RAYONIER ADVANCED MATERIALS (RYAM) Stock Fundamental Analysis
NYSE:RYAM - New York Stock Exchange, Inc. - US75508B1044 - Common Stock - Currency: USD
Taking everything into account, RYAM scores 2 out of 10 in our fundamental rating. 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
RYAM had negative earnings in the past year.
RYAM had a positive operating cash flow in the past year.
In multiple years RYAM reported negative net income over the last 5 years.
In the past 5 years RYAM always reported a positive cash flow from operatings.
1.2 Ratios
RYAM's Return On Assets of -3.27% is on the low side compared to the rest of the industry. RYAM is outperformed by 67.06% of its industry peers.
RYAM has a worse Return On Equity (-10.05%) than 65.88% 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 65.88% of its industry peers.
RYAM had an Average Return On Invested Capital over the past 3 years of 1.78%. This is below the industry average of 6.66%.
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
RYAM's Operating Margin of 3.29% is on the low side compared to the rest of the industry. RYAM is outperformed by 67.06% of its industry peers.
RYAM has a Gross Margin of 9.56%. This is amonst the worse of the industry: RYAM underperforms 81.18% 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.
RYAM has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.26, we must say that RYAM is in the distress zone and has some risk of bankruptcy.
RYAM has a Altman-Z score of 1.26. This is in the lower half of the industry: RYAM underperforms 69.41% of its industry peers.
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 74.12% of the companies in the same industry.
RYAM has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
RYAM has a worse Debt to Equity ratio (1.03) than 68.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 1.26 |
ROIC/WACC0.21
WACC11.66%
2.3 Liquidity
A Current Ratio of 1.41 indicates that RYAM should not have too much problems paying its short term obligations.
RYAM has a Current ratio of 1.41. This is in the lower half of the industry: RYAM underperforms 74.12% of its industry peers.
RYAM has a Quick Ratio of 1.41. This is a bad value and indicates that RYAM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.89, RYAM is not doing good in the industry: 71.76% of the companies in the same industry are doing better.
| 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 45.71%, which is quite impressive.
Looking at the last year, RYAM shows a decrease in Revenue. The Revenue has decreased by -0.79% in the last year.
RYAM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.64% yearly.
EPS 1Y (TTM)45.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-326.32%
Revenue 1Y (TTM)-0.79%
Revenue growth 3Y5.02%
Revenue growth 5Y2.64%
Sales Q2Q%-18.27%
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
Based on estimates for the next years, RYAM will show a decrease in Revenue. The Revenue will decrease by -0.76% on average per year.
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.
A Price/Forward Earnings ratio of 22.68 indicates a rather expensive valuation of RYAM.
The rest of the industry has a similar Price/Forward Earnings ratio as RYAM.
The average S&P500 Price/Forward Earnings ratio is at 34.04. RYAM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 22.68 |
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 cheaper than 98.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.55 | ||
| EV/EBITDA | 4.85 |
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
No dividends for RYAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.55
+0.18 (+4.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners77.04%
Inst Owner Change-0.19%
Ins Owners4.7%
Ins Owner Change15.15%
Market Cap303.80M
Analysts82.86
Price Target6.63 (45.71%)
Short Float %1.44%
Short Ratio1.82
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)-35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-268.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-1160%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-5.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 22.68 | ||
| P/S | 0.19 | ||
| P/FCF | 2.55 | ||
| P/OCF | 1.31 | ||
| P/B | 0.44 | ||
| P/tB | 0.45 | ||
| EV/EBITDA | 4.85 |
EPS(TTM)-1.14
EYN/A
EPS(NY)0.2
Fwd EY4.41%
FCF(TTM)1.78
FCFY39.19%
OCF(TTM)3.47
OCFY76.35%
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 | 1.26 |
F-Score7
WACC11.66%
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)45.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-326.32%
EPS Next Y-981.2%
EPS Next 2Y145.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.79%
Revenue growth 3Y5.02%
Revenue growth 5Y2.64%
Sales Q2Q%-18.27%
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 Year445.73%
EBIT Next 3Y107.33%
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%