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. RFP has an average financial health and profitability rating. RFP has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • In the past year RFP was profitable.
  • In the past year RFP had a positive cash flow from operations.
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

  • Looking at the Return On Assets, with a value of 10.49%, RFP is in line with its industry, outperforming 55.56% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 20.09%, RFP is in line with its industry, outperforming 55.56% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 13.95%, RFP is in line with its industry, 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 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

  • RFP has a Profit Margin (11.15%) which is in line with its industry peers.
  • RFP's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 16.45%, RFP is in line with its industry, outperforming 55.56% of the companies in the same industry.
  • In the last couple of years the Operating Margin of RFP has grown nicely.
  • 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.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • The number of shares outstanding for RFP has been reduced compared to 1 year ago.
  • Compared to 1 year ago, RFP has an improved debt to assets ratio.
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.
  • RFP has a Altman-Z score (2.10) which is comparable to the rest of the industry.
  • 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 77.78% of its industry peers.
  • A Debt/Equity ratio of 0.14 indicates that RFP is not too dependend on debt financing.
  • RFP's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. RFP outperforms 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.
  • With a decent Current ratio value of 2.91, RFP is doing good in the industry, outperforming 77.78% 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 (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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

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
  • 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

  • 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

  • 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

More info and screens

Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • RFP is valuated cheaply with a Price/Earnings ratio of 3.77.
  • Based on the Price/Earnings ratio, RFP is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 27.67, RFP is valued rather cheaply.
  • A Price/Forward Earnings ratio of 10.24 indicates a reasonable 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.
  • RFP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
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

  • 77.78% of the companies in the same industry are more expensive than RFP, based on the Enterprise Value to EBITDA ratio.
  • 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

  • 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%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

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

More info and screens

Find the best dividend stocksShow peers with best dividend

RESOLUTE FOREST PRODUCTS

NYSE:RFP (2/28/2023, 8:04:00 PM)

After market: 21.92 0 (0%)

21.92

-0.08 (-0.36%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)02-02
Earnings (Next)05-03
Inst Owners0%
Inst Owner Change0%
Ins Owners13.88%
Ins Owner Change0%
Market Cap1.68B
Revenue(TTM)3.81B
Net Income(TTM)425.00M
Analysts44.44
Price Target23.26 (6.11%)
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%
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 3.77
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
Graham NumberN/A
Profitability
Industry RankSector 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
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 2.1
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%

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%.