Domtar Corporation (UFS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UFS - Common Stock
55.49
+0.01 (+0.02%)
55.49
0 (0%)
We assign a fundamental rating of 2 out of 10 to UFS. UFS was compared to 9 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.
1. Profitability
1.1 Basic Checks
- UFS had positive earnings in the past year.
1.2 Ratios
| Industry Rank | Sector 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
1.3 Margins
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
- The number of shares outstanding for UFS has been reduced compared to 1 year ago.
- The debt/assets ratio for UFS is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.54 indicates that UFS is not a great score, but indicates only limited risk for bankruptcy at the moment.
- UFS has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.54 |
ROIC/WACCN/A
WACCN/A
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
- The earnings per share for UFS have decreased strongly by -88.40% in the last year.
- The earnings per share for UFS have been decreasing by -36.64% on average. This is quite bad
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- UFS is valuated quite expensively with a Price/Earnings ratio of 163.21.
- The average S&P500 Price/Earnings ratio is at 28.82. UFS is valued rather expensively when compared to this.
- Based on the Price/Forward Earnings ratio of 9.70, the valuation of UFS can be described as reasonable.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, UFS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 163.21 | ||
| Fwd PE | 9.7 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.96 |
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.
- A more expensive valuation may be justified as UFS's earnings are expected to grow with 154.93% in the coming years.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y310.25%
EPS Next 3Y154.93%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.85%, UFS is not a good candidate for dividend investing.
- With a Dividend Yield of 0.85, UFS pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
- UFS has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
DP0%
EPS Next 2Y310.25%
EPS Next 3Y154.93%
Domtar Corporation / UFS FAQ
What is the ChartMill fundamental rating of Domtar Corporation (UFS) stock?
ChartMill assigns a fundamental rating of 5 / 10 to UFS.
What is the valuation status for UFS stock?
ChartMill assigns a valuation rating of 4 / 10 to Domtar Corporation (UFS). This can be considered as Fairly Valued.
How profitable is Domtar Corporation (UFS) stock?
Domtar Corporation (UFS) has a profitability rating of 4 / 10.
What is the earnings growth outlook for Domtar Corporation?
The Earnings per Share (EPS) of Domtar Corporation (UFS) is expected to grow by 1321.01% in the next year.
Can you provide the dividend sustainability for UFS stock?
The dividend rating of Domtar Corporation (UFS) is 2 / 10 and the dividend payout ratio is 0%.