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Is Domtar Corporation Highly Undervalued ?

Domtar Corporation (NYSE:UFS) designs, manufactures, markets and distributes communication papers, specialty and packaging papers and adult incontinence products. The company is one of the largest producers of uncoated free sheet paper in the world and also has one of the largest installed capacities for pulp and paper production. The company is currently transforming its business as it looks to stabilize its core paper business despite decreasing demand in North America. The company also is seeking to diversify its business and find other sources of growth. Despite a constant decline in revenues over the last five years, the company has improved profitability after adjusting for non-recurring items.

UFS is currently undervalued based on industry multiples and I believe the...

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