RAYONIER ADVANCED MATERIALS (RYAM) Stock Fundamental Analysis
NYSE:RYAM - New York Stock Exchange, Inc. - US75508B1044 - Common Stock - Currency: USD
RYAM gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. Both the profitability and financial health of RYAM have multiple concerns. RYAM is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year RYAM has reported negative net income.
RYAM had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: RYAM reported negative net income in multiple years.
Each year in the past 5 years RYAM had a positive operating cash flow.
1.2 Ratios
RYAM has a worse Return On Assets (-3.27%) than 71.76% of its industry peers.
RYAM's Return On Equity of -10.05% is on the low side compared to the rest of the industry. RYAM is outperformed by 70.59% of its industry peers.
RYAM has a Return On Invested Capital of 2.43%. This is in the lower half of the industry: RYAM underperforms 68.24% of its industry peers.
RYAM had an Average Return On Invested Capital over the past 3 years of 1.78%. This is significantly below the industry average of 6.83%.
The last Return On Invested Capital (2.43%) for RYAM is above the 3 year average (1.78%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.27% | ||
| ROE | -10.05% | ||
| ROIC | 2.43% |
ROA(3y)-2.37%
ROA(5y)-0.88%
ROE(3y)-6.96%
ROE(5y)-2.53%
ROIC(3y)1.78%
ROIC(5y)N/A
1.3 Margins
RYAM's Operating Margin of 3.29% is on the low side compared to the rest of the industry. RYAM is outperformed by 69.41% of its industry peers.
RYAM's Gross Margin of 9.56% is on the low side compared to the rest of the industry. RYAM is outperformed by 82.35% of its industry peers.
In the last couple of years the Gross Margin of RYAM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.29% | ||
| PM (TTM) | N/A | ||
| GM | 9.56% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y24.16%
GM growth 5Y22.12%
2. Health
2.1 Basic Checks
RYAM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
RYAM has more shares outstanding than it did 1 year ago.
RYAM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RYAM has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.25, we must say that RYAM is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.25, RYAM is not doing good in the industry: 72.94% of the companies in the same industry are doing better.
The Debt to FCF ratio of RYAM is 6.18, which is on the high side as it means it would take RYAM, 6.18 years of fcf income to pay off all of its debts.
RYAM has a Debt to FCF ratio of 6.18. This is in the better half of the industry: RYAM outperforms 72.94% of its industry peers.
RYAM has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.03, RYAM is doing worse than 69.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 1.25 |
ROIC/WACC0.21
WACC11.61%
2.3 Liquidity
A Current Ratio of 1.41 indicates that RYAM should not have too much problems paying its short term obligations.
RYAM's Current ratio of 1.41 is on the low side compared to the rest of the industry. RYAM is outperformed by 71.76% of its industry peers.
A Quick Ratio of 0.89 indicates that RYAM may have some problems paying its short term obligations.
RYAM's Quick ratio of 0.89 is on the low side compared to the rest of the industry. RYAM is outperformed by 72.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
RYAM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 79.61%, which is quite impressive.
The Revenue has been growing slightly by 2.20% in the past year.
Measured over the past years, RYAM shows a small growth in Revenue. The Revenue has been growing by 2.64% on average per year.
EPS 1Y (TTM)79.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-2350%
Revenue 1Y (TTM)2.2%
Revenue growth 3Y5.02%
Revenue growth 5Y2.64%
Sales Q2Q%-8.25%
3.2 Future
The Earnings Per Share is expected to grow by 145.20% on average over the next years. This is a very strong growth
RYAM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.76% yearly.
EPS Next Y-981.2%
EPS Next 2Y145.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-4.59%
Revenue Next 2Y-0.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for RYAM. In the last year negative earnings were reported.
RYAM is valuated rather expensively with a Price/Forward Earnings ratio of 20.79.
The rest of the industry has a similar Price/Forward Earnings ratio as RYAM.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.52, RYAM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RYAM indicates a rather cheap valuation: RYAM is cheaper than 92.94% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RYAM is valued cheaply inside the industry as 97.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.34 | ||
| EV/EBITDA | 4.69 |
4.3 Compensation for Growth
A more expensive valuation may be justified as RYAM's earnings are expected to grow with 145.20% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y145.2%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RYAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.17
+0.05 (+1.21%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners77.4%
Inst Owner Change0%
Ins Owners4.7%
Ins Owner Change15.15%
Market Cap278.43M
Analysts82.86
Price Target6.63 (58.99%)
Short Float %1.92%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-376.66%
Min EPS beat(2)-800.79%
Max EPS beat(2)47.48%
EPS beat(4)2
Avg EPS beat(4)-128.52%
Min EPS beat(4)-800.79%
Max EPS beat(4)292.69%
EPS beat(8)3
Avg EPS beat(8)-372.95%
EPS beat(12)5
Avg EPS beat(12)-230.28%
EPS beat(16)6
Avg EPS beat(16)-278.02%
Revenue beat(2)0
Avg Revenue beat(2)-5.93%
Min Revenue beat(2)-11.06%
Max Revenue beat(2)-0.8%
Revenue beat(4)1
Avg Revenue beat(4)-3.65%
Min Revenue beat(4)-11.06%
Max Revenue beat(4)1.41%
Revenue beat(8)2
Avg Revenue beat(8)-5.35%
Revenue beat(12)6
Avg Revenue beat(12)-1.56%
Revenue beat(16)6
Avg Revenue beat(16)-4.28%
PT rev (1m)0%
PT rev (3m)-40.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-268.43%
EPS NY rev (1m)-367.66%
EPS NY rev (3m)-1160%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.79 | ||
| P/S | 0.17 | ||
| P/FCF | 2.34 | ||
| P/OCF | 1.2 | ||
| P/B | 0.4 | ||
| P/tB | 0.41 | ||
| EV/EBITDA | 4.69 |
EPS(TTM)-0.52
EYN/A
EPS(NY)0.2
Fwd EY4.81%
FCF(TTM)1.78
FCFY42.76%
OCF(TTM)3.47
OCFY83.31%
SpS23.94
BVpS10.31
TBVpS10.18
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.27% | ||
| ROE | -10.05% | ||
| ROCE | 3.07% | ||
| ROIC | 2.43% | ||
| ROICexc | 2.63% | ||
| ROICexgc | 2.64% | ||
| OM | 3.29% | ||
| PM (TTM) | N/A | ||
| GM | 9.56% | ||
| FCFM | 7.45% |
ROA(3y)-2.37%
ROA(5y)-0.88%
ROE(3y)-6.96%
ROE(5y)-2.53%
ROIC(3y)1.78%
ROIC(5y)N/A
ROICexc(3y)1.92%
ROICexc(5y)N/A
ROICexgc(3y)1.93%
ROICexgc(5y)N/A
ROCE(3y)2.25%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y24.16%
GM growth 5Y22.12%
F-Score7
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 6.18 | ||
| Debt/EBITDA | 3.77 | ||
| Cap/Depr | 83.54% | ||
| Cap/Sales | 7.06% | ||
| Interest Coverage | 0.85 | ||
| Cash Conversion | 123.54% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 1.25 |
F-Score7
WACC11.61%
ROIC/WACC0.21
Cap/Depr(3y)90.86%
Cap/Depr(5y)78.47%
Cap/Sales(3y)7.48%
Cap/Sales(5y)6.99%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)79.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-2350%
EPS Next Y-981.2%
EPS Next 2Y145.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.2%
Revenue growth 3Y5.02%
Revenue growth 5Y2.64%
Sales Q2Q%-8.25%
Revenue Next Year-4.59%
Revenue Next 2Y-0.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y866.78%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year448.99%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y303.62%
FCF growth 3Y-11.5%
FCF growth 5YN/A
OCF growth 1Y61.42%
OCF growth 3Y-4.42%
OCF growth 5Y37.19%