Resolute Forest Products offers offers products, including newsprint, specialty papers, market pulp and wood products. The company was founded in 2007 and is based in Montréal, Canada.
RFP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for RFP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Resolute Forest Products Inc ranked in the 44th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Resolute Forest Products Inc, consider:
The company's compound free cash flow growth rate over the past 5.5 years comes in at -0.01%; that's greater than merely 23.97% of US stocks we're applying DCF forecasting to.
54% of the company's capital comes from equity, which is greater than just 23.08% of stocks in our cash flow based forecasting set.
The weighted average cost of capital for the company is 8. This value is greater than just 19.79% stocks in the Basic Materials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
NP, MEOH, NRP, ESI, and SSD can be thought of as valuation peers to RFP, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) today announced that it priced the private offering of $300 million aggregate principal amount of its senior unsecured notes due 2026 (the "2026 Notes") at 4.875% and 100% of par value. The 2026 Notes will be unsecured and will be guaranteed by all of Resolute's material wholly owned U.S. subsidiaries. Resolute expects to use the net proceeds from the offering of the 2026 Notes, together with cash on hand and/or borrowings under the Company's senior secured asset-based revolving credit facility and/or its senior secured credit facility, to redeem all of its outstanding 5.875% senior notes due 2023 (the "2023 Notes"), of which $375 million aggregate principal amount is currently outstanding. The Company today instructed the 2023 Notes ...
Moody's Investors Service, ("Moody's") assigned a B2 rating to Resolute Forest Products Inc.'s (Resolute) proposed $300 million senior unsecured notes due 2026, affirmed the company's B1 corporate family rating (CFR) and B1-PD probability of default rating (PDR), upgraded Resolute's speculative grade liquidity rating to SGL-1 from SGL-2, and changed the rating outlook to stable from negative. Resolute (B1 CFR) benefits from: (1) significant end-market and product diversity with leading market positions across several paper and forest product sectors; (2) operating flexibility across North America with 17 sawmills (following the recent acquisition of Conifex Timber Inc in February 2020), 10 newsprint and specialty paper mills, five commodity pulp mills and three tissue facilities (inclu...
Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) (or the "Company" or "Resolute") today announced that it has launched a private offering for $300 million aggregate principal amount of senior unsecured notes due 2026 (the "2026 Notes"). The 2026 Notes will be unsecured and will be guaranteed by all of Resolute's current and future wholly-owned U.S. subsidiaries that guarantee the Company's senior secured asset-based revolving credit facility (the "ABL Credit Facility") and/or its senior secured credit facility (the "Senior Secured Credit Facility"). Resolute expects to use the net proceeds from the offering of the 2026 Notes, together with cash on hand and/or borrowings under the ABL Credit Facility and/or the Senior Secured Credit Facility, to redeem all of the outstanding $375 mil...