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.
Excellent balance sheet, good value and pays a dividend.
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 -38.6% over the past year.
Return vs Market: UFS underperformed the US Market which returned -10.4% 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 StIt Might Not Be A Great Idea To Buy Domtar Corporation (NYSE:UFS) For Its Next Dividend
1 week ago | Simply Wall StHere's Why Domtar (NYSE:UFS) Has A Meaningful Debt Burden
2 weeks 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?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: UFS ($22.02) is trading below our estimate of fair value ($31.12)
Significantly Below Fair Value: UFS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: UFS is poor value based on its PE Ratio (16x) compared to the Forestry industry average (10.5x).
PE vs Market: UFS is poor value based on its PE Ratio (16x) compared to the US market (13.1x).
Price to Earnings Growth Ratio
PEG Ratio: UFS is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: UFS is good value based on its PB Ratio (0.5x) compared to the US Forestry industry average (0.8x).
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's forecast earnings growth (17.3% per year) is above the savings rate (1.7%).
Earnings vs Market: UFS's earnings (17.3% per year) are forecast to grow faster than the US market (12.2% per year).
High Growth Earnings: UFS's earnings are forecast to grow, but not significantly.
Revenue vs Market: UFS's revenue is expected to decline over the next 3 years (-2.3% per year).
High Growth Revenue: UFS's revenue is forecast to decline over the next 3 years (-2.3% 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 $101.0M impacting its December 31 2019 financial results.
Growing Profit Margin: UFS's current net profit margins (1.6%) are lower than last year (5.2%).
Past Earnings Growth Analysis
Earnings Trend: UFS's earnings have declined by -22% 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 (-70.3%) over the past year, making it difficult to compare to the Forestry industry average (-9.6%).
Return on Equity
High ROE: UFS's Return on Equity (3.5%) 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 ($766.0M).
Long Term Liabilities: UFS's short term assets ($1.5B) do not cover its long term liabilities ($1.8B).
Debt to Equity History and Analysis
Debt Level: UFS's debt to equity ratio (39.5%) is considered satisfactory.
Reducing Debt: UFS's debt to equity ratio has reduced from 47.1% to 39.5% over the past 5 years.
Debt Coverage: UFS's debt is well covered by operating cash flow (47.1%).
Interest Coverage: UFS's interest payments on its debt are well covered by EBIT (4.9x coverage).
Inventory Level: UFS has a high level of physical assets or inventory.
Debt Coverage by Assets: UFS's debt is covered by short term assets (assets are 1.6x debt).
What is Domtar's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: UFS's dividend (8.27%) is higher than the bottom 25% of dividend payers in the US market (1.95%).
High Dividend: UFS's dividend (8.27%) is in the top 25% of dividend payers in the US market (5.4%)
Stability and Growth of Payments
Stable Dividend: UFS's dividend payments have been volatile in the past 10 years.
Growing Dividend: UFS's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (132.6%), UFS's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: UFS's dividends in 3 years are forecast to be covered by earnings (50.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Williams (65yo)
Mr. John D. Williams, BA, has been the Chief Executive Officer and President of Domtar Corporation since joining in January 1, 2009. Mr. Williams served as the President of the European Packaging Operation ...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD7.95M) is above average for companies of similar size in the US market ($USD4.58M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
|Senior VP & CFO||13.08yrs||US$2.96m||0.046% $559.7k|
|Senior VP and Chief Legal & Administrative Officer||no data||US$2.13m||0.075% $911.1k|
|President of Personal Care Division||no data||US$2.07m||0.018% $224.9k|
|President of Pulp & Paper Division||5.92yrs||US$2.67m||0.050% $608.4k|
|Director of Investor Relations||no data||no data||no data|
|Senior Vice-President of Corporate Development||13.08yrs||US$1.21m||0.051% $616.4k|
|VP of Corporate Law & Corporate Secretary||no data||no data||no data|
|VP & Treasurer||12.17yrs||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 years average tenure).
|Independent Non-Executive Director||9.25yrs||US$278.14k||no data|
|Independent Non-Executive Director||13.25yrs||US$303.51k||no data|
|Independent Non-Executive Director||13.25yrs||US$309.16k||no data|
|Independent Non-Executive Director||4.33yrs||US$236.83k||no data|
|Independent Non-Executive Director||13.25yrs||US$301.46k||0.0044% $54.1k|
|Independent Non-Executive Director||6.5yrs||US$254.39k||no data|
|Independent Chairman of the Board||2.92yrs||US$394.84k||no data|
|Independent Non-Executive Director||8.25yrs||US$247.53k||0.00075% $9.1k|
Experienced Board: UFS's board of directors are considered experienced (9.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: UFS 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$1.218b
- Shares outstanding: 56.27m
- 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|
|G2K1||BRSE (Berne Stock Exchange)||Yes||Common Stock||CH||CHF||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 internationally. It operates through two segments, Pulp and Paper, and Personal Care. The company provides business papers, including copy and electronic imaging papers used in inkjet and laser printers, photocopiers, and plain-paper fax machines, as well as computer papers, preprinted forms, and digital papers for office and home use. It also offers commercial printing and publishing papers, such as offset papers and opaques used in sheet and roll fed offset presses; publishing papers, which include tradebook and lightweight uncoated papers for publishing textbooks, dictionaries, catalogs, magazines, hard cover novels, and financial documents; and base papers for envelopes, tablets, business forms, and data processing/computer forms. In addition, the company provides papers for thermal printing, flexible packaging, food packaging, medical packaging, medical gowns and drapes, sandpaper backing, carbonless printing, labels and other coating, and laminating applications; and papers for industrial and specialty applications, such as carrier papers, treated papers, security papers, and specialized printing and converting applications. Further, it designs, manufactures, markets, and distributes absorbent hygiene products, including adult incontinence and infant diaper products under the Attends, IncoPack, Indasec, Reassure, Chelino, and Comfees brand names. Additionally, the company offers branded and private label briefs, bladder control pads, protective underwear, underpads, and washcloths, as well as baby diapers, change mats, youth pants, and training pants for healthcare, retail, and direct-to-consumer channels. It serves merchants, retail outlets, stationers, printers, publishers, converters, and end-users. Domtar Corporation was founded in 1848 and is based in Fort Mill, South Carolina.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/01 10:04|
|End of Day Share Price||2020/03/31 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.