Rayonier Advanced Materials Inc.
Rayonier Advanced Materials Inc. Fundamental Analysis
Rayonier Advanced Materials Inc. (RYAM) shows weak financial fundamentals with a PE ratio of -1.17, profit margin of -28.23%, and ROE of -79.79%. The company generates $1.5B in annual revenue with weak year-over-year growth of -0.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -95.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RYAM's fundamental strength across five key dimensions:
Efficiency Score
WeakRYAM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRYAM trades at attractive valuation levels.
Growth Score
ModerateRYAM shows steady but slowing expansion.
Financial Health Score
ModerateRYAM shows balanced financial health with some risks.
Profitability Score
WeakRYAM struggles to sustain strong margins.
Key Financial Metrics
Is RYAM Expensive or Cheap?
P/E Ratio
RYAM trades at -1.17 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RYAM's PEG of -0.18 indicates potential undervaluation.
Price to Book
The market values Rayonier Advanced Materials Inc. at 1.43 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.72 times EBITDA. This is generally considered low.
How Well Does RYAM Make Money?
Net Profit Margin
For every $100 in sales, Rayonier Advanced Materials Inc. keeps $-28.23 as profit after all expenses.
Operating Margin
Core operations generate 0.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-79.79 in profit for every $100 of shareholder equity.
ROA
Rayonier Advanced Materials Inc. generates $-23.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rayonier Advanced Materials Inc. generates limited operating cash flow of $46.57M, signaling weaker underlying cash strength.
Free Cash Flow
Rayonier Advanced Materials Inc. generates weak or negative free cash flow of $-80.39M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.20 in free cash annually.
FCF Yield
RYAM converts -16.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-1.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.80
vs 25 benchmark
ROA
Return on assets percentage
-0.23
vs 25 benchmark
ROCE
Return on capital employed
0.003
vs 25 benchmark
How RYAM Stacks Against Its Sector Peers
| Metric | RYAM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -1.17 | 27.01 | Better (Cheaper) |
| ROE | -79.79% | 949.00% | Weak |
| Net Margin | -28.23% | -16159.00% (disorted) | Weak |
| Debt/Equity | 2.43 | 0.48 | Weak (High Leverage) |
| Current Ratio | 1.57 | 4.42 | Neutral |
| ROA | -23.13% | -6411.00% (disorted) | Weak |
RYAM outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rayonier Advanced Materials Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-23.85%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
72.78%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
301.93%
Industry Style: Cyclical, Commodity, Value
High Growth