Even though Rayonier Advanced Materials (NYSE:RYAM) has lost US$52m market cap in last 7 days, shareholders are still up 89% over 5 years

It's been a soft week for Rayonier Advanced Materials Inc. (NYSE:RYAM) shares, which are down 13%. But at least the stock is up over the last five years. However we are not very impressed because the share price is only up 89%, less than the market return of 92%.

While the stock has fallen 13% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.

View our latest analysis for Rayonier Advanced Materials

Given that Rayonier Advanced Materials didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

In the last 5 years Rayonier Advanced Materials saw its revenue grow at 0.1% per year. Put simply, that growth rate fails to impress. The modest growth is probably broadly reflected in the share price, which is up 14%, per year over 5 years. We'd be looking for the underlying business to grow revenue a bit faster.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

If you are thinking of buying or selling Rayonier Advanced Materials stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that Rayonier Advanced Materials shareholders have received a total shareholder return of 28% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 14% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 1 warning sign for Rayonier Advanced Materials that you should be aware of.

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Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com