RAYONIER ADVANCED MATERIALS (RYAM) Stock Fundamental Analysis
NYSE:RYAM - New York Stock Exchange, Inc. - US75508B1044 - Common Stock - Currency: USD
We assign a fundamental rating of 2 out of 10 to RYAM. RYAM was compared to 85 industry peers in the Chemicals industry. RYAM may be in some trouble as it scores bad on both profitability and health. 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.
In multiple years RYAM reported negative net income over the last 5 years.
RYAM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RYAM (-3.27%) is worse than 70.59% of its industry peers.
Looking at the Return On Equity, with a value of -10.05%, RYAM is doing worse than 71.76% of the companies in the same industry.
The Return On Invested Capital of RYAM (2.43%) is worse than 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 6.86%.
The 3 year average ROIC (1.78%) for RYAM is below the current ROIC(2.43%), indicating increased profibility in the last year.
| 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
With a Operating Margin value of 3.29%, RYAM is not doing good in the industry: 69.41% of the companies in the same industry are doing better.
Looking at the Gross Margin, with a value of 9.56%, RYAM is doing worse than 82.35% of the companies in the same industry.
RYAM's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RYAM is destroying value.
The number of shares outstanding for RYAM has been increased compared to 1 year ago.
Compared to 5 years ago, RYAM has more shares outstanding
The debt/assets ratio for RYAM has been reduced compared to a year ago.
2.2 Solvency
RYAM has an Altman-Z score of 1.24. This is a bad value and indicates that RYAM is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.24, RYAM is not doing good in the industry: 69.41% of the companies in the same industry are doing better.
RYAM has a debt to FCF ratio of 6.18. This is a slightly negative value and a sign of low solvency as RYAM would need 6.18 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.18, RYAM is doing good in the industry, outperforming 71.76% of the companies in the same industry.
A Debt/Equity ratio of 1.03 is on the high side and indicates that RYAM has dependencies on debt financing.
RYAM has a Debt to Equity ratio of 1.03. This is in the lower half of the industry: RYAM underperforms 69.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 1.24 |
ROIC/WACC0.21
WACC11.49%
2.3 Liquidity
RYAM has a Current Ratio of 1.41. This is a normal value and indicates that RYAM is financially healthy and should not expect problems in meeting its short term obligations.
RYAM has a Current ratio of 1.41. This is in the lower half of the industry: RYAM underperforms 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 71.76% 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.
RYAM shows a small growth in Revenue. In the last year, the Revenue has grown by 2.20%.
RYAM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.64% yearly.
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
Based on estimates for the next years, RYAM will show a very strong growth in Earnings Per Share. The EPS will grow by 145.20% on average per year.
The Revenue is expected to grow by 0.30% on average over the next years.
EPS Next Y-131.19%
EPS Next 2Y145.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.38%
Revenue Next 2Y0.3%
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.
With a Price/Forward Earnings ratio of 19.24, RYAM is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RYAM is on the same level as its industry peers.
RYAM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.24 |
4.2 Price Multiples
RYAM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RYAM is cheaper than 92.94% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RYAM is valued cheaper than 97.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.16 | ||
| EV/EBITDA | 4.6 |
4.3 Compensation for Growth
RYAM's earnings are expected to grow with 145.20% in the coming years. This may justify a more expensive valuation.
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 |
3.86
0 (0%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners80.56%
Inst Owner Change-0.78%
Ins Owners3.49%
Ins Owner Change16.42%
Market Cap257.73M
Analysts82.86
Price Target10.2 (164.25%)
Short Float %1.47%
Short Ratio1.47
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)-9.09%
PT rev (3m)-20%
EPS NQ rev (1m)-205.27%
EPS NQ rev (3m)-248.71%
EPS NY rev (1m)-326.66%
EPS NY rev (3m)-152.71%
Revenue NQ rev (1m)-5.28%
Revenue NQ rev (3m)-10.04%
Revenue NY rev (1m)-3.26%
Revenue NY rev (3m)-7.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.24 | ||
| P/S | 0.16 | ||
| P/FCF | 2.16 | ||
| P/OCF | 1.11 | ||
| P/B | 0.37 | ||
| P/tB | 0.38 | ||
| EV/EBITDA | 4.6 |
EPS(TTM)-0.52
EYN/A
EPS(NY)0.2
Fwd EY5.2%
FCF(TTM)1.78
FCFY46.2%
OCF(TTM)3.47
OCFY90%
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 | 1.24 |
F-Score7
WACC11.49%
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-131.19%
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-3.38%
Revenue Next 2Y0.3%
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%