TSX:RFP

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Resolute Forest Products

Executive Summary

Resolute Forest Products Inc., together with its subsidiaries, operates in the forest products industry in the United States, Canada, Mexico, and internationally. More Details


Snowflake Analysis

Overvalued with worrying balance sheet.


Similar Companies

Share Price & News

How has Resolute Forest Products's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RFP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.9%

RFP

6.5%

CA Forestry

-1.0%

CA Market


1 Year Return

11.8%

RFP

11.4%

CA Forestry

-4.3%

CA Market

Return vs Industry: RFP exceeded the Canadian Forestry industry which returned 10.2% over the past year.

Return vs Market: RFP exceeded the Canadian Market which returned -4.2% over the past year.


Shareholder returns

RFPIndustryMarket
7 Day0.9%6.5%-1.0%
30 Day0.7%3.8%1.3%
90 Day82.4%9.8%1.9%
1 Year11.8%11.8%13.2%11.4%-0.9%-4.3%
3 Year3.7%-10.4%-16.5%-22.2%6.4%-4.0%
5 Year-31.1%-40.4%21.8%11.5%33.3%12.8%

Price Volatility Vs. Market

How volatile is Resolute Forest Products's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Resolute Forest Products undervalued compared to its fair value and its price relative to the market?

0.36x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RFP (CA$6.82) is trading above our estimate of fair value (CA$5.47)

Significantly Below Fair Value: RFP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RFP is unprofitable, so we can't compare its PE Ratio to the CA Forestry industry average.

PE vs Market: RFP is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RFP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RFP is good value based on its PB Ratio (0.4x) compared to the CA Forestry industry average (1.2x).


Next Steps

Future Growth

How is Resolute Forest Products forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

0.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if RFP's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if RFP's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RFP's revenue (0.8% per year) is forecast to grow slower than the Canadian market (5.8% per year).

High Growth Revenue: RFP's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RFP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Resolute Forest Products performed over the past 5 years?

45.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RFP is currently unprofitable.

Growing Profit Margin: RFP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RFP is unprofitable, but has reduced losses over the past 5 years at a rate of 45.9% per year.

Accelerating Growth: Unable to compare RFP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RFP is unprofitable, making it difficult to compare its past year earnings growth to the Forestry industry (-46.1%).


Return on Equity

High ROE: RFP has a negative Return on Equity (-8.72%), as it is currently unprofitable.


Next Steps

Financial Health

How is Resolute Forest Products's financial position?


Financial Position Analysis

Short Term Liabilities: RFP's short term assets ($882.0M) exceed its short term liabilities ($310.0M).

Long Term Liabilities: RFP's short term assets ($882.0M) do not cover its long term liabilities ($2.1B).


Debt to Equity History and Analysis

Debt Level: RFP's debt to equity ratio (49.7%) is considered high.

Reducing Debt: RFP's debt to equity ratio has increased from 28.8% to 49.7% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if RFP has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if RFP has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Resolute Forest Products's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RFP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RFP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RFP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RFP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RFP's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Yves Laflamme (63 yo)

2.67yrs

Tenure

US$3,812,186

Compensation

Mr. Mr. Yves Laflamme has been the President and Chief Executive Officer and as board member at Resolute Forest Products Inc. since February 01, 2018 and served as its Senior Vice President of Wood Product ...


CEO Compensation Analysis

Compensation vs Market: Yves's total compensation ($USD3.81M) is above average for companies of similar size in the Canadian market ($USD838.38K).

Compensation vs Earnings: Yves's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Yves Laflamme
President2.67yrsUS$3.81m0.14%
$ 804.0k
Rémi Lalonde
Senior VP & CFO1.92yrsUS$985.23k0.044%
$ 259.1k
Jacques Vachon
Senior VP of Corporate Affairs13yrsUS$1.24m0.12%
$ 698.1k
Richard Tremblay
Senior Vice President of Pulp & Paper Operations2.58yrsUS$1.11m0.14%
$ 839.8k
Patrice Minguez
President of Tissue Group3.17yrsUS$1.05m0.0043%
$ 25.1k
Hugues Dorban
Chief Accounting Officer & VP3.08yrsno datano data
Lori Kilgour
Senior VP of Process Improvement & Chief Information Officer1.75yrsno data0.035%
$ 202.3k
Silvana Travaglini
VP of Investor Relations & Treasurer8.92yrsno datano data
Seth Kursman
Vice President of Corporate Communications18.75yrsno datano data
Daniel Ouellet
Senior Vice President of Human Resources2.33yrsno data0.096%
$ 561.2k
John LaFave
Senior Vice President of Pulp & Paper Sales & Marketing9.75yrsUS$1.56m0.18%
$ 1.1m
Luc Thériault
Senior Vice President of Wood Products1.75yrsno data0.026%
$ 153.3k

2.9yrs

Average Tenure

54yo

Average Age

Experienced Management: RFP's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yves Laflamme
President2.67yrsUS$3.81m0.14%
$ 804.0k
Randall Benson
Independent Director3.42yrsUS$163.96k0.029%
$ 168.0k
Michael Rousseau
Independent Director9.83yrsUS$175.00k0.023%
$ 135.6k
Jennifer Dolan
Independent Director7.42yrsUS$150.00k0.058%
$ 339.1k
Bradley Paul Martin
Non-Executive Chairman7.42yrsUS$317.26kno data
Suzanne Blanchet
Independent Director1.75yrsUS$153.75kno data
Alain Rhéaume
Independent Lead Director7.42yrsUS$185.00k0%
$ 0

7.4yrs

Average Tenure

62yo

Average Age

Experienced Board: RFP's board of directors are considered experienced (7.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RFP insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Resolute Forest Products Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Resolute Forest Products Inc.
  • Ticker: RFP
  • Exchange: TSX
  • Founded:
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: US$444.728m
  • Listing Market Cap: US$584.049m
  • Shares outstanding: 86.19m
  • Website: https://www.resolutefp.com

Number of Employees


Location

  • Resolute Forest Products Inc.
  • 111 Robert-Bourassa Boulevard
  • Suite 5000
  • Montreal
  • Quebec
  • H3C 2M1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RFPNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2010
RFPTSX (The Toronto Stock Exchange)YesCommon StockCACADDec 2010
7AB1DB (Deutsche Boerse AG)YesCommon StockDEEURDec 2010
0KW8LSE (London Stock Exchange)YesCommon StockGBUSDDec 2010

Biography

Resolute Forest Products Inc., together with its subsidiaries, operates in the forest products industry in the United States, Canada, Mexico, and internationally. The company operates through five segments ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 23:55
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.