Resolute Forest Products Inc. (NYSE:RFP) has a beta of 3.36, a 12-month trailing P/E ratio of 12.93, and a growth ratio of 61.59. The stock’s Relative Strength Index (RSI) is 56.05, with weekly volatility at 7.08% and ATR at 1.22. The RFP stock’s 52-week price range has touched low of $1.78 and a $17.18 high. Its shares traded higher over the last trading session, gaining 0.07% on 05/21/21. The shares fell to a low of $15.10 before closing at $15.30. Intraday shares traded counted 1.63 million, which was -71.77% lower than its 30-day average trading volume of 947.99K. RFP’s previous close was $15.29 while the outstanding shares total 81.20M.
Investors have identified the Paper & Paper Products company Resolute Forest Products Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $1.21 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Resolute Forest Products Inc. (RFP) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For RFP, the company has in raw cash 33.0 million on their books with 2.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 942.0 million total, with 409.0 million as their total liabilities.
RFP were able to record 60.0 million as free cash flow during the 08/05/2021 quarter of the year, this saw their quarterly net cash flow reduce by -68.0 million. In cash movements, the company had a total of 74.0 million as operating cash flow.
Potential earnings growth for Resolute Forest Products Inc. (RFP)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/05/2021 quarter of the year, Resolute Forest Products Inc. recorded a total of 873.0 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 21.08% coming in sequential stages and their sales for the 08/05/2021 quarter increasing by 11.91%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 522.0 million trying to sell their products during the last quarter, with the result yielding a gross income of 351.0 million. This allows shareholders to hold on to 81.20M with the recently reported earning now reading 1.08 cents per share. This is a figure that compared to analyst’s prediction for their 08/05/2021 (0.21 cents a share).
Is the stock of RFP attractive?
In related news, Senior Vice President & CLO, VACHON JACQUES P sold 15,377 shares of the company’s stock in a transaction that recorded on May 07. The sale was performed at an average price of 15.91, for a total value of 244,659. As the sale deal closes, the Chief Executive Officer, LAFLAMME YVES now sold 22,952 shares of the company’s stock, valued at 241,226. Also, Senior Vice President, LAFAVE JOHN sold 10,800 shares of the company’s stock in a deal that was recorded on Feb 16. The shares were price at an average price of 11.00 per share, with a total market value of 118,800. Following this completion of acquisition, the SVP, operations, TREMBLAY Richard Joseph now holds 31,093 shares of the company’s stock, valued at 316,527. In the last 6 months, insiders have changed their ownership in shares of company stock by 2.40%.
3 out of 4 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on Resolute Forest Products Inc.. 1 analysts has assigned a Sell rating on the RFP stock. The 12-month mean consensus price target for the company’s shares has been set at $16.75.