Domtar Corporation designs, manufactures, markets, and distributes communications papers, specialty and packaging papers, and absorbent hygiene products in the United States, Canada, Europe, Asia, and internationally. It operates in two segments, Pulp and Paper, and Personal Care. The company was founded in 1848 and is based in Montreal, Canada.
UFS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for UFS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Domtar CORP ranked in the 41th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 17.17%. In terms of the factors that were most noteworthy in this DCF analysis for UFS, they are:
The company's compound free cash flow growth rate over the past 5.77 years comes in at -0.06%; that's greater than only 20% of US stocks we're applying DCF forecasting to.
Domtar CORP's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Basic Materials), Domtar CORP has a reliance on debt greater than 72.64% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
KRO, PAAS, SUZ, TREC, and SXC can be thought of as valuation peers to UFS, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
John and Daniel will be supported by Michael Garcia from our Pulp and Paper division and Michael Fagan from the Personal Care division. In the Pulp and Paper segment, sales were flat when compared to the fourth quarter and 11% lower when compared to the same period last year.
FORT MILL, S.C.--(BUSINESS WIRE)--Domtar Corporation (NYSE: UFS) (TSX: UFS) today reported net earnings of $5 million ($0.09 per share) for the first quarter of 2020 compared to a net loss of $34 million ($0.59 per share) for the fourth quarter of 2019 and net earnings of $80 million ($1.27 per share) for the first quarter of 2019. Sales for the first quarter of 2020 were $1.3 billion. Excluding items listed below, the Company had earnings before items1 of $5 million ($0.09 per share) for the f