NYSE:RYAM

Stock Analysis Report

Rayonier Advanced Materials

Executive Summary

Rayonier Advanced Materials Inc. manufactures and sells cellulose specialty products in the United States, China, Japan, Europe, Latin America, other Asian countries, Canada, and internationally.

Snowflake

Fair value with moderate growth potential.

Rewards

Trading at 75.1% below its fair value

Earnings have grown 23.5% per year over the past 5 years

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Current net profit margin (-1.9%) is lower than last year (20.5%)

+ 1 more risk


Similar Companies

Share Price & News

How has Rayonier Advanced Materials's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RYAM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.5%

RYAM

-0.3%

US Chemicals

0.7%

US Market


1 Year Return

-73.0%

RYAM

-3.5%

US Chemicals

12.9%

US Market

Return vs Industry: RYAM underperformed the US Chemicals industry which returned -3.5% over the past year.

Return vs Market: RYAM underperformed the US Market which returned 12.9% over the past year.


Shareholder returns

RYAMIndustryMarket
7 Day-8.5%-0.3%0.7%
30 Day-7.7%5.8%4.4%
90 Day40.1%8.7%7.2%
1 Year-72.4%-73.0%11.6%-3.5%15.4%12.9%
3 Year-70.3%-71.9%44.5%17.6%49.1%39.5%
5 Year-82.6%-84.4%42.7%10.7%62.7%44.7%

Price Volatility Vs. Market

How volatile is Rayonier Advanced Materials's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rayonier Advanced Materials undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RYAM ($3.98) is trading below our estimate of fair value ($16.01)

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


Price To Earnings Ratio

PE vs Industry: RYAM is unprofitable, so we can't compare its PE Ratio to the Chemicals industry average.

PE vs Market: RYAM is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RYAM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RYAM is good value based on its PB Ratio (0.4x) compared to the US Chemicals industry average (2.2x).


Next Steps

Future Growth

How is Rayonier Advanced Materials forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

73.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RYAM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: RYAM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RYAM's is expected to become profitable in the next 3 years.

Revenue vs Market: RYAM's revenue (1.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: RYAM's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RYAM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Rayonier Advanced Materials performed over the past 5 years?

23.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RYAM has large one-off items impacting its financial results.

Growing Profit Margin: RYAM's current net profit margins (-1.9%) are lower than last year (20.5%).


Past Earnings Growth Analysis

Earnings Trend: RYAM is unprofitable, but has reduced losses over the past 5 years at a rate of 23.5% per year.

Accelerating Growth: Unable to compare RYAM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RYAM is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-20.3%).


Return on Equity

High ROE: RYAM has a negative Return on Equity (-4%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rayonier Advanced Materials's financial position?


Financial Position Analysis

Short Term Liabilities: RYAM's short term assets ($672.4M) exceeds its short term liabilities ($313.0M)

Long Term Liabilities: RYAM's short term assets (672.4M) do not cover its long term liabilities (1.6B)


Debt to Equity History and Analysis

Debt Level: RYAM's debt to equity ratio (193.2%) is considered high

Reducing Debt: RYAM had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: RYAM's debt is not well covered by operating cash flow (9%).

Interest Coverage: RYAM is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: RYAM has a high level of physical assets or inventory.

Debt Coverage by Assets: RYAM's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Rayonier Advanced Materials's current dividend yield, its reliability and sustainability?

1.26%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.6%industryaverage2.1%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate RYAM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RYAM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RYAM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RYAM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RYAM is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RYAM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Rayonier Advanced Materials's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

Paul Boynton (54yo)

5.4yrs

Tenure

US$13,815,099

Compensation

Mr. Paul G. Boynton has served as Director of The Brink’s Company since 2010. Mr. Boynton has served as the Chairman, President and Chief Executive Officer of Rayonier Advanced Materials Inc. (a global pro ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD13.82M) is above average for companies of similar size in the US market ($USD1.16M).

Compensation vs Earnings: Paul's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.4yrs

Average Tenure

55yo

Average Age

Experienced Management: RYAM's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

61yo

Average Age

Experienced Board: RYAM's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: RYAM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$363,40007 Nov 19
Paul Boynton
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares100,000
Max PriceUS$3.63

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.


Management Team

  • Michael Herman (56yo)

    Senior VP

    • Tenure: 16.2yrs
    • Compensation: US$1.38m
  • Paul Boynton (54yo)

    Chairman

    • Tenure: 5.4yrs
    • Compensation: US$13.82m
  • Frank Ruperto (53yo)

    Senior Vice President of High Purity & High Yield Cellulose Business

    • Tenure: 0.3yrs
    • Compensation: US$2.80m
  • Bill Manzer (62yo)

    Senior Vice President of Manufacturing Operations

    • Tenure: 3.4yrs
    • Compensation: US$1.30m
  • Marcus Moeltner (55yo)

    CFO & Senior VP of Finance

    • Tenure: 0.3yrs
  • Chris Black (61yo)

    Senior Vice President of Forest Products & Paper

    • Tenure: 2.8yrs
  • Jay Posze (54yo)

    Senior Vice President of Human Resources

    • Tenure: 6.7yrs
    • Compensation: US$1.05m
  • John Carr (48yo)

    Chief Accounting Officer

    • Tenure: 3.8yrs
  • Erin Byers (59yo)

    Senior Vice President of Research & Development

    • Tenure: 0.3yrs
  • Mickey Walsh

    VP of Investor Relations & Treasurer

    • Tenure: 0yrs

Board Members

  • Eddie Adair (72yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$203.95k
  • De Lyle Bloomquist (60yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$189.57k
  • Rye Palumbo (60yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$196.45k
  • James Kirsch (61yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$188.95k
  • C. Brown (67yo)

    Lead Director

    • Tenure: 5.8yrs
    • Compensation: US$212.70k
  • Paul Boynton (54yo)

    Chairman

    • Tenure: 5.4yrs
    • Compensation: US$13.82m
  • Tom Morgan (65yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$193.32k
  • Julie Dill (59yo)

    Independent Director

    • Tenure: 1.4yrs
  • Mark Gaumond (68yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$205.82k

Company Information

Rayonier Advanced Materials Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rayonier Advanced Materials Inc.
  • Ticker: RYAM
  • Exchange: NYSE
  • Founded: 1926
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$251.579m
  • Shares outstanding: 63.21m
  • Website: https://www.rayonieram.com

Number of Employees


Location

  • Rayonier Advanced Materials Inc.
  • 1301 Riverplace Boulevard
  • Suite 2300
  • Jacksonville
  • Florida
  • 32207
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RYAMNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2014
RYQDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2014

Biography

Rayonier Advanced Materials Inc. manufactures and sells cellulose specialty products in the United States, China, Japan, Europe, Latin America, other Asian countries, Canada, and internationally. The compa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 00:42
End of Day Share Price2019/11/15 00:00
Earnings2019/09/28
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.