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. RYAM has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
In the past year RYAM had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of -3.91%, RYAM is doing worse than 77.11% of the companies in the same industry.
RYAM's Return On Equity of -11.51% is on the low side compared to the rest of the industry. RYAM is outperformed by 77.11% of its industry peers.
RYAM's Return On Invested Capital of 3.42% is in line compared to the rest of the industry. RYAM outperforms 42.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.91% | ||
| ROE | -11.51% | ||
| ROIC | 3.42% |
ROA(3y)-0.86%
ROA(5y)-0.76%
ROE(3y)-2.43%
ROE(5y)-2.35%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RYAM has a worse Operating Margin (4.77%) than 65.06% of its industry peers.
In the last couple of years the Operating Margin of RYAM has declined.
RYAM's Gross Margin of 9.57% is on the low side compared to the rest of the industry. RYAM is outperformed by 86.75% of its industry peers.
In the last couple of years the Gross Margin of RYAM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.77% | ||
| PM (TTM) | N/A | ||
| GM | 9.57% |
OM growth 3YN/A
OM growth 5Y-42.7%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.37%
GM growth 5Y-16.92%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RYAM is destroying value.
RYAM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RYAM has more shares outstanding
Compared to 1 year ago, RYAM has an improved debt to assets ratio.
2.2 Solvency
RYAM has an Altman-Z score of 1.44. This is a bad value and indicates that RYAM is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.44, RYAM is doing worse than 66.27% of the companies in the same industry.
RYAM has a debt to FCF ratio of 8.52. This is a slightly negative value and a sign of low solvency as RYAM would need 8.52 years to pay back of all of its debts.
RYAM has a Debt to FCF ratio of 8.52. This is comparable to the rest of the industry: RYAM outperforms 55.42% of its industry peers.
RYAM has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.02, RYAM is not doing good in the industry: 69.88% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.39
WACC8.71%
2.3 Liquidity
RYAM has a Current Ratio of 1.73. This is a normal value and indicates that RYAM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.73, RYAM is doing worse than 63.86% of the companies in the same industry.
A Quick Ratio of 1.09 indicates that RYAM should not have too much problems paying its short term obligations.
RYAM has a worse Quick ratio (1.09) than 61.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
RYAM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -215.52%.
The Revenue has decreased by -5.27% in the past year.
RYAM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.43% yearly.
EPS 1Y (TTM)-215.52%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%69.23%
Revenue 1Y (TTM)-5.27%
Revenue growth 3Y6.94%
Revenue growth 5Y-3.43%
Sales Q2Q%8.77%
3.2 Future
RYAM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.04% yearly.
Based on estimates for the next years, RYAM will show a small growth in Revenue. The Revenue will grow by 2.84% on average per year.
EPS Next Y93.5%
EPS Next 2Y44.48%
EPS Next 3Y31.04%
EPS Next 5YN/A
Revenue Next Year-0.42%
Revenue Next 2Y1.88%
Revenue Next 3Y2.84%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RYAM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 33.65, which means the current valuation is very expensive for RYAM.
Based on the Price/Forward Earnings ratio, RYAM is valued a bit more expensive than 66.27% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. RYAM is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 33.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RYAM is valued cheaply inside the industry as 93.98% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, RYAM is valued cheaply inside the industry as 96.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.36 | ||
| EV/EBITDA | 5.12 |
4.3 Compensation for Growth
RYAM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as RYAM's earnings are expected to grow with 31.04% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y44.48%
EPS Next 3Y31.04%
5. Dividend
5.1 Amount
No dividends for RYAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.38
+0.3 (+4.24%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners80.56%
Inst Owner Change1.47%
Ins Owners3.49%
Ins Owner Change1.49%
Market Cap486.49M
Analysts82.86
Price Target12.75 (72.76%)
Short Float %1.53%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)119.62%
Min EPS beat(2)-53.45%
Max EPS beat(2)292.69%
EPS beat(4)2
Avg EPS beat(4)-523.3%
Min EPS beat(4)-2413.48%
Max EPS beat(4)292.69%
EPS beat(8)3
Avg EPS beat(8)-284.7%
EPS beat(12)5
Avg EPS beat(12)-189.87%
EPS beat(16)6
Avg EPS beat(16)-229.06%
Revenue beat(2)1
Avg Revenue beat(2)-1.36%
Min Revenue beat(2)-4.14%
Max Revenue beat(2)1.41%
Revenue beat(4)2
Avg Revenue beat(4)-3.34%
Min Revenue beat(4)-11.47%
Max Revenue beat(4)1.41%
Revenue beat(8)4
Avg Revenue beat(8)-2.07%
Revenue beat(12)6
Avg Revenue beat(12)-1.33%
Revenue beat(16)6
Avg Revenue beat(16)-7.17%
PT rev (1m)0%
PT rev (3m)31.58%
EPS NQ rev (1m)-7.7%
EPS NQ rev (3m)37.08%
EPS NY rev (1m)-18.52%
EPS NY rev (3m)26.16%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)2.62%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 33.65 | ||
| P/S | 0.3 | ||
| P/FCF | 5.36 | ||
| P/OCF | 2.4 | ||
| P/B | 0.66 | ||
| P/tB | 0.68 | ||
| EV/EBITDA | 5.12 |
EPS(TTM)-1.83
EYN/A
EPS(NY)0.22
Fwd EY2.97%
FCF(TTM)1.38
FCFY18.65%
OCF(TTM)3.08
OCFY41.7%
SpS24.73
BVpS11.12
TBVpS10.93
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.91% | ||
| ROE | -11.51% | ||
| ROCE | 4.33% | ||
| ROIC | 3.42% | ||
| ROICexc | 3.7% | ||
| ROICexgc | 3.73% | ||
| OM | 4.77% | ||
| PM (TTM) | N/A | ||
| GM | 9.57% | ||
| FCFM | 5.57% |
ROA(3y)-0.86%
ROA(5y)-0.76%
ROE(3y)-2.43%
ROE(5y)-2.35%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-42.11%
ROICexc growth 3YN/A
ROICexc growth 5Y-41.95%
OM growth 3YN/A
OM growth 5Y-42.7%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.37%
GM growth 5Y-16.92%
F-Score5
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 8.52 | ||
| Debt/EBITDA | 3.47 | ||
| Cap/Depr | 81.33% | ||
| Cap/Sales | 6.88% | ||
| Interest Coverage | 1.08 | ||
| Cash Conversion | 94.09% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.44 |
F-Score5
WACC8.71%
ROIC/WACC0.39
Cap/Depr(3y)87.57%
Cap/Depr(5y)76.15%
Cap/Sales(3y)7.53%
Cap/Sales(5y)7.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-215.52%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%69.23%
EPS Next Y93.5%
EPS Next 2Y44.48%
EPS Next 3Y31.04%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.27%
Revenue growth 3Y6.94%
Revenue growth 5Y-3.43%
Sales Q2Q%8.77%
Revenue Next Year-0.42%
Revenue Next 2Y1.88%
Revenue Next 3Y2.84%
Revenue Next 5YN/A
EBIT growth 1Y512.05%
EBIT growth 3YN/A
EBIT growth 5Y-44.67%
EBIT Next Year2469.45%
EBIT Next 3Y216.74%
EBIT Next 5YN/A
FCF growth 1Y179.1%
FCF growth 3Y-43.34%
FCF growth 5Y-40.78%
OCF growth 1Y501.97%
OCF growth 3Y3.06%
OCF growth 5Y-11.21%