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Resolute Forest Products

TSX:RFP
Snowflake Description

Fair value with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RFP
TSX
$742M
Market Cap
  1. Home
  2. CA
  3. Materials
Company description

Resolute Forest Products Inc. operates in the forest products industry in the United States, Canada, Mexico, and internationally. The last earnings update was 20 days ago. More info.


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RFP Share Price and Events
7 Day Returns
2.4%
TSX:RFP
-2.7%
CA Forestry
0.3%
CA Market
1 Year Returns
-4.7%
TSX:RFP
-29.1%
CA Forestry
0.7%
CA Market
RFP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Resolute Forest Products (RFP) 2.4% -3.5% 5.4% -4.7% 64.2% -45.8%
CA Forestry -2.7% -5.6% 2.6% -29.1% 11.8% 4.7%
CA Market 0.3% 2% 13.2% 0.7% 16.6% 5.6%
1 Year Return vs Industry and Market
  • RFP outperformed the Forestry industry which returned -29.1% over the past year.
  • RFP underperformed the Market in Canada which returned 0.7% over the past year.
Price Volatility
RFP
Industry
5yr Volatility vs Market

RFP Value

 Is Resolute Forest Products undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Resolute Forest Products to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Resolute Forest Products.

TSX:RFP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.8%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:RFP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Forestry Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.906 (1 + (1- 26.5%) (86.98%))
1.325
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.32
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.325 * 5.96%)
9.84%

Discounted Cash Flow Calculation for TSX:RFP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Resolute Forest Products is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:RFP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.84%)
2019 237.00 Analyst x2 215.76
2020 106.80 Analyst x3 88.52
2021 50.92 Est @ -52.33% 38.42
2022 32.56 Est @ -36.04% 22.37
2023 24.54 Est @ -24.65% 15.35
2024 20.45 Est @ -16.67% 11.64
2025 18.18 Est @ -11.08% 9.42
2026 16.88 Est @ -7.17% 7.96
2027 16.13 Est @ -4.44% 6.93
2028 15.72 Est @ -2.52% 6.15
Present value of next 10 years cash flows $422.51
TSX:RFP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $15.72 × (1 + 1.95%) ÷ (9.84% – 1.95%)
$202.96
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $202.96 ÷ (1 + 9.84%)10
$79.37
TSX:RFP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $422.51 + $79.37
$501.88
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $501.88 / 91.21
$5.5
TSX:RFP Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in TSX:RFP represents 1.33333x of NYSE:RFP
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.33333x
Value per Share
(Listing Adjusted, CAD)
= Value per Share (USD) x Listing Adjustment Factor
= $ 5.50 x 1.33333
CA$7.34
Value per share (CAD) From above. CA$7.34
Current discount Discount to share price of CA$10.84
= -1 x (CA$10.84 - CA$7.34) / CA$7.34
-47.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Resolute Forest Products is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Resolute Forest Products's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Resolute Forest Products's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:RFP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $2.57
NYSE:RFP Share Price ** NYSE (2019-03-20) in USD $8.13
Canada Forestry Industry PE Ratio Median Figure of 10 Publicly-Listed Forestry Companies 8.06x
Canada Market PE Ratio Median Figure of 542 Publicly-Listed Companies 14.78x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Resolute Forest Products.

TSX:RFP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:RFP Share Price ÷ EPS (both in USD)

= 8.13 ÷ 2.57

3.16x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Resolute Forest Products is good value based on earnings compared to the CA Forestry industry average.
  • Resolute Forest Products is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Resolute Forest Products's expected growth come at a high price?
Raw Data
TSX:RFP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 3.16x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
-23.2%per year
Canada Forestry Industry PEG Ratio Median Figure of 8 Publicly-Listed Forestry Companies -0.31x
Canada Market PEG Ratio Median Figure of 253 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

TSX:RFP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 3.16x ÷ -23.2%

-0.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Resolute Forest Products earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Resolute Forest Products's assets?
Raw Data
TSX:RFP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $16.89
NYSE:RFP Share Price * NYSE (2019-03-20) in USD $8.13
Canada Forestry Industry PB Ratio Median Figure of 13 Publicly-Listed Forestry Companies 1.25x
Canada Market PB Ratio Median Figure of 2,349 Publicly-Listed Companies 1.58x
TSX:RFP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:RFP Share Price ÷ Book Value per Share (both in USD)

= 8.13 ÷ 16.89

0.48x

* Primary Listing of Resolute Forest Products.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Resolute Forest Products is good value based on assets compared to the CA Forestry industry average.
X
Value checks
We assess Resolute Forest Products's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Forestry industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Forestry industry average (and greater than 0)? (1 check)
  5. Resolute Forest Products has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

RFP Future Performance

 How is Resolute Forest Products expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-23.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Resolute Forest Products expected to grow at an attractive rate?
  • Resolute Forest Products's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Resolute Forest Products's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.
  • Resolute Forest Products's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:RFP Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:RFP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts -23.2%
TSX:RFP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts -4.2%
Canada Forestry Industry Earnings Growth Rate Market Cap Weighted Average -11.9%
Canada Forestry Industry Revenue Growth Rate Market Cap Weighted Average 0.3%
Canada Market Earnings Growth Rate Market Cap Weighted Average 17.8%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:RFP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:RFP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 3,407 304 157 4
2019-12-31 3,383 339 110 4
TSX:RFP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 3,756 435 235
2018-09-30 3,722 410 212
2018-06-30 3,633 318 119
2018-03-31 3,515 259 -27
2017-12-31 3,513 158 -84
2017-09-30 3,504 129 -142
2017-06-30 3,507 72 -152
2017-03-31 3,540 36 -120
2016-12-31 3,545 81 -81
2016-09-30 3,550 99 -250
2016-06-30 3,567 117 -270
2016-03-31 3,602 115 -232

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Resolute Forest Products's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Resolute Forest Products's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:RFP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Resolute Forest Products Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:RFP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 1.67 1.67 1.67 1.00
2019-12-31 1.17 1.17 1.17 1.00
TSX:RFP Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 2.57
2018-09-30 2.33
2018-06-30 1.31
2018-03-31 -0.30
2017-12-31 -0.93
2017-09-30 -1.57
2017-06-30 -1.69
2017-03-31 -1.33
2016-12-31 -0.90
2016-09-30 -2.78
2016-06-30 -3.00
2016-03-31 -2.55

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Resolute Forest Products is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Resolute Forest Products's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Resolute Forest Products has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

RFP Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Resolute Forest Products's growth in the last year to its industry (Forestry).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Resolute Forest Products has delivered over 20% year on year earnings growth in the past 5 years.
  • Resolute Forest Products has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Resolute Forest Products has become profitable in the last year making it difficult to compare the CA Forestry industry average.
Earnings and Revenue History
Resolute Forest Products's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Resolute Forest Products Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:RFP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 3,756.00 235.00 589.00
2018-09-30 3,722.00 212.00 642.00
2018-06-30 3,633.00 119.00 638.00
2018-03-31 3,515.00 -27.00 618.00
2017-12-31 3,513.00 -84.00 602.00
2017-09-30 3,504.00 -142.00 593.00
2017-06-30 3,507.00 -152.00 586.00
2017-03-31 3,540.00 -120.00 591.00
2016-12-31 3,545.00 -81.00 595.00
2016-09-30 3,550.00 -250.00 600.00
2016-06-30 3,567.00 -270.00 605.00
2016-03-31 3,602.00 -232.00 613.00
2015-12-31 3,645.00 -257.00 617.00
2015-09-30 3,806.00 -152.00 630.00
2015-06-30 3,997.00 -262.00 654.00
2015-03-31 4,162.00 -260.00 671.00
2014-12-31 4,258.00 -277.00 673.00
2014-09-30 4,353.00 -171.00 680.00
2014-06-30 4,387.00 -643.00 677.00
2014-03-31 4,403.00 -684.00 679.00
2013-12-31 4,461.00 -639.00 687.00
2013-09-30 4,439.00 -681.00 671.00
2013-06-30 4,462.00 -56.00 671.00
2013-03-31 4,523.00 -30.00 665.00
2012-12-31 4,503.00 1.00 663.00
2012-09-30 4,522.00 40.00 654.00
2012-06-30 4,593.00 -41.00 664.00
2012-03-31 4,625.00 37.00 671.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Resolute Forest Products has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Resolute Forest Products used its assets less efficiently than the CA Forestry industry average last year based on Return on Assets.
  • Resolute Forest Products has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Resolute Forest Products's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Forestry industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Resolute Forest Products has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

RFP Health

 How is Resolute Forest Products's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Resolute Forest Products's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Resolute Forest Products is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Resolute Forest Products's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Resolute Forest Products's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Resolute Forest Products Company Filings, last reported 2 months ago.

TSX:RFP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,535.00 645.00 304.00
2018-09-30 1,810.00 645.00 72.00
2018-06-30 1,692.00 675.00 6.00
2018-03-31 1,616.00 779.00 13.00
2017-12-31 1,600.00 789.00 6.00
2017-09-30 1,629.00 832.00 38.00
2017-06-30 1,610.00 840.00 44.00
2017-03-31 1,674.00 881.00 39.00
2016-12-31 1,711.00 775.00 35.00
2016-09-30 1,936.00 727.00 55.00
2016-06-30 1,915.00 611.00 40.00
2016-03-31 1,946.00 611.00 37.00
2015-12-31 1,945.00 591.00 58.00
2015-09-30 2,058.00 597.00 235.00
2015-06-30 2,073.00 597.00 303.00
2015-03-31 2,100.00 597.00 324.00
2014-12-31 2,117.00 590.00 337.00
2014-09-30 2,694.00 598.00 265.00
2014-06-30 2,842.00 598.00 263.00
2014-03-31 2,813.00 598.00 240.00
2013-12-31 2,839.00 599.00 322.00
2013-09-30 2,546.00 604.00 271.00
2013-06-30 3,090.00 604.00 248.00
2013-03-31 3,119.00 532.00 215.00
2012-12-31 3,125.00 534.00 263.00
2012-09-30 3,466.00 625.00 343.00
2012-06-30 3,490.00 722.00 510.00
2012-03-31 3,514.00 620.00 410.00
  • Resolute Forest Products's level of debt (42%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (21.1% vs 42% today).
  • Debt is well covered by operating cash flow (67.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.9x coverage).
X
Financial health checks
We assess Resolute Forest Products's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Resolute Forest Products has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

RFP Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Resolute Forest Products dividends. Estimated to be 0% next year.
If you bought CA$2,000 of Resolute Forest Products shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Resolute Forest Products's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Resolute Forest Products's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:RFP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Canada Forestry Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 2.9%
Canada Market Average Dividend Yield Market Cap Weighted Average of 330 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:RFP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Resolute Forest Products has not reported any payouts.
  • Unable to verify if Resolute Forest Products's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Resolute Forest Products's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Resolute Forest Products has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Resolute Forest Products's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess Resolute Forest Products's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Resolute Forest Products afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Resolute Forest Products has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

RFP Management

 What is the CEO of Resolute Forest Products's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Yves Laflamme
COMPENSATION $1,236,126
AGE 61
TENURE AS CEO 1.1 years
CEO Bio

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 Products, Global Procurement & Information Technology from January 2011 until February 01, 2018. Mr. Laflamme served as a Senior Vice President of Wood Products Business at Resolute Forest Products Inc. from October 2007 to January 2011. He served as Senior Vice President of Woodlands and Sawmills at Resolute FP Canada Inc. from 2006 to 2007. Mr. Laflamme served as Vice President of Sales and Marketing of Wood Products of Resolute FP Canada Inc. from 2002 to 2003. He began his career in the forest products industry in 1981 with Donohue, holding various positions in sales and finance. He served as Senior Vice President, Woodlands and Sawmills for Abitibi-Consolidated, Inc. from 2006 to October 2007. He served as Vice President, Sales, Marketing and Value-Added Wood Products Operations of Abitibi from 2004 to 2005. Mr. Laflamme is a Certified Management Accountant (CMA). Mr. Laflamme serves as Chairman of the Resolute-LP Engineered Wood joint ventures, a Board member of Toundra Greenhouse and an Executive Team member of the Quebec Forest Industry Council. He is charted professional accountant He is a past chairman of the Canadian Wood Council. He holds Degree in Business Administration from the Université du Québec.

CEO Compensation
  • Yves's compensation has increased in line with Resolute Forest Products recently becoming profitable.
  • Yves's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Resolute Forest Products management team in years:

1.3
Average Tenure
53
Average Age
  • The average tenure for the Resolute Forest Products management team is less than 2 years, this suggests a new team.
Management Team

Yves Laflamme

TITLE
President
COMPENSATION
$1M
AGE
61
TENURE
1.1 yrs

Jacques Vachon

TITLE
Senior VP of Corporate Affairs & Chief Legal Officer
COMPENSATION
$1M
AGE
58
TENURE
11.4 yrs

Richard Tremblay

TITLE
Senior Vice President of Pulp & Paper Operations
COMPENSATION
$1M
AGE
54
TENURE
1 yrs

Richard Garneau

TITLE
Special Advisor to President & CEO
COMPENSATION
$4M
AGE
70
TENURE
1.1 yrs

Rémi Lalonde

TITLE
Senior VP & CFO
AGE
41
TENURE
0.3 yrs

Hugues Dorban

TITLE
Chief Accounting Officer & VP
AGE
41
TENURE
1.5 yrs

Silvana Travaglini

TITLE
VP of Investor Relations & Treasurer
AGE
52
TENURE
7.3 yrs

Seth Kursman

TITLE
Vice President of Corporate Communications
TENURE
17.2 yrs

Daniel Ouellet

TITLE
Senior Vice President of Human Resources
AGE
47
TENURE
0.8 yrs

John LaFave

TITLE
Senior Vice President of Pulp & Paper Sales & Marketing
COMPENSATION
$954K
AGE
53
TENURE
8.2 yrs
Board of Directors Tenure

Average tenure and age of the Resolute Forest Products board of directors in years:

5.8
Average Tenure
61
Average Age
  • The tenure for the Resolute Forest Products board of directors is about average.
Board of Directors

Brad Martin

TITLE
Non-Executive Chairman
COMPENSATION
$345K
AGE
58
TENURE
5.8 yrs

Yves Laflamme

TITLE
President
COMPENSATION
$1M
AGE
61
TENURE
1.1 yrs

Jeff Hearn

TITLE
Director
COMPENSATION
$226K
AGE
67
TENURE
8.3 yrs

Dick Falconer

TITLE
Director
COMPENSATION
$165K
AGE
73
TENURE
8.3 yrs

Alain Rhéaume

TITLE
Lead Director
COMPENSATION
$195K
AGE
66
TENURE
5.8 yrs

Mike Rousseau

TITLE
Director
COMPENSATION
$165K
AGE
60
TENURE
8.3 yrs

Jennifer Dolan

TITLE
Director
COMPENSATION
$150K
AGE
71
TENURE
5.8 yrs

Randall Benson

TITLE
Director
COMPENSATION
$86K
AGE
58
TENURE
1.8 yrs

Suzanne Blanchet

TITLE
Director
AGE
60
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • Resolute Forest Products insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
26. Feb 19 Sell Jacques Vachon Individual 22. Feb 19 22. Feb 19 -300 CA$10.74 CA$-3,223
26. Feb 19 Sell Jacques Vachon Individual 22. Feb 19 22. Feb 19 -41,916 CA$11.23 CA$-470,208
14. Dec 18 Sell John LaFave Individual 12. Dec 18 12. Dec 18 -12,500 CA$12.53 CA$-156,653
X
Management checks
We assess Resolute Forest Products's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Resolute Forest Products has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

RFP News

Simply Wall St News

RFP Company Info

Description

Resolute Forest Products Inc. operates in the forest products industry in the United States, Canada, Mexico, and internationally. The company operates through five segments: Market Pulp, Tissue, Wood Products, Newsprint, and Specialty Papers. The Market Pulp segment offers virgin and recycled bleached Kraft used to make a range of consumer products, including tissue, packaging, specialty paper products, diapers, and other absorbent products. The Tissue segment provides tissue products, such as recycled and virgin paper products for the away-from-home and at-home markets; and sells parent rolls. The Wood Products segment produces construction-grade and spruce-pine-fir lumber products, bed frame components, finger joints, and furring strips, as well as I-joists for the construction industry. The Newsprint segment offers newsprint to newspaper publishers worldwide, as well as to commercial printers in North America for a range of uses comprising inserts and flyers. The Specialty Papers segment offers various specialty papers, including uncoated mechanical papers, such as supercalendered and white papers, as well as uncoated freesheet papers. Its specialty papers are used in books, retail inserts, direct mail, coupons, magazines, catalogs, bags, and other commercial printing applications. This segment sells specialty papers to commercial printers, direct mailers, publishers, catalogers, and retailers. The company also produces electricity at six cogeneration facilities and seven hydroelectric dams. Resolute Forest Products Inc. is headquartered in Montreal, Canada.

Details
Name: Resolute Forest Products Inc.
RFP
Exchange: TSX
Founded:
$988,508,252
91,208,812
Website: http://www.resolutefp.com
Address: Resolute Forest Products Inc.
111 Robert-Bourassa Boulevard,
Suite 5000,
Montreal,
Quebec, H3C 2M1,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE RFP Common Stock New York Stock Exchange US USD 10. Dec 2010
DB 7AB1 Common Stock Deutsche Boerse AG DE EUR 10. Dec 2010
LSE 0KW8 Common Stock London Stock Exchange GB USD 10. Dec 2010
TSX RFP Common Stock The Toronto Stock Exchange CA CAD 10. Dec 2010
Number of employees
Current staff
Staff numbers
7,400
Resolute Forest Products employees.
Industry
Paper Products
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 00:28
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/02/05
Last earnings filing: 2019/03/01
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.