We consider Resolute Forest very steady.
Resolute Forest Products maintains Sharpe Ratio (i.e., Efficiency) of 0.0569, which implies the firm had 0.0569% of return per unit of risk over the last 3 months. Our standpoint towards forecasting the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-eight
technical indicators for Resolute Forest Products, which you can use to evaluate the future volatility of the company. Please check Resolute Forest Products Semi Deviation of 0.435,
coefficient of variation of 1644.08, and Risk Adjusted Performance of 0.0524 to confirm if the risk estimate we provide is consistent with the expected return of 0.0474%.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Resolute Forest income statement, its balance sheet, and the statement of cash flows. Potential Resolute Forest investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Resolute Forest investors may use each financial statement separately, they are all related. The changes in Resolute Forest's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Resolute Forest's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Resolute Forest
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Resolute Forest performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Resolute Forest shares is the value that is considered the true value of the share. If
the intrinsic value of Resolute is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Resolute Forest. Please read more on our
fundamental analysis page.
How important is Resolute Forest's Liquidity
Resolute Forest
financial leverage refers to using borrowed capital as a funding source to finance Resolute Forest Products ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Resolute Forest financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Resolute Forest's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Resolute Forest's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Resolute Forest's total debt and its cash.
What is driving Resolute Forest Investor Appetite?
There are few distinct groups of Resolute Forest stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of Resolute is distributed among investors.
Ownership Allocation
Resolute Forest owns a total of seventy-six million eight hundred eleven thousand eight hundred
outstanding shares. The majority of Resolute Forest Products
outstanding shares are owned by
third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Resolute Forest Products to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Resolute Forest. Please pay attention to any change in the institutional holdings of Resolute Forest Products as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.
| Retail Investors9.24% | | Institutions89.9% |
| Retail Investors | 9.24 |
| Insiders | 0.86 |
| Institutions | 89.9 |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Resolute Forest has an asset utilization ratio of 103.56 percent. This connotes that the company is making $1.04 for each dollar of assets. An increasing asset utilization means that Resolute Forest Products is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets | 1.38 Billion | 18.12 |
| Assets Non Current | 4.57 Billion | 59.84 |
| Goodwill | 193.56 Million | 2.54 |
| Tax Assets | 1.49 Billion | 19.5 |
Resolute Forest has a small chance to finish above USD22 in 2 months
Latest variance is at 0.63. Resolute Forest Products exhibits very low volatility with skewness of 3.87 and kurtosis of 24.82. However, we advise investors to further study Resolute Forest Products technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Resolute Forest's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Resolute Forest's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Bottom Line On Resolute Forest Products
While some firms in the paper & paper products industry are either recovering or due for a correction, Resolute may not be as strong as the others in terms of longer-term growth potentials. All things considered, as of the 17th of February 2023, we believe that at this point, Resolute Forest is
overvalued with
low probability of financial unrest within the next 2 years. However, our up-to-date buy vs. sell advice on the enterprise is
Strong Buy.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Resolute Forest Products. Please refer to our
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