Rayonier Advanced Materials (RYAM) AI Stock Analysis

• Market Cap: $480.43M
• Dividend Yield: N/A
• Average Volume (3M): 527.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.62
• Revenue Growth: -9.75%
• EPS Growth: -386.63%
• Country: US
• Employees: 2,350
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -0.07
• Shares Outstanding: 67,005,590
• 10 Day Avg. Volume: 696,472
• 30 Day Avg. Volume: 527,037
• PEG Ratio: 0.22
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 5.67
• Enterprise Value/Market Cap: 2.98
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 12.06
• Enterprise Value/Ebitda: 9.47
• 1Y Price Target: $9.00
• Price Target Upside: 25.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.35
• Revenue Forecast (FY): $1.50B

• Rating: 56 Neutral
• Price Target: $9.00 ▲(25.17% Upside)
• Action: Downgraded Date: 01/27/26
• Date: Action: Downgraded 01/27/26

The score is held back primarily by weak financial performance (declining revenue, significant losses, and negative free cash flow) and unattractive/indeterminate valuation signals from a negative P/E. These are partially offset by strong technical momentum and a mixed earnings-call outlook where cost actions and segment stabilization help, but guidance was cut.

Positive Factors

Cellulose Specialties margins

Cellulose Specialties' normalized EBITDA margin (32%) and $66M adjusted EBITDA indicate a high-margin specialty portfolio. Sustained margin levels support earnings resilience, predictable cash flow, and pricing leverage across diverse end markets, stabilizing overall profitability over months.

Operating cash flow resilience

Positive operating cash flow with a 1.56 coverage ratio shows the core business can generate cash despite accounting losses. That operating cash resiliency supports working-capital management, funds near-term operations or restructuring, and reduces sustained reliance on external financing.

Cost reduction initiatives

A $30M program for 2026 plus an expected $20M incremental EBITDA in 2027 create structural margin improvement. Realized savings and targeted capital projects can lower breakevens, improve free cash flow conversion, and materially raise the odds of multi-year EBITDA recovery.

Negative Factors

Declining revenue & weak margins

Declining revenue alongside very low gross margins and a deeply negative net margin indicate persistent profitability pressure. Such structural margin weakness limits reinvestment capacity, compresses returns, and leaves the business vulnerable to cyclical demand and input-cost shifts over the medium term.

Negative free cash flow

Year-to-date adjusted free cash flow of negative $83M reflects working-capital timing and cash deficits. Sustained negative FCF constrains discretionary capex and R&D, increases dependency on external funding, and raises execution risk for multi-year turnaround targets unless conversion improves.

Loss of Altamaha project

Withdrawing from the Altamaha Green Energy project removes an anticipated growth EBITDA source that had been cited as material. Loss of this project reduces future upside, tightens the growth pipeline, and increases reliance on core segments to deliver the company's multi-year EBITDA targets.

Rayonier Advanced Materials Business Overview & Revenue Model

Company Description

Rayonier 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 Money

Rayonier 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 Financial Statement Overview

Summary

Weak profitability and fundamentals: revenue is declining (-3.17% TTM) with a very low gross margin (8.06%) and deeply negative net margin (-28.22%). Balance sheet leverage is moderate (debt-to-equity 0.79) but profitability is poor (ROE -60.48%). Cash flow is mixed with positive operating cash flow coverage (1.56) but negative free cash flow.

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.

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.

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.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 7.19
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RYAM, the sentiment is Neutral. The current price of 7.19 is below the 20-day moving average (MA) of 7.97, below the 50-day MA of 7.31, and above the 200-day MA of 5.85, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 37.25 is Neutral, neither overbought nor oversold. The STOCH value of 6.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RYAM.

Rayonier Advanced Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASIX	64 Neutral	$481.29M	10.00	6.20%	3.81%	-5.05%	35.01%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LXU	58 Neutral	$723.76M	-949.06	-0.13%	―	12.49%	95.48%
RYAM	56 Neutral	$480.43M	-1.15	-78.11%	―	-9.75%	-386.63%
FF	51 Neutral	$193.17M	-5.59	-18.09%	7.12%	-49.82%	-195.74%
TROX	51 Neutral	$1.14B	-2.41	-29.57%	8.27%	-7.81%	-334.15%
ORGN	40 Underperform	$22.99M	-0.31	-21.13%	―	-28.47%	16.83%

Rayonier Advanced Materials Corporate Events

Rayonier Advanced Materials Withdraws From Altamaha Energy Project

On January 26, 2026, Rayonier Advanced Materials Inc. announced that, following a comprehensive review, it has decided not to move forward with its participation in the Altamaha Green Energy project, signaling a strategic pullback from this specific initiative. The company stated it will continue to assess its project portfolio under a disciplined capital allocation framework, indicating an ongoing focus on prioritizing investments that align more tightly with its strategic and financial objectives, with potential implications for how it deploys capital across future growth and sustainability-related opportunities.

The most recent analyst rating on (RYAM) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Rayonier Advanced Materials stock, see the RYAM Stock Forecast page.

Rayonier Advanced Materials consolidates leadership after SVP departure

On January 11, 2026, Rayonier Advanced Materials Inc. announced the separation of Joshua Hicks, its Senior Vice President of High Purity Cellulose, effective the same day, marking a leadership change within its key high-purity cellulose segment. Following his departure, the High Purity Cellulose organization will report directly to President and Chief Executive Officer Scott Sutton, signaling a consolidation of oversight at the top executive level that may streamline decision-making and operational alignment within this strategic business unit.

The most recent analyst rating on (RYAM) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Rayonier Advanced Materials stock, see the RYAM Stock Forecast page.

Rayonier Advanced Materials CEO Announces Retirement Plan

On December 10, 2025, Rayonier Advanced Materials announced that its President and CEO, De Lyle W. Bloomquist, will retire by the company’s 2026 Annual Meeting of Stockholders in May. The Board has initiated a search for his successor, engaging a leading executive search firm, reflecting their commitment to governance and long-term value creation. Bloomquist’s leadership over the past four years has been pivotal in advancing the company’s BioFuture vision and positioning it for sustainable growth.

The most recent analyst rating on (RYAM) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Rayonier Advanced Materials stock, see the RYAM Stock Forecast page.