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Also traded in: Canada, Germany

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 : 5/10

vs
industry
vs
history
Cash to Debt 0.06
RFP's Cash to Debt is ranked lower than
82% of the 351 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 0.44 vs. RFP: 0.06 )
Ranked among companies with meaningful Cash to Debt only.
RFP' s Cash to Debt Range Over the Past 10 Years
Min: 0  Med: 0.04 Max: 0.71
Current: 0.06
0
0.71
Equity to Asset 0.45
RFP's Equity to Asset is ranked lower than
54% of the 333 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 0.48 vs. RFP: 0.45 )
Ranked among companies with meaningful Equity to Asset only.
RFP' s Equity to Asset Range Over the Past 10 Years
Min: -0.59  Med: 0.30 Max: 0.59
Current: 0.45
-0.59
0.59
F-Score: 4
Z-Score: 0.64
M-Score: -2.87
WACC vs ROIC
9.35%
-9.40%
WACC
ROIC
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 (%) -6.08
RFP's Operating margin (%) is ranked lower than
86% of the 345 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 3.84 vs. RFP: -6.08 )
Ranked among companies with meaningful Operating margin (%) only.
RFP' s Operating margin (%) Range Over the Past 10 Years
Min: -21.12  Med: -3.73 Max: 6.75
Current: -6.08
-21.12
6.75
Net-margin (%) -6.44
RFP's Net-margin (%) is ranked lower than
84% of the 345 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 2.30 vs. RFP: -6.44 )
Ranked among companies with meaningful Net-margin (%) only.
RFP' s Net-margin (%) Range Over the Past 10 Years
Min: -35.57  Med: -6.78 Max: 55.08
Current: -6.44
-35.57
55.08
ROE (%) -11.53
RFP's ROE (%) is ranked lower than
87% of the 331 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 3.79 vs. RFP: -11.53 )
Ranked among companies with meaningful ROE (%) only.
RFP' s ROE (%) Range Over the Past 10 Years
Min: -313.98  Med: -11.23 Max: 323.11
Current: -11.53
-313.98
323.11
ROA (%) -5.16
RFP's ROA (%) is ranked lower than
85% of the 350 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 1.84 vs. RFP: -5.16 )
Ranked among companies with meaningful ROA (%) only.
RFP' s ROA (%) Range Over the Past 10 Years
Min: -24.29  Med: -5.51 Max: 36.64
Current: -5.16
-24.29
36.64
ROC (Joel Greenblatt) (%) -7.54
RFP's ROC (Joel Greenblatt) (%) is ranked lower than
86% of the 347 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 7.52 vs. RFP: -7.54 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
RFP' s ROC (Joel Greenblatt) (%) Range Over the Past 10 Years
Min: -22.03  Med: -5.10 Max: 37.87
Current: -7.54
-22.03
37.87
Revenue Growth (3Y)(%) -5.20
RFP's Revenue Growth (3Y)(%) is ranked lower than
70% of the 322 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 1.90 vs. RFP: -5.20 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
RFP' s Revenue Growth (3Y)(%) Range Over the Past 10 Years
Min: -25.3  Med: -2.65 Max: 124.1
Current: -5.2
-25.3
124.1
EBITDA Growth (3Y)(%) -53.10
RFP's EBITDA Growth (3Y)(%) is ranked lower than
94% of the 244 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 3.70 vs. RFP: -53.10 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
RFP' s EBITDA Growth (3Y)(%) Range Over the Past 10 Years
Min: -56.3  Med: -7.60 Max: 39.3
Current: -53.1
-56.3
39.3
EPS Growth (3Y)(%) 409.70
RFP's EPS Growth (3Y)(%) is ranked higher than
100% of the 224 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 5.70 vs. RFP: 409.70 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
RFP' s EPS Growth (3Y)(%) Range Over the Past 10 Years
Min: -90.8  Med: 47.15 Max: 409.7
Current: 409.7
-90.8
409.7
» RFP's 10-Y Financials

Financials (Next Earnings Date: Est. 2016-07-30)


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

» Details

Guru Trades

Q2 2015

RFP Guru Trades in Q2 2015

Chuck Royce 100,000 sh (New)
Jim Simons 780,087 sh (+105.50%)
Michael Price 675,000 sh (+39.66%)
Donald Smith 8,697,112 sh (+11.63%)
Prem Watsa 29,048,190 sh (+0.01%)
Francis Chou 4,081,218 sh (unchged)
Pioneer Investments 37,976 sh (unchged)
Steven Cohen Sold Out
Paul Tudor Jones 12,687 sh (-43.69%)
» More
Q3 2015

RFP Guru Trades in Q3 2015

Paul Tudor Jones 31,212 sh (+146.02%)
Michael Price 738,400 sh (+9.39%)
Francis Chou 4,281,218 sh (+4.90%)
Donald Smith 9,055,636 sh (+4.12%)
Pioneer Investments 37,976 sh (unchged)
Chuck Royce 100,000 sh (unchged)
Prem Watsa 29,048,190 sh (unchged)
Jim Simons 596,100 sh (-23.59%)
» More
Q4 2015

RFP Guru Trades in Q4 2015

Jim Simons 765,700 sh (+28.45%)
Francis Chou 4,704,909 sh (+9.90%)
Paul Tudor Jones 31,265 sh (+0.17%)
Pioneer Investments 37,976 sh (unchged)
Prem Watsa 29,048,190 sh (unchged)
Chuck Royce 100,000 sh (unchged)
Donald Smith 8,685,617 sh (-4.09%)
Michael Price 643,500 sh (-12.85%)
» More
Q1 2016

RFP Guru Trades in Q1 2016

Jim Simons 1,003,100 sh (+31.00%)
Francis Chou 4,904,752 sh (+4.25%)
Michael Price 643,500 sh (unchged)
Prem Watsa 29,048,190 sh (unchged)
Chuck Royce 100,000 sh (unchged)
Pioneer Investments 37,976 sh (unchged)
Paul Tudor Jones Sold Out
Donald Smith 7,918,993 sh (-8.83%)
» More
» Details

Insider Trades

Latest Guru Trades with RFP

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Business Description

Industry: Forest Products » Paper & Paper Products
Compare:SHSE:600419, SHSE:600308, TSX:CAS, XMCE:ENC, SZSE:000820, SHSE:600966 » details
Traded in other countries:RFP.Canada, 7AB1.Germany,
Resolute Forest Products Inc owns and operates pulp and paper mills and wood products facilities in the United States, Canada and South Korea, and power generation assets in Canada.

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.

Guru Investment Theses on Resolute Forest Products Inc

Francis Chou Comments on Resolute Forest Products - May 23, 2016

Resolute Forest Products (NYSE:RFP) is primarily involved in newsprints, specialty papers, wood products and market pulp. As the downturn in global commodities intensified, RFP was not spared, hitting all four of the company’s business segments. Management has concentrated on lowering the cost of every segment but this wasn’t enough to compensate for the deterioration of prices in their respective markets.

It is hard for us to believe that RFP is trading as low as $4 per share. At $4 per share it means the market capitalization of the company is selling for less than US$400 million dollars. The company has consolidated sales of close to $4 billion and in each of its major business segments, it is a global leader. It is the biggest volume producer of wood products east of the Rockies, the third largest in North America for market pulp, the number one producer of newsprint in the world and the largest producer in North America of uncoated mechanical paper and an emerging tissue producer. With the exception of the wood products segment, which has revenues of approximately $600 million, the other three segments each have revenues of approximately $1 billion. Each of the four business segments could easily fetch at least $400 million in a normal market.

In our opinion, the company’s “normalized EBITDA (Earnings before interest, taxes, depreciation and amortization)” is approximately $400 million. In other words, with RFP trading at $4 per share, the market value of the company is being priced for about 1 times normalized EBITDA. The company does have net debt of approximately $365 million, but even if you include net debt, the market is valuing the entire company for less than 2 times normalized EBITDA. It had cash of approximately $300 million a year ago but used approximately $156 million to acquire Atlas Paper and is spending $270 million to convert some of its pulp mills in Calhoun, Tennessee to produce tissue papers.

A couple of years ago, it bought Fibrek Inc. for approximately $126 million. So, if you add the bolt-in acquisitions of Fibrek ($126 million), Atlas Paper ($156 million) and its conversion to tissue paper ($270 million), you end up with $552 million. In addition, the company has tax loss carryforwards of approximately $2 billion which it can use to offset future gains and income. All these factors lead us to believe that at current prices, RFP is very undervalued.

From Francis Chou (Trades, Portfolio)'s 2015 annual shareholder letter.

Check out Francis Chou latest stock trades

Top Ranked Articles about Resolute Forest Products Inc

Francis Chou Comments on Resolute Forest Products Guru stock highlight
Resolute Forest Products (NYSE:RFP) is primarily involved in newsprints, specialty papers, wood products and market pulp. As the downturn in global commodities intensified, RFP was not spared, hitting all four of the company’s business segments. Management has concentrated on lowering the cost of every segment but this wasn’t enough to compensate for the deterioration of prices in their respective markets. Read more...
Francis Chou Raises Stake in Resolute Forest Products Guru makes 3 trades in 4th quarter
Francis Chou (Trades, Portfolio)’s fourth-quarter portfolio activity consisted of three transactions, which seems light for an investment guru. Nevertheless, while that is half the volume of his third-quarter activity, it is triple his activity of the first and second quarters. Read more...
Francis Chou Adds to 3 Holdings Value investor adds to Ascent Capital Group, Resolute Forest Products, China Yuchai International
The Chou Associates Fund was started on Nov. 28, 1986 and since its inception it has netted an 11.2% return. Read more...

Ratios

vs
industry
vs
history
Forward P/E 54.64
RFP's Forward P/E is ranked lower than
97% of the 32 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 11.09 vs. RFP: 54.64 )
Ranked among companies with meaningful Forward P/E only.
N/A
P/B 0.28
RFP's P/B is ranked higher than
94% of the 328 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 1.05 vs. RFP: 0.28 )
Ranked among companies with meaningful P/B only.
RFP' s P/B Range Over the Past 10 Years
Min: 0.19  Med: 0.46 Max: 0.86
Current: 0.28
0.19
0.86
P/S 0.15
RFP's P/S is ranked higher than
89% of the 340 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 0.62 vs. RFP: 0.15 )
Ranked among companies with meaningful P/S only.
RFP' s P/S Range Over the Past 10 Years
Min: 0.1  Med: 0.31 Max: 0.46
Current: 0.15
0.1
0.46
POCF 4.83
RFP's POCF is ranked higher than
72% of the 169 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 6.93 vs. RFP: 4.83 )
Ranked among companies with meaningful POCF only.
RFP' s POCF Range Over the Past 10 Years
Min: 2.6  Med: 7.61 Max: 57.45
Current: 4.83
2.6
57.45
EV-to-EBITDA 28.04
RFP's EV-to-EBITDA is ranked lower than
84% of the 288 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 8.77 vs. RFP: 28.04 )
Ranked among companies with meaningful EV-to-EBITDA only.
RFP' s EV-to-EBITDA Range Over the Past 10 Years
Min: -147.4  Med: 8.20 Max: 117.1
Current: 28.04
-147.4
117.1
Current Ratio 2.41
RFP's Current Ratio is ranked higher than
77% of the 293 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 1.58 vs. RFP: 2.41 )
Ranked among companies with meaningful Current Ratio only.
RFP' s Current Ratio Range Over the Past 10 Years
Min: 0.9  Med: 1.32 Max: 3.33
Current: 2.41
0.9
3.33
Quick Ratio 1.20
RFP's Quick Ratio is ranked higher than
60% of the 293 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 0.97 vs. RFP: 1.20 )
Ranked among companies with meaningful Quick Ratio only.
RFP' s Quick Ratio Range Over the Past 10 Years
Min: 0.35  Med: 0.85 Max: 2.4
Current: 1.2
0.35
2.4
Days Inventory 71.77
RFP's Days Inventory is ranked lower than
52% of the 322 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 70.09 vs. RFP: 71.77 )
Ranked among companies with meaningful Days Inventory only.
RFP' s Days Inventory Range Over the Past 10 Years
Min: 46.41  Med: 57.51 Max: 71.5
Current: 71.77
46.41
71.5
Days Sales Outstanding 39.42
RFP's Days Sales Outstanding is ranked higher than
66% of the 264 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 51.45 vs. RFP: 39.42 )
Ranked among companies with meaningful Days Sales Outstanding only.
RFP' s Days Sales Outstanding Range Over the Past 10 Years
Min: 37.75  Med: 44.33 Max: 71
Current: 39.42
37.75
71
Days Payable 42.46
RFP's Days Payable is ranked lower than
55% of the 249 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 47.48 vs. RFP: 42.46 )
Ranked among companies with meaningful Days Payable only.
RFP' s Days Payable Range Over the Past 10 Years
Min: 22.45  Med: 35.37 Max: 69.56
Current: 42.46
22.45
69.56

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 0.30
RFP's Price/Tangible Book is ranked higher than
93% of the 320 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 1.09 vs. RFP: 0.30 )
Ranked among companies with meaningful Price/Tangible Book only.
RFP' s Price/Tangible Book Range Over the Past 10 Years
Min: 0.28  Med: 0.51 Max: 0.82
Current: 0.3
0.28
0.82
Price/Projected FCF 0.31
RFP's Price/Projected FCF is ranked higher than
91% of the 148 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 0.95 vs. RFP: 0.31 )
Ranked among companies with meaningful Price/Projected FCF only.
RFP' s Price/Projected FCF Range Over the Past 10 Years
Min: 0.29  Med: 0.99 Max: 17.5
Current: 0.31
0.29
17.5
Price/Median PS Value 0.49
RFP's Price/Median PS Value is ranked higher than
95% of the 315 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 1.19 vs. RFP: 0.49 )
Ranked among companies with meaningful Price/Median PS Value only.
RFP' s Price/Median PS Value Range Over the Past 10 Years
Min: 0.45  Med: 0.97 Max: 1.39
Current: 0.49
0.45
1.39
Earnings Yield (Greenblatt) (%) -17.10
RFP's Earnings Yield (Greenblatt) (%) is ranked lower than
92% of the 353 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 5.40 vs. RFP: -17.10 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
RFP' s Earnings Yield (Greenblatt) (%) Range Over the Past 10 Years
Min: 3.9  Med: 11.40 Max: 153.1
Current: -17.1
3.9
153.1
Forward Rate of Return (Yacktman) (%) -9.03
RFP's Forward Rate of Return (Yacktman) (%) is ranked lower than
66% of the 151 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 2.84 vs. RFP: -9.03 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
RFP' s Forward Rate of Return (Yacktman) (%) Range Over the Past 10 Years
Min: -25.7  Med: -11.50 Max: 1.4
Current: -9.03
-25.7
1.4

More Statistics

Revenue (TTM) (Mil) $3,602
EPS (TTM) $ -2.59
Beta1.41
Short Percentage of Float2.84%
52-Week Range $3.79 - 12.64
Shares Outstanding (Mil)89.51

Analyst Estimate

Dec16 Dec17 Dec18
Revenue (Mil $)
EPS ($) 0.26 0.14 1.29
EPS without NRI ($) 0.26 0.14 1.29
EPS Growth Rate
(3Y to 5Y Estimate)
N/A
» More Articles for RFP

Headlines

Articles On GuruFocus.com
Francis Chou Comments on Resolute Forest Products May 23 2016 
Chou Associates Fund 2015 Annual Investor Letter May 15 2016 
Investors Should Consider Global Forest Products Company Apr 18 2016 
Chou RRSP Fund Buys 1st Oil Stock on Acquisition News Apr 01 2016 
Francis Chou Raises Stake in Resolute Forest Products Mar 20 2016 
Prem Watsa Increases Portfolio Hedge to Protect Against Market Downturn Feb 19 2016 
Francis Chou Adds to 3 Holdings Nov 24 2015 
Francis Chou Adds to Positions in Three Companies Nov 04 2015 
Prem Watsa’s Portfolio Holdings On Sale for the Brave Aug 19 2015 
Donald Smith Adds to His Ninth-Most Valuable Stake Aug 13 2015 

More From Other Websites
ETF’s with exposure to Resolute Forest Products, Inc. : May 24, 2016 May 24 2016
RESOLUTE FOREST PRODUCTS INC. Financials May 19 2016
Resolute Forest Products, Inc. breached its 50 day moving average in a Bullish Manner : RFP-US : May... May 17 2016
ETF’s with exposure to Resolute Forest Products, Inc. : May 12, 2016 May 12 2016
Resolute Forest Products, Inc. :RFP-US: Earnings Analysis: Q1, 2016 By the Numbers May 11 2016
RESOLUTE FOREST PRODUCTS INC. Files SEC form 10-Q, Quarterly Report May 10 2016
Edited Transcript of RFP earnings conference call or presentation 5-May-16 1:00pm GMT May 06 2016
Largest Newsprint Maker Cuts Back in `Challenging' Market May 05 2016
Resolute Forest Products posts 1Q loss May 05 2016
Resolute Forest Products posts 1Q loss May 05 2016
Resolute Forest Products, Inc. breached its 50 day moving average in a Bearish Manner : RFP-US : May... May 05 2016
RESOLUTE FOREST PRODUCTS INC. Files SEC form 8-K, Results of Operations and Financial Condition,... May 05 2016
Resolute Reports Preliminary First Quarter 2016 Results May 05 2016
Resolute Reports Preliminary First Quarter 2016 Results May 05 2016
Resolute Reports Preliminary First Quarter 2016 Results May 05 2016
Q1 2016 Resolute Forest Products Inc Earnings Release - 07:30 am ET May 05 2016
Why Earnings Season Could Be Great for Resolute Forest Products (RFP) May 04 2016
Resolute Forest Products downgraded by RBC Capital Mkts Apr 25 2016
Resolute to Host Management Call to Discuss First Quarter Results Apr 20 2016
Resolute to Host Management Call to Discuss First Quarter Results Apr 20 2016

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