Calculating The Intrinsic Value Of Resolute Forest Products Inc. (NYSE:RFP)
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Resolute Forest...
U.S. Paper Products Industry Analysis
UpdatedMay 28, 2022
DataAggregated Company Financials
Companies9
- 7D7.6%
- 3M7.2%
- 1Y-4.9%
- YTD8.0%
All of the companies in the Paper Products industry have been up over the last week, with the industry up 7.6%. In the past year, the industry is down 4.9%. As for the next few years, earnings are forecast to decline by 15% per annum.
Industry Valuation and Performance
Has the U.S. Paper Products Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sat, 28 May 2022 | US$78.3b | US$22.6b | US$5.4b | 3.9x |
| Mon, 25 Apr 2022 | US$7.2b | US$15.7b | US$838.2m | 7.9x |
| Wed, 23 Mar 2022 | US$9.9b | US$19.7b | US$929.0m | 8x |
| Fri, 18 Feb 2022 | US$10.0b | US$19.4b | US$709.6m | 10.5x |
| Sun, 16 Jan 2022 | US$10.4b | US$19.0b | US$825.5m | 9.9x |
| Tue, 14 Dec 2021 | US$9.7b | US$19.0b | US$825.5m | 9.1x |
| Thu, 11 Nov 2021 | US$9.8b | US$18.9b | US$785.4m | 8.9x |
| Sat, 09 Oct 2021 | US$9.6b | US$15.1b | US$174.3m | 21.6x |
| Mon, 06 Sep 2021 | US$8.5b | US$15.2b | US$166.4m | 23.4x |
| Wed, 04 Aug 2021 | US$8.3b | US$15.1b | US$173.6m | 23.1x |
| Sat, 08 May 2021 | US$8.3b | US$14.0b | -US$142,417,060.00 | 14.2x |
| Tue, 09 Feb 2021 | US$6.8b | US$14.1b | -US$95,565,381.00 | 23.7x |
| Mon, 02 Nov 2020 | US$5.3b | US$13.8b | -US$26,515,186.00 | 10.9x |
| Thu, 06 Aug 2020 | US$5.4b | US$14.3b | US$23.2m | 12.1x |
| Sun, 10 May 2020 | US$5.5b | US$15.5b | US$54.9m | 8.4x |
| Sat, 01 Feb 2020 | US$7.0b | US$16.2b | US$211.0m | 10.7x |
| Tue, 05 Nov 2019 | US$7.4b | US$17.7b | US$343.2m | 11.9x |
| Fri, 09 Aug 2019 | US$7.9b | US$18.1b | US$721.5m | 7.6x |
Median PE Ratio
7.3x
Current Industry PE
- Investors are more pessimistic on the industry, indicating that they anticipate long-term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 3.9x which is lower than its 3-year average PE of 12.6x.
- Given that earnings are expected to decline by 15%, the lower than average PE seems justified.
Past Earnings Growth
- The earnings for companies in the Paper Products industry have grown 81% per year over the last three years.
- Revenues for these companies have grown 7.3% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Comparison
How does U.S. Paper Products compare with similar industries?
| US Market | 5.92% | |
| Materials | 6.73% | |
| Paper and Forestry Products | 7.80% | |
| Paper Products | 7.60% | |
| Forestry Products | 10.47% | |
Industry PEThere is insufficient data on the sub-industries of this industry.
Forecasted GrowthThere is insufficient data on the sub-industries of this industry.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| SUZ Suzano | US$11.34 | 7.6% +US$1.1b | -4.4% | PS3.3x | |
| SLVM Sylvamo | US$50.16 | 7.3% +US$150.5m | n/a | PS7.5x | |
| RFP Resolute Forest Products | US$14.75 | 11.8% +US$119.8m | -12.6% | PS2.6x | |
| MERC Mercer International | US$14.93 | 4.8% +US$45.6m | 0.6% | PS3.9x | |
| NP Neenah | US$38.91 | 7.2% +US$43.6m | -26.5% | PS0.6x |