Rayonier Inc.
Rayonier Inc. Fundamental Analysis
Rayonier Inc. (RYN) shows moderate financial fundamentals with a PE ratio of 6.82, profit margin of 68.60%, and ROE of 15.36%. The company generates $0.7B in annual revenue with weak year-over-year growth of -61.64%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -3.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RYN's fundamental strength across five key dimensions:
Efficiency Score
WeakRYN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRYN trades at attractive valuation levels.
Growth Score
WeakRYN faces weak or negative growth trends.
Financial Health Score
ExcellentRYN maintains a strong and stable balance sheet.
Profitability Score
ExcellentRYN achieves industry-leading margins.
Key Financial Metrics
Is RYN Expensive or Cheap?
P/E Ratio
RYN trades at 6.82 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RYN's PEG of 0.25 indicates potential undervaluation.
Price to Book
The market values Rayonier Inc. at 0.60 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.50 times EBITDA. This is generally considered low.
How Well Does RYN Make Money?
Net Profit Margin
For every $100 in sales, Rayonier Inc. keeps $68.60 as profit after all expenses.
Operating Margin
Core operations generate 5.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.36 in profit for every $100 of shareholder equity.
ROA
Rayonier Inc. generates $6.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rayonier Inc. generates strong operating cash flow of $262.28M, reflecting robust business health.
Free Cash Flow
Rayonier Inc. generates strong free cash flow of $204.16M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.32 in free cash annually.
FCF Yield
RYN converts 6.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.82
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.39
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.005
vs 25 benchmark
How RYN Stacks Against Its Sector Peers
| Metric | RYN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.82 | 23.12 | Better (Cheaper) |
| ROE | 15.36% | 658.00% | Weak |
| Net Margin | 68.60% | 1957.00% | Weak |
| Debt/Equity | 0.39 | -17.00 (disorted) | Distorted |
| Current Ratio | 3.49 | 23.46 | Strong Liquidity |
| ROA | 6.01% | -761.00% (disorted) | Weak |
RYN outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rayonier Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-51.22%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
1006.54%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
8.74%
Industry Style: Income, Inflation Hedge, REIT
Growing