RESOLUTE FOREST PRODUCTS (RFP) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:RFP • US76117W1099

21.92 USD
-0.08 (-0.36%)
At close: Feb 28, 2023
21.92 USD
0 (0%)
After Hours: 2/28/2023, 8:04:00 PM
Fundamental Rating

4

Overall RFP gets a fundamental rating of 4 out of 10. We evaluated RFP against 9 industry peers in the Paper & Forest Products industry. Both the profitability and the financial health of RFP get a neutral evaluation. Nothing too spectacular is happening here. RFP is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

5

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.
RFP Yearly Net Income VS EBIT VS OCF VS FCFRFP 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 of 10.49%. This is comparable to the rest of the industry: RFP outperforms 55.56% of its industry peers.
  • With a Return On Equity value of 20.09%, RFP perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
  • The Return On Invested Capital of RFP (13.95%) is comparable to the rest of the industry.
  • The Average Return On Invested Capital over the past 3 years for RFP is above the industry average of 5.94%.
  • 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 RankSector 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
RFP Yearly ROA, ROE, ROICRFP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 0 5 -5 10 15 20

1.3 Margins

  • With a Profit Margin value of 11.15%, RFP perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
  • In the last couple of years the Profit Margin of RFP has grown nicely.
  • RFP's Operating Margin of 16.45% is in line compared to the rest of the industry. RFP outperforms 55.56% of its industry peers.
  • In the last couple of years the Operating Margin of RFP has grown nicely.
  • Looking at the Gross Margin, with a value of 35.37%, RFP is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
  • 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 Yearly Profit, Operating, Gross MarginsRFP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 0 10 20 30

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6

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
  • RFP has a better debt/assets ratio than last year.
RFP Yearly Shares OutstandingRFP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 20M 40M 60M 80M
RFP Yearly Total Debt VS Total AssetsRFP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 1B 2B 3B 4B

2.2 Solvency

  • An Altman-Z score of 2.10 indicates that RFP is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • With a Altman-Z score value of 2.10, RFP perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 0.54, RFP is in the better half of the industry, outperforming 77.78% 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.
  • RFP has a better Debt to Equity ratio (0.14) than 77.78% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF 0.54
Altman-Z 2.1
ROIC/WACC1.43
WACC9.73%
RFP Yearly LT Debt VS Equity VS FCFRFP 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

  • 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.
  • The Current ratio of RFP (2.91) is better than 77.78% of its industry peers.
  • 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 (1.70) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 2.91
Quick Ratio 1.7
RFP Yearly Current Assets VS Current LiabilitesRFP 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. Growth

3.1 Past

  • RFP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.55%.
  • RFP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 164.80% yearly.
  • 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

  • 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

  • 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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
RFP Yearly Revenue VS EstimatesRFP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B
RFP Yearly EPS VS EstimatesRFP 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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6

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 3.77, which indicates a rather cheap valuation of RFP.
  • 66.67% of the companies in the same industry are more expensive than RFP, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 28.32. RFP is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 10.24, the valuation of RFP can be described as very reasonable.
  • RFP's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of RFP to the average of the S&P500 Index (25.57), we can say RFP is valued rather cheaply.
Industry RankSector Rank
PE 3.77
Fwd PE 10.24
RFP Price Earnings VS Forward Price EarningsRFP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

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 RankSector Rank
P/FCF 3.03
EV/EBITDA 2
RFP Per share dataRFP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • 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%

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0

5. Dividend

5.1 Amount

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

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RESOLUTE FOREST PRODUCTS / RFP FAQ

What is the fundamental rating for RFP stock?

ChartMill assigns a fundamental rating of 4 / 10 to RFP.


What is the valuation status of RESOLUTE FOREST PRODUCTS (RFP) stock?

ChartMill assigns a valuation rating of 8 / 10 to RESOLUTE FOREST PRODUCTS (RFP). This can be considered as Undervalued.


What is the profitability of RFP stock?

RESOLUTE FOREST PRODUCTS (RFP) has a profitability rating of 3 / 10.


What is the valuation of RESOLUTE FOREST PRODUCTS based on its PE and PB ratios?

The Price/Earnings (PE) ratio for RESOLUTE FOREST PRODUCTS (RFP) is 3.77 and the Price/Book (PB) ratio is 0.8.


Is the dividend of RESOLUTE FOREST PRODUCTS sustainable?

The dividend rating of RESOLUTE FOREST PRODUCTS (RFP) is 0 / 10 and the dividend payout ratio is 0%.