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 29 industry peers in the Specialized REITs industry. While RYN has a great profitability rating, there are some minor concerns on its financial health. 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.
In the past year RYN had a positive cash flow from operations.
In the past 5 years RYN has always been profitable.
RYN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RYN has a better Return On Assets (10.34%) than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 20.30%, RYN belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
RYN has a better Return On Invested Capital (10.39%) than 92.86% of its industry peers.
RYN had an Average Return On Invested Capital over the past 3 years of 6.19%. This is in line with the industry average of 5.33%.
The 3 year average ROIC (6.19%) for RYN is below the current ROIC(10.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.34% | ||
| ROE | 20.3% | ||
| ROIC | 10.39% |
ROA(3y)5.97%
ROA(5y)4.62%
ROE(3y)11.79%
ROE(5y)9.3%
ROIC(3y)6.19%
ROIC(5y)5.32%
1.3 Margins
RYN has a better Profit Margin (28.43%) than 75.00% of its industry peers.
In the last couple of years the Profit Margin of RYN has grown nicely.
With a Operating Margin value of 32.14%, RYN is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of RYN has grown nicely.
RYN has a worse Gross Margin (37.86%) than 78.57% of its industry peers.
In the last couple of years the Gross Margin of RYN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.14% | ||
| PM (TTM) | 28.43% | ||
| GM | 37.86% |
OM growth 3Y11.47%
OM growth 5Y15.57%
PM growth 3Y27.41%
PM growth 5Y27.91%
GM growth 3Y10.25%
GM growth 5Y11.95%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RYN is creating some value.
RYN has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for RYN has been increased compared to 5 years ago.
Compared to 1 year ago, RYN has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of RYN is 6.98, which is on the high side as it means it would take RYN, 6.98 years of fcf income to pay off all of its debts.
RYN's Debt to FCF ratio of 6.98 is amongst the best of the industry. RYN outperforms 85.71% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that RYN is somewhat dependend on debt financing.
RYN has a better Debt to Equity ratio (0.62) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 6.98 | ||
| Altman-Z | N/A |
ROIC/WACC1.3
WACC7.97%
2.3 Liquidity
A Current Ratio of 1.12 indicates that RYN should not have too much problems paying its short term obligations.
RYN's Current ratio of 1.12 is fine compared to the rest of the industry. RYN outperforms 71.43% of its industry peers.
A Quick Ratio of 1.12 indicates that RYN should not have too much problems paying its short term obligations.
The Quick ratio of RYN (1.12) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.78% over the past year.
The Earnings Per Share has been growing slightly by 0.44% on average over the past years.
The Revenue has grown by 19.50% in the past year. This is quite good.
Measured over the past years, RYN shows a quite strong growth in Revenue. The Revenue has been growing by 12.16% on average per year.
EPS 1Y (TTM)27.78%
EPS 3Y-23.56%
EPS 5Y0.44%
EPS Q2Q%58.82%
Revenue 1Y (TTM)19.5%
Revenue growth 3Y4.41%
Revenue growth 5Y12.16%
Sales Q2Q%222.51%
3.2 Future
Based on estimates for the next years, RYN will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.02% on average per year.
Based on estimates for the next years, RYN will show a small growth in Revenue. The Revenue will grow by 2.56% on average per year.
EPS Next Y20.76%
EPS Next 2Y22.73%
EPS Next 3Y16.85%
EPS Next 5Y13.02%
Revenue Next Year-13.09%
Revenue Next 2Y-4.34%
Revenue Next 3Y-1.96%
Revenue Next 5Y2.56%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 59.11, the valuation of RYN can be described as expensive.
Based on the Price/Earnings ratio, RYN is valued a bit more expensive than 64.29% of the companies in the same industry.
RYN's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.75.
Based on the Price/Forward Earnings ratio of 48.95, the valuation of RYN can be described as expensive.
Based on the Price/Forward Earnings ratio, RYN is valued a bit more expensive than 60.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RYN to the average of the S&P500 Index (22.44), we can say RYN is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.11 | ||
| Fwd PE | 48.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RYN is valued cheaply inside the industry as 96.43% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, RYN is valued a bit cheaper than 67.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.48 | ||
| EV/EBITDA | 8.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RYN has a very decent profitability rating, which may justify a higher PE ratio.
RYN's earnings are expected to grow with 16.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.85
PEG (5Y)134.17
EPS Next 2Y22.73%
EPS Next 3Y16.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.11%, RYN is a good candidate for dividend investing.
RYN's Dividend Yield is comparable with the industry average which is at 4.49.
RYN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
5.2 History
The dividend of RYN has a limited annual growth rate of 4.39%.
RYN has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of RYN decreased in the last 3 years.
Dividend Growth(5Y)4.39%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
RYN pays out 55.86% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of RYN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP55.86%
EPS Next 2Y22.73%
EPS Next 3Y16.85%
27.19
+0.7 (+2.64%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.95%
Inst Owner Change2.51%
Ins Owners0.4%
Ins Owner Change-1.68%
Market Cap4.05B
Analysts70
Price Target32.03 (17.8%)
Short Float %2.64%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
Yearly Dividend1.35
Dividend Growth(5Y)4.39%
DP55.86%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.82%
Min EPS beat(2)-7.9%
Max EPS beat(2)43.53%
EPS beat(4)2
Avg EPS beat(4)-7.3%
Min EPS beat(4)-85.57%
Max EPS beat(4)43.53%
EPS beat(8)4
Avg EPS beat(8)-18.02%
EPS beat(12)7
Avg EPS beat(12)-7.41%
EPS beat(16)10
Avg EPS beat(16)56.86%
Revenue beat(2)1
Avg Revenue beat(2)113.8%
Min Revenue beat(2)-8.44%
Max Revenue beat(2)236.03%
Revenue beat(4)1
Avg Revenue beat(4)48.07%
Min Revenue beat(4)-21.26%
Max Revenue beat(4)236.03%
Revenue beat(8)1
Avg Revenue beat(8)20.21%
Revenue beat(12)3
Avg Revenue beat(12)14.47%
Revenue beat(16)6
Avg Revenue beat(16)17.77%
PT rev (1m)-0.63%
PT rev (3m)-7.1%
EPS NQ rev (1m)-36.35%
EPS NQ rev (3m)-36.35%
EPS NY rev (1m)4.27%
EPS NY rev (3m)2.8%
Revenue NQ rev (1m)-27.7%
Revenue NQ rev (3m)-27.56%
Revenue NY rev (1m)-5.1%
Revenue NY rev (3m)-5.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.11 | ||
| Fwd PE | 48.95 | ||
| P/S | 3.21 | ||
| P/FCF | 25.48 | ||
| P/OCF | 15.49 | ||
| P/B | 2.29 | ||
| P/tB | 2.29 | ||
| EV/EBITDA | 8.86 |
EPS(TTM)0.46
EY1.69%
EPS(NY)0.56
Fwd EY2.04%
FCF(TTM)1.07
FCFY3.92%
OCF(TTM)1.76
OCFY6.46%
SpS8.48
BVpS11.87
TBVpS11.87
PEG (NY)2.85
PEG (5Y)134.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.34% | ||
| ROE | 20.3% | ||
| ROCE | 13.16% | ||
| ROIC | 10.39% | ||
| ROICexc | 11.61% | ||
| ROICexgc | 11.61% | ||
| OM | 32.14% | ||
| PM (TTM) | 28.43% | ||
| GM | 37.86% | ||
| FCFM | 12.59% |
ROA(3y)5.97%
ROA(5y)4.62%
ROE(3y)11.79%
ROE(5y)9.3%
ROIC(3y)6.19%
ROIC(5y)5.32%
ROICexc(3y)6.73%
ROICexc(5y)5.79%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)7.84%
ROCE(5y)6.73%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y20.19%
ROICexc growth 5Y28.46%
OM growth 3Y11.47%
OM growth 5Y15.57%
PM growth 3Y27.41%
PM growth 5Y27.91%
GM growth 3Y10.25%
GM growth 5Y11.95%
F-Score7
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 6.98 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 73.18% | ||
| Cap/Sales | 8.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 47.9% | ||
| Profit Quality | 44.28% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | N/A |
F-Score7
WACC7.97%
ROIC/WACC1.3
Cap/Depr(3y)165.18%
Cap/Depr(5y)142.92%
Cap/Sales(3y)25.28%
Cap/Sales(5y)21.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.78%
EPS 3Y-23.56%
EPS 5Y0.44%
EPS Q2Q%58.82%
EPS Next Y20.76%
EPS Next 2Y22.73%
EPS Next 3Y16.85%
EPS Next 5Y13.02%
Revenue 1Y (TTM)19.5%
Revenue growth 3Y4.41%
Revenue growth 5Y12.16%
Sales Q2Q%222.51%
Revenue Next Year-13.09%
Revenue Next 2Y-4.34%
Revenue Next 3Y-1.96%
Revenue Next 5Y2.56%
EBIT growth 1Y87.64%
EBIT growth 3Y16.39%
EBIT growth 5Y29.62%
EBIT Next Year210.27%
EBIT Next 3Y52.44%
EBIT Next 5Y30.86%
FCF growth 1Y-21.62%
FCF growth 3Y31.43%
FCF growth 5Y81.83%
OCF growth 1Y-12.33%
OCF growth 3Y-6.99%
OCF growth 5Y4.07%