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 3 out of 10. The analysis compared the fundamentals against 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
RYAM had negative earnings in the past year.
In the past year RYAM had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of -1.82%, RYAM is doing worse than 70.59% of the companies in the same industry.
RYAM has a worse Return On Equity (-5.43%) than 65.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.67%, RYAM is in line with its industry, outperforming 41.18% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RYAM is significantly below the industry average of 7.05%.
The last Return On Invested Capital (3.67%) for RYAM is above the 3 year average (1.78%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.82% | ||
| ROE | -5.43% | ||
| ROIC | 3.67% |
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
Looking at the Operating Margin, with a value of 4.93%, RYAM is doing worse than 64.71% of the companies in the same industry.
The Gross Margin of RYAM (10.16%) is worse than 81.18% of its industry peers.
RYAM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.93% | ||
| PM (TTM) | N/A | ||
| GM | 10.16% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
Compared to 1 year ago, RYAM has an improved debt to assets ratio.
2.2 Solvency
RYAM has an Altman-Z score of 1.35. This is a bad value and indicates that RYAM is not financially healthy and even has some risk of bankruptcy.
RYAM has a Altman-Z score of 1.35. This is in the lower half of the industry: RYAM underperforms 62.35% of its industry peers.
The Debt to FCF ratio of RYAM is 7.63, which is on the high side as it means it would take RYAM, 7.63 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.63, RYAM is doing good in the industry, outperforming 64.71% of the companies in the same industry.
RYAM has a Debt/Equity ratio of 0.99. This is a neutral value indicating RYAM is somewhat dependend on debt financing.
The Debt to Equity ratio of RYAM (0.99) is worse than 67.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 7.63 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.32
WACC11.55%
2.3 Liquidity
A Current Ratio of 1.50 indicates that RYAM should not have too much problems paying its short term obligations.
The Current ratio of RYAM (1.50) is worse than 63.53% of its industry peers.
A Quick Ratio of 0.98 indicates that RYAM may have some problems paying its short term obligations.
RYAM has a Quick ratio (0.98) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
RYAM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 98.01%, which is quite impressive.
RYAM shows a decrease in Revenue. In the last year, the revenue decreased by -0.80%.
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)98.01%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%94.68%
Revenue 1Y (TTM)-0.8%
Revenue growth 3Y5.02%
Revenue growth 5Y2.64%
Sales Q2Q%0%
3.2 Future
RYAM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 243.39% yearly.
RYAM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.15% yearly.
EPS Next Y202%
EPS Next 2Y243.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.12%
Revenue Next 2Y2.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same 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.
With a Price/Forward Earnings ratio of 80.20, RYAM can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, RYAM is valued a bit more expensive than 67.06% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.32. RYAM is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 80.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RYAM is valued cheaper than 92.94% of the companies in the same industry.
96.47% of the companies in the same industry are more expensive than RYAM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.85 | ||
| EV/EBITDA | 4.13 |
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 243.39% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y243.39%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RYAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.09
-0.31 (-7.05%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners80.56%
Inst Owner Change0.04%
Ins Owners3.49%
Ins Owner Change12.9%
Market Cap273.01M
Analysts82.86
Price Target11.22 (174.33%)
Short Float %1.45%
Short Ratio1.95
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)-2.98%
Min EPS beat(2)-53.45%
Max EPS beat(2)47.48%
EPS beat(4)3
Avg EPS beat(4)91.94%
Min EPS beat(4)-53.45%
Max EPS beat(4)292.69%
EPS beat(8)3
Avg EPS beat(8)-281.58%
EPS beat(12)6
Avg EPS beat(12)-162.98%
EPS beat(16)6
Avg EPS beat(16)-240.92%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-4.14%
Max Revenue beat(2)-0.8%
Revenue beat(4)1
Avg Revenue beat(4)-3.75%
Min Revenue beat(4)-11.47%
Max Revenue beat(4)1.41%
Revenue beat(8)3
Avg Revenue beat(8)-3.72%
Revenue beat(12)6
Avg Revenue beat(12)-1.1%
Revenue beat(16)6
Avg Revenue beat(16)-6.08%
PT rev (1m)-12%
PT rev (3m)-12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-347.63%
EPS NY rev (1m)-76.74%
EPS NY rev (3m)-61.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.13%
Revenue NY rev (1m)-4.17%
Revenue NY rev (3m)-4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 80.2 | ||
| P/S | 0.17 | ||
| P/FCF | 2.85 | ||
| P/OCF | 1.34 | ||
| P/B | 0.38 | ||
| P/tB | 0.39 | ||
| EV/EBITDA | 4.13 |
EPS(TTM)-0.05
EYN/A
EPS(NY)0.05
Fwd EY1.25%
FCF(TTM)1.43
FCFY35.04%
OCF(TTM)3.05
OCFY74.58%
SpS24.42
BVpS10.69
TBVpS10.54
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.82% | ||
| ROE | -5.43% | ||
| ROCE | 4.65% | ||
| ROIC | 3.67% | ||
| ROICexc | 3.96% | ||
| ROICexgc | 3.98% | ||
| OM | 4.93% | ||
| PM (TTM) | N/A | ||
| GM | 10.16% | ||
| FCFM | 5.87% |
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 Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 7.63 | ||
| Debt/EBITDA | 3.25 | ||
| Cap/Depr | 78.69% | ||
| Cap/Sales | 6.62% | ||
| Interest Coverage | 0.85 | ||
| Cash Conversion | 93.6% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1.35 |
F-Score7
WACC11.55%
ROIC/WACC0.32
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)98.01%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%94.68%
EPS Next Y202%
EPS Next 2Y243.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.8%
Revenue growth 3Y5.02%
Revenue growth 5Y2.64%
Sales Q2Q%0%
Revenue Next Year-0.12%
Revenue Next 2Y2.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y920%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year593.51%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1011.88%
FCF growth 3Y-11.5%
FCF growth 5YN/A
OCF growth 1Y49.41%
OCF growth 3Y-4.42%
OCF growth 5Y37.19%