Resolute Forest Products Inc.
Resolute Forest Products Inc. Fundamental Analysis
Resolute Forest Products Inc. (RFP) shows moderate financial fundamentals with a PE ratio of 5.68, profit margin of 8.38%, and ROE of 23.66%. The company generates $3.5B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze RFP's fundamental strength across five key dimensions:
Efficiency Score
WeakRFP struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRFP trades at attractive valuation levels.
Growth Score
ModerateRFP shows steady but slowing expansion.
Financial Health Score
ExcellentRFP maintains a strong and stable balance sheet.
Profitability Score
ModerateRFP maintains healthy but balanced margins.
Key Financial Metrics
Is RFP Expensive or Cheap?
P/E Ratio
RFP trades at 5.68 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RFP's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values Resolute Forest Products Inc. at 1.15 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.56 times EBITDA. This is generally considered low.
How Well Does RFP Make Money?
Net Profit Margin
For every $100 in sales, Resolute Forest Products Inc. keeps $8.38 as profit after all expenses.
Operating Margin
Core operations generate 15.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.66 in profit for every $100 of shareholder equity.
ROA
Resolute Forest Products Inc. generates $8.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Resolute Forest Products Inc. produces operating cash flow of $626.09M, showing steady but balanced cash generation.
Free Cash Flow
Resolute Forest Products Inc. generates strong free cash flow of $517.88M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.74 in free cash annually.
FCF Yield
RFP converts 31.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.24
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How RFP Stacks Against Its Sector Peers
| Metric | RFP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.68 | 23.91 | Better (Cheaper) |
| ROE | 23.66% | 887.00% | Weak |
| Net Margin | 8.38% | -114589.00% (disorted) | Weak |
| Debt/Equity | 0.24 | 0.55 | Strong (Low Leverage) |
| Current Ratio | 2.29 | 5.05 | Strong Liquidity |
| ROA | 8.68% | -6361.00% (disorted) | Weak |
RFP outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Resolute Forest Products Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Commodity, Value
EPS CAGR
N/A
Industry Style: Cyclical, Commodity, Value
FCF CAGR
N/A
Industry Style: Cyclical, Commodity, Value