RESOLUTE FOREST PRODUCTS (RFP) Stock Fundamental Analysis
USA - NYSE:RFP - US76117W1099 - Common Stock
21.92 USD
-0.08 (-0.36%)
21.92 USD
0 (0%)
Taking everything into account, RFP scores 4 out of 10 in our fundamental rating. RFP was compared to 10 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.
1. Profitability
1.1 Basic Checks
RFP had positive earnings in the past year.
In the past year RFP had a positive cash flow from operations.
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.
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.
Measured over the past 3 years, the Average Return On Invested Capital for RFP is above the industry average of 5.72%.
The 3 year average ROIC (8.05%) for RFP is below the current ROIC(13.95%), indicating increased profibility in the last year.
| 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
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 has a Operating Margin of 16.45%. This is comparable 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.
RFP's Gross Margin of 35.37% is fine compared to the rest of the industry. RFP outperforms 66.67% of its industry peers.
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.
The number of shares outstanding for RFP has been reduced compared to 1 year ago.
RFP has a better debt/assets ratio than last year.
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 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's Debt to FCF ratio of 0.54 is fine compared to the rest of the industry. RFP outperforms 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 has a Debt to Equity ratio of 0.14. This is in the better half of the industry: RFP outperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.54 | ||
| Altman-Z | 2.1 |
ROIC/WACC1.43
WACC9.73%
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.
RFP's Current ratio of 2.91 is fine compared to the rest of the industry. RFP outperforms 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.
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.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 3.77, the valuation of RFP can be described as very cheap.
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 27.02. RFP is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.24 indicates a reasonable valuation of RFP.
RFP's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.57, 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.
Based on the Price/Free Cash Flow ratio, RFP is valued cheaper than 100.00% of the companies 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
RFP does not give a dividend.
| 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%