Resolute Forest Products Inc (RFP.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RFP - US76117W1099 - Common Stock
29.43 CAD
-1.8 (-5.76%)
Overall RFP gets a fundamental rating of 5 out of 10. We evaluated RFP against 12 industry peers in the Paper & Forest Products industry. RFP is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. RFP is valued quite cheap, but it does not seem to be growing. These ratings would make RFP suitable for value investing!
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
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 53.85% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.71%, RFP is in line with its industry, outperforming 53.85% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RFP is above the industry average of 4.04%.
The last Return On Invested Capital (12.71%) for RFP is above the 3 year average (7.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.49% | ||
| ROE | 20.09% | ||
| ROIC | 12.71% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.33%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 11.15%, RFP is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
RFP's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.45%, RFP is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
RFP's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 35.37%, RFP belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
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
RFP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
An Altman-Z score of 2.08 indicates that RFP is not a great score, but indicates only limited risk for bankruptcy at the moment.
RFP has a Altman-Z score of 2.08. This is in the lower half of the industry: RFP underperforms 69.23% of its industry peers.
RFP has a debt to FCF ratio of 0.54. This is a very positive value and a sign of high solvency as it would only need 0.54 years to pay back of all of its debts.
The Debt to FCF ratio of RFP (0.54) is better than 84.62% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that RFP is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.14, RFP is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.54 | ||
| Altman-Z | 2.08 |
ROIC/WACC1.33
WACC9.55%
2.3 Liquidity
A Current Ratio of 2.91 indicates that RFP has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.91, RFP is in the better half of the industry, outperforming 61.54% 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.
RFP has a Quick ratio of 1.70. This is in the better half of the industry: RFP outperforms 76.92% of its industry peers.
| 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.
The Revenue has been growing slightly by 0.66% on average over the past years.
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
RFP is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -28.92% yearly.
RFP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.42% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
RFP is valuated cheaply with a Price/Earnings ratio of 3.66.
Based on the Price/Earnings ratio, RFP is valued a bit cheaper than 69.23% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.55, RFP is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.94, the valuation of RFP can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RFP indicates a rather cheap valuation: RFP is cheaper than 92.31% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, RFP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.66 | ||
| Fwd PE | 9.94 |
4.2 Price Multiples
76.92% 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 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.94 | ||
| EV/EBITDA | 1.94 |
4.3 Compensation for Growth
RFP has a very decent profitability rating, which may justify a higher PE ratio.
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
No dividends for RFP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:RFP (3/2/2023, 7:00:00 PM)
29.43
-1.8 (-5.76%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners30.45%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.26B
Revenue(TTM)3.81B
Net Income(TTM)425.00M
Analysts44.44
Price Target31.13 (5.78%)
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)-0.31%
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 | 3.66 | ||
| Fwd PE | 9.94 | ||
| P/S | 0.43 | ||
| P/FCF | 2.94 | ||
| P/OCF | 2.48 | ||
| P/B | 0.77 | ||
| P/tB | 0.83 | ||
| EV/EBITDA | 1.94 |
EPS(TTM)8.05
EY27.35%
EPS(NY)2.96
Fwd EY10.06%
FCF(TTM)9.99
FCFY33.96%
OCF(TTM)11.87
OCFY40.32%
SpS68.63
BVpS38.11
TBVpS35.55
PEG (NY)N/A
PEG (5Y)0.02
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.49% | ||
| ROE | 20.09% | ||
| ROCE | N/A | ||
| ROIC | 12.71% | ||
| ROICexc | 14.54% | ||
| ROICexgc | 15.24% | ||
| 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)7.33%
ROIC(5y)N/A
ROICexc(3y)7.12%
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 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 | 2.08 |
F-Score7
WACC9.55%
ROIC/WACC1.33
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 Inc / RFP.CA FAQ
What is the fundamental rating for RFP stock?
ChartMill assigns a fundamental rating of 4 / 10 to RFP.CA.
What is the valuation status for RFP stock?
ChartMill assigns a valuation rating of 8 / 10 to Resolute Forest Products Inc (RFP.CA). This can be considered as Undervalued.
How profitable is Resolute Forest Products Inc (RFP.CA) stock?
Resolute Forest Products Inc (RFP.CA) has a profitability rating of 3 / 10.
Can you provide the financial health for RFP stock?
The financial health rating of Resolute Forest Products Inc (RFP.CA) is 5 / 10.
How sustainable is the dividend of Resolute Forest Products Inc (RFP.CA) stock?
The dividend rating of Resolute Forest Products Inc (RFP.CA) is 0 / 10 and the dividend payout ratio is 0%.