Home Sectors Basic Materials Latest Fundamentals: Domtar Corporation (NYSE: UFS)

Latest Fundamentals: Domtar Corporation (NYSE: UFS)

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Domtar Corporation is in the forest products industry and is part of the basic materials sector. The company CEO is John D. Williams. Domtar Corp designs, manufactures, markets, and distributes various fiber-based products. It offers communication papers, specialty and packaging papers, and adult incontinence products.

Previous Intraday Trading Performance:

The UFS stock showed a previous change of -0.10% with an open at 50.60 and a close of 50.32. It reached an intraday high of 50.85 and a low of 50.13.

Business Wire:  Domtar Corporation Employees Read to Students at Lincoln Elementary School and Donate Books

Liquidity:

The stock has a market cap of $3.2b with 62.9m shares outstanding, of which the float is 60.5m shares. Trading volume reached 923,717 shares compared to its average volume of 805,902 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Domtar Corporation shares returned 0.56% and in the past 30 trading days it returned 8.68%. Over three months, it changed 29.03%. In one year it has changed 12.50% and within that year its 52-week high was 54.50 and its 52-week low was 33.81. UFS stock is 48.83% above its 52 Week Low.

Our calculations show a 200 day moving average of 46.61 and a 50 day moving average of 46.90. Currently UFS stock is trading 7.95% above its 200 day moving average.

Business Wire:  Domtar Corporation Employees Read to Students at Lincoln Elementary School and Donate Books

Earnings:

The last annual fiscal EPS for the company was reported at 4.62 that ended on 31st of December 2018, which according to the previous close, that is a PE of 11.21. Based on 3 analyst estimates, the consensus EPS for the next quarter is 1.69. The TTM EPS is 4.62, which comes to a TTM PE of 10.89.

The following are the last four quarter reported earnings per share:
12-31-2018:  1.63
09-30-2018:  1.46
06-30-2018:  0.65
03-31-2018:  0.88

The dividend per share is currently 1.74, which is a dividend yield of 3.46%. Also, the payout ratio is 37.66%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 61.43, which means it is possibly undervalued and has a margin of safety of 18.08%

Indicators to Watch:

Based on the latest filings, there is 140.50% of institutional ownership. Short-interest is 2,716,573, which is 4.32% of shares outstanding. The short-interest ratio or days-to-cover ratio is 3.17. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 2.02

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 11.52%, return on assets is 5.71%, profit margin is 5.25%, price-to-sales is 0.58 and price-to-book is 1.25.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 1  :Past Performance Score
 5  :Financial Strength Score
 1  :Future Growth Score
 3  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.