Domtar Rides On Modest Revenue Growth, Margin Woes Remain
Zacks Investment Research | Mar 25, 2018 11:05PM ET
On Mar 26, we issued an updated research report on paper & paper products firm, Domtar Corporation (TO:UFS) .
Domtar is currently seeking growth through profitable investment opportunities with a commitment to pollution-free environment and sustainable practices. The company is also streamlining the cost structure, improving revenue quality and maintaining a healthy cash flow with a disciplined approach to cash utilization.
A steady dividend payment policy is part of Domtar’s long-term strategy of providing attractive risk-adjusted returns to its stockholders. The company’s investment strategy takes a holistic view of the rapidly evolving market and deploys a dynamic capital allocation approach to execute its growth strategy.
The company remains poised to benefit from top-line growth. Reflecting a compound annual growth rate of 3.6% in revenues in the past 12 years, Domtar focuses on expanding its scale of operations, aiming higher profitability while retaining investors’ confidence.
However, Domtar has grossly underperformed the Zacks Investment Research
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