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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 0.40
RFP's Cash to Debt is ranked higher than
64% of the 385 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 0.35 vs. RFP: 0.40 )
RFP' s 10-Year Cash to Debt Range
Min: 0   Max: 0.71
Current: 0.4

0
0.71
Equity to Asset 0.53
RFP's Equity to Asset is ranked higher than
69% of the 388 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 0.49 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: 4
Z-Score: 1.15
M-Score: -3.48
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 : 2/10

vs
industry
vs
history
Operating margin (%) -0.04
RFP's Operating margin (%) is ranked higher than
54% of the 376 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 3.78 vs. RFP: -0.04 )
RFP' s 10-Year Operating margin (%) Range
Min: -21.12   Max: 20.7
Current: -0.04

-21.12
20.7
Net-margin (%) -14.32
RFP's Net-margin (%) is ranked lower than
57% of the 376 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 3.04 vs. RFP: -14.32 )
RFP' s 10-Year Net-margin (%) Range
Min: -35.57   Max: 55.08
Current: -14.32

-35.57
55.08
ROE (%) -22.60
RFP's ROE (%) is ranked lower than
57% of the 371 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 4.27 vs. RFP: -22.60 )
RFP' s 10-Year ROE (%) Range
Min: -25.8   Max: 70.48
Current: -22.6

-25.8
70.48
ROA (%) -11.87
RFP's ROA (%) is ranked lower than
57% of the 376 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 2.09 vs. RFP: -11.87 )
RFP' s 10-Year ROA (%) Range
Min: -27.68   Max: 36.53
Current: -11.87

-27.68
36.53
ROC (Joel Greenblatt) (%) -0.07
RFP's ROC (Joel Greenblatt) (%) is ranked higher than
54% of the 376 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 5.81 vs. RFP: -0.07 )
RFP' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -25.3   Max: 11.69
Current: -0.07

-25.3
11.69
Revenue Growth (%) -2.10
RFP's Revenue Growth (%) is ranked higher than
63% of the 347 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 0.80 vs. RFP: -2.10 )
RFP' s 10-Year Revenue Growth (%) Range
Min: -36.3   Max: 273.2
Current: -2.1

-36.3
273.2
EBITDA Growth (%) -56.30
RFP's EBITDA Growth (%) is ranked lower than
55% of the 297 Companies
in the Global Paper & Paper Products industry.

( Industry Median: -2.40 vs. RFP: -56.30 )
RFP' s 10-Year EBITDA Growth (%) Range
Min: -56.3   Max: 246.6
Current: -56.3

-56.3
246.6
» RFP's 10-Y Financials

Financials


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

» Details

Guru Trades

Q2 2013

RFP Guru Trades in Q2 2013

Jeremy Grantham 18,604 sh (New)
Steven Cohen 26,113 sh (New)
Paul Tudor Jones 51,500 sh (+84.59%)
Francis Chou 3,745,350 sh (+35.72%)
Prem Watsa 28,957,327 sh (+16.87%)
Louis Moore Bacon 85,561 sh (+13.74%)
Donald Smith 9,728,069 sh (+0.01%)
Pioneer Investments 36,962 sh (unchged)
Third Avenue Management 315,495 sh (unchged)
Michael Price 477,631 sh (unchged)
John Paulson Sold Out
Jim Simons 174,600 sh (-8.25%)
» More
Q3 2013

RFP Guru Trades in Q3 2013

John Paulson 56,742 sh (New)
Paul Tudor Jones 58,200 sh (+13.01%)
Jeremy Grantham 20,990 sh (+12.83%)
Louis Moore Bacon 95,405 sh (+11.51%)
Francis Chou 4,127,259 sh (+10.2%)
Pioneer Investments 37,976 sh (+2.74%)
Michael Price 483,306 sh (+1.19%)
Prem Watsa 29,044,012 sh (+0.3%)
Third Avenue Management 315,495 sh (unchged)
Steven Cohen Sold Out
Donald Smith 9,263,791 sh (-4.77%)
Jim Simons 135,900 sh (-22.16%)
» More
Q4 2013

RFP Guru Trades in Q4 2013

Francis Chou 4,227,259 sh (+2.42%)
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)
Jeremy Grantham 20,990 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)
Louis Moore Bacon 92,687 sh (unchged)
Michael Price 483,306 sh (unchged)
Prem Watsa 29,044,012 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
» Details

Insider Trades

Latest Guru Trades with RFP

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Donald Smith 2014-03-31 Reduce -10.84%0.31%$16.02 - $21.45 $ 16.43-14%8099274
John Paulson 2013-12-31 Sold Out $12.37 - $16.2 $ 16.4312%0
Donald Smith 2013-09-30 Reduce -4.77%0.13%$12.49 - $15.75 $ 16.4319%9263791
John Paulson 2013-09-30 New Buy$12.49 - $15.75 $ 16.4319%56742
Prem Watsa 2013-06-30 Add 16.87%2.21%$12.7 - $16.49 $ 16.4310%28957327
John Paulson 2013-06-30 Sold Out 0.38%$12.7 - $16.49 $ 16.4310%0
Tom Gayner 2013-03-31 Sold Out 0.01%$13.24 - $17.04 $ 16.4316%0
Prem Watsa 2012-12-31 Add 30.55%3.07%$10.5 - $13.56 $ 16.4336%24776519
John Paulson 2012-12-31 Add 27.3%0.07%$10.5 - $13.56 $ 16.4336%4200807
Tom Gayner 2012-12-31 New Buy0.01%$10.5 - $13.56 $ 16.4336%15375
Premium More recent guru trades are included for Premium 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

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...
Prem Watsa Still Optimistic About BlackBerry, Pessimistic About Economy
As the market advances and BlackBerry (BBRY) tumbles, Fairfax Financial chairman and CEO Prem Watsa has taken the reverse position from the majority of investors: He has hedged his portfolio against a market meltdown even at the cost of tempered returns and committed sizable capital toward the tattered smartphone maker. This all continued in the third quarter, with some new developments. Read more...

Ratios

vs
industry
vs
history
P/B 0.56
RFP's P/B is ranked higher than
84% of the 414 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 1.13 vs. RFP: 0.56 )
RFP' s 10-Year P/B Range
Min: 0.27   Max: 0.77
Current: 0.56

0.27
0.77
P/S 0.35
RFP's P/S is ranked higher than
84% of the 414 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 0.73 vs. RFP: 0.35 )
RFP' s 10-Year P/S Range
Min: 0.2   Max: 0.48
Current: 0.35

0.2
0.48
PFCF 56.66
RFP's PFCF is ranked higher than
74% of the 414 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 9999.00 vs. RFP: 56.66 )
RFP' s 10-Year PFCF Range
Min: 3.98   Max: 98.76
Current: 56.66

3.98
98.76
EV-to-EBIT 137.44
RFP's EV-to-EBIT is ranked higher than
60% of the 414 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 27.56 vs. RFP: 137.44 )
RFP' s 10-Year EV-to-EBIT Range
Min: 6.5   Max: 166.5
Current: 137.44

6.5
166.5
Current Ratio 2.64
RFP's Current Ratio is ranked higher than
84% of the 391 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 1.62 vs. RFP: 2.64 )
RFP' s 10-Year Current Ratio Range
Min: 0.9   Max: 3.33
Current: 2.64

0.9
3.33
Quick Ratio 1.61
RFP's Quick Ratio is ranked higher than
82% of the 391 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 0.99 vs. RFP: 1.61 )
RFP' s 10-Year Quick Ratio Range
Min: 0.35   Max: 2.4
Current: 1.61

0.35
2.4

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 0.56
RFP's Price/Tangible Book is ranked higher than
87% of the 414 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 1.51 vs. RFP: 0.56 )
RFP' s 10-Year Price/Tangible Book Range
Min: 0.34   Max: 0.7
Current: 0.56

0.34
0.7
Price/DCF (Projected) 0.88
RFP's Price/DCF (Projected) is ranked higher than
88% of the 414 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 83.40 vs. RFP: 0.88 )
RFP' s 10-Year Price/DCF (Projected) Range
Min: 0.81   Max: 18.94
Current: 0.88

0.81
18.94
Price/Median PS Value 1.10
RFP's Price/Median PS Value is ranked higher than
71% of the 414 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 1.18 vs. RFP: 1.10 )
RFP' s 10-Year Price/Median PS Value Range
Min: 0.77   Max: 1.41
Current: 1.1

0.77
1.41
Earnings Yield (Greenblatt) 0.70
RFP's Earnings Yield (Greenblatt) is ranked lower than
59% of the 321 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 6.00 vs. RFP: 0.70 )
RFP' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.6   Max: 15.4
Current: 0.7

0.6
15.4
Forward Rate of Return (Yacktman) -2.88
RFP's Forward Rate of Return (Yacktman) is ranked higher than
61% of the 302 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 2.66 vs. RFP: -2.88 )
RFP' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -31.4   Max: -2.7
Current: -2.88

-31.4
-2.7

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. The Company provides a diverse range of products, including newsprint, commercial printing papers, market pulp and wood products. The Company owns and operates pulp, paper mills and wood products facilities located in the United States, Canada and South Korea. It markets its products in more than 90 countries. The Company's portfolio of commercial printing papers includes a wide spectrum of coated and uncoated mechanical papers that offer an attractive solution for practically any commercial printing application. The Company is a producer of lumber and other wood products for the residential-construction and home-renovation markets, as well as for specialized structural and industrial applications.
» More Articles for NYSE:RFP

Headlines

Articles On GuruFocus.com
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 
comment on RFP May 02 2013 
comment on RFP Apr 30 2013 

More From Other Websites
Resolute Forest Products - Not As Bad As Many Investors Think Jul 23 2014
Resolute to Host Management Call to Discuss Second Quarter Results Jul 14 2014
Resolute to Host Management Call to Discuss Second Quarter Results Jul 14 2014
Resolute to Host Management Call to Discuss Second Quarter Results Jul 14 2014
Resolute Forest Forms Biomaterial JV with Mercer International Jun 24 2014
Resolute and Mercer International Launch a Research and Development Biomaterial Joint Venture Jun 23 2014
Resolute and Mercer International Launch a Research and Development Biomaterial Joint Venture Jun 23 2014
RESOLUTE FOREST PRODUCTS INC. Files SEC form 8-K, Change in Directors or Principal Officers Jun 20 2014
Resolute Named to Best 50 Corporate Citizens List by Corporate Knights Jun 04 2014
Resolute Named to Best 50 Corporate Citizens List by Corporate Knights Jun 04 2014
RESOLUTE FOREST PRODUCTS INC. Files SEC form 8-K, Material Impairments, Submission of Matters to a... May 29 2014
Resolute Announces Completion of Exchange Offer for 5.875% Senior Notes due 2023 May 28 2014
Resolute Announces Completion of Exchange Offer for 5.875% Senior Notes due 2023 May 28 2014
Resolute Employees Back Canada Agreement May 27 2014
Resolute pleased with employee support for collective agreement renewals in Canada May 26 2014
Resolute pleased with employee support for collective agreement renewals in Canada May 26 2014
Resolute Stockholders Vote in Favor of Each Proposal at Annual Meeting May 23 2014
Resolute Stockholders Vote in Favor of Each Proposal at Annual Meeting May 23 2014
RESOLUTE FOREST PRODUCTS INC. Financials May 20 2014
RESOLUTE FOREST PRODUCTS INC. Files SEC form 10-Q, Quarterly Report May 12 2014

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