Domtar Corporation designs, manufactures, markets, and distributes communication papers, specialty and packaging papers, and absorbent hygiene products in the United States, Canada, Europe, Asia, and internationally. More Details
Moderate growth potential with mediocre balance sheet.
Share Price & News
How has Domtar's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: UFS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: UFS's weekly volatility (7%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: UFS underperformed the US Forestry industry which returned 126.7% over the past year.
Return vs Market: UFS exceeded the US Market which returned 51.8% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Domtar's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall StWe Think Domtar (NYSE:UFS) Is Taking Some Risk With Its Debt
1 month ago | Simply Wall StDomtar (NYSE:UFS) May Have Issues Allocating Its Capital
2 months ago | Simply Wall StTrade Alert: The President Of Domtar Corporation (NYSE:UFS), John Williams, Has Sold Some Shares Recently
Is Domtar undervalued compared to its fair value and its price relative to the market?
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: UFS ($48.16) is trading above our estimate of fair value ($39.79)
Significantly Below Fair Value: UFS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: UFS is unprofitable, so we can't compare its PE Ratio to the US Forestry industry average.
PE vs Market: UFS is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate UFS's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: UFS's PB Ratio (1.2x) is in line with the US Forestry industry average.
How is Domtar forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: UFS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).
Earnings vs Market: UFS is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: UFS's is expected to become profitable in the next 3 years.
Revenue vs Market: UFS's revenue (3.1% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: UFS's revenue (3.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: UFS's Return on Equity is forecast to be low in 3 years time (7.9%).
How has Domtar performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: UFS is currently unprofitable.
Growing Profit Margin: UFS is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: UFS is unprofitable, and losses have increased over the past 5 years at a rate of 13.7% per year.
Accelerating Growth: Unable to compare UFS's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: UFS is unprofitable, making it difficult to compare its past year earnings growth to the Forestry industry (189.7%).
Return on Equity
High ROE: UFS has a negative Return on Equity (-6.42%), as it is currently unprofitable.
How is Domtar's financial position?
Financial Position Analysis
Short Term Liabilities: UFS's short term assets ($2.6B) exceed its short term liabilities ($827.0M).
Long Term Liabilities: UFS's short term assets ($2.6B) exceed its long term liabilities ($1.8B).
Debt to Equity History and Analysis
Debt Level: UFS's debt to equity ratio (48.1%) is considered high.
Reducing Debt: UFS's debt to equity ratio has increased from 47.1% to 48.1% over the past 5 years.
Debt Coverage: UFS's debt is well covered by operating cash flow (37.8%).
Interest Coverage: UFS is unprofitable, therefore interest payments are not well covered by earnings.
What is Domtar current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate UFS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate UFS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if UFS's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if UFS's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: UFS is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of UFS's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Williams (66 yo)
Mr. John D. Williams, BA, has been the Chief Executive Officer and President of Domtar Corporation since joining in January 1, 2009. Mr. Williams served as the President of the European Packaging Operation...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD6.72M) is about average for companies of similar size in the US market ($USD5.41M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Experienced Management: UFS's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.
Experienced Board: UFS's board of directors are seasoned and experienced ( 10.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: UFS insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Domtar Corporation's company bio, employee growth, exchange listings and data sources
- Name: Domtar Corporation
- Ticker: UFS
- Exchange: NYSE
- Founded: 1948
- Industry: Paper Products
- Sector: Materials
- Market Cap: US$2.420b
- Shares outstanding: 50.25m
- Website: https://www.domtar.com
Number of Employees
- Domtar Corporation
- 234 Kingsley Park Drive
- Fort Mill
- South Carolina
- United States
Domtar Corporation designs, manufactures, markets, and distributes communication papers, specialty and packaging papers, and absorbent hygiene products in the United States, Canada, Europe, Asia, and inter...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/09 00:00|
|End of Day Share Price||2021/05/07 00:00|
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.