RESOLUTE FOREST PRODUCTS (RFP) Stock Fundamental Analysis
NYSE:RFP - New York Stock Exchange, Inc. - US76117W1099 - Common Stock - Currency: USD
RFP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 9 industry peers in the Paper & Forest Products industry. RFP has only an average score on both its financial health and profitability. RFP has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year RFP was profitable.
RFP had a positive operating cash flow in the past year.
1.2 Ratios
RFP has a Return On Assets (10.49%) which is comparable to the rest of the industry.
The Return On Equity of RFP (20.09%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 13.95%, RFP perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
RFP had an Average Return On Invested Capital over the past 3 years of 8.05%. This is in line with the industry average of 7.39%.
The last Return On Invested Capital (13.95%) for RFP is above the 3 year average (8.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.49% | ||
| ROE | 20.09% | ||
| ROIC | 13.95% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.05%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of RFP (11.15%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of RFP has grown nicely.
The Operating Margin of RFP (16.45%) is comparable to the rest of the industry.
RFP's Operating Margin has improved in the last couple of years.
RFP has a Gross Margin of 35.37%. This is in the better half of the industry: RFP outperforms 66.67% 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.
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 2.10. 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 2.10. This is comparable to the rest of the industry: RFP outperforms 44.44% 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 a decent Debt to FCF ratio value of 0.54, RFP is doing good in the industry, outperforming 77.78% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that RFP is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.14, RFP is doing good in the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.54 | ||
| Altman-Z | 2.1 |
ROIC/WACC1.43
WACC9.73%
2.3 Liquidity
A Current Ratio of 2.91 indicates that RFP has no problem at all paying its short term obligations.
The Current ratio of RFP (2.91) is better than 77.78% 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.
Looking at the Quick ratio, with a value of 1.70, RFP is in line with its industry, outperforming 55.56% 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.
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%.
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
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.
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.
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
RFP is valuated cheaply with a Price/Earnings ratio of 3.77.
RFP's Price/Earnings ratio is a bit cheaper when compared to the industry. RFP is cheaper than 66.67% of the companies in the same industry.
RFP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.29.
The Price/Forward Earnings ratio is 10.24, which indicates a very decent valuation of RFP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RFP is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of RFP to the average of the S&P500 Index (36.06), we can say RFP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.77 | ||
| Fwd PE | 10.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RFP is valued a bit cheaper than 77.78% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RFP indicates a rather cheap valuation: RFP is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.03 | ||
| EV/EBITDA | 2 |
4.3 Compensation for Growth
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
No dividends for RFP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.92
-0.08 (-0.36%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins Owners13.88%
Ins Owner Change0%
Market Cap1.68B
Analysts44.44
Price Target23.26 (6.11%)
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%
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 | 3.77 | ||
| Fwd PE | 10.24 | ||
| P/S | 0.44 | ||
| P/FCF | 3.03 | ||
| P/OCF | 2.55 | ||
| P/B | 0.8 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 2 |
EPS(TTM)5.82
EY26.55%
EPS(NY)2.14
Fwd EY9.77%
FCF(TTM)7.23
FCFY32.96%
OCF(TTM)8.58
OCFY39.14%
SpS49.61
BVpS27.55
TBVpS25.7
PEG (NY)N/A
PEG (5Y)0.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.49% | ||
| ROE | 20.09% | ||
| ROCE | N/A | ||
| ROIC | 13.95% | ||
| ROICexc | 15.95% | ||
| ROICexgc | 16.72% | ||
| 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)8.05%
ROIC(5y)N/A
ROICexc(3y)7.81%
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 | 2.1 |
F-Score7
WACC9.73%
ROIC/WACC1.43
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%