RFP

Resolute Forest ProductsNYSE:RFP Stock Report

Market Cap

US$821.8m

7D

-13.4%

1Y

101.0%

Updated

18 Sep, 2021

Data

Company Financials +
RFP fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance3/6
Financial Health5/6
Dividends0/6

RFP Overview

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

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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: RFP's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-13.4%

RFP

-2.9%

US Forestry

-0.6%

US Market


1 Year Return

101.0%

RFP

61.8%

US Forestry

33.8%

US Market

Return vs Industry: RFP exceeded the US Forestry industry which returned 61.8% over the past year.

Return vs Market: RFP exceeded the US Market which returned 33.8% over the past year.


Shareholder returns

RFPIndustryMarket
7 Day-13.4%-2.9%-0.6%
30 Day-2.8%2.0%2.0%
90 Day-18.1%1.8%4.7%
1 Year116.8%101.0%65.3%61.8%35.8%33.8%
3 Year-6.0%-24.7%19.7%7.4%60.0%50.1%
5 Year163.8%111.2%56.1%37.3%123.0%98.7%

Long-Term 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

Resolute Forest Products Fundamentals Summary

How do Resolute Forest Products's earnings and revenue compare to its market cap?
RFP fundamental statistics
Market CapUS$821.76m
Earnings (TTM)US$360.00m
Revenue (TTM)US$3.51b

2.3x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RFP income statement (TTM)
RevenueUS$3.51b
Cost of RevenueUS$2.08b
Gross ProfitUS$1.43b
ExpensesUS$1.07b
EarningsUS$360.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.38
Gross Margin40.72%
Net Profit Margin10.25%
Debt/Equity Ratio21.3%

How did RFP perform over the long term?

See historical performance and comparison

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RFP ($10.39) is trading below our estimate of fair value ($21.6)

Significantly Below Fair Value: RFP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RFP is good value based on its PE Ratio (2.3x) compared to the US Forestry industry average (18.2x).

PE vs Market: RFP is good value based on its PE Ratio (2.3x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: RFP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: RFP is good value based on its PB Ratio (0.6x) compared to the US Forestry industry average (1.2x).


Future Growth

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

-37.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RFP's earnings are forecast to decline over the next 3 years (-37% per year).

Earnings vs Market: RFP's earnings are forecast to decline over the next 3 years (-37% per year).

High Growth Earnings: RFP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: RFP's revenue is expected to decline over the next 3 years (-4.8% per year).

High Growth Revenue: RFP's revenue is forecast to decline over the next 3 years (-4.8% 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


Past Performance

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

44.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RFP has a large one-off loss of $233.0M impacting its June 30 2021 financial results.

Growing Profit Margin: RFP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RFP has become profitable over the past 5 years, growing earnings by 44.6% per year.

Accelerating Growth: RFP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RFP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Forestry industry (178.8%).


Return on Equity

High ROE: RFP's Return on Equity (26%) is considered high.


Financial Health

How is Resolute Forest Products's financial position?


Financial Position Analysis

Short Term Liabilities: RFP's short term assets ($1.1B) exceed its short term liabilities ($532.0M).

Long Term Liabilities: RFP's short term assets ($1.1B) do not cover its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: RFP's debt to equity ratio (21.3%) is considered satisfactory.

Reducing Debt: RFP's debt to equity ratio has reduced from 32% to 21.3% over the past 5 years.

Debt Coverage: RFP's debt is well covered by operating cash flow (247.6%).

Interest Coverage: RFP's interest payments on its debt are well covered by EBIT (28.4x coverage).


Balance Sheet


Dividend

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

2.41%

Forecast Dividend Yield


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 US market.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Remi Lalonde (44 yo)

0.50

Tenure

US$2,500,777

Compensation

Mr. Remi G. Lalonde serves as President, Chief Executive Officer and Director at Resolute Forest Products Inc. since March 01, 2021. He served as Senior Vice President and Chief Financial Officer of Resolu...


CEO Compensation Analysis

Compensation vs Market: Remi's total compensation ($USD2.50M) is about average for companies of similar size in the US market ($USD2.33M).

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


Leadership Team

Experienced Management: RFP's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: RFP's board of directors are considered experienced (6.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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: NYSE
  • Founded: NaN
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: US$821.757m
  • Shares outstanding: 79.09m
  • 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


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 four segments...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:07
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.