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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 : 4/10

vs
industry
vs
history
Cash-to-Debt 0.05
RFP's Cash-to-Debt is ranked lower than
87% of the 328 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 0.32 vs. RFP: 0.05 )
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: 0.05
0
0.71
Equity-to-Asset 0.38
RFP's Equity-to-Asset is ranked lower than
70% of the 317 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 0.49 vs. RFP: 0.38 )
Ranked among companies with meaningful Equity-to-Asset only.
RFP' s Equity-to-Asset Range Over the Past 10 Years
Min: -0.59  Med: 0.31 Max: 0.59
Current: 0.38
-0.59
0.59
Debt-to-Equity 0.53
RFP's Debt-to-Equity is ranked higher than
51% of the 280 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 0.55 vs. RFP: 0.53 )
Ranked among companies with meaningful Debt-to-Equity only.
RFP' s Debt-to-Equity Range Over the Past 10 Years
Min: -12.54  Med: 0.64 Max: 5.37
Current: 0.53
-12.54
5.37
Piotroski F-Score: 6
Altman Z-Score: 0.62
Beneish M-Score: -2.86
WACC vs ROIC
6.24%
1.88%
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 : 4/10

vs
industry
vs
history
Operating Margin % -1.74
RFP's Operating Margin % is ranked lower than
81% of the 325 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 5.42 vs. RFP: -1.74 )
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: 4.35
Current: -1.74
-21.12
4.35
Net Margin % -4.33
RFP's Net Margin % is ranked lower than
83% of the 326 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 3.65 vs. RFP: -4.33 )
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: -4.33
-35.57
55.08
ROE % -8.68
RFP's ROE % is ranked lower than
84% of the 322 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 6.43 vs. RFP: -8.68 )
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: -8.68
-313.98
323.11
ROA % -3.56
RFP's ROA % is ranked lower than
83% of the 337 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 2.86 vs. RFP: -3.56 )
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: -3.56
-24.29
36.64
ROC (Joel Greenblatt) % -2.57
RFP's ROC (Joel Greenblatt) % is ranked lower than
83% of the 334 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 8.89 vs. RFP: -2.57 )
Ranked among companies with meaningful ROC (Joel Greenblatt) % only.
RFP' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -22.03  Med: -5.1 Max: 37.87
Current: -2.57
-22.03
37.87
3-Year Revenue Growth Rate -5.80
RFP's 3-Year Revenue Growth Rate is ranked lower than
73% of the 303 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 1.70 vs. RFP: -5.80 )
Ranked among companies with meaningful 3-Year Revenue Growth Rate only.
RFP' s 3-Year Revenue Growth Rate Range Over the Past 10 Years
Min: -25.3  Med: -2.1 Max: 141.6
Current: -5.8
-25.3
141.6
3-Year EBITDA Growth Rate 3.20
RFP's 3-Year EBITDA Growth Rate is ranked lower than
63% of the 251 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 8.60 vs. RFP: 3.20 )
Ranked among companies with meaningful 3-Year EBITDA Growth Rate only.
RFP' s 3-Year EBITDA Growth Rate Range Over the Past 10 Years
Min: -56.3  Med: 1.05 Max: 125.4
Current: 3.2
-56.3
125.4
3-Year EPS without NRI Growth Rate -48.90
RFP's 3-Year EPS without NRI Growth Rate is ranked lower than
95% of the 234 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 8.80 vs. RFP: -48.90 )
Ranked among companies with meaningful 3-Year EPS without NRI Growth Rate only.
RFP' s 3-Year EPS without NRI Growth Rate Range Over the Past 10 Years
Min: -58.9  Med: 11.2 Max: 286.1
Current: -48.9
-58.9
286.1
GuruFocus has detected 1 Warning Sign with Resolute Forest Products Inc $RFP.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
» RFP's 30-Y Financials

Financials (Next Earnings Date: 2017-11-03 Est.)


Revenue & Net Income
Cash & Debt
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

» Details

Guru Trades

Q3 2016

RFP Guru Trades in Q3 2016

Paul Tudor Jones 19,077 sh (New)
Jim Simons 1,118,000 sh (+3.00%)
Donald Smith 7,474,418 sh (+0.80%)
Prem Watsa 30,548,190 sh (unchged)
Chuck Royce 100,000 sh (unchged)
Michael Price 643,500 sh (unchged)
Francis Chou 4,904,752 sh (unchged)
Pioneer Investments Sold Out
» More
Q4 2016

RFP Guru Trades in Q4 2016

Paul Tudor Jones 19,703 sh (+3.28%)
Francis Chou 4,963,423 sh (+1.20%)
Donald Smith 7,554,027 sh (+1.07%)
Prem Watsa 30,548,190 sh (unchged)
Jim Simons 1,105,600 sh (-1.11%)
Chuck Royce 96,400 sh (-3.60%)
Michael Price 325,806 sh (-49.37%)
» More
Q1 2017

RFP Guru Trades in Q1 2017

Paul Tudor Jones 22,638 sh (+14.90%)
Donald Smith 8,040,396 sh (+6.44%)
Francis Chou 4,963,423 sh (unchged)
Chuck Royce 96,400 sh (unchged)
Prem Watsa 30,548,190 sh (unchged)
Jim Simons 865,600 sh (-21.71%)
Michael Price 130,621 sh (-59.91%)
» More
Q2 2017

RFP Guru Trades in Q2 2017

Donald Smith 8,050,600 sh (+0.13%)
Prem Watsa 30,548,190 sh (unchged)
Chuck Royce 96,400 sh (unchged)
Francis Chou 4,963,423 sh (unchged)
Michael Price Sold Out
Paul Tudor Jones 19,130 sh (-15.50%)
Jim Simons 697,600 sh (-19.41%)
» 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 2017-06-30 Add 0.13%$4.2 - $6.5 $ 4.85-3%8,050,600
Michael Price 2017-06-30 Sold Out 0.09%$4.2 - $6.5 $ 4.85-3%0
Donald Smith 2017-03-31 Add 6.44%0.07%$4.4 - $5.75 $ 4.85-2%8,040,396
Michael Price 2017-03-31 Reduce -59.91%0.13%$4.4 - $5.75 $ 4.85-2%130,621
Donald Smith 2016-12-31 Add 1.07%0.01%$3.85 - $5.6 $ 4.856%7,554,027
Michael Price 2016-12-31 Reduce -49.37%0.2%$3.85 - $5.6 $ 4.856%325,806
Donald Smith 2016-09-30 Add 0.80%0.01%$4.63 - $6.01 $ 4.85-11%7,474,418
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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Business Description

Industry: Forest Products » Paper & Paper Products    NAICS: 322121    SIC: 2621
Compare:TSX:TMB, NAS:MERC, TSX:CFX, TSX:SXP, TSX:FTP, TSXV:WBE, TSX:CAS, NYSE:UFS » details
Traded in other countries:RFP.Canada, 7AB1.Germany,
Headquarter Location:Canada
Resolute Forest Products Inc is a global leader in the forest products industry with a diverse range of products, including newsprint, specialty papers, market pulp and wood products.

Resolute Forest Products Inc is a leader in the forest products industry with a range of products, including market pulp, tissue, wood products, newsprint and specialty papers. The product range includes market pulp, tissue, wood products, newsprint and specialty papers which are marketed to nearly 80 countries. The company owns or operates over 40 pulp, paper, tissue and wood products facilities in the United States, Canada and South Korea.

Guru Investment Theses on Resolute Forest Products Inc

Francis Chou Comments on Resolute Forest Products - Mar 24, 2017

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 as all four of the company's business segments got hit. Management has concentrated on lowering the cost of every segment but these actions were not enough to compensate for the deterioration of prices in their respective markets.

At year-end 2016, the market price of RFP was at $5.35 per share. At $5.35 per share, the market capitalization of the company is roughly $480 million dollars. As we have explained in the past, the company continues to have consolidated sales of close to $3.6 billion and in each of its major business segments, it is a global leader. It continues to be 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 continues to have revenues of approximately $500 million, the other three segments each continue to have revenues of approximately $1 billion. We believe that each of the 4 business segments could fetch at least $400 million in a normal market, and as a result, RFP may be undervalued.

From Francis Chou (Trades, Portfolio)'s Opportunity Fund fourth quarter 2016 shareholder letter.

Check out Francis Chou latest stock trades

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

One of the 33 Great Minds of Investing Frances Chou was covered in William Green’s book, 'The Great Minds of Investing,' but nagging questions remain
Prem Watsa’s Returns Improve After Dropping Full Portfolio Hedges Watsa removed costly short bets against the market late last year
Canada’s Prem Watsa (Trades, Portfolio), who invests the float of his insurance conglomerate much like Warren Buffett (Trades, Portfolio), has posted gains on his stock portfolio since removing equity hedges in November on President Donald Trump’s election victory. Read more...
Resolute Appoints Patrice Minguez as President of Tissue Group
Resolute to Host Management Call to Discuss Second Quarter Results
Resolute Stockholders Vote in Favor of Each Proposal at Annual Meeting
Prem Watsa Purchases Largest Position in 5 Years Guru got into potash
Prem Watsa (Trades, Portfolio) added more action to his statements that he felt buoyant about markets with the election of Donald Trump, buying his biggest holding in five years during the first quarter, after announcing earlier in the year that he had removed the full hedges on his portfolio that had limited his annual returns. Read more...
Resolute to Host Management Call to Discuss First Quarter Results
Resolute Announces Start-up of New Tissue Machine at Calhoun
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 as all four of the company's business segments got hit. Management has concentrated on lowering the cost of every segment but these actions were not enough to compensate for the deterioration of prices in their respective markets. Read more...
Canadian Warren Buffett Prem Watsa Bought 2 Stocks Watsa was hedged and cautious and made only two portfolio changes in Q3 but has since become more optimistic
Frequently dubbed the “Warren Buffett (Trades, Portfolio) of Canada,” Prem Watsa (Trades, Portfolio) executed two trades in the third quarter, his exclusive portfolio changes. Read more...

Ratios

vs
industry
vs
history
Forward PE Ratio 10.35
RFP's Forward PE Ratio is ranked higher than
90% of the 29 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 14.88 vs. RFP: 10.35 )
Ranked among companies with meaningful Forward PE Ratio only.
N/A
PB Ratio 0.27
RFP's PB Ratio is ranked higher than
96% of the 318 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 1.27 vs. RFP: 0.27 )
Ranked among companies with meaningful PB Ratio only.
RFP' s PB Ratio Range Over the Past 10 Years
Min: 0.18  Med: 0.42 Max: 0.86
Current: 0.27
0.18
0.86
PS Ratio 0.13
RFP's PS Ratio is ranked higher than
95% of the 321 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 0.76 vs. RFP: 0.13 )
Ranked among companies with meaningful PS Ratio only.
RFP' s PS Ratio Range Over the Past 10 Years
Min: 0.1  Med: 0.29 Max: 0.46
Current: 0.13
0.1
0.46
Price-to-Operating-Cash-Flow 6.07
RFP's Price-to-Operating-Cash-Flow is ranked lower than
71% of the 157 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 6.85 vs. RFP: 6.07 )
Ranked among companies with meaningful Price-to-Operating-Cash-Flow only.
RFP' s Price-to-Operating-Cash-Flow Range Over the Past 10 Years
Min: 2.6  Med: 7.14 Max: 58.24
Current: 6.07
2.6
58.24
EV-to-EBIT -20.17
RFP's EV-to-EBIT is ranked lower than
99.99% of the 266 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 14.54 vs. RFP: -20.17 )
Ranked among companies with meaningful EV-to-EBIT only.
RFP' s EV-to-EBIT Range Over the Past 10 Years
Min: -396.7  Med: -7.3 Max: 25.4
Current: -20.17
-396.7
25.4
EV-to-EBITDA 9.00
RFP's EV-to-EBITDA is ranked higher than
61% of the 274 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 9.64 vs. RFP: 9.00 )
Ranked among companies with meaningful EV-to-EBITDA only.
RFP' s EV-to-EBITDA Range Over the Past 10 Years
Min: -1115.9  Med: 7.7 Max: 117.1
Current: 9
-1115.9
117.1
EV-to-Revenue 0.36
RFP's EV-to-Revenue is ranked higher than
89% of the 322 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 1.17 vs. RFP: 0.36 )
Ranked among companies with meaningful EV-to-Revenue only.
RFP' s EV-to-Revenue Range Over the Past 10 Years
Min: 0.2  Med: 0.4 Max: 0.8
Current: 0.36
0.2
0.8
Current Ratio 2.49
RFP's Current Ratio is ranked higher than
74% of the 319 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 1.54 vs. RFP: 2.49 )
Ranked among companies with meaningful Current Ratio only.
RFP' s Current Ratio Range Over the Past 10 Years
Min: 0.9  Med: 1.36 Max: 3.33
Current: 2.49
0.9
3.33
Quick Ratio 1.17
RFP's Quick Ratio is ranked higher than
56% of the 319 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 0.99 vs. RFP: 1.17 )
Ranked among companies with meaningful Quick Ratio only.
RFP' s Quick Ratio Range Over the Past 10 Years
Min: 0.35  Med: 0.87 Max: 2.4
Current: 1.17
0.35
2.4
Days Inventory 77.16
RFP's Days Inventory is ranked lower than
59% of the 300 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 68.14 vs. RFP: 77.16 )
Ranked among companies with meaningful Days Inventory only.
RFP' s Days Inventory Range Over the Past 10 Years
Min: 46.53  Med: 58.95 Max: 77.16
Current: 77.16
46.53
77.16
Days Sales Outstanding 36.11
RFP's Days Sales Outstanding is ranked higher than
70% of the 251 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 49.72 vs. RFP: 36.11 )
Ranked among companies with meaningful Days Sales Outstanding only.
RFP' s Days Sales Outstanding Range Over the Past 10 Years
Min: 36.11  Med: 44.33 Max: 71
Current: 36.11
36.11
71
Days Payable 45.30
RFP's Days Payable is ranked lower than
52% of the 216 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 51.36 vs. RFP: 45.30 )
Ranked among companies with meaningful Days Payable only.
RFP' s Days Payable Range Over the Past 10 Years
Min: 26.56  Med: 38.39 Max: 69.56
Current: 45.3
26.56
69.56

Buy Back

vs
industry
vs
history
3-Year Average Share Buyback Ratio 1.70
RFP's 3-Year Average Share Buyback Ratio is ranked higher than
92% of the 156 Companies
in the Global Paper & Paper Products industry.

( Industry Median: -1.90 vs. RFP: 1.70 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
RFP' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -40.9  Med: -4.6 Max: 59.2
Current: 1.7
-40.9
59.2

Valuation & Return

vs
industry
vs
history
Price-to-Tangible-Book 0.30
RFP's Price-to-Tangible-Book is ranked higher than
96% of the 309 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 1.34 vs. RFP: 0.30 )
Ranked among companies with meaningful Price-to-Tangible-Book only.
RFP' s Price-to-Tangible-Book Range Over the Past 10 Years
Min: 0.24  Med: 0.41 Max: 0.82
Current: 0.3
0.24
0.82
Price-to-Intrinsic-Value-Projected-FCF 0.35
RFP's Price-to-Intrinsic-Value-Projected-FCF is ranked higher than
91% of the 164 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 1.12 vs. RFP: 0.35 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-Projected-FCF only.
RFP' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 0.27  Med: 0.87 Max: 17.5
Current: 0.35
0.27
17.5
Price-to-Median-PS-Value 0.43
RFP's Price-to-Median-PS-Value is ranked higher than
97% of the 305 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 1.39 vs. RFP: 0.43 )
Ranked among companies with meaningful Price-to-Median-PS-Value only.
RFP' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.39  Med: 0.99 Max: 1.49
Current: 0.43
0.39
1.49
Earnings Yield (Greenblatt) % -4.96
RFP's Earnings Yield (Greenblatt) % is ranked lower than
85% of the 336 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 5.32 vs. RFP: -4.96 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) % only.
RFP' s Earnings Yield (Greenblatt) % Range Over the Past 10 Years
Min: -23.7  Med: -4.2 Max: 153.1
Current: -4.96
-23.7
153.1
Forward Rate of Return (Yacktman) % -3.78
RFP's Forward Rate of Return (Yacktman) % is ranked lower than
76% of the 180 Companies
in the Global Paper & Paper Products industry.

( Industry Median: 9.13 vs. RFP: -3.78 )
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: -11.5 Max: 1.4
Current: -3.78
-25.7
1.4

More Statistics

Revenue (TTM) (Mil) $3,507.00
EPS (TTM) $ -1.69
Beta0.73
Short Percentage of Float1.93%
52-Week Range $3.70 - 6.75
Shares Outstanding (Mil)89.75

Analyst Estimate

Dec17 Dec18 Dec19
Revenue (Mil $)
EPS ($) -0.09 0.45 0.73
EPS without NRI ($) -0.09 0.45 0.73
EPS Growth Rate
(Future 3Y To 5Y Estimate)
N/A
Dividends per Share ($)

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