Resolute Story

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RFP -- USA Stock  

USD 4.21  0.06  1.41%

As many millenniums are excited about basic materials space, it is only fair to recap Resolute Forest Products. We will evaluate if Resolute Forest shares are reasonably priced going into September. What is the firm valuation so far in 2020? We are going to cover Resolute Forest Prod perspective on valuation to give investors a better transparency on taking a position in it.
Published over a month ago
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Is Resolute Forest Prod outlook positive for September 2020?
The company has 691 M in debt with debt to equity (D/E) ratio of 0.55, which is OK given its current industry classification. Resolute Forest Prod has a current ratio of 2.79, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Resolute Forest holds a performance score of 16 on a scale of zero to a hundred. The company holds a Beta of 1.8833, which implies a somewhat significant risk relative to the market. Let's try to break down what Resolute's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Resolute Forest will likely underperform. Although it is essential to pay attention to Resolute Forest Prod current trending patterns, it is also good to be reasonable about what you can do with equity existing price patterns. Our philosophy towards forecasting future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if Resolute Forest Prod expected return of 1.61 will be sustainable into the future, we have found twenty-seven different technical indicators, which can help you to check if the expected returns are sustainable. Use Resolute Forest potential upside, as well as the relationship between the kurtosis and day typical price to analyze future returns on Resolute Forest.
We determine the current worth of Resolute Forest Products using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Resolute Forest Prod based exclusively on its fundamental and basic technical indicators. By analyzing Resolute Forest's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Resolute Forest's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Resolute Forest. We calculate exposure to Resolute Forest's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Resolute Forest's related companies.

Resolute Forest Prod Investment Alerts

Resolute investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Resolute Forest Products performance across your portfolios.Please check all investment alerts for Resolute

Resolute Forest Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Resolute value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Resolute Forest competition to find correlations between indicators driving the intrinsic value of Resolute.

How Resolute utilizes its cash?

To perform a cash flow analysis of Resolute Forest, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Resolute Forest is receiving and how much cash it distributes out in a given period. The Resolute Forest cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Resolute Forest Net Cash Flow from Operations is very stable at the moment as compared to the past year. Resolute Forest reported last year Net Cash Flow from Operations of 85 Million

An Additional Perspective On Resolute Forest Prod

The recent price roll up of Resolute Forest Prod created some momentum for insiders as it was traded today as low as 3.9 and as high as 4.69 per share. The company executives may have good odds in positioning the company resources to exploit market volatility in September. The stock standard deviation of daily returns for 30 days investing horizon is currently 6.59. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Resolute Forest partners.
 2019 2020 (projected)
Long Term Debt to Equity0.360.32
Interest Coverage0.480.5

Margins Breakdown

Resolute profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Resolute Forest itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Resolute Forest profit margins.
Operating Margin0.55
EBITDA Margin7.6
Gross Margin21.86
Profit Margin(1.65)

Resolute Forest Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 8 years. The previous year's value of Resolute Forest Earnings Before Interest Taxes and Depreciation Amortization EBITDA was 278,689,474. Further, Resolute Forest Earnings Before Interest Taxes and Depreciation Amortization USD is decreasing over the last 8 years. The recent value of Resolute Forest Earnings Before Interest Taxes and Depreciation Amortization USD is 23,605,263. Resolute Forest Earnings Before Interest Taxes and Depreciation Amortization EBITDA is very stable at the moment. Further, Resolute Forest Earnings Before Interest Taxes and Depreciation Amortization USD is decreasing over the last 8 years. The previous year's value of Resolute Forest Earnings Before Interest Taxes and Depreciation Amortization USD was 23,605,263.

Will Resolute Forest growth be feasible after the roll up?

Recent kurtosis is at 0.77. Resolute Forest Products is displaying above-average volatility over the selected time horizon. Investors should scrutinize Resolute Forest Products independently to ensure intended market timing strategies are aligned with expectations about Resolute Forest volatility.

Our Bottom Line On Resolute Forest Prod

Although some other firms within the paper & paper products industry are still a little expensive, even after the recent corrections, Resolute Forest may offer a potential longer-term growth to insiders. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither take in new shares of Resolute nor trade your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Resolute Forest.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Resolute Forest Products. Please refer to our Terms of Use for any information regarding our disclosure principles.

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