RESOLUTE FOREST PRODUCTS (RFP)
US76117W1099 - Common Stock
RFP gets a fundamental rating of 5 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.
The reported net income has been mixed in the past 5 years: RFP reported negative net income in multiple years.
RFP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RFP (10.49%) is comparable to the rest of the industry.
RFP has a Return On Equity (20.09%) which is comparable to the rest of the 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 below the industry average of 11.25%.
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
RFP's Profit Margin of 11.15% 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 Profit Margin of RFP has grown nicely.
RFP has a Operating Margin (16.45%) which is comparable to the rest of the industry.
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.
Compared to 1 year ago, RFP has an improved debt to assets ratio.
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.
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.
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.
The Debt to Equity ratio of RFP (0.14) is better than 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 has a better Current ratio (2.91) 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.
With a Quick ratio value of 1.70, RFP perfoms like the industry average, 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
RFP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.55%.
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.
The Revenue has been growing slightly by 5.89% in the past 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 growth Q2Q28.57%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y-0.82%
Revenue growth 5Y0.66%
Revenue growth Q2Q19.22%
3.2 Future
The Earnings Per Share is expected to decrease by -28.92% on average over the next years. This is quite bad
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.
Compared to an average S&P500 Price/Earnings ratio of 24.55, RFP is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.24, the valuation of RFP can be described as very reasonable.
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 20.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.77 | ||
| Fwd PE | 10.24 |
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.
RFP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RFP is 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
The decent profitability rating of RFP may justify a higher PE ratio.
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%
5. Dividend
5.1 Amount
RFP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RESOLUTE FOREST PRODUCTS
NYSE:RFP (2/28/2023, 7:04:00 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.68B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.77 | ||
| Fwd PE | 10.24 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.49% | ||
| ROE | 20.09% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.45% | ||
| PM (TTM) | 11.15% | ||
| GM | 35.37% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-11.55%
EPS 3Y49.2%
EPS 5Y
EPS growth Q2Q
EPS Next Y-9.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.89%
Revenue growth 3Y-0.82%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y