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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.44
RFP's Cash to Debt is ranked higher than
75% of the 393 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 0.23 vs. RFP: 0.44 )
RFP' s 10-Year Cash to Debt Range
Min: 0   Max: 0.71
Current: 0.44

0
0.71
Equity to Asset 0.53
RFP's Equity to Asset is ranked higher than
72% of the 397 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 0.48 vs. RFP: 0.53 )
RFP' s 10-Year Equity to Asset Range
Min: -0.59   Max: 0.59
Current: 0.53

-0.59
0.59
F-Score: 6
Z-Score: 1.22
M-Score: -3.07
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 3/10

vs
industry
vs
history
Operating margin (%) -1.68
RFP's Operating margin (%) is ranked higher than
51% of the 401 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 4.10 vs. RFP: -1.68 )
RFP' s 10-Year Operating margin (%) Range
Min: -21.12   Max: 17.15
Current: -1.68

-21.12
17.15
Net-margin (%) -3.93
RFP's Net-margin (%) is ranked higher than
51% of the 401 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 2.66 vs. RFP: -3.93 )
RFP' s 10-Year Net-margin (%) Range
Min: -35.57   Max: 55.08
Current: -3.93

-35.57
55.08
ROE (%) -6.25
RFP's ROE (%) is ranked higher than
51% of the 399 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 4.57 vs. RFP: -6.25 )
RFP' s 10-Year ROE (%) Range
Min: -313.98   Max: 323.11
Current: -6.25

-313.98
323.11
ROA (%) -3.23
RFP's ROA (%) is ranked higher than
50% of the 403 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 2.35 vs. RFP: -3.23 )
RFP' s 10-Year ROA (%) Range
Min: -24.29   Max: 36.64
Current: -3.23

-24.29
36.64
ROC (Joel Greenblatt) (%) -2.48
RFP's ROC (Joel Greenblatt) (%) is ranked higher than
50% of the 402 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 5.89 vs. RFP: -2.48 )
RFP' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -23.65   Max: 14.69
Current: -2.48

-23.65
14.69
Revenue Growth (3Y)(%) -2.10
RFP's Revenue Growth (3Y)(%) is ranked higher than
63% of the 368 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 0.80 vs. RFP: -2.10 )
RFP' s 10-Year Revenue Growth (3Y)(%) Range
Min: -38.2   Max: 279.9
Current: -2.1

-38.2
279.9
EBITDA Growth (3Y)(%) -56.30
RFP's EBITDA Growth (3Y)(%) is ranked lower than
55% of the 319 Companies
in the Global Paper & Paper Products industry.

( Industry Median: -2.40 vs. RFP: -56.30 )
RFP' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -56.3   Max: 236.4
Current: -56.3

-56.3
236.4
» RFP's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q4 2013

RFP Guru Trades in Q4 2013

Francis Chou 4,227,259 sh (+2.42%)
Jeremy Grantham 20,990 sh (unchged)
Michael Price 483,306 sh (unchged)
Prem Watsa 29,044,012 sh (unchged)
Pioneer Investments 37,976 sh (unchged)
Third Avenue Management 315,495 sh (unchged)
John Paulson Sold Out
Donald Smith 9,084,165 sh (-1.94%)
Louis Moore Bacon 92,687 sh (-2.85%)
Paul Tudor Jones 39,600 sh (-31.96%)
Jim Simons 91,200 sh (-32.89%)
» More
Q1 2014

RFP Guru Trades in Q1 2014

Steven Cohen 106,097 sh (New)
Pioneer Investments 37,976 sh (unchged)
Michael Price 483,306 sh (unchged)
Prem Watsa 29,044,012 sh (unchged)
Louis Moore Bacon 92,687 sh (unchged)
Jim Simons Sold Out
Jeremy Grantham Sold Out
Francis Chou 4,117,259 sh (-2.6%)
Donald Smith 8,099,274 sh (-10.84%)
Paul Tudor Jones 34,104 sh (-13.88%)
Third Avenue Management 206,686 sh (-34.49%)
» More
Q2 2014

RFP Guru Trades in Q2 2014

Jim Simons 116,300 sh (New)
Donald Smith 8,511,471 sh (+5.09%)
Michael Price 483,306 sh (unchged)
Francis Chou 4,117,259 sh (unchged)
Prem Watsa 29,044,012 sh (unchged)
Pioneer Investments 37,976 sh (unchged)
Louis Moore Bacon Sold Out
Paul Tudor Jones Sold Out
Third Avenue Management Sold Out
» More
Q3 2014

RFP Guru Trades in Q3 2014

Prem Watsa 29,044,012 sh (unchged)
Pioneer Investments 37,976 sh (unchged)
Michael Price 483,306 sh (unchged)
Francis Chou 4,117,259 sh (unchged)
Donald Smith 8,486,281 sh (-0.3%)
Jim Simons 96,300 sh (-17.2%)
» More
» Details

Insider Trades

Latest Guru Trades with RFP

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Donald Smith 2014-06-30 Add 5.09%0.13%$14.91 - $20.07 $ 18.1210%8511471
Third Avenue Management 2014-06-30 Sold Out 0.08%$14.91 - $20.07 $ 18.1210%0
Donald Smith 2014-03-31 Reduce -10.84%0.31%$16.02 - $21.45 $ 18.12-5%8099274
Third Avenue Management 2014-03-31 Reduce -34.49%0.03%$16.02 - $21.45 $ 18.12-5%206686
John Paulson 2013-12-31 Sold Out $12.37 - $16.2 $ 18.1223%0
Donald Smith 2013-09-30 Reduce -4.77%0.13%$12.49 - $15.75 $ 18.1231%9263791
John Paulson 2013-09-30 New Buy$12.49 - $15.75 $ 18.1231%56742
Prem Watsa 2013-06-30 Add 16.87%2.21%$12.7 - $16.49 $ 18.1222%28957327
John Paulson 2013-06-30 Sold Out 0.38%$12.7 - $16.49 $ 18.1222%0
Tom Gayner 2013-03-31 Sold Out 0.01%$13.24 - $17.04 $ 18.1228%0
Prem Watsa 2012-12-31 Add 30.55%3.07%$10.5 - $13.56 $ 18.1250%24776519
John Paulson 2012-12-31 Add 27.3%0.07%$10.5 - $13.56 $ 18.1250%4200807
Tom Gayner 2012-12-31 New Buy0.01%$10.5 - $13.56 $ 18.1250%15375
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
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Guru Investment Theses on Resolute Forest Products Inc

Francis Chou Comments on Resolute Forest Products - Mar 11, 2014

The common stock of Resolute Forest Products (RFP) contributed significantly to the returns of the Fund. We do not normally buy common stock for the Fund but every now and then, due to restructuring, we receive shares for a debt security we hold. Such was the case with RFP. We received shares of RFP for our holdings in McMinn County, Tennessee revenue bonds. To cut a long story short, we purchased 15.48 million bonds for a total consideration of $155,800. We paid roughly one cent on a dollar for each bond, preparing to hold them for several years. We knew McMinn’s obligor was AbitibiBowater and we have been following AbitibiBowater story for a while (AbitibiBowater changed its name to Resolute Forest Products in 2011). McMinn bonds belong to a class of creditors that were in dispute with AbitibiBowater 7.95% class bonds, a dispute many thought would not likely be settled for several years. We figured that even if McMinn lost the lawsuit, and 100% of the disputed claim was awarded to the 7.95% class, we would not lose money on the McMinn bonds considering the price we paid. Lo and behold, a few months later, the lawsuit was settled and we received 52,564 common shares of RFP for our holdings of McMinn bonds. At the year-end price of $16.02, these shares of RFP were worth approximately $842,075.



Such a windfall comes maybe once every 20 years and we would not recommend this case as a regular way to invest in bonds. You needed a seller who was desperate to sell his holdings within a short time frame but could not find a buyer. And in a fortuitous way, we had invested in RFP for several years and were well acquainted with the story and the lawsuit. Further, the outcome was also dependent on a quick favorable legal judgment. The lawsuit could have dragged on for years which would have diminished the annualized returns by a considerable margin.





From Franis Chou's 2013 letter to shareholders.



Check out Francis Chou latest stock trades

Top Ranked Articles about Resolute Forest Products Inc

Prem Watsa's Top Five Holdings
Prem Watsa (Trades, Portfolio) founded the Toronto-based Fairfax Financial Holdings Limited (TSX:FFH) in 1985, which is engaged in property and casualty insurance, as well as reinsurance and investment management. Watsa was born in India, originally trained as a chemical engineer but took a chance to move to London, Ontario, where his brother lived. There, Watsa earned an MBA at Western University and then worked for a decade in the investment department at a now defunct Canadian insurance company before forming Fairfax. Today, Fairfax manages about $1.46 billion in assets. Read more...
Francis Chou Comments on Resolute Forest Products
The common stock of Resolute Forest Products (RFP) contributed significantly to the returns of the Fund. We do not normally buy common stock for the Fund but every now and then, due to restructuring, we receive shares for a debt security we hold. Such was the case with RFP. We received shares of RFP for our holdings in McMinn County, Tennessee revenue bonds. To cut a long story short, we purchased 15.48 million bonds for a total consideration of $155,800. We paid roughly one cent on a dollar for each bond, preparing to hold them for several years. We knew McMinn’s obligor was AbitibiBowater and we have been following AbitibiBowater story for a while (AbitibiBowater changed its name to Resolute Forest Products in 2011). McMinn bonds belong to a class of creditors that were in dispute with AbitibiBowater 7.95% class bonds, a dispute many thought would not likely be settled for several years. We figured that even if McMinn lost the lawsuit, and 100% of the disputed claim was awarded to the 7.95% class, we would not lose money on the McMinn bonds considering the price we paid. Lo and behold, a few months later, the lawsuit was settled and we received 52,564 common shares of RFP for Read more...
Francis Chou’s Top Holdings at Year End
Francis Chou (Trades, Portfolio) is one of the international gurus followed by GuruFocus, and is the President of the Toronto-based Chou Associates Management. The guru immigrated to Canada from India in 1976 and is oftentimes praised and acknowledged for his rags to riches story. Read more...

Ratios

vs
industry
vs
history
P/B 0.64
RFP's P/B is ranked higher than
81% of the 426 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 1.07 vs. RFP: 0.64 )
RFP' s 10-Year P/B Range
Min: 0.27   Max: 0.77
Current: 0.64

0.27
0.77
P/S 0.39
RFP's P/S is ranked higher than
81% of the 426 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 0.72 vs. RFP: 0.39 )
RFP' s 10-Year P/S Range
Min: 0.2   Max: 0.48
Current: 0.39

0.2
0.48
EV-to-EBIT -28.23
RFP's EV-to-EBIT is ranked higher than
55% of the 426 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 26.20 vs. RFP: -28.23 )
RFP' s 10-Year EV-to-EBIT Range
Min: -1160.2   Max: 661.2
Current: -28.23

-1160.2
661.2
Current Ratio 2.66
RFP's Current Ratio is ranked higher than
86% of the 398 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 1.54 vs. RFP: 2.66 )
RFP' s 10-Year Current Ratio Range
Min: 0.9   Max: 3.33
Current: 2.66

0.9
3.33
Quick Ratio 1.69
RFP's Quick Ratio is ranked higher than
85% of the 398 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 0.97 vs. RFP: 1.69 )
RFP' s 10-Year Quick Ratio Range
Min: 0.35   Max: 2.4
Current: 1.69

0.35
2.4

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 0.66
RFP's Price/Tangible Book is ranked higher than
82% of the 426 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 1.47 vs. RFP: 0.66 )
RFP' s 10-Year Price/Tangible Book Range
Min: 0.34   Max: 0.7
Current: 0.66

0.34
0.7
Price/DCF (Projected) 0.78
RFP's Price/DCF (Projected) is ranked higher than
86% of the 426 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 3.68 vs. RFP: 0.78 )
RFP' s 10-Year Price/DCF (Projected) Range
Min: 0.7   Max: 11.78
Current: 0.78

0.7
11.78
Price/Median PS Value 1.20
RFP's Price/Median PS Value is ranked higher than
68% of the 426 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 1.19 vs. RFP: 1.20 )
RFP' s 10-Year Price/Median PS Value Range
Min: 0.75   Max: 1.37
Current: 1.2

0.75
1.37
Earnings Yield (Greenblatt) -3.50
RFP's Earnings Yield (Greenblatt) is ranked lower than
52% of the 398 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 4.50 vs. RFP: -3.50 )
RFP' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.2   Max: 15.4
Current: -3.5

0.2
15.4
Forward Rate of Return (Yacktman) 0.95
RFP's Forward Rate of Return (Yacktman) is ranked higher than
74% of the 245 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 2.89 vs. RFP: 0.95 )
RFP' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -25.7   Max: 1.4
Current: 0.95

-25.7
1.4

Business Description

Industry: Forest Products » Paper & Paper Products
Compare:SWM, UPMKF, WPP, FBR, SEOAY » details
Traded in other countries:RFP.Canada, 7AB1.Germany,
Resolute Forest Products Inc is a Delaware corporation, formed on January 25, 2007, from the merger of Abitibi-Consolidated Inc. and Bowater Incorporated. The Company owns or operates pulp and paper mills and wood products facilities in the United States, Canada and South Korea, and power generation assets in Canada. Its products include newsprint, specialty papers, market pulp and wood products. Its segments include newsprint, specialty papers, market pulp and wood products. Through the Newsprint segment, it produces newsprint at 11 facilities in North America and one facility in South Korea. It sells newsprint to newspaper publishers and also to commercial printers in North America for uses such as inserts and flyers. Through the Specialty papers segment, it produces specialty papers at eight facilities in North America. Its specialty papers segment is composed of uncoated mechanical papers, including supercalendered, superbright, high bright, bulky book and directory papers, as well as coated mechanical papers. The specialty papers are used in books, retail inserts, direct mail, coupons, magazines, catalogs and other commercial printing applications. It sells specialty papers to commercial printers, direct mailers, publishers, catalogers and retailers, mostly in North America. Its Market pulp segment produces market pulp at seven facilities in North America. Approximately 80% of its virgin pulp capacity is softwood-based: northern bleached softwood kraft pulp, southern bleached softwood kraft pulp and fluff pulp. It also produces northern bleached hardwood kraft pulp and southern bleached hardwood kraft pulp, and recycled bleached kraft pulp. Its Wood products segment operates 16 sawmills in Canada that produce construction-grade lumber sold in North America, mostly on the east coast. Its sawmills produce dimension spruce-pine-fir lumber and are a major source of wood chips for its pulp and paper mills and wood residue it uses as fuel in power cogeneration assets and other operations. The Company also produces electricity at seven cogeneration facilities and seven hydroelectric dams. The Company's operations consume substantial amounts of raw materials such as wood, recovered paper, chemicals and energy in the manufacturing of its paper, pulp and wood products. The Company competes with uncoated and coated mechanical paper producers in North America. It also competes with suppliers of other grades of paper such as coated freesheet and supercalendered paper. The Company is subject to a variety of federal, state, provincial and local environmental laws and regulations in the jurisdictions in which it operates.
» More Articles for RFP

Headlines

Articles On GuruFocus.com
What Would You Like to Ask Guru Francis Chou? Oct 24 2014 
Prem Watsa's Top Five Holdings Sep 24 2014 
Francis Chou Comments on Resolute Forest Products Mar 11 2014 
Francis Chou’s Top Holdings at Year End Feb 11 2014 
'The first step to getting out of a hole is to stop digging' – A Look at the Performance of Canadi Jan 14 2014 
Contrarian Prem Watsa – Optimistic About BlackBerry, Pessimistic About Economy Nov 04 2013 
Prem Watsa's 4 Second Quarter Increases Aug 15 2013 
Massive Stakes - Prem Watsa Resolute on BlackBerry and Others Jul 21 2013 
comment on RFP May 26 2013 
Prem Watsa Owns 30% Resolute Forest Products May 03 2013 

More From Other Websites
Issues Surrounding Renewal of Two Resolute FSC Certificates in Quebec Dec 19 2014
RESOLUTE FOREST PRODUCTS INC. Files SEC form 8-K, Material Impairments, Amendments to Articles of... Dec 10 2014
Resolute to Close 465,000 Tons of Newsprint Capacity Dec 05 2014
Resolute Announces Permanent Closure of 465,000 Metric Tons of Newsprint Capacity Dec 05 2014
Resolute Announces Permanent Closure of 465,000 Metric Tons of Newsprint Capacity Dec 05 2014
Resolute Announces Permanent Closure of 465,000 Metric Tons of Newsprint Capacity Dec 05 2014
Resolute to Present at the Bank of America Merrill Lynch Leveraged Finance Conference Nov 28 2014
Resolute to Present at the Bank of America Merrill Lynch Leveraged Finance Conference Nov 28 2014
RESOLUTE FOREST PRODUCTS INC. Financials Nov 19 2014
10-Q for Resolute Forest Products, Inc. Nov 12 2014
RESOLUTE FOREST PRODUCTS INC. Files SEC form 10-Q, Quarterly Report Nov 10 2014
Resolute Forest Products posts 3Q loss Oct 30 2014
Resolute Forest Products posts 3Q loss Oct 30 2014
Resolute Reports Preliminary Third Quarter 2014 Results Oct 30 2014
Resolute Forest Products posts smaller 3rd-qtr loss Oct 30 2014
RESOLUTE FOREST PRODUCTS INC. Files SEC form 8-K, Results of Operations and Financial Condition,... Oct 30 2014
Resolute Reports Preliminary Third Quarter 2014 Results Oct 30 2014
Resolute Reports Preliminary Third Quarter 2014 Results Oct 30 2014
Q3 2014 Resolute Forest Products Inc Earnings Release - 07:30 am ET Oct 30 2014
Why Resolute Forest Products (RFP) Could Be Positioned for a Surge? Oct 28 2014

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