NYSE:RYN

Stock Analysis Report

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Executive Summary

Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand. More Details


Snowflake Analysis

Unattractive dividend payer and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RYN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: RYN's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

RYN

1.4%

US REITs

-2.5%

US Market


1 Year Return

30.2%

RYN

-6.2%

US REITs

34.1%

US Market

Return vs Industry: RYN exceeded the US REITs industry which returned -6.2% over the past year.

Return vs Market: RYN underperformed the US Market which returned 34.1% over the past year.


Shareholder returns

RYNIndustryMarket
7 Day0.9%1.4%-2.5%
30 Day8.3%4.6%0.1%
90 Day23.1%4.9%4.5%
1 Year35.8%30.2%-1.8%-6.2%37.1%34.1%
3 Year13.6%1.9%41.4%24.3%58.0%47.9%
5 Year80.5%50.4%57.0%25.4%131.9%106.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

3.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RYN ($34.97) is trading below our estimate of fair value ($35.55)

Significantly Below Fair Value: RYN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RYN is poor value based on its PE Ratio (126.2x) compared to the US REITs industry average (43.4x).

PE vs Market: RYN is poor value based on its PE Ratio (126.2x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: RYN is poor value based on its PEG Ratio (11.7x)


Price to Book Ratio

PB vs Industry: RYN is overvalued based on its PB Ratio (3.3x) compared to the US REITs industry average (1.6x).


Next Steps

Future Growth

How is Rayonier forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RYN's forecast earnings growth (10.8% per year) is above the savings rate (2%).

Earnings vs Market: RYN's earnings (10.8% per year) are forecast to grow slower than the US market (20.4% per year).

High Growth Earnings: RYN's earnings are forecast to grow, but not significantly.

Revenue vs Market: RYN's revenue is expected to decline over the next 3 years (-3.4% per year).

High Growth Revenue: RYN's revenue is forecast to decline over the next 3 years (-3.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RYN's Return on Equity is forecast to be low in 3 years time (5.7%).


Next Steps

Past Performance

How has Rayonier performed over the past 5 years?

-17.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RYN has a large one-off loss of $32.2M impacting its December 31 2020 financial results.

Growing Profit Margin: RYN's current net profit margins (4.3%) are lower than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: RYN's earnings have declined by 17.2% per year over the past 5 years.

Accelerating Growth: RYN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RYN had negative earnings growth (-37.4%) over the past year, making it difficult to compare to the REITs industry average (-5.6%).


Return on Equity

High ROE: RYN's Return on Equity (1.5%) is considered low.


Next Steps

Financial Health

How is Rayonier's financial position?


Financial Position Analysis

Short Term Liabilities: RYN's short term assets ($170.6M) exceed its short term liabilities ($91.1M).

Long Term Liabilities: RYN's short term assets ($170.6M) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: RYN's debt to equity ratio (71.5%) is considered high.

Reducing Debt: RYN's debt to equity ratio has increased from 62.4% to 71.5% over the past 5 years.

Debt Coverage: RYN's debt is not well covered by operating cash flow (14.3%).

Interest Coverage: RYN's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Rayonier current dividend yield, its reliability and sustainability?

3.12%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: RYN's dividend (3.09%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: RYN's dividend (3.09%) is low compared to the top 25% of dividend payers in the US market (3.75%).


Stability and Growth of Payments

Stable Dividend: RYN's dividend payments have been volatile in the past 10 years.

Growing Dividend: RYN's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.7%), RYN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RYN's dividends in 3 years are not forecast to be well covered by earnings (254.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.2yrs

Average management tenure


CEO

Dave Nunes (58 yo)

6.67yrs

Tenure

US$4,683,002

Compensation

Mr. David L. Nunes, also known as Dave, has been Chief Executive Officer, President and Director at Rayonier Inc. since June 30, 2014. Previously, Mr. Nunes served as the Chief Operating Officer at Rayonie...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD4.68M) is about average for companies of similar size in the US market ($USD6.21M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Nunes
President6.67yrsUS$4.68m0.23%
$ 11.0m
Mark McHugh
Senior VP & CFO6.17yrsUS$1.85m0.035%
$ 1.7m
Mark Bridwell
VP, General Counsel & Corporate Secretary6.67yrsUS$951.09k0.033%
$ 1.6m
Christopher Corr
Senior Vice President of Real Estate Development3.08yrsUS$843.24k0.038%
$ 1.8m
Douglas Long
Senior Vice President of Forest Resources5.17yrsUS$1.58m0.032%
$ 1.5m
Shelby Pyatt
Vice President of Human Resources & Information Technology6.58yrsUS$433.37k0.023%
$ 1.1m
April Tice
VP of Financial Services & Corporate Controller4.25yrsno data0.0043%
$ 203.1k

6.2yrs

Average Tenure

49yo

Average Age

Experienced Management: RYN's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Nunes
President6.67yrsUS$4.68m0.23%
$ 11.0m
Dod Fraser
Independent Chairman0.92yrUS$186.49k0.017%
$ 805.2k
Scott Jones
Independent Director6.67yrsUS$167.49k0.031%
$ 1.5m
Meridee Moore
Independent Director0.083yrno data0.036%
$ 1.7m
Keith Bass
Independent Director3.17yrsUS$170.99k0.0082%
$ 390.5k
V. Martin
Independent Director13.5yrsUS$168.49k0.027%
$ 1.3m
Andrew Wiltshire
Independent Director5.75yrsUS$168.49k0.034%
$ 1.6m
Matthew Rivers
Independent Director0.083yrno datano data
Ann Nelson
Independent Director0.75yrno data0.011%
$ 501.5k

3.2yrs

Average Tenure

60.5yo

Average Age

Experienced Board: RYN's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RYN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Rayonier Inc.
  • Ticker: RYN
  • Exchange: NYSE
  • Founded: 1926
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: US$4.767b
  • Shares outstanding: 137.67m
  • Website: https://www.rayonier.com

Number of Employees


Location

  • Rayonier Inc.
  • Wildlight
  • 1 Rayonier Way
  • Yulee
  • Florida
  • 32097
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RYNNYSE (New York Stock Exchange)YesCommon SharesUSUSDFeb 1994
RA6DB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 1994

Biography

Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand. As of December 31, 202...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/24 23:29
End of Day Share Price2021/02/24 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.