RAYONIER INC (RYN) Stock Fundamental Analysis
NYSE:RYN - New York Stock Exchange, Inc. - US7549071030 - REIT - Currency: USD
We assign a fundamental rating of 6 out of 10 to RYN. RYN was compared to 30 industry peers in the Specialized REITs industry. RYN gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, RYN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
RYN had positive earnings in the past year.
RYN had a positive operating cash flow in the past year.
In the past 5 years RYN has always been profitable.
In the past 5 years RYN always reported a positive cash flow from operatings.
1.2 Ratios
RYN has a Return On Assets of 10.57%. This is amongst the best in the industry. RYN outperforms 100.00% of its industry peers.
RYN has a Return On Equity of 18.50%. This is amongst the best in the industry. RYN outperforms 86.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.97%, RYN belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
RYN had an Average Return On Invested Capital over the past 3 years of 6.20%. This is in line with the industry average of 5.19%.
The 3 year average ROIC (6.20%) for RYN is below the current ROIC(9.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 18.5% | ||
| ROIC | 9.97% |
ROA(3y)5.97%
ROA(5y)4.62%
ROE(3y)11.79%
ROE(5y)9.3%
ROIC(3y)6.2%
ROIC(5y)5.32%
1.3 Margins
RYN has a Profit Margin of 30.09%. This is in the better half of the industry: RYN outperforms 76.67% of its industry peers.
In the last couple of years the Profit Margin of RYN has grown nicely.
The Operating Margin of RYN (32.87%) is worse than 60.00% of its industry peers.
RYN's Operating Margin has improved in the last couple of years.
The Gross Margin of RYN (39.16%) is worse than 76.67% of its industry peers.
In the last couple of years the Gross Margin of RYN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.87% | ||
| PM (TTM) | 30.09% | ||
| GM | 39.16% |
OM growth 3Y11.53%
OM growth 5Y15.6%
PM growth 3Y27.41%
PM growth 5Y27.91%
GM growth 3Y10.25%
GM growth 5Y11.95%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RYN is still creating some value.
Compared to 1 year ago, RYN has about the same amount of shares outstanding.
RYN has more shares outstanding than it did 5 years ago.
RYN has a better debt/assets ratio than last year.
2.2 Solvency
RYN has an Altman-Z score of 2.51. This is not the best score and indicates that RYN is in the grey zone with still only limited risk for bankruptcy at the moment.
RYN's Altman-Z score of 2.51 is amongst the best of the industry. RYN outperforms 96.67% of its industry peers.
RYN has a debt to FCF ratio of 7.39. This is a slightly negative value and a sign of low solvency as RYN would need 7.39 years to pay back of all of its debts.
The Debt to FCF ratio of RYN (7.39) is better than 86.67% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that RYN is somewhat dependend on debt financing.
RYN has a better Debt to Equity ratio (0.55) than 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 7.39 | ||
| Altman-Z | 2.51 |
ROIC/WACC1.37
WACC7.25%
2.3 Liquidity
RYN has a Current Ratio of 2.71. This indicates that RYN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of RYN (2.71) is better than 90.00% of its industry peers.
A Quick Ratio of 2.60 indicates that RYN has no problem at all paying its short term obligations.
The Quick ratio of RYN (2.60) is better than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.71 | ||
| Quick Ratio | 2.6 |
3. Growth
3.1 Past
The earnings per share for RYN have decreased by -2.50% in the last year.
Measured over the past 5 years, RYN shows a small growth in Earnings Per Share. The EPS has been growing by 0.44% on average per year.
RYN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.61%.
The Revenue has been growing by 12.16% on average over the past years. This is quite good.
EPS 1Y (TTM)-2.5%
EPS 3Y-23.56%
EPS 5Y0.44%
EPS Q2Q%-140%
Revenue 1Y (TTM)12.61%
Revenue growth 3Y4.41%
Revenue growth 5Y12.16%
Sales Q2Q%-50.68%
3.2 Future
The Earnings Per Share is expected to grow by 9.59% on average over the next years. This is quite good.
Based on estimates for the next years, RYN will show a decrease in Revenue. The Revenue will decrease by -8.29% on average per year.
EPS Next Y-9.54%
EPS Next 2Y16.67%
EPS Next 3Y10.43%
EPS Next 5Y9.59%
Revenue Next Year-40.18%
Revenue Next 2Y-21.13%
Revenue Next 3Y-12.51%
Revenue Next 5Y-8.29%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 60.05, RYN can be considered very expensive at the moment.
Based on the Price/Earnings ratio, RYN is valued a bit more expensive than 60.00% of the companies in the same industry.
RYN is valuated expensively when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 37.40 indicates a quite expensive valuation of RYN.
RYN's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, RYN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.05 | ||
| Fwd PE | 37.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RYN is valued cheaper than 96.67% of the companies in the same industry.
RYN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.82 | ||
| EV/EBITDA | 8.68 |
4.3 Compensation for Growth
The decent profitability rating of RYN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)136.31
EPS Next 2Y16.67%
EPS Next 3Y10.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.68%, RYN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.91, RYN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, RYN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
5.2 History
The dividend of RYN has a limited annual growth rate of 4.39%.
RYN has paid a dividend for at least 10 years, which is a reliable track record.
RYN has decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.39%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
RYN pays out 67.37% of its income as dividend. This is not a sustainable payout ratio.
RYN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP67.37%
EPS Next 2Y16.67%
EPS Next 3Y10.43%
23.42
+0.11 (+0.47%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.68%
Inst Owner Change-0.04%
Ins Owners0.43%
Ins Owner Change10.18%
Market Cap3.65B
Analysts72
Price Target30.43 (29.93%)
Short Float %3%
Short Ratio4.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
Yearly Dividend1.35
Dividend Growth(5Y)4.39%
DP67.37%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-43.83%
Min EPS beat(2)-131.18%
Max EPS beat(2)43.53%
EPS beat(4)1
Avg EPS beat(4)-45.28%
Min EPS beat(4)-131.18%
Max EPS beat(4)43.53%
EPS beat(8)4
Avg EPS beat(8)-23.04%
EPS beat(12)6
Avg EPS beat(12)-20.16%
EPS beat(16)10
Avg EPS beat(16)49.3%
Revenue beat(2)1
Avg Revenue beat(2)94.82%
Min Revenue beat(2)-46.4%
Max Revenue beat(2)236.03%
Revenue beat(4)1
Avg Revenue beat(4)39.99%
Min Revenue beat(4)-46.4%
Max Revenue beat(4)236.03%
Revenue beat(8)1
Avg Revenue beat(8)16.67%
Revenue beat(12)3
Avg Revenue beat(12)10.94%
Revenue beat(16)6
Avg Revenue beat(16)15.23%
PT rev (1m)0%
PT rev (3m)-2.72%
EPS NQ rev (1m)-22.73%
EPS NQ rev (3m)-67.79%
EPS NY rev (1m)0%
EPS NY rev (3m)-25.32%
Revenue NQ rev (1m)4.18%
Revenue NQ rev (3m)-33.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-26.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.05 | ||
| Fwd PE | 37.4 | ||
| P/S | 3.1 | ||
| P/FCF | 25.82 | ||
| P/OCF | 15.39 | ||
| P/B | 1.91 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | 8.68 |
EPS(TTM)0.39
EY1.67%
EPS(NY)0.63
Fwd EY2.67%
FCF(TTM)0.91
FCFY3.87%
OCF(TTM)1.52
OCFY6.5%
SpS7.56
BVpS12.29
TBVpS12.29
PEG (NY)N/A
PEG (5Y)136.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 18.5% | ||
| ROCE | 12.62% | ||
| ROIC | 9.97% | ||
| ROICexc | 10.72% | ||
| ROICexgc | 10.72% | ||
| OM | 32.87% | ||
| PM (TTM) | 30.09% | ||
| GM | 39.16% | ||
| FCFM | 12% |
ROA(3y)5.97%
ROA(5y)4.62%
ROE(3y)11.79%
ROE(5y)9.3%
ROIC(3y)6.2%
ROIC(5y)5.32%
ROICexc(3y)6.74%
ROICexc(5y)5.79%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)7.85%
ROCE(5y)6.73%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y20.25%
ROICexc growth 5Y28.5%
OM growth 3Y11.53%
OM growth 5Y15.6%
PM growth 3Y27.41%
PM growth 5Y27.91%
GM growth 3Y10.25%
GM growth 5Y11.95%
F-Score8
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 7.39 | ||
| Debt/EBITDA | 2.03 | ||
| Cap/Depr | 75.55% | ||
| Cap/Sales | 8.12% | ||
| Interest Coverage | 9.76 | ||
| Cash Conversion | 46.12% | ||
| Profit Quality | 39.88% | ||
| Current Ratio | 2.71 | ||
| Quick Ratio | 2.6 | ||
| Altman-Z | 2.51 |
F-Score8
WACC7.25%
ROIC/WACC1.37
Cap/Depr(3y)165.15%
Cap/Depr(5y)142.91%
Cap/Sales(3y)25.27%
Cap/Sales(5y)21.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.5%
EPS 3Y-23.56%
EPS 5Y0.44%
EPS Q2Q%-140%
EPS Next Y-9.54%
EPS Next 2Y16.67%
EPS Next 3Y10.43%
EPS Next 5Y9.59%
Revenue 1Y (TTM)12.61%
Revenue growth 3Y4.41%
Revenue growth 5Y12.16%
Sales Q2Q%-50.68%
Revenue Next Year-40.18%
Revenue Next 2Y-21.13%
Revenue Next 3Y-12.51%
Revenue Next 5Y-8.29%
EBIT growth 1Y76.61%
EBIT growth 3Y16.45%
EBIT growth 5Y29.66%
EBIT Next Year141.12%
EBIT Next 3Y39.53%
EBIT Next 5Y20.57%
FCF growth 1Y154.58%
FCF growth 3Y31.45%
FCF growth 5Y81.84%
OCF growth 1Y-16.4%
OCF growth 3Y-6.99%
OCF growth 5Y4.07%