Domtar Corporation (NYSE:UFS) Relative Strength Index (RSI) is 75.40, with weekly volatility at 0.70% and ATR at 1.10. The UFS stock’s 52-week price range has touched low of $18.66 and a $55.45 high. Intraday shares traded counted 0.89 million, which was 39.75% higher than its 30-day average trading volume of 1.48M. Its shares traded higher over the last trading session, gaining 0.52% on 05/28/21. The shares fell to a low of $53.99 before closing at $54.23. UFS’s previous close was $53.95 while the outstanding shares total 53.50M. The firm has a beta of 1.89.
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Investors have identified the Paper & Paper Products company Domtar Corporation 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 $2.71 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.
Domtar Corporation (UFS) 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 UFS, the company has in raw cash 671.0 million on their books with 305.0 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 1.82 billion total, with 844.0 million as their total liabilities.
UFS were able to record -18.0 million as free cash flow during the 08/05/2021 quarter of the year, this saw their quarterly net cash flow reduce by 362.0 million. In cash movements, the company had a total of 33.0 million as operating cash flow.
Potential earnings growth for Domtar Corporation (UFS)
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, Domtar Corporation recorded a total of 944.0 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -9.22% coming in sequential stages and their sales for the 08/05/2021 quarter increasing by 48.62%.
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 809.0 million trying to sell their products during the last quarter, with the result yielding a gross income of 135.0 million. This allows shareholders to hold on to 53.50M with the recently reported earning now reading -0.54 cents per share. This is a figure that compared to analyst’s prediction for their 08/05/2021 (0.09 cents a share).
Having a look at the company’s valuation, the company is expected to record 3.72 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on UFS sounds very interesting.
Is the stock of UFS attractive?
In related news, President and CEO, Williams John David sold 90,202 shares of the company’s stock in a transaction that recorded on Feb 26. The sale was performed at an average price of 36.58, for a total value of 3,299,984. As the sale deal closes, the President, Personal Care, Fagan Michael now sold 22,198 shares of the company’s stock, valued at 838,196. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.30%.
2 out of 10 analysts covering the stock have rated it a Buy, while 8 have maintained a Hold recommendation on Domtar Corporation. 0 analysts has assigned a Sell rating on the UFS stock. The 12-month mean consensus price target for the company’s shares has been set at $52.94.
