RESOLUTE FOREST PRODUCTS (RFP) Fundamental Analysis & Valuation

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
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This RFP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

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. 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. RFP Profitability Analysis

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

  • The Return On Assets of RFP (10.49%) is comparable to the rest of the industry.
  • RFP's Return On Equity of 20.09% is in line compared to the rest of the industry. RFP outperforms 55.56% of its industry peers.
  • RFP has a Return On Invested Capital (13.95%) which is comparable to the rest of the industry.
  • RFP had an Average Return On Invested Capital over the past 3 years of 8.05%. This is above the industry average of 5.34%.
  • 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

  • Looking at the Profit Margin, with a value of 11.15%, RFP is in line with its industry, 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.
  • RFP's Operating Margin has improved in the last couple of years.
  • With a decent Gross Margin value of 35.37%, RFP is doing good in 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. RFP Health Analysis

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.
  • 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

  • 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 (2.10) which is in line with 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 77.78% 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'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

  • A Current Ratio of 2.91 indicates that RFP has no problem at all paying 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.
  • 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 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

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

3. RFP Growth Analysis

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.
  • Based on estimates for the next years, RFP will show a decrease in Revenue. The Revenue will decrease by -2.42% on average per year.
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. RFP Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 3.77, which indicates a rather cheap valuation of RFP.
  • 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.
  • When comparing the Price/Earnings ratio of RFP to the average of the S&P500 Index (26.29), we can say 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 is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.57, which is the current average of the S&P500 Index.
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 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, RFP is valued a bit cheaper than the industry average as 77.78% 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 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%

More info and screens

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

0

5. RFP Dividend Analysis

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

RFP Fundamentals: All Metrics, Ratios and Statistics

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%.