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RYAM: New Freezer Packaging Will Drive Long-Term Upside Potential

RYAM: New Sustainable Packaging Will Drive Profitable Momentum This Year

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RYAM
AnalystConsensusTarget
Not Invested
Published 01 Jun 2025

Update shared on 17 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-23.1%
7D
-3.5%

Analysts have nudged their price target on Rayonier Advanced Materials slightly higher to approximately $9.00 per share from around the prior level, citing modestly higher long term discount rate assumptions and a marginally richer expected future price to earnings multiple, while keeping revenue growth and profit margin outlooks essentially unchanged.

What's in the News

  • President and CEO De Lyle W. Bloomquist plans to retire by the time of the 2026 Annual Meeting and will not seek re election to the Board, while remaining in his role until a successor is appointed (company announcement)
  • The company completed its long running share repurchase program initiated in February 2018, retiring about 2.57 million shares, or roughly 5% of shares outstanding, for $39.72 million in total (buyback update)
  • Rayonier Advanced Materials introduced an Enhanced Freezer Application for its Kallima folding carton board, designed for frozen food packaging, with improved cold performance, moisture resistance, and sustainability benefits (product announcement)

Valuation Changes

  • The fair value estimate has been reaffirmed at approximately $9.00 per share, reflecting no material change in the intrinsic value assessment.
  • The discount rate has risen slightly, moving from about 11.16% to roughly 11.45%, implying a modestly higher required return on equity.
  • Revenue growth has been kept essentially unchanged, remaining near 4.77% per year in the updated model.
  • Net profit margin is effectively flat, holding at around 6.75% in both the prior and updated forecasts.
  • The future P/E has increased slightly from about 7.58x to approximately 7.64x, indicating a marginally richer expected valuation multiple.

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Disclaimer

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