Earnings and Growth Analysis : Domtar (NYSE:UFS)

Earnings results for Domtar (NYSE:UFS)

Domtar Corporation is expected* to report earnings on 02/11/2021 before market open. The report will be for the fiscal Quarter ending Dec 2020. According to Zacks Investment Research, based on 3 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.47. The reported EPS for the same quarter last year was $0.03.

Domtar last posted its earnings results on November 11th, 2020. The basic materials company reported $0.33 earnings per share for the quarter, topping the consensus estimate of ($0.24) by $0.57. The firm had revenue of $1.12 billion for the quarter, compared to analyst estimates of $1.09 billion. Its revenue for the quarter was down 12.4% compared to the same quarter last year. Domtar has generated $3.00 earnings per share over the last year. Domtar has confirmed that its next quarterly earnings report will be published on Thursday, February 11th, 2021.

Analyst Opinion on Domtar (NYSE:UFS)

10 Wall Street analysts have issued ratings and price targets for Domtar in the last 12 months. Their average twelve-month price target is $32.45, predicting that the stock has a possible downside of 4.96%. The high price target for UFS is $42.00 and the low price target for UFS is $22.00. There are currently 6 hold ratings and 4 buy ratings for the stock, resulting in a consensus rating of “Hold.”

Domtar has received a consensus rating of Hold. The company’s average rating score is 2.40, and is based on 4 buy ratings, 6 hold ratings, and no sell ratings. According to analysts’ consensus price target of $32.45, Domtar has a forecasted downside of 5.0% from its current price of $34.15. Domtar has only been the subject of 4 research reports in the past 90 days.

Dividend Strength: Domtar (NYSE:UFS)

Domtar has a dividend yield of 1.38%, which is in the bottom 25% of all stocks that pay dividends. Domtar does not have a long track record of dividend growth. The dividend payout ratio of Domtar is 15.33%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Domtar will have a dividend payout ratio of 21.50% next year. This indicates that Domtar will be able to sustain or increase its dividend.

Insiders buying/selling: Domtar (NYSE:UFS)

In the past three months, Domtar insiders have not sold or bought any company stock. Only 1.37% of the stock of Domtar is held by insiders. 83.68% of the stock of Domtar is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Domtar (NYSE:UFS

Earnings for Domtar are expected to grow by 76.86% in the coming year, from $1.21 to $2.14 per share. The P/E ratio of Domtar is -18.66, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings. The P/E ratio of Domtar is -18.66, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings. Domtar has a P/B Ratio of 0.82. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

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