Rayonier Advanced Materials (RYAM) AI Stock Analysis

• Market Cap: $317.74M
• Dividend Yield: N/A
• Average Volume (3M): 634.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: -0.79%
• EPS Growth: 62.16%
• Country: US
• Employees: 2,350
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals
• EPS (TTM): -0.59
• Shares Outstanding: 66,751,785
• 10 Day Avg. Volume: 699,109
• 30 Day Avg. Volume: 634,026
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.22
• Price to Cash Flow (P/CF): 1.60
• P/FCF Ratio: 1.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.00
• Price Target Upside: 135.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Rayonier Advanced Materials' stock score reflects a mixed outlook. The company's financial performance shows stability in balance sheet and strong cash flow generation, but profitability remains a concern. Technical indicators signal a bearish trend, while valuation metrics highlight challenges with a negative P/E ratio and no dividend yield. The earnings call provides optimism with significant EBITDA growth and strategic initiatives, but revenue decline and tariff impacts remain risks. Overall, the stock's moderate score considers both its operational strengths and ongoing challenges.

Rayonier Advanced Materials Business Overview & Revenue Model

Company Description

Rayonier 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 Money

Rayonier 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.

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.

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.

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
39.00M	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
23.38M	796.62M	853.00M	929.00M	1.08B
	Net Debt
-101.84M	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

• Technical Analysis Sentiment: Negative
• Last Price: 4.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 4.68 is below the 20-day moving average (MA) of 5.37, below the 50-day MA of 6.41, and below the 200-day MA of 7.33, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 40.09 is Neutral, neither overbought nor oversold. The STOCH value of 66.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RYAM.

Rayonier Advanced Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLW	58 Neutral	$405.70M	33.74	-5.11%	―	-10.55%	-203.13%
RYAM	55 Neutral	$317.74M	―	-5.75%	―	-0.79%	62.16%
MATV	52 Neutral	$258.41M	4.60	-5.41%	8.44%	-13.97%	84.07%
GROY	52 Neutral	$243.77M	―	-0.63%	―	186.18%	-125.58%
MERC	47 Neutral	$362.44M	―	-15.99%	5.54%	2.48%	65.00%
Sector *	47 Neutral	$2.43B	-3.11	-22.65%	3.59%	4.02%	-28.96%
GPRE	45 Neutral	$262.80M	―	-9.65%	―	-25.69%	18.54%

Rayonier Advanced Materials Corporate Events

Rayonier Advanced Materials Secures Green Capital for Growth

Rayonier Advanced Materials Inc. (RYAM) has secured €67 million in green capital to bolster its biomaterials strategy. This financing includes €37 million in secured term loans from French banks and a €30 million preferred equity investment from SWEN Capital Partners, granting them a 20% stake in RYAM’s new subsidiary, BioNova. The funds will support projects like a bioethanol plant, aiming to generate over $40 million in EBITDA by 2027, showcasing RYAM’s commitment to growth and sustainability.

Rayonier A.M. Optimizes Debt with New Financing Moves

Rayonier A.M. Products Inc., a subsidiary of Rayonier Advanced Materials Inc., has extended its revolving credit facility maturity to 2029, reducing the commitment from $200 million to $175 million. Additionally, the company secured $700 million in term loans to refinance existing debt, including the redemption of its 2026 senior secured notes. This financial maneuver aims to optimize their debt structure and strengthen their financial position.

Rayonier Advanced Materials Completes Key Debt Buyback

Rayonier Advanced Materials Inc. has successfully completed its cash tender offer to buy back its subsidiary’s 7.625% Senior Secured Notes due 2026, totaling $135.5 million, which represents nearly 30% of the outstanding notes. This strategic move by the global cellulose leader underscores its commitment to strengthening its financial position while continuing its operations across the U.S., Canada, and France.