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Rayonier Advanced Materials
(NYSE:RYAM)
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Rating:48Neutral
Price Target:
$7.50
▼(-12.79% Downside)
Action:Reiterated
Date:10/02/26
The score is held back primarily by weak financial performance (losses, thin margins, and negative returns despite modest positive TTM free cash flow) and bearish technicals with the stock trading below major moving averages. Offsetting these risks, the earnings call indicates improving operational momentum and management’s maintained outlook for positive 2026 free cash flow, while valuation is difficult to assess given negative earnings and no dividend yield provided.
Positive Factors
Cellulose Specialties momentum
Strong pricing and volume gains in Cellulose Specialties indicate improving demand and commercial execution in the company’s higher-value segment. If sustained, this mix improvement can support better utilization, stronger contribution margins, and a more durable earnings recovery over the next several quarters.
Negative Factors
Persistent unprofitability
The company remains loss-making despite recent operational improvement, while its very thin gross margin leaves limited protection against weaker pricing or higher costs. Persistent negative returns reduce retained capital, constrain investment capacity, and make the recovery dependent on sustained execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Cellulose Specialties momentum
Strong pricing and volume gains in Cellulose Specialties indicate improving demand and commercial execution in the company’s higher-value segment. If sustained, this mix improvement can support better utilization, stronger contribution margins, and a more durable earnings recovery over the next several quarters.
Read all positive factors
Rayonier Advanced Materials Key Performance Indicators (KPIs)
Rayonier Advanced Materials (RYAM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$474.86M
Dividend Yield4.12%
Average Volume (3M)846.88K
Price to Earnings (P/E)―
Beta (1Y)1.45
Revenue Growth-3.56%
EPS Growth68.49%
CountryUS
Employees2,325
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-2.08
Shares Outstanding67,644,210
10 Day Avg. Volume1,095,053
30 Day Avg. Volume846,884
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.24
Price to Sales (P/S)0.27
P/FCF Ratio-4.28
Enterprise Value/Market Cap2.67
Enterprise Value/Revenue0.87
Enterprise Value/Gross Profit14.68
Enterprise Value/Ebitda8.26
Forecast
1Y Price Target
$13.00Price Target Upside51.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-1.05
Revenue Forecast (FY)$1.48B
Rayonier Advanced Materials Business Overview & Revenue Model
Company Description
Rayonier Advanced Materials Inc. operates as a global supplier of specialty cellulose products, reaching markets across the United States, China, Canada, Japan, Europe, Latin America, and other Asian and international regions. Its operations are s...
How the Company Makes Money
RYAM primarily makes money by manufacturing and selling cellulose-based products derived from wood. Its core revenue stream is the sale of cellulose specialties (high-purity cellulose), which are typically used by industrial customers as an input ...
Rayonier Advanced Materials Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call described clear sequential operational and financial improvement (stronger sales, a meaningful uplift in adjusted EBITDA driven by Cellulose Specialties, improving cash generation and maintained liquidity and covenant compliance). Management emphasized an active, disciplined strategic review, operational improvement initiatives and a path to positive full-year free cash flow. Offsetting these positives are persistent weaknesses in Paperboard & High-Yield Pulp (negative EBITDA), pricing pressure in commodity grades, an impairment charge, elevated leverage and uncertainty from tariffs and trade proceedings. Overall, the tone is constructive and focused on execution with visible momentum, but material risks remain tied to refinancing, tariff outcomes and turnaround of weaker segments.Positive Updates
Strong Sequential and Year-over-Year Sales Improvement
Net sales of $376 million, up 18% sequentially and 11% year-over-year, driven primarily by the High Purity Cellulose (HPC) segment.
Negative Updates
Continuing Loss from Operations and Impairment
Loss from continuing operations of $33 million (improved from $81 million in Q1) that included a $13 million noncash asset impairment charge related to high-yield pulp.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Sequential and Year-over-Year Sales Improvement
Net sales of $376 million, up 18% sequentially and 11% year-over-year, driven primarily by the High Purity Cellulose (HPC) segment.
Read all positive updates
Company Guidance
Management reiterated that the strategic review remains a top priority and will be concluded with a clear path in Q4, and that the company remains on track to generate positive free cash flow for full‑year 2026 with the full‑year FCF trajectory aligned with prior expectations. They expect second‑half improvement driven by Cellulose Specialties—Q2 CS pricing was +21% year‑over‑year (+8% sequentially) with CS volumes +19% sequentially and management sees another ~10–15% volumes improvement in the back half—while cellulose commodities should see modest improvement and paperboard a firmer pricing outlook. Q2 results underpinning the guidance included net sales $376M (+18% seq, +11% YoY), adjusted EBITDA $40M (Q1 $8M; prior year $28M), HPC adjusted EBITDA $57M (19% margin), paperboard/high‑yield pulp net sales $75M (Adj. EBITDA -$10M), liquidity $145M (cash $57M, ABL $76M, France $12M), adjusted net debt $755M, net secured debt $726M and net secured leverage 4.2x vs a 4.75x covenant; YTD cash from operations $37M and YTD adjusted free cash flow -$8M (improved $57M YoY).Rayonier Advanced Materials Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
48
Neutral
Cash Flow
42
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.47B | 1.47B | 1.63B | 1.64B | 1.72B | 1.41B |
| Gross Profit | 86.50M | 118.78M | 165.58M | 88.15M | 123.08M | 74.72M |
| EBITDA | 153.68M | 136.87M | 173.69M | 81.32M | 176.94M | 121.82M |
| Net Income | -141.02M | -422.50M | -39.00M | -101.83M | -14.92M | 66.41M |
Balance Sheet | ||||||
| Total Assets | 1.62B | 1.76B | 2.13B | 2.18B | 2.35B | 2.45B |
| Cash, Cash Equivalents and Short-Term Investments | 57.01M | 75.39M | 125.22M | 75.77M | 151.80M | 291.82M |
| Total Debt | 774.77M | 779.02M | 729.82M | 777.46M | 853.13M | 928.71M |
| Total Liabilities | 1.41B | 1.43B | 1.41B | 1.44B | 1.52B | 1.63B |
| Stockholders Equity | 194.75M | 316.56M | 713.88M | 746.45M | 829.31M | 814.34M |
Cash Flow | ||||||
| Free Cash Flow | -36.87M | -92.00M | 95.67M | 8.60M | -69.41M | 140.01M |
| Operating Cash Flow | 51.50M | 24.00M | 203.61M | 136.27M | 68.81M | 233.22M |
| Investing Cash Flow | -84.38M | -114.00M | -107.94M | -127.28M | -94.17M | 85.39M |
| Financing Cash Flow | 20.59M | 30.00M | -42.48M | -86.95M | -73.11M | -156.66M |
Rayonier Advanced Materials Technical Analysis
Negative
8.60
Price Trends
8.35
Negative
8.31
Negative
8.66
Negative
Market Momentum
-0.43
Positive
32.36
Neutral
19.50
Positive
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 8.6 is above the 20-day moving average (MA) of 7.94, above the 50-day MA of 8.35, and below the 200-day MA of 8.66, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 32.36 is Neutral, neither overbought nor oversold. The STOCH value of 19.50 is Positive, 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 30 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $2.36B | 19.48 | 9.15% | 1.87% | 2.87% | 534.76% | |
62 Neutral | $1.39B | -508.58 | -0.22% | 2.59% | 7.63% | -104.57% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $228.97M | -7.46 | -19.75% | 1.74% | -7.63% | -15.10% | |
54 Neutral | $1.98B | -29.17 | -4.04% | 0.75% | 4.06% | -3189.89% | |
48 Neutral | $474.86M | -3.38 | -52.28% | 4.12% | -3.56% | 68.49% | |
47 Neutral | $2.40B | 45.30 | 85.17% | ― | -12.42% | ― |
* Basic Materials Sector Average
RYAM
Rayonier Advanced Materials
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-4.10%
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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.