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Domtar Corporation (UFS) Stock Fundamental Analysis

NYSE:UFS - New York Stock Exchange, Inc. - Common Stock

55.49  +0.01 (+0.02%)

After market: 55.49 0 (0%)

Fundamental Rating

2

Taking everything into account, UFS scores 2 out of 10 in our fundamental rating. UFS was compared to 9 industry peers in the Paper & Forest Products industry. UFS may be in some trouble as it scores bad on both profitability and health. UFS does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

0

1. Profitability

1.1 Basic Checks

UFS had positive earnings in the past year.
UFS Yearly Net Income VS EBIT VS OCF VS FCFUFS 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 Yearly ROA, ROE, ROICUFS 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 Yearly Profit, Operating, Gross MarginsUFS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 0 5 -5 10 15 20

3

2. Health

2.1 Basic Checks

UFS has less shares outstanding than it did 1 year ago.
UFS has a worse debt/assets ratio than last year.
UFS Yearly Shares OutstandingUFS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 20M 40M 60M
UFS Yearly Total Debt VS Total AssetsUFS 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

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.
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 2.54
ROIC/WACCN/A
WACCN/A
UFS Yearly LT Debt VS Equity VS FCFUFS 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.
UFS has a Quick Ratio of 1.69. This is a normal value and indicates that UFS is financially healthy and should not expect problems in meeting its short term obligations.
Industry RankSector Rank
Current Ratio 2.78
Quick Ratio 1.69
UFS Yearly Current Assets VS Current LiabilitesUFS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 500M 1B 1.5B 2B 2.5B

3

3. Growth

3.1 Past

The earnings per share for UFS have decreased strongly by -88.40% in the last year.
UFS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -36.64% yearly.
Looking at the last year, UFS shows a very negative growth in Revenue. The Revenue has decreased by -26.93% in the last year.
The Revenue has been decreasing by -7.05% on average over the past years.
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
UFS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.20% yearly.
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

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 Yearly Revenue VS EstimatesUFS 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 Yearly EPS VS EstimatesUFS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6

3

4. Valuation

4.1 Price/Earnings Ratio

UFS is valuated quite expensively with a Price/Earnings ratio of 163.21.
UFS is valuated expensively when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.70, which indicates a very decent valuation of UFS.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, UFS is valued rather cheaply.
Industry RankSector Rank
PE 163.21
Fwd PE 9.7
UFS Price Earnings VS Forward Price EarningsUFS 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 6.96
UFS Per share dataUFS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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)0.12
PEG (5Y)N/A
EPS Next 2Y310.25%
EPS Next 3Y154.93%

1

5. Dividend

5.1 Amount

With a yearly dividend of 0.85%, UFS is not a good candidate for dividend investing.
Compared to an average S&P500 Dividend Yield of 2.27, UFS's dividend is way lower than the S&P500 average.
Industry RankSector 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
UFS Yearly Dividends per shareUFS Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 0.5 1 1.5

5.3 Sustainability

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

Domtar Corporation

NYSE:UFS (11/29/2021, 8:42:58 PM)

After market: 55.49 0 (0%)

55.49

+0.01 (+0.02%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)N/A N/A
Earnings (Next)02-18 2022-02-18/bmo
Inst Owners2.16%
Inst Owner Change0%
Ins Owners0.21%
Ins Owner Change0%
Market Cap2.81B
Analysts46.67
Price Target56.25 (1.37%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.85%
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 163.21
Fwd PE 9.7
P/S 0.87
P/FCF N/A
P/OCF N/A
P/B 1.27
P/tB N/A
EV/EBITDA 6.96
EPS(TTM)0.34
EY0.61%
EPS(NY)5.72
Fwd EY10.31%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS63.57
BVpS43.69
TBVpSN/A
PEG (NY)0.12
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 2.54
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