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Rayonier Advanced Materials (RYAM)
:RYAM
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Rayonier Advanced Materials
(NYSE:RYAM)
Rating:61Neutral
Price Target:
$4.00
▲(3.36%Upside)
Rayonier Advanced Materials (RYAM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$258.42M
Dividend YieldN/A
Average Volume (3M)574.86K
Price to Earnings (P/E)―
Beta (1Y)1.38
Revenue Growth2.20%
EPS Growth34.71%
CountryUS
Employees2,350
SectorBasic Materials
Sector Strength67
IndustryChemicals
Share Statistics
EPS (TTM)-0.49
Shares Outstanding66,774,536
10 Day Avg. Volume413,857
30 Day Avg. Volume574,860
Financial Highlights & Ratios
PEG Ratio0.51
Price to Book (P/B)0.74
Price to Sales (P/S)0.00
P/FCF Ratio-8.89
Enterprise Value/Market Cap5.09
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit8.60
Enterprise Value/Ebitda2.69
Forecast
1Y Price Target
$6.00Price Target Upside55.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Rayonier Advanced Materials Business Overview & Revenue Model
Company DescriptionRayonier Advanced Materials Inc. manufactures and sells cellulose specialty products in the United States, China, Canada, Japan, Europe, Latin America, other Asian countries, and internationally. The company operates through High Purity Cellulose, Paperboard, and High-Yield Pulp segments. Its products include cellulose specialties, which are natural polymers that are used as raw materials to manufacture a range of consumer-oriented products, such as liquid crystal displays, impact-resistant plastics, thickeners for food products, pharmaceuticals, cosmetics, cigarette filters, high-tenacity rayon yarn for tires and industrial hoses, food casings, paints, and lacquers. The company also offers commodity products, such as commodity viscose pulp used in woven applications, including rayon textiles for clothing and other fabrics, as well as in non-woven applications comprising baby wipes, cosmetic and personal wipes, industrial wipes, and mattress ticking; and absorbent materials consisting of fluff fibers that are used as an absorbent medium in disposable baby diapers, feminine hygiene products, incontinence pads, convalescent bed pads, industrial towels and wipes, and non-woven fabrics. In addition, it provides paperboards for packaging, printing documents, brochures, promotional materials, paperback books or catalog covers, file folders, tags, and tickets; and high-yield pulps to produce paperboard and packaging products, printing and writing papers, and various other paper products. The company was founded in 1926 and is headquartered in Jacksonville, Florida.
How the Company Makes MoneyRayonier Advanced Materials generates revenue primarily through the sale of its high-purity cellulose products to a diverse range of industries. The company's key revenue streams include cellulose specialties, which are used in applications such as textiles and pharmaceuticals, and high-yield pulp for paper and packaging materials. Additionally, RYAM leverages its expertise in chemical manufacturing to offer a variety of industrial products. Significant partnerships with global manufacturers and a strategic focus on innovation and sustainability further contribute to RYAM's earnings, allowing it to maintain a strong market position and adapt to evolving industry demands.
Rayonier Advanced Materials Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: -8.29%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Negative
The earnings call highlighted a strong liquidity position and debt reduction efforts. However, these positives were overshadowed by significant challenges including revenue and EBITDA declines, impacts from tariffs, operational setbacks, and increased input costs. The lowered financial guidance further indicates a challenging outlook.Q1-2025 Updates
Positive Updates
Solid Liquidity Position
RYAM reported a liquidity of $272 million, with $130 million in cash, $131 million available under the ABL facility, and $11 million under the French factoring facility.
Debt Reduction Achievements
Net secured debt was reduced to $624 million, resulting in a net secured leverage ratio of 2.9 times covenant EBITDA.
Biomaterials Segment Stability
The Biomaterials segment maintained steady net sales of $7 million, with operating income flat at $2 million and EBITDA margins holding steady at 29%.
Negative Updates
Revenue and EBITDA Decline
RYAM reported an 8% decline in revenue and a 67% reduction in adjusted EBITDA compared to the first quarter of 2024.
Impact of Tariffs and Market Dynamics
Significant near-term issues include 125% tariffs imposed by China on U.S.-sourced cellulose commodities, affecting approximately $85 million of annual revenue.
Operational and Environmental Challenges
Operational setbacks from equipment failures and poor weather, higher energy prices, and increased remediation reserves for legacy sites were noted.
Foreign Exchange and Input Cost Increases
The company experienced an unfavorable $5 million change in foreign exchange and higher input costs, notably in energy, impacting results.
Lowered Financial Guidance
The full-year guidance for adjusted EBITDA was lowered to a range of $175 million to $185 million, with adjusted free cash flow between $5 million and $15 million.
Company Guidance
During the RYAM First Quarter 2025 Earnings Conference Call, the company provided a revised guidance for the full year, highlighting several key metrics and challenges. RYAM reported an 8% decline in revenue and a 67% reduction in adjusted EBITDA compared to the first quarter of 2024. As a result of compounding challenges, including tariffs, operational setbacks, and higher energy costs, the company lowered its full-year guidance for adjusted EBITDA to a range of $175 million to $185 million and adjusted free cash flow to between $5 million and $15 million. Despite these challenges, RYAM's financial foundation remains solid, with liquidity of $272 million, a net secured debt reduction to $624 million, and a net secured leverage ratio of 2.9 times covenant EBITDA. The company is actively mitigating the impact of 125% tariffs imposed by China on U.S. sourced cellulose commodities, which affect approximately $85 million of annual revenue, through customer advocacy, market diversification, and operational adjustments.Rayonier Advanced Materials Financial Statement Overview
Summary
Rayonier Advanced Materials shows a solid cash flow position and reduced leverage, which are positive indicators for financial health. However, challenges in profitability and revenue growth need to be addressed to improve the overall financial performance. Strategic actions to enhance revenue and profitability could further stabilize and strengthen the company's financial standing.Income Statement
Rayonier Advanced Materials shows a mixed income statement performance. The TTM data indicates a negative net profit margin of -4.34%, reflecting recent profitability challenges. Revenue has shown a declining trend from 2022 to 2025, with a slight increase in gross profit margin in TTM compared to the previous year. However, the EBIT and EBITDA margins indicate room for improvement. The revenue growth rate has been negative, showing the need for strategic improvements.65
Positive
Balance Sheet
The company's balance sheet presents moderate strength with a debt-to-equity ratio of 0.04 in TTM, showing a significant reduction in debt. The equity ratio of 32.49% reflects a stable financial structure. However, the return on equity remains negative due to recent losses, highlighting the need for enhancing profitability to leverage equity effectively.72
Positive
Cash Flow
Strong cash flow management is evident, with a free cash flow growth rate of 63.73% in TTM, demonstrating improved operational efficiency. The operating cash flow to net income ratio is robust, indicating effective cash generation capabilities. The company’s free cash flow to net income ratio is positive, despite negative net income, reflecting good cash discipline.78
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.60B | 1.63B | 1.64B | 1.72B | 1.41B | 1.74B | Gross Profit |
| 152.88M | 165.58M | 88.15M | 123.00M | 75.00M | 138.00M | EBIT |
| 13.38M | 39.48M | -65.26M | 26.00M | -11.00M | 27.00M | EBITDA |
| 104.84M | 173.69M | 81.32M | 172.33M | 121.82M | 92.99M | Net Income Common Stockholders |
| -69.40M | -39.00M | -101.83M | -25.00M | -48.00M | 1.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 129.86M | 125.22M | 75.77M | 152.00M | 253.00M | 94.00M | Total Assets |
| 2.12B | 2.13B | 2.18B | 2.35B | 2.44B | 2.53B | Total Debt |
| 29.02M | 729.82M | 796.62M | 853.00M | 929.00M | 1.08B | Net Debt |
| -100.84M | 604.60M | 720.85M | 701.00M | 676.00M | 990.00M | Total Liabilities |
| 1.43B | 1.41B | 1.44B | 1.52B | 1.63B | 1.83B | Stockholders Equity |
| 688.08M | 713.88M | 746.45M | 829.00M | 814.00M | 695.00M |
| Cash Flow | Free Cash Flow | ||||
| 156.58M | 95.67M | 8.60M | -69.00M | 137.00M | 47.00M | Operating Cash Flow |
| 231.96M | 203.61M | 136.27M | 69.00M | 232.00M | 124.00M | Investing Cash Flow |
| -112.89M | -108.00M | -127.28M | -94.00M | 86.00M | -78.00M | Financing Cash Flow |
| -44.12M | -42.48M | -86.95M | -73.00M | -156.00M | -19.00M |
Rayonier Advanced Materials Technical Analysis
Negative
3.87
Price Trends
4.21
Negative
5.50
Negative
6.85
Negative
Market Momentum
-0.09
Negative
42.87
Neutral
54.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RYAM, the sentiment is Negative. The current price of 3.87 is below the 20-day moving average (MA) of 3.96, below the 50-day MA of 4.21, and below the 200-day MA of 6.85, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 42.87 is Neutral, neither overbought nor oversold. The STOCH value of 54.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RYAM.
Rayonier Advanced Materials Risk Analysis
Rayonier Advanced Materials disclosed 29 risk factors in its most recent earnings report. Rayonier Advanced Materials reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rayonier Advanced Materials Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $258.42M | ― | -10.12% | ― | 2.20% | 34.71% | |
60 Neutral | $447.52M | 33.74 | -8.15% | ― | -15.03% | -233.06% | |
60 Neutral | $345.83M | 4.60 | -66.90% | 6.32% | -7.46% | -36.14% | |
52 Neutral | $390.42M | ― | -0.60% | ― | 186.18% | -125.58% | |
52 Neutral | $364.93M | ― | -12.34% | ― | -19.82% | -34.91% | |
51 Neutral | $242.07M | ― | -17.96% | 8.29% | -1.37% | 60.42% | |
51 Neutral | $2.03B | -1.27 | -21.09% | 3.98% | 2.91% | -30.50% |
* Basic Materials Sector Average
Performance Comparison
RYAM
Rayonier Advanced Materials
3.87
-1.78
-31.50%
CLW
Clearwater Paper
27.53
-23.62
-46.18%
GPRE
Green Plains
5.58
-9.27
-62.42%
MERC
Mercer International
3.62
-4.54
-55.64%
MATV
Mativ Holdings
6.33
-9.80
-60.76%
GROY
Gold Royalty
2.29
0.86
60.14%
Rayonier Advanced Materials Corporate Events
Executive/Board ChangesShareholder Meetings
Rayonier Advanced Materials Holds Annual Stockholders Meeting
Neutral
May 16, 2025
On May 14, 2025, Rayonier Advanced Materials held its Annual Meeting of Stockholders, where key decisions were made regarding the company’s governance and executive compensation. Stockholders elected three directors to serve until 2028, approved executive compensation and the 2023 Incentive Stock Plan, and ratified Grant Thornton LLP as the accounting firm for 2025, while proposals to declassify the board and eliminate supermajority voting provisions were not approved.
The most recent analyst rating on (RYAM) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Rayonier Advanced Materials stock, see the RYAM Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.