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Domtar Corporation (UFS.CA) Stock Fundamental Analysis

TSX:UFS - Toronto Stock Exchange - Common Stock

71.48  +0.72 (+1.02%)

Fundamental Rating

2

UFS gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 12 industry peers in the Paper & Forest Products industry. UFS has a bad profitability rating. Also its financial health evaluation is rather negative. UFS has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

UFS had positive earnings in the past year.
UFS.CA Yearly Net Income VS EBIT VS OCF VS FCFUFS.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 0 200M -200M 400M

1.2 Ratios

Industry RankSector Rank
ROA 0.58%
ROE 1.04%
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
UFS.CA Yearly ROA, ROE, ROICUFS.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 0 5 -5 10 -10

1.3 Margins

Industry RankSector Rank
OM 5.83%
PM (TTM) 0.71%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
UFS.CA Yearly Profit, Operating, Gross MarginsUFS.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 0 5 -5 10 15 20

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2. Health

2.1 Basic Checks

Compared to 1 year ago, UFS has less shares outstanding
Compared to 1 year ago, UFS has a worse debt to assets ratio.
UFS.CA Yearly Shares OutstandingUFS.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 20M 40M 60M
UFS.CA Yearly Total Debt VS Total AssetsUFS.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 1B 2B 3B 4B 5B

2.2 Solvency

UFS has an Altman-Z score of 2.55. This is not the best score and indicates that UFS is in the grey zone with still only limited risk for bankruptcy at the moment.
A Debt/Equity ratio of 0.23 indicates that UFS is not too dependend on debt financing.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF N/A
Altman-Z 2.55
ROIC/WACCN/A
WACCN/A
UFS.CA Yearly LT Debt VS Equity VS FCFUFS.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

A Current Ratio of 2.78 indicates that UFS has no problem at all paying its short term obligations.
A Quick Ratio of 1.69 indicates that UFS should not have too much problems paying its short term obligations.
Industry RankSector Rank
Current Ratio 2.78
Quick Ratio 1.69
UFS.CA Yearly Current Assets VS Current LiabilitesUFS.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 500M 1B 1.5B 2B 2.5B

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3. Growth

3.1 Past

UFS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -88.40%.
UFS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -36.64% yearly.
The Revenue for UFS has decreased by -26.93% in the past year. This is quite bad
Measured over the past years, UFS shows a decrease in Revenue. The Revenue has been decreasing by -7.05% on average per year.
EPS 1Y (TTM)-88.4%
EPS 3Y-49.24%
EPS 5Y-36.64%
EPS Q2Q%187.57%
Revenue 1Y (TTM)-26.93%
Revenue growth 3Y-10.81%
Revenue growth 5Y-7.05%
Sales Q2Q%-8.27%

3.2 Future

The Earnings Per Share is expected to grow by 80.74% on average over the next years. This is a very strong growth
Based on estimates for the next years, UFS will show a decrease in Revenue. The Revenue will decrease by -3.20% on average per year.
EPS Next Y1321.01%
EPS Next 2Y310.25%
EPS Next 3Y154.93%
EPS Next 5Y80.74%
Revenue Next Year-12.6%
Revenue Next 2Y-6.04%
Revenue Next 3Y-4.68%
Revenue Next 5Y-3.2%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
UFS.CA Yearly Revenue VS EstimatesUFS.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B
UFS.CA Yearly EPS VS EstimatesUFS.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 166.23, the valuation of UFS can be described as expensive.
When comparing the Price/Earnings ratio of UFS to the average of the S&P500 Index (27.69), we can say UFS is valued expensively.
UFS is valuated reasonably with a Price/Forward Earnings ratio of 9.82.
UFS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.36.
Industry RankSector Rank
PE 166.23
Fwd PE 9.82
UFS.CA Price Earnings VS Forward Price EarningsUFS.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.05
UFS.CA Per share dataUFS.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
UFS's earnings are expected to grow with 154.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.13
PEG (5Y)N/A
EPS Next 2Y310.25%
EPS Next 3Y154.93%

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1

5. Dividend

5.1 Amount

UFS has a yearly dividend return of 0.67%, which is pretty low.
Compared to an average S&P500 Dividend Yield of 2.34, UFS's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.67%

5.2 History

UFS has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
UFS.CA Yearly Dividends per shareUFS.CA Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 0.5 1 1.5

5.3 Sustainability

DP0%
EPS Next 2Y310.25%
EPS Next 3Y154.93%
UFS.CA Yearly Income VS Free CF VS DividendUFS.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 0 200M -200M

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Domtar Corporation

TSX:UFS (12/1/2021, 7:00:00 PM)

71.48

+0.72 (+1.02%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst Owners48.88%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.62B
Analysts70
Price Target71.32 (-0.22%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.67%
Yearly Dividend0.46
Dividend Growth(5Y)N/A
DP0%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 166.23
Fwd PE 9.82
P/S 0.88
P/FCF N/A
P/OCF N/A
P/B 1.29
P/tB N/A
EV/EBITDA 7.05
EPS(TTM)0.43
EY0.6%
EPS(NY)7.28
Fwd EY10.18%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS80.87
BVpS55.57
TBVpSN/A
PEG (NY)0.13
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.58%
ROE 1.04%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM 5.83%
PM (TTM) 0.71%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y0%
ROICexcg growth 5Y0%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.82
Health
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.78
Quick Ratio 1.69
Altman-Z 2.55
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
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)-88.4%
EPS 3Y-49.24%
EPS 5Y-36.64%
EPS Q2Q%187.57%
EPS Next Y1321.01%
EPS Next 2Y310.25%
EPS Next 3Y154.93%
EPS Next 5Y80.74%
Revenue 1Y (TTM)-26.93%
Revenue growth 3Y-10.81%
Revenue growth 5Y-7.05%
Sales Q2Q%-8.27%
Revenue Next Year-12.6%
Revenue Next 2Y-6.04%
Revenue Next 3Y-4.68%
Revenue Next 5Y-3.2%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A