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Rayonier Advanced Materials (RYAM)
:RYAM
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Rayonier Advanced Materials
(NYSE:RYAM)
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Rating:49Neutral
Price Target:
$6.50
▼(-9.60% Downside)
Rayonier Advanced Materials faces significant financial challenges, with declining revenues and negative profitability weighing heavily on its score. Technical analysis shows mixed signals, with bearish momentum and potential overbought conditions. Valuation is poor due to negative earnings and lack of dividend yield. Despite some positive strategic initiatives, the overall outlook remains cautious.
Positive Factors
Strategic Initiatives
The cost reduction initiatives are expected to enhance profitability by reducing operational expenses, contributing to long-term financial stability.
Biomaterial Projects
Progress in biomaterial projects like Altamaha Green Energy indicates potential for high ROI, diversifying revenue streams and enhancing future earnings.
Trade Developments
Favorable trade conditions without tariffs in key markets support competitive positioning and could lead to increased market share and revenue stability.
Negative Factors
Revenue Decline
Declining revenue reflects challenges in maintaining market demand and pricing power, which may hinder growth and profitability in the medium term.
Negative Free Cash Flow
Negative free cash flow indicates cash management issues, potentially affecting the ability to invest in growth opportunities and meet financial obligations.
Lowered EBITDA Guidance
Reduced EBITDA guidance suggests operational difficulties and market challenges, impacting profitability expectations and investor confidence.
Rayonier Advanced Materials (RYAM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$418.11M
Dividend YieldN/A
Average Volume (3M)546.39K
Price to Earnings (P/E)―
Beta (1Y)1.60
Revenue Growth-9.75%
EPS Growth-386.63%
CountryUS
Employees2,350
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)-0.07
Shares Outstanding67,005,590
10 Day Avg. Volume396,639
30 Day Avg. Volume546,393
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)0.76
Price to Sales (P/S)0.33
P/FCF Ratio5.67
Enterprise Value/Market Cap2.91
Enterprise Value/Revenue0.83
Enterprise Value/Gross Profit10.27
Enterprise Value/Ebitda8.06
Forecast
1Y Price Target
$9.00Price Target Upside25.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-6.08
Revenue Forecast (FY)$1.42B
Rayonier Advanced Materials Business Overview & Revenue Model
Company DescriptionRayonier Advanced Materials (RYAM) is a global leader in the production of high-performance cellulose fibers and specialty chemicals. Operating primarily in the forest products sector, the company focuses on transforming renewable resources into innovative products that serve a diverse range of industries, including textiles, food, pharmaceuticals, and personal care. RYAM's core products include cellulose specialties, which are used in applications such as food and pharmaceutical additives, and high-purity cellulose for the production of regenerated cellulose fibers.
How the Company Makes MoneyRayonier Advanced Materials generates revenue through the sale of its cellulose specialties and high-purity cellulose products. The company operates on a business model that focuses on both volume sales and pricing strategies tailored to the demands of various industries. Key revenue streams include contracts with major customers in the textile and chemical industries, where consistent product quality and supply reliability are critical. Additionally, RYAM benefits from strategic partnerships with manufacturers and distributors that enhance its market reach. Factors contributing to its earnings include fluctuations in demand for cellulose-based products, innovations in product applications, and the company’s ability to manage production costs effectively.
Rayonier Advanced Materials Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 03, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment with significant progress in strategic initiatives, cost reduction efforts, and operational stability, but faced challenges in market conditions leading to revised guidance and negative cash flow.Q3-2025 Updates
Positive Updates
Cellulose Specialties Performance
Cellulose Specialties business performed near expectations and returned to normalized EBITDA margins in Q3, with adjusted EBITDA of $66 million and margins increasing to 32% from 28%.
Biomaterial Projects Progress
Progress on biomaterial projects includes the Altamaha Green Energy project and the BioNova Fernandina Beach project, expected to generate significant returns with high ROI on equity.
Cost Reduction Initiatives
Successfully implemented $30 million cost reduction program for 2026, with additional $20 million of EBITDA benefit expected for 2027 from strategic capital projects.
Positive Operational Developments
Operational challenges at Tartas are stabilizing, with key technical roles filled, and Jesup and Fernandina performing to expectations.
Trade Developments Favorable
No tariffs on Cellulose Specialties and dissolving wood pulp products into China, U.S., and EU. The U.S. ITC's determination on antidumping cases is a significant step toward fair trade conditions.
Negative Updates
Lowered EBITDA Guidance
Full year adjusted EBITDA guidance was lowered to $135 million to $140 million from the prior $150 million to $160 million range due to market weakness and proactive downtime.
Paperboard and High-Yield Pulp Challenges
Operational challenges led to an EBITDA loss of about $14 million in Temiscaming. Lower paperboard prices and volumes, increased competition, and economic shutdowns adversely affected performance.
Fluff Business Headwinds
Increased competition in non-China markets due to China’s 10% tariffs on U.S. fluff exports, impacting market dynamics.
Negative Free Cash Flow
Year-to-date adjusted free cash flow was negative $83 million, driven by working capital timing expected to improve in Q4.
Revenue Decline
Quarterly revenue was $353 million, down $48 million year-over-year, with adjusted EBITDA decreasing by $9 million compared to Q3 2024.
Company Guidance
During the RYAM Third Quarter 2025 Earnings Conference Call, several key metrics and guidance updates were provided. The full-year adjusted EBITDA guidance was revised to $135 million to $140 million, down from the previous $150 million to $160 million range, due to strategic downtime of noncore paperboard and high-yield pulp production, offset by FX tailwinds. The company is targeting to increase its EBITDA to over $300 million by the end of 2027. The Cellulose Specialties segment achieved normalized EBITDA margins in Q3, and the company plans a significant pricing reset in 2026 to recapture lost inflation value, with a target of a 1% higher rate of increase on pricing than inflation. Additionally, ongoing efforts at the Temiscaming site aim to restore profitability, including a $10 million cost reduction initiative, paperboard line improvements, and new product development, with a potential EBITDA turnaround of $14 million. The biomaterial projects, notably the Altamaha Green Energy project, are expected to contribute significant EBITDA, with RYAM's share from the AGE project alone projected to exceed $50 million annually.Rayonier Advanced Materials Financial Statement Overview
Summary
Rayonier Advanced Materials is experiencing financial difficulties, with declining revenues and significant net losses. While there is some operational cash flow strength, the overall financial health is concerning due to negative profitability and high leverage.Income Statement
Rayonier Advanced Materials shows declining revenue with a negative growth rate of -3.17% TTM. The gross profit margin is low at 8.06%, and the net profit margin is significantly negative at -28.22%, indicating substantial losses. EBIT and EBITDA margins are also weak, reflecting operational challenges.45
Neutral
Balance Sheet
The company has a moderate debt-to-equity ratio of 0.79 TTM, showing some leverage but not excessively high. However, the return on equity is negative at -60.48%, indicating poor profitability. The equity ratio is not provided, but the overall balance sheet suggests financial instability.50
Neutral
Cash Flow
Operating cash flow is positive, with a coverage ratio of 1.56 TTM, indicating some ability to cover net income losses. However, free cash flow is negative, though it has shown significant growth. The free cash flow to net income ratio is positive, suggesting some cash flow resilience despite net losses.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.47B | 1.63B | 1.64B | 1.72B | 1.41B | 1.34B |
| Gross Profit | 118.64M | 165.58M | 88.15M | 123.08M | 74.72M | 63.43M |
| EBITDA | 151.13M | 173.69M | 81.32M | 176.94M | 121.82M | 102.72M |
| Net Income | -415.39M | -39.00M | -101.83M | -14.92M | 66.41M | 555.00K |
Balance Sheet | ||||||
| Total Assets | 1.80B | 2.13B | 2.18B | 2.35B | 2.45B | 2.53B |
| Cash, Cash Equivalents and Short-Term Investments | 77.03M | 125.22M | 75.77M | 151.80M | 291.82M | 93.65M |
| Total Debt | 822.24M | 729.82M | 777.46M | 853.13M | 928.71M | 1.08B |
| Total Liabilities | 1.44B | 1.41B | 1.44B | 1.52B | 1.63B | 1.83B |
| Stockholders Equity | 338.21M | 713.88M | 746.45M | 829.31M | 814.34M | 695.09M |
Cash Flow | ||||||
| Free Cash Flow | -80.38M | 95.67M | 8.60M | -69.41M | 140.01M | 62.60M |
| Operating Cash Flow | 46.57M | 203.61M | 136.27M | 68.81M | 233.22M | 124.47M |
| Investing Cash Flow | -125.45M | -107.94M | -127.28M | -94.17M | 85.39M | -77.82M |
| Financing Cash Flow | 14.94M | -42.48M | -86.95M | -73.11M | -156.66M | -19.39M |
Rayonier Advanced Materials Technical Analysis
Negative
7.19
Price Trends
6.62
Negative
6.08
Negative
5.33
Positive
Market Momentum
-0.07
Negative
38.96
Neutral
30.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RYAM, the sentiment is Negative. The current price of 7.19 is above the 20-day moving average (MA) of 6.13, above the 50-day MA of 6.62, and above the 200-day MA of 5.33, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 38.96 is Neutral, neither overbought nor oversold. The STOCH value of 30.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RYAM.
Rayonier Advanced Materials Risk Analysis
Rayonier Advanced Materials disclosed 29 risk factors in its most recent earnings report. Rayonier Advanced Materials reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rayonier Advanced Materials Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $448.63M | 8.69 | 6.62% | 3.93% | -5.05% | 35.01% | |
58 Neutral | $587.07M | -769.81 | -0.13% | ― | 12.49% | 95.48% | |
57 Neutral | $608.84M | ― | -18.65% | 7.49% | -7.81% | -334.15% | |
54 Neutral | $151.56M | ― | -18.09% | 7.12% | -49.82% | -195.74% | |
49 Neutral | $418.11M | ― | -78.11% | ― | -9.75% | -386.63% | |
42 Neutral | $66.61M | ― | -21.13% | ― | -28.47% | 16.83% |
* Basic Materials Sector Average
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Rayonier Advanced Materials Corporate Events
Executive/Board Changes
Rayonier Advanced Materials Announces New Chief Accounting Officer
Neutral
Sep 19, 2025
Rayonier Advanced Materials Inc. announced the resignation of Gabriela Garcia, the Chief Accounting Officer and Vice President, Corporate Controller, effective October 10, 2025. Her resignation was not due to any disagreements with the company. Concurrently, Jared Rollins has been appointed to fill her position, bringing extensive experience from his roles in tax reporting and financial planning within the company and previous positions at Deloitte & Touche LLP and Wells Real Estate Funds.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.