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Rayonier Advanced Materials (RYAM)
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Rayonier Advanced Materials (RYAM) AI Stock Analysis

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RYAM

Rayonier Advanced Materials

(NYSE:RYAM)

Rating:50Neutral
Price Target:
$5.50
▲(1.48% Upside)
Rayonier Advanced Materials faces significant financial challenges, with declining revenues and profitability being the most critical issues. Despite some positive technical indicators and strategic initiatives for future growth, the current valuation and financial health remain concerning. The company's proactive steps in addressing trade issues and strategic investments offer potential long-term benefits, but near-term risks are substantial.

Rayonier Advanced Materials (RYAM) vs. SPDR S&P 500 ETF (SPY)

Rayonier Advanced Materials Business Overview & Revenue Model

Company DescriptionRayonier Advanced Materials Inc. manufactures and sells cellulose specialty products in the United States, China, Canada, Japan, Europe, Latin America, other Asian countries, and internationally. The company operates through High Purity Cellulose, Paperboard, and High-Yield Pulp segments. Its products include cellulose specialties, which are natural polymers that are used as raw materials to manufacture a range of consumer-oriented products, such as liquid crystal displays, impact-resistant plastics, thickeners for food products, pharmaceuticals, cosmetics, cigarette filters, high-tenacity rayon yarn for tires and industrial hoses, food casings, paints, and lacquers. The company also offers commodity products, such as commodity viscose pulp used in woven applications, including rayon textiles for clothing and other fabrics, as well as in non-woven applications comprising baby wipes, cosmetic and personal wipes, industrial wipes, and mattress ticking; and absorbent materials consisting of fluff fibers that are used as an absorbent medium in disposable baby diapers, feminine hygiene products, incontinence pads, convalescent bed pads, industrial towels and wipes, and non-woven fabrics. In addition, it provides paperboards for packaging, printing documents, brochures, promotional materials, paperback books or catalog covers, file folders, tags, and tickets; and high-yield pulps to produce paperboard and packaging products, printing and writing papers, and various other paper products. The company was founded in 1926 and is headquartered in Jacksonville, Florida.
How the Company Makes MoneyRayonier Advanced Materials generates revenue through the production and sale of cellulose specialties and other wood-based materials. The company's primary revenue streams include the sale of cellulose acetate, which is used in products such as cigarette filters and photographic films, as well as absorbent materials used in hygiene products. RYAM also earns income from specialty chemicals used in pharmaceuticals and food applications. Significant partnerships with major industrial clients and continuous investment in research and development enable the company to enhance product offerings and expand its market reach, contributing to its overall earnings. Additionally, the trend toward renewable and sustainable materials presents ongoing growth opportunities for RYAM as industries increasingly seek eco-friendly alternatives.

Rayonier Advanced Materials Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant future growth potential through strategic investments and operational recoveries. However, it also detailed current financial challenges, including reduced EBITDA guidance and negative free cash flow. While the long-term outlook is promising, near-term financial performance is under pressure.
Q2-2025 Updates
Positive Updates
Future EBITDA Growth
RYAM anticipates nearly doubling EBITDA over the next two years, projecting a normalized core EBITDA run rate of approximately $308 million by the end of 2027.
Operational Recovery and Strategic Investments
Operational disruptions and environmental charges that impacted EBITDA by $18 million and $12 million respectively, have been addressed. Strategic growth investments are expected to expand revenue and margins significantly.
Biomaterials Initiative
RYAM's biomaterials strategy, with projects like the Tartas bioethanol plant, is expected to generate $8-10 million annually with a high return on investment.
Tariff and Trade Improvements
Tariff-related disruptions are largely resolved, with potential tailwinds from current U.S. tariffs on EU and Brazilian imports enhancing competitive positioning.
Liquidity and Financial Position
RYAM maintains strong liquidity with approximately $202 million, including $71 million cash on hand, and is well below covenant thresholds.
Negative Updates
EBITDA Guidance Reduction
2025 EBITDA guidance was lowered from $215-235 million to $150-160 million due to $59 million in headwinds, including $21 million from tariff-related issues.
Revenue Decline and Operational Loss
Q2 2025 revenue was $340 million, down $79 million year-over-year, with an operating loss of $1 million.
Foreign Exchange and Market Challenges
RYAM experienced $8 million in foreign exchange losses and softness in the paperboard and high-yield pulp segments.
Negative Free Cash Flow
Year-to-date adjusted free cash flow was negative $52 million, with a revised full-year guidance of negative $10 million to $25 million.
Company Guidance
During the RYAM Second Quarter 2025 Earnings Conference Call, the company revised its full-year 2025 EBITDA guidance to a range of $150 million to $160 million, down from the initial guidance of $215 million to $235 million. This adjustment reflects approximately $59 million in EBITDA headwinds, attributed to nonrecurring challenges such as $21 million from tariff-related uncertainties, $8 million from foreign exchange losses, $18 million from operational disruptions, and $12 million in noncash environmental charges. The company anticipates 2025 to be its trough year, with expectations to nearly double its EBITDA over the next two years, supported by recovery from these issues, cost-saving initiatives, and strategic growth investments. RYAM plans to divest noncore paperboard and high-yield pulp segments, projecting a normalized core EBITDA run-rate of approximately $308 million by 2027, further increasing to about $338 million with the Altamaha Green Energy project in 2028.

Rayonier Advanced Materials Financial Statement Overview

Summary
Rayonier Advanced Materials is facing financial challenges with declining revenues, negative profitability, and cash flow constraints. The company has a negative net profit margin and declining revenue growth, indicating operational inefficiencies. Despite some improvement in leverage, the overall financial health remains weak.
Income Statement
45
Neutral
Rayonier Advanced Materials has faced declining revenue and profitability. The TTM data shows a negative net profit margin of -4.34% and a gross profit margin of 9.56%, indicating challenges in maintaining profitability. Revenue growth has been negative, with a decline of 4.94% in the TTM period. The EBIT and EBITDA margins are also low, reflecting operational inefficiencies.
Balance Sheet
50
Neutral
The company's balance sheet reveals a moderate debt-to-equity ratio of 0.042 in the TTM period, which is an improvement from previous years, indicating better leverage management. However, the return on equity remains negative at -9.61%, suggesting that the company is not generating sufficient returns on its equity base. The equity ratio is relatively stable, showing a reasonable proportion of equity financing.
Cash Flow
40
Negative
Cash flow analysis indicates a significant decline in free cash flow growth by 58.60% in the TTM period, highlighting potential liquidity issues. The operating cash flow to net income ratio is 0.57, suggesting that operating cash flows are not fully covering net income losses. The free cash flow to net income ratio is 0.67, indicating some ability to generate cash relative to net losses.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.52B1.63B1.64B1.72B1.41B1.74B
Gross Profit128.51M165.58M88.15M123.00M75.00M138.00M
EBITDA78.66M173.69M81.32M172.33M121.82M92.99M
Net Income-443.82M-39.00M-101.83M-25.00M-48.00M1.00M
Balance Sheet
Total Assets1.75B2.13B2.18B2.35B2.44B2.53B
Cash, Cash Equivalents and Short-Term Investments70.68M125.22M75.77M152.00M253.00M94.00M
Total Debt775.41M729.82M796.62M853.00M929.00M1.08B
Total Liabilities1.40B1.41B1.44B1.52B1.63B1.83B
Stockholders Equity342.32M713.88M746.45M829.00M814.00M695.00M
Cash Flow
Free Cash Flow26.80M95.67M8.60M-69.00M137.00M47.00M
Operating Cash Flow114.19M203.61M136.27M69.00M232.00M124.00M
Investing Cash Flow-124.90M-108.00M-127.28M-94.00M86.00M-78.00M
Financing Cash Flow-40.46M-42.48M-86.95M-73.00M-156.00M-19.00M

Rayonier Advanced Materials Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.42
Price Trends
50DMA
4.31
Positive
100DMA
4.26
Positive
200DMA
5.92
Negative
Market Momentum
MACD
0.33
Negative
RSI
68.85
Neutral
STOCH
82.61
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RYAM, the sentiment is Positive. The current price of 5.42 is above the 20-day moving average (MA) of 4.64, above the 50-day MA of 4.31, and below the 200-day MA of 5.92, indicating a neutral trend. The MACD of 0.33 indicates Negative momentum. The RSI at 68.85 is Neutral, neither overbought nor oversold. The STOCH value of 82.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$552.45M7.279.85%3.11%1.31%796.76%
61
Neutral
$10.31B6.160.76%2.94%3.30%-36.34%
54
Neutral
$171.27M11.43-13.48%6.14%-51.14%-165.98%
50
Neutral
$599.95M-6.51%2.60%-1506.69%
50
Neutral
$363.14M-81.36%-4.90%-458.80%
45
Neutral
$653.12M-14.11%10.32%0.20%-292.54%
42
Neutral
$88.38M-25.50%-15.84%-605.38%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RYAM
Rayonier Advanced Materials
5.42
-1.93
-26.26%
FF
Futurefuel
3.91
-1.91
-32.82%
LXU
Lsb Industries
8.22
0.46
5.93%
TROX
TRONOX
4.12
-8.99
-68.57%
ASIX
AdvanSix
20.58
-8.44
-29.08%
ORGN
Origin Materials
0.59
-0.74
-55.64%

Rayonier Advanced Materials Corporate Events

Legal ProceedingsRegulatory Filings and Compliance
Rayonier Files Trade Petitions Against Brazil and Norway
Negative
Aug 12, 2025

On August 12, 2025, Rayonier Advanced Materials Inc., in collaboration with the United Steel Workers, filed antidumping and countervailing duty petitions with the U.S. Department of Commerce and the U.S. International Trade Commission against Brazil and Norway. The petitions claim that these countries are selling High-Purity Dissolving Pulp in the U.S. at unfair prices, harming the domestic industry. The petitions highlight significant dumping margins and potential subsidies, aiming to protect U.S. producers and workers from unfair trade practices. If the investigations confirm these allegations, duties will be imposed to counteract the unfair practices, with preliminary determinations expected soon.

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.Date of analysis: Aug 23, 2025