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Domtar

TSX:UFS
Snowflake Description

Excellent balance sheet, good value and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
UFS
TSX
$2B
Market Cap
  1. Home
  2. CA
  3. Materials
Company description

Domtar Corporation designs, manufactures, markets, and distributes various communication papers, specialty and packaging papers, and absorbent hygiene products in the United States, Canada, Europe, Asia, and internationally. The last earnings update was 11 days ago. More info.


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UFS Share Price and Events
7 Day Returns
-0.6%
TSX:UFS
0.2%
CA Forestry
0.6%
CA Market
1 Year Returns
-14.5%
TSX:UFS
-13.6%
CA Forestry
7.1%
CA Market
UFS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Domtar (UFS) -0.6% 12.2% 14.3% -14.5% -4.1% 6.4%
CA Forestry 0.2% 5.5% 10.3% -13.6% 4.3% -8.8%
CA Market 0.6% 3.2% 4.3% 7.1% 7.8% 8.2%
1 Year Return vs Industry and Market
  • UFS matched the Forestry industry (-13.6%) over the past year.
  • UFS underperformed the Market in Canada which returned 7.1% over the past year.
Price Volatility
UFS
Industry
5yr Volatility vs Market

UFS Value

 Is Domtar undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Domtar to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Domtar.

TSX:UFS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.7%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:UFS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Forestry Unlevered Beta Simply Wall St/ S&P Global 1.23
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.232 (1 + (1- 21%) (47.11%))
1.463
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.46
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.463 * 5.96%)
10.67%

Discounted Cash Flow Calculation for TSX:UFS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Domtar is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:UFS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.67%)
2020 253.66 Analyst x5 229.21
2021 305.50 Analyst x2 249.44
2022 306.84 Est @ 0.44% 226.39
2023 309.58 Est @ 0.89% 206.39
2024 313.32 Est @ 1.21% 188.75
2025 317.80 Est @ 1.43% 173.00
2026 322.83 Est @ 1.58% 158.80
2027 328.30 Est @ 1.69% 145.92
2028 334.11 Est @ 1.77% 134.19
2029 340.20 Est @ 1.82% 123.47
Present value of next 10 years cash flows $1,835.00
TSX:UFS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $340.20 × (1 + 1.95%) ÷ (10.67% – 1.95%)
$3,977.27
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,977.27 ÷ (1 + 10.67%)10
$1,443.43
TSX:UFS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,835.00 + $1,443.43
$3,278.43
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,278.43 / 57.27
$57.24
TSX:UFS Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in TSX:UFS represents 1.32151x of NYSE:UFS
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.32151x
Value per Share
(Listing Adjusted, CAD)
= Value per Share (USD) x Listing Adjustment Factor
= $ 57.24 x 1.32151
CA$75.65
Value per share (CAD) From above. CA$75.65
Current discount Discount to share price of CA$50.64
= -1 x (CA$50.64 - CA$75.65) / CA$75.65
33.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Domtar is available for.
Intrinsic value
33%
Share price is CA$50.64 vs Future cash flow value of CA$75.65
Current Discount Checks
For Domtar to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Domtar's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Domtar's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Domtar's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Domtar's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:UFS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $3.27
NYSE:UFS Share Price ** NYSE (2019-11-15) in USD $38.32
North America Forestry Industry PE Ratio Median Figure of 14 Publicly-Listed Forestry Companies 16.73x
Canada Market PE Ratio Median Figure of 516 Publicly-Listed Companies 14.55x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Domtar.

TSX:UFS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:UFS Share Price ÷ EPS (both in USD)

= 38.32 ÷ 3.27

11.72x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Domtar is good value based on earnings compared to the North America Forestry industry average.
  • Domtar is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Domtar's expected growth come at a high price?
Raw Data
TSX:UFS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.72x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
-10.8%per year
North America Forestry Industry PEG Ratio Median Figure of 11 Publicly-Listed Forestry Companies 1.1x
Canada Market PEG Ratio Median Figure of 239 Publicly-Listed Companies 1.1x

*Line of best fit is calculated by linear regression .

TSX:UFS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.72x ÷ -10.8%

-1.08x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Domtar earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Domtar's assets?
Raw Data
TSX:UFS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $41.32
NYSE:UFS Share Price * NYSE (2019-11-15) in USD $38.32
Canada Forestry Industry PB Ratio Median Figure of 12 Publicly-Listed Forestry Companies 1.11x
Canada Market PB Ratio Median Figure of 2,288 Publicly-Listed Companies 1.29x
TSX:UFS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:UFS Share Price ÷ Book Value per Share (both in USD)

= 38.32 ÷ 41.32

0.93x

* Primary Listing of Domtar.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Domtar is good value based on assets compared to the CA Forestry industry average.
X
Value checks
We assess Domtar's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Forestry industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Forestry industry average (and greater than 0)? (1 check)
  5. Domtar has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

UFS Future Performance

 How is Domtar expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-10.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Domtar expected to grow at an attractive rate?
  • Domtar's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Domtar's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.
  • Domtar's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:UFS Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:UFS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts -10.8%
TSX:UFS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts -1.5%
Canada Forestry Industry Earnings Growth Rate Market Cap Weighted Average 120.4%
Canada Forestry Industry Revenue Growth Rate Market Cap Weighted Average 6.9%
Canada Market Earnings Growth Rate Market Cap Weighted Average 9.9%
Canada Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:UFS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:UFS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 5,180 600 4
2020-12-31 5,069 509 136 11
2019-12-31 5,251 488 134 11
2019-11-18
TSX:UFS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 5,366 499 205
2019-06-30 5,450 461 284
2019-03-31 5,486 519 309
2018-12-31 5,455 554 283
2018-09-30 5,400 462 -190
2018-06-30 5,323 504 -219
2018-03-31 5,191 448 -224
2017-12-31 5,148 449 -258
2017-09-30 5,087 479 175
2017-06-30 5,067 462 164
2017-03-31 5,113 459 144
2016-12-31 5,090 465 128

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Domtar's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Domtar's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:UFS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Domtar Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:UFS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 2.47 2.71 2.32 3.00
2019-12-31 2.15 2.23 2.04 4.00
2019-11-18
TSX:UFS Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 3.27
2019-06-30 4.51
2019-03-31 4.91
2018-12-31 4.50
2018-09-30 -3.02
2018-06-30 -3.49
2018-03-31 -3.57
2017-12-31 -4.11
2017-09-30 2.80
2017-06-30 2.62
2017-03-31 2.30
2016-12-31 2.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Domtar is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Domtar's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Domtar has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

UFS Past Performance

  How has Domtar performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Domtar's growth in the last year to its industry (Forestry).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Domtar's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Domtar has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Domtar has become profitable in the last year making it difficult to compare the North America Forestry industry average.
Earnings and Revenue History
Domtar's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Domtar Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:UFS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 5,366.00 205.00 412.00
2019-06-30 5,450.00 284.00 431.00
2019-03-31 5,486.00 309.00 441.00
2018-12-31 5,455.00 283.00 427.00
2018-09-30 5,400.00 -190.00 447.00
2018-06-30 5,323.00 -219.00 448.00
2018-03-31 5,191.00 -224.00 440.00
2017-12-31 5,148.00 -258.00 436.00
2017-09-30 5,087.00 175.00 435.00
2017-06-30 5,067.00 164.00 430.00
2017-03-31 5,113.00 144.00 429.00
2016-12-31 5,090.00 128.00 406.00
2016-09-30 5,138.00 138.00 418.00
2016-06-30 5,160.00 90.00 406.00
2016-03-31 5,203.00 110.00 401.00
2015-12-31 5,264.00 142.00 398.00
2015-09-30 5,329.00 156.00 400.00
2015-06-30 5,442.00 426.00 404.00
2015-03-31 5,517.00 428.00 405.00
2014-12-31 5,563.00 431.00 419.00
2014-09-30 5,543.00 425.00 413.00
2014-06-30 5,513.00 171.00 409.00
2014-03-31 5,440.00 85.00 404.00
2013-12-31 5,391.00 91.00 381.00
2013-09-30 5,359.00 45.00 371.00
2013-06-30 5,373.00 84.00 356.00
2013-03-31 5,429.00 189.00 350.00
2012-12-31 5,482.00 172.00 358.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Domtar has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Domtar used its assets more efficiently than the North America Forestry industry average last year based on Return on Assets.
  • Domtar has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Domtar's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Forestry industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Domtar has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

UFS Health

 How is Domtar's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Domtar's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Domtar is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Domtar's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Domtar's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Domtar Company Filings, last reported 1 month ago.

TSX:UFS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 2,439.00 930.00 98.00
2019-06-30 2,619.00 818.00 93.00
2019-03-31 2,608.00 846.00 94.00
2018-12-31 2,538.00 854.00 111.00
2018-09-30 2,553.00 1,104.00 256.00
2018-06-30 2,458.00 1,105.00 264.00
2018-03-31 2,493.00 1,104.00 152.00
2017-12-31 2,483.00 1,130.00 139.00
2017-09-30 2,886.00 1,165.00 143.00
2017-06-30 2,770.00 1,204.00 124.00
2017-03-31 2,685.00 1,254.00 111.00
2016-12-31 2,676.00 1,293.00 125.00
2016-09-30 2,754.00 1,372.00 168.00
2016-06-30 2,716.00 1,302.00 111.00
2016-03-31 2,736.00 1,258.00 97.00
2015-12-31 2,652.00 1,251.00 126.00
2015-09-30 2,659.00 1,288.00 128.00
2015-06-30 2,761.00 1,348.00 207.00
2015-03-31 2,710.00 1,354.00 193.00
2014-12-31 2,890.00 1,360.00 174.00
2014-09-30 2,938.00 1,375.00 134.00
2014-06-30 2,826.00 1,432.00 85.00
2014-03-31 2,771.00 1,513.00 130.00
2013-12-31 2,782.00 1,529.00 655.00
2013-09-30 2,681.00 1,114.00 191.00
2013-06-30 2,652.00 1,111.00 432.00
2013-03-31 2,842.00 1,125.00 513.00
2012-12-31 2,877.00 1,225.00 661.00
  • Domtar's level of debt (38.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (46.8% vs 38.1% today).
  • Debt is well covered by operating cash flow (53.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.2x coverage).
X
Financial health checks
We assess Domtar's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Domtar has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

UFS Dividends

 What is Domtar's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.75%
Current annual income from Domtar dividends. Estimated to be 4.74% next year.
If you bought CA$2,000 of Domtar shares you are expected to receive CA$95 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Domtar's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2%).
  • Domtar's dividend is below the markets top 25% of dividend payers in Canada (5.67%).
Upcoming dividend payment

Purchase Domtar before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:UFS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Canada Forestry Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 2.1%
Canada Market Average Dividend Yield Market Cap Weighted Average of 329 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:UFS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.85 3.00
2020-12-31 1.84 6.00
2019-12-31 1.78 6.00
2019-11-18
TSX:UFS Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-11-06 1.820 4.729
2019-08-07 1.820 5.256
2019-05-08 1.820 4.284
2019-02-20 1.740 3.522
2018-11-07 1.740 4.067
2018-08-08 1.740 3.512
2018-08-01 1.740 3.510
2018-05-09 1.740 3.648
2018-02-23 1.740 3.889
2018-02-08 1.740 3.974
2017-11-01 1.660 3.414
2017-08-02 1.660 3.981
2017-05-16 1.660 4.408
2017-02-22 1.660 4.385
2016-11-02 1.660 4.191
2016-08-03 1.660 4.462
2016-05-03 1.660 4.522
2016-02-23 1.600 4.194
2015-11-04 1.600 4.463
2015-08-05 1.600 4.102
2015-05-05 1.600 3.764
2015-02-23 1.600 3.597
2014-10-29 1.500 3.712
2014-07-30 1.500 4.101
2014-04-30 0.750 1.717
2014-02-19 1.100 2.106
2013-10-30 1.100 2.388
2013-07-31 1.100 2.932
2013-05-01 1.100 3.124
2013-02-20 0.900 2.392
2012-10-31 0.900 2.243
2012-07-31 0.900 2.372
2012-05-02 0.900 2.307
2012-02-22 0.700 1.470
2011-11-02 0.700 1.692
2011-08-03 0.700 1.873
2011-05-04 0.700 1.471
2011-02-23 0.500 1.130
2010-11-03 0.500 1.225
2010-08-04 0.500 1.529
2010-05-05 0.500 1.790

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Domtar's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess Domtar's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Domtar afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Domtar has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

UFS Management

 What is the CEO of Domtar's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Williams
COMPENSATION $7,952,638
AGE 65
TENURE AS CEO 10.8 years
CEO Bio

Mr. John D. Williams, BA, has been the Chief Executive Officer and President of Domtar Corporation since joining in January 1, 2009. Mr. Williams served as the President of the European Packaging Operations at Svenska Cellulosa Aktiebolaget, SCA from May 2, 2005 to December 1, 2008. From 2000 to 2008, he served in senior executive positions with SCA Packaging Ltd. and SCA Packaging Europe, among Europe's largest producers of containerboard paper used for the manufacturing of corrugated box products. Mr. Williams served as Regional Managing Director for the SCA's U.K. and Ireland operations from 2000 to 2005. Prior to SCA Packaging, he held a number of increasingly senior positions in sales, marketing, management and operations with Rexam PLC, Packaging Resources, Inc., Huhtamaki, Alberto Culver (U.K.) Ltd., and MARS Group. He serves as Vice-Chairman of FPInnovations. Mr. Williams has been a Director of Domtar Corporation since January 1, 2009. He has been Lead Independent Director of Owens Corning since April 2015 and has been its Director since November 30, 2011. He serves as Non-Executive Chairman of Form Technologies, Inc., a privately-held leading global group of precision component manufacturers based in Charlotte, North Carolina. He is the Chair of the advisory board of the Stern Center for Sustainable Business at New York University. He is a Graduate of King's College, London University.

CEO Compensation
  • John's compensation has increased in line with Domtar recently becoming profitable.
  • John's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Domtar management team in years:

11.8
Average Tenure
56
Average Age
  • The average tenure for the Domtar management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

John Williams

TITLE
President
COMPENSATION
$8M
AGE
65
TENURE
10.8 yrs

Daniel Buron

TITLE
Senior VP & CFO
COMPENSATION
$3M
AGE
55
TENURE
12.7 yrs

Zygmunt Jablonski

TITLE
COMPENSATION
$2M
AGE
65

Michael Fagan

TITLE
President of Personal Care Division
COMPENSATION
$2M
AGE
57

Mike Garcia

TITLE
President of Pulp & Paper Division
COMPENSATION
$3M
AGE
54
TENURE
5.5 yrs

Nicholas Estrela

TITLE
Director of Investor Relations

Patrick Loulou

TITLE
Senior Vice-President of Corporate Development
COMPENSATION
$1M
AGE
50
TENURE
12.7 yrs

Razvan Theodoru

TITLE
VP of Corporate Law & Corporate Secretary

Paola Farnesi

TITLE
VP & Treasurer
AGE
52
TENURE
11.8 yrs

David Struhs

TITLE
Vice-President of Corporate Services and Sustainability
AGE
58
Board of Directors Tenure

Average tenure and age of the Domtar board of directors in years:

8.8
Average Tenure
65
Average Age
  • The tenure for the Domtar board of directors is about average.
Board of Directors

Robert Apple

TITLE
Independent Chairman of the Board
COMPENSATION
$395K
AGE
69
TENURE
2.5 yrs

John Williams

TITLE
President
COMPENSATION
$8M
AGE
65
TENURE
10.8 yrs

Brian Levitt

TITLE
Independent Non-Executive Director
COMPENSATION
$309K
AGE
71
TENURE
12.8 yrs

Pamela Strobel

TITLE
Independent Non-Executive Director
COMPENSATION
$304K
AGE
67
TENURE
12.8 yrs

Denis Turcotte

TITLE
Independent Non-Executive Director
COMPENSATION
$301K
AGE
57
TENURE
12.8 yrs

David Maffucci

TITLE
Independent Non-Executive Director
COMPENSATION
$278K
AGE
68
TENURE
8.8 yrs

Giannella Alvarez

TITLE
Independent Non-Executive Director
COMPENSATION
$248K
AGE
59
TENURE
7.8 yrs

Dave Illingworth

TITLE
Independent Non-Executive Director
COMPENSATION
$254K
AGE
65
TENURE
6.1 yrs

Mary Winston

TITLE
Independent Non-Executive Director
COMPENSATION
$237K
AGE
57
TENURE
3.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
04. Mar 19 Sell Michael Fagan Individual 28. Feb 19 28. Feb 19 -11,834 CA$67.32 CA$-796,699
26. Feb 19 Sell John Williams Individual 25. Feb 19 25. Feb 19 -47,176 CA$68.92 CA$-3,251,439
21. Feb 19 Sell Zygmunt Jablonski Individual 19. Feb 19 19. Feb 19 -2,864 CA$69.16 CA$-198,075
21. Feb 19 Sell Daniel Buron Individual 20. Feb 19 20. Feb 19 -6,000 CA$70.21 CA$-421,269
14. Feb 19 Sell Michael Garcia Individual 13. Feb 19 13. Feb 19 -11,272 CA$68.16 CA$-768,328
X
Management checks
We assess Domtar's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Domtar has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

UFS News

Simply Wall St News

UFS Company Info

Description

Domtar Corporation designs, manufactures, markets, and distributes various communication 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 offers business papers, including copy and electronic imaging papers for use with inkjet and laser printers, photocopiers, and plain-paper fax machines, as well as computer papers, preprinted forms, and digital papers for office and home use. It also provides commercial printing and publishing papers, such as offset papers and opaques for sheet and roll fed offset presses; publishing papers comprising tradebook and lightweight uncoated papers for publishing textbooks, dictionaries, catalogs, magazines, hard cover novels, and financial documents; and base papers that are converted into envelopes, tablets, business forms, and data processing/computer forms. In addition, the company offers papers for thermal and flexible packaging, food and medical packaging, medical gowns and drapes, sandpaper backing, carbonless printing, label, and other coating and laminating applications; and papers for industrial and specialty applications that include carrier and treated papers, security papers, and specialized printing and converting applications. Further, it provides softwood, fluff, and hardwood Kraft products for various end products. Additionally, the company offers absorbent hygiene products, which comprise adult incontinence products under the Attends, IncoPack, Indasec, and Reassure brand; and branded and private label briefs, protective underwear, underpads, pads, and washcloths, as well as baby diapers, youth pants, and infant training pants for healthcare, retail, and direct-to-consumer channels. It serves merchants, retail outlets, stationers, printers, publishers, converters, and end-users. The company was founded in 1848 and is based in Fort Mill, South Carolina.

Details
Name: Domtar Corporation
UFS
Exchange: TSX
Founded: 1848
$2,903,046,596
57,273,106
Website: http://www.domtar.com
Address: Domtar Corporation
234 Kingsley Park Drive,
Fort Mill,
South Carolina, 29715,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE UFS Common Stock New York Stock Exchange US USD 07. Mar 2007
DB G2K1 Common Stock Deutsche Boerse AG DE EUR 07. Mar 2007
TSX UFS Common Stock The Toronto Stock Exchange CA CAD 07. Mar 2007
Number of employees
Current staff
Staff numbers
10,000
Domtar employees.
Industry
Paper Products
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/18 00:12
End of day share price update: 2019/11/15 00:00
Last estimates confirmation: 2019/11/14
Last earnings filing: 2019/11/07
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.