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.
Mediocre balance sheet with moderate growth potential.
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's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: UFS underperformed the US Forestry industry which returned 8.5% over the past year.
Return vs Market: UFS underperformed the US Market which returned 16.3% over the past year.
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
5 days ago | Simply Wall StDoes Domtar's (NYSE:UFS) Statutory Profit Adequately Reflect Its Underlying Profit?
3 weeks ago | Simply Wall StDoes Domtar (NYSE:UFS) Have A Healthy Balance Sheet?
4 months ago | Simply Wall StHow Does Domtar's (NYSE:UFS) P/E Compare To Its Industry, After The Share Price Drop?
Is Domtar undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: UFS ($28.48) is trading above our estimate of fair value ($7.88)
Significantly Below Fair Value: UFS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: UFS is poor value based on its PE Ratio (163.8x) compared to the US Forestry industry average (22.5x).
PE vs Market: UFS is poor value based on its PE Ratio (163.8x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: UFS is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: UFS is good value based on its PB Ratio (0.7x) compared to the US Forestry industry average (1.1x).
How is Domtar forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: UFS's forecast earnings growth (97.5% per year) is above the savings rate (2.2%).
Earnings vs Market: UFS's earnings (97.5% per year) are forecast to grow faster than the US market (23.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: UFS's revenue (1.5% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: UFS's revenue (1.5% 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 UFS's Return on Equity is forecast to be high in 3 years time
How has Domtar performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: UFS has a large one-off loss of $65.0M impacting its June 30 2020 financial results.
Growing Profit Margin: UFS's current net profit margins (0.2%) are lower than last year (5.2%).
Past Earnings Growth Analysis
Earnings Trend: UFS's earnings have declined by 14% per year over the past 5 years.
Accelerating Growth: UFS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: UFS had negative earnings growth (-96.5%) over the past year, making it difficult to compare to the Forestry industry average (6.7%).
Return on Equity
High ROE: UFS's Return on Equity (0.4%) is considered low.
How is Domtar's financial position?
Financial Position Analysis
Short Term Liabilities: UFS's short term assets ($1.5B) exceed its short term liabilities ($639.0M).
Long Term Liabilities: UFS's short term assets ($1.5B) do not cover its long term liabilities ($1.9B).
Debt to Equity History and Analysis
Debt Level: UFS's debt to equity ratio (48%) is considered high.
Reducing Debt: UFS's debt to equity ratio has reduced from 48.8% to 48% over the past 5 years.
Debt Coverage: UFS's debt is well covered by operating cash flow (38.7%).
Interest Coverage: UFS's interest payments on its debt are not well covered by EBIT (1.8x coverage).
What is Domtar current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate UFS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate UFS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if UFS's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if UFS's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: UFS is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of UFS's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Williams (66 yo)
Mr. John D. Williams, BA, has been the Chief Executive Officer and President of Domtar Corporation since joining in January 1, 2009. Mr. Williams served as the President of the European Packaging Operation ...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD6.84M) is above average for companies of similar size in the US market ($USD4.53M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
|Senior VP & CFO||13.42yrs||US$2.97m||0.047% |
|Senior VP and Chief Legal & Administrative Officer||no data||US$1.84m||0.076% |
|President of Personal Care Division||no data||US$2.39m||0.018% |
|President of Pulp & Paper Division||6.25yrs||US$2.18m||0.051% |
|Director of Investor Relations||no data||no data||no data|
|Senior Vice-President of Corporate Development||13.42yrs||US$1.21m||0.052% |
|VP of Corporate Law & Corporate Secretary||no data||no data||no data|
|VP & Treasurer||12.5yrs||no data||no data|
|Vice-President of Corporate Services and Sustainability||no data||no data||no data|
Experienced Management: UFS's management team is seasoned and experienced (12.5 years average tenure).
|Independent Non-Executive Director||9.58yrs||US$285.11k||no data|
|Independent Non-Executive Director||13.58yrs||US$300.15k||0.0021% |
|Independent Non-Executive Director||13.58yrs||US$314.64k||no data|
|Independent Non-Executive Director||4.67yrs||US$242.22k||no data|
|Independent Non-Executive Director||13.58yrs||US$306.37k||0.0055% |
|Independent Non-Executive Director||6.83yrs||US$260.52k||no data|
|Independent Chairman of the Board||3.25yrs||US$404.71k||no data|
|Independent Non-Executive Director||8.58yrs||US$248.75k||0.0018% |
Experienced Board: UFS's board of directors are considered experienced (9.6 years average tenure).
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
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$1.572b
- Shares outstanding: 55.19m
- Website: https://www.domtar.com
Number of Employees
- Domtar Corporation
- 234 Kingsley Park Drive
- Fort Mill
- South Carolina
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|G2K1||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Mar 2007|
|UFS||TSX (The Toronto Stock Exchange)||Yes||Common Stock||CA||CAD||Mar 2007|
|UFS||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Mar 2007|
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||2020/08/10 00:22|
|End of Day Share Price||2020/08/07 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.