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Rayonier Advanced Materials (RYAM)
:RYAM
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Rayonier Advanced Materials
(NYSE:RYAM)
Rating:60Neutral
Price Target:
$4.00
▲( 2.83% Upside)
Rayonier Advanced Materials (RYAM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$259.75M
Dividend YieldN/A
Average Volume (3M)644.26K
Price to Earnings (P/E)―
Beta (1Y)1.36
Revenue Growth2.20%
EPS Growth34.71%
CountryUS
Employees2,350
SectorBasic Materials
Sector Strength64
IndustryChemicals
Share Statistics
EPS (TTM)-0.49
Shares Outstanding66,774,536
10 Day Avg. Volume687,536
30 Day Avg. Volume644,256
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)0.34
Price to Sales (P/S)0.00
P/FCF Ratio2.53
Enterprise Value/Market Cap3.26
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit5.12
Enterprise Value/Ebitda1.82
Forecast
1Y Price Target
$6.00Price Target Upside54.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Rayonier Advanced Materials Business Overview & Revenue Model
Company DescriptionRayonier Advanced Materials (RYAM) is a global leader in the production of high-purity cellulose specialties, a natural polymer commonly used in a wide range of industrial and consumer products. The company operates in sectors such as pulp production, forest resources, and paper products. RYAM's core products include cellulose specialties, lumber, and paperboard, serving various industries including textiles, pharmaceuticals, and construction.
How the Company Makes MoneyRayonier Advanced Materials generates revenue primarily through the sale of its high-purity cellulose specialties and related products. The company's key revenue streams include contracts with industrial manufacturers in the textiles, pharmaceuticals, food, and construction industries, who use its cellulose products for applications such as high-strength paper, absorbent materials, and food additives. RYAM's integrated forestry and manufacturing operations also contribute to its earnings by allowing it to control costs and ensure a stable supply of raw materials. Additionally, strategic partnerships and long-term contracts with key customers enhance its revenue stability and growth potential.
Rayonier Advanced Materials Financial Statement Overview
Summary
Rayonier Advanced Materials demonstrates a mixed financial performance. The company has improved its operational efficiencies and cash flow generation, though profitability remains a challenge. The balance sheet is stable with a balanced debt-to-equity ratio, but profitability metrics such as ROE are negative. While revenue growth is stagnant, the company shows potential in its cash flow improvements, suggesting a focus on operational efficiencies. The overall financial health of the company is moderate, with positive cash flow trends but needing further improvements in profitability.Income Statement
Rayonier Advanced Materials has shown a modest improvement in profitability. The gross profit margin for the TTM is 10.16%, which is an improvement from previous periods. The net profit margin is negative at -2.38%, indicating continued challenges in achieving profitability. However, the company has managed to reduce its net loss compared to the previous year. The revenue has slightly decreased by 0.82% compared to last year, and the EBIT margin is a positive 2.62%, reflecting some operational efficiencies. Overall, the income statement shows mixed performance with areas of improvement in operational efficiency but ongoing challenges in profitability.55
Neutral
Balance Sheet
The balance sheet reflects a stable financial structure with a debt-to-equity ratio of 1.02, suggesting a balanced approach to leveraging. The equity ratio stands at 33.52%, which demonstrates a reasonable proportion of equity financing. However, the return on equity is negative at -5.43%, indicating that the company is not currently generating profit from shareholder investments. Despite these challenges, the company has managed to maintain a stable asset base.60
Neutral
Cash Flow
The cash flow statement shows a positive trend with a free cash flow growth rate of 702.61%, indicating substantial improvement in cash generation. The operating cash flow to net income ratio is -3.83, signifying strong cash flow generation relative to net income, despite the net loss. Free cash flow to net income ratio is -1.78, further underscoring the company's ability to generate cash even with profitability challenges. Overall, the cash flow position is strong and suggests that the company has improved its ability to generate cash from operations.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.63B | 1.64B | 1.72B | 1.41B | 1.74B | Gross Profit |
| 165.58M | 88.15M | 123.00M | 75.00M | 138.00M | EBIT |
| 39.48M | -65.26M | 26.00M | -11.00M | 27.00M | EBITDA |
| 173.69M | 81.32M | 172.33M | 121.82M | 92.99M | Net Income Common Stockholders |
| -39.00M | -101.83M | -25.00M | -48.00M | 1.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 125.22M | 75.77M | 152.00M | 253.00M | 94.00M | Total Assets |
| 2.13B | 2.18B | 2.35B | 2.44B | 2.53B | Total Debt |
| 729.82M | 796.62M | 853.00M | 929.00M | 1.08B | Net Debt |
| 604.60M | 720.85M | 701.00M | 676.00M | 990.00M | Total Liabilities |
| 1.41B | 1.44B | 1.52B | 1.63B | 1.83B | Stockholders Equity |
| 713.88M | 746.45M | 829.00M | 814.00M | 695.00M |
| Cash Flow | Free Cash Flow | |||
| 95.67M | 8.60M | -69.00M | 137.00M | 47.00M | Operating Cash Flow |
| 203.61M | 136.27M | 69.00M | 232.00M | 124.00M | Investing Cash Flow |
| -108.00M | -127.28M | -94.00M | 86.00M | -78.00M | Financing Cash Flow |
| -42.48M | -86.95M | -73.00M | -156.00M | -19.00M |
Rayonier Advanced Materials Technical Analysis
Negative
3.89
Price Trends
4.67
Negative
6.05
Negative
7.10
Negative
Market Momentum
-0.21
Negative
39.80
Neutral
24.03
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 3.89 is below the 20-day moving average (MA) of 4.08, below the 50-day MA of 4.67, and below the 200-day MA of 7.10, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 39.80 is Neutral, neither overbought nor oversold. The STOCH value of 24.03 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 2 New Risks
1.
We may be required to recognize a significant non-cash charge to earnings if our recorded deferred tax assets are deemed unrealizable. Q4, 2024
2.
Challenges and uncertainties in executing our Biomaterials strategy may adversely impact our business and financial results. Q4, 2024
Rayonier Advanced Materials Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $259.75M | ― | -10.12% | ― | 2.20% | 34.71% | |
60 Neutral | $470.28M | 33.74 | -8.15% | ― | -15.03% | -233.06% | |
58 Neutral | $303.21M | 4.60 | -66.90% | 6.90% | -7.46% | -36.14% | |
52 Neutral | $313.70M | ― | -0.60% | ― | 186.18% | -125.58% | |
51 Neutral | $248.09M | ― | -17.96% | 8.09% | -1.37% | 60.42% | |
50 Neutral | $1.99B | -1.06 | -21.34% | 3.71% | 2.03% | -30.65% | |
49 Neutral | $275.33M | ― | -12.34% | ― | -19.82% | -34.91% |
* Basic Materials Sector Average
Performance Comparison
RYAM
Rayonier Advanced Materials
3.89
-1.80
-31.63%
CLW
Clearwater Paper
28.93
-23.39
-44.71%
GPRE
Green Plains
4.21
-14.06
-76.96%
MERC
Mercer International
3.57
-6.09
-63.04%
MATV
Mativ Holdings
5.55
-12.29
-68.89%
GROY
Gold Royalty
1.84
-0.08
-4.17%
Rayonier Advanced Materials Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: -7.82%|
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 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
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.