Rayonier Advanced Materials Inc.

DB:RYQ Stock Report

Market Cap: €548.8m

Rayonier Advanced Materials Valuation

Is RYQ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RYQ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RYQ (€8.15) is trading below our estimate of fair value (€57.94)

Significantly Below Fair Value: RYQ is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RYQ?

Key metric: As RYQ is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for RYQ. This is calculated by dividing RYQ's market cap by their current revenue.
What is RYQ's PS Ratio?
PS Ratio0.4x
SalesUS$1.63b
Market CapUS$580.72m

Price to Sales Ratio vs Peers

How does RYQ's PS Ratio compare to its peers?

The above table shows the PS ratio for RYQ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.6x
ACT AlzChem Group
1x7.3%€578.0m
UZU Uzin Utz
0.5x4.3%€251.2m
2HRA H&R GmbH KGaA
0.09x3.0%€124.7m
NTG Nabaltec
0.6x5.0%€122.3m
RYQ Rayonier Advanced Materials
0.4x3.3%€580.7m

Price-To-Sales vs Peers: RYQ is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (0.6x).

Price to Sales Ratio vs Industry

How does RYQ's PS Ratio compare vs other companies in the European Chemicals Industry?

27 CompaniesPrice / SalesEstimated GrowthMarket Cap
RYQ 0.4xIndustry Avg. 1.0xNo. of Companies31PS01.22.43.64.86+
27 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: RYQ is good value based on its Price-To-Sales Ratio (0.4x) compared to the European Chemicals industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is RYQ's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RYQ PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ratio0.2x

Price-To-Sales vs Fair Ratio: RYQ is expensive based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (0.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RYQ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€8.15
€11.58
+42.1%
4.0%€12.04€11.11n/a2
Nov ’25€7.40
€8.80
+18.9%
5.3%€9.26€8.34n/a2
Oct ’25€7.65
€8.51
+11.3%
5.3%€8.96€8.06n/a2
Jul ’25€5.00
€5.19
+3.9%
9.1%€5.67€4.72n/a2
Jun ’25€5.00
€5.19
+3.9%
9.1%€5.67€4.72n/a2
May ’25€3.66
€5.19
+41.9%
9.1%€5.67€4.72n/a2
Apr ’25€4.44
€5.19
+17.0%
9.1%€5.67€4.72n/a2
Mar ’25€3.34
€5.19
+55.5%
9.1%€5.67€4.72n/a2
Feb ’25€4.04
€5.19
+28.5%
9.1%€5.67€4.72n/a2
Jan ’25€3.68
€5.19
+41.1%
9.1%€5.67€4.72n/a2
Dec ’24€3.02
€5.19
+72.0%
9.1%€5.67€4.72n/a2
Nov ’24€2.56
€5.19
+102.9%
9.1%€5.67€4.72€7.402
Aug ’24€4.30
€5.00
+16.3%
27.3%€6.36€3.64€6.202
Jul ’24€3.84
€5.19
+35.1%
22.8%€6.37€4.01€5.002
Jun ’24€3.10
€5.19
+67.4%
22.8%€6.37€4.01€5.002
May ’24€4.68
€5.19
+10.9%
22.8%€6.37€4.01€3.662
Apr ’24€5.65
€5.76
+1.9%
29.0%€7.43€4.08€4.442
Mar ’24€7.85
€5.55
-29.4%
33.3%€7.39€3.70€3.342
Feb ’24€6.45
€5.55
-14.0%
33.3%€7.39€3.70€4.042
Jan ’24€8.60
€5.33
-38.1%
59.3%€8.49€2.17€3.682
Dec ’23€7.30
€5.90
-19.2%
56.5%€9.23€2.56€3.022
Nov ’23€4.46
€4.00
-10.2%
51.9%€6.08€1.93€2.562

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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