.92% of its industry peers.
| 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.
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
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.
The Revenue is expected to decrease by -2.42% on average over the next years.
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
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.
Compared to an average S&P500 Price/Earnings ratio of 27.30, RFP is valued rather cheaply.
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 (22.73), we can say RFP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.66 | ||
| Fwd PE | 9.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RFP is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RFP indicates a rather cheap valuation: RFP is cheaper than 84.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.94 | ||
| EV/EBITDA | 1.94 |
4.3 Compensation for Growth
The decent profitability rating of RFP 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%