Rayonier (RYN) AI Stock Analysis

• Market Cap: $3.35B
• Dividend Yield: 12.74%
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.42
• Revenue Growth: 8.88%
• EPS Growth: 131.78%
• Country: US
• Employees: 424
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Specialty
• EPS (TTM): 0.32
• Shares Outstanding: 153,899,830
• 10 Day Avg. Volume: 1,735,636
• 30 Day Avg. Volume: 1,443,053
• PEG Ratio: 0.11
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 3.08
• P/FCF Ratio: 24.42
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 3.96
• Enterprise Value/Gross Profit: 9.25
• Enterprise Value/Ebitda: 8.13
• 1Y Price Target: $27.50
• Price Target Upside: 26.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.44
• Revenue Forecast (FY): $471.92M

• Rating: 72 Outperform
• Price Target: $24.50 ▲(12.49% Upside)

Rayonier's strong valuation and strategic merger plans are key strengths, offering potential for growth and income. However, technical indicators suggest caution, and financial performance shows areas of concern, particularly in cash flow and revenue growth.

Positive Factors

Strategic Merger

The merger with PotlatchDeltic will create a premier land resources company, enhancing growth opportunities and delivering $40 million in synergies.

Strong Real Estate Segment

The significant increase in the Real Estate segment's EBITDA reflects effective land management and development strategies, bolstering long-term profitability.

Improved Southern Timber Segment

Increased harvest volumes and improved market conditions in the Southern Timber segment enhance Rayonier's revenue stability and growth prospects.

Negative Factors

Declining Free Cash Flow

The sharp decline in free cash flow growth poses risks to Rayonier's financial flexibility and ability to fund future investments or return capital to shareholders.

Pacific Northwest Timber Challenges

Challenges in the Pacific Northwest Timber segment, due to reduced harvest volumes, may impact Rayonier's overall profitability and growth in this region.

Pulpwood Pricing Pressure

The decline in pulpwood pricing, driven by weaker demand, could pressure Rayonier's margins and revenue from this product line.

Rayonier Business Overview & Revenue Model

Company Description

Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand. As of December 31, 2020, Rayonier owned or leased under long-term agreements approximately 2.7 million acres of timberlands located in the U.S. South (1.73 million acres), U.S. Pacific Northwest (507,000 acres) and New Zealand (417,000 acres). The Company also acts as the managing member in a private equity timber fund business with three funds comprising approximately 141,000 acres. On a look-through basis, the Company's ownership in the timber fund business equates to approximately 17,000 acres.

How the Company Makes Money

Rayonier generates revenue primarily through the sale of timber and the management of its forest resources, which includes harvesting and selling logs to lumber mills and other manufacturers. The Forest Resources segment is a significant revenue driver, capitalizing on long-term contracts and market demand for timber products. Additionally, the Real Estate segment contributes to earnings through land sales and leasing activities, often developing land for residential and commercial projects. The company also benefits from partnerships with other firms in the timber and real estate sectors, enhancing its market reach and operational efficiency. Furthermore, Rayonier's strategic focus on sustainability and responsible land management positions it favorably in an increasingly eco-conscious market, potentially driving additional revenue through green initiatives and certifications.

Rayonier Financial Statement Overview

Summary

Rayonier demonstrates strong profitability with high net profit and EBIT margins, and a stable balance sheet with manageable leverage. However, the decline in revenue growth and significant drop in free cash flow growth are potential risks.

Income Statement

Rayonier's income statement shows strong profitability with a high net profit margin of 68.53% for TTM, indicating efficient cost management. However, the revenue growth rate has declined by 1.58% in the TTM period, which is a concern. The gross profit margin of 41.22% and EBIT margin of 36.16% are robust, reflecting solid operational performance.

Balance Sheet

The balance sheet is stable with a moderate debt-to-equity ratio of 0.46, indicating manageable leverage. The return on equity is impressive at 39.17%, showcasing effective use of equity capital. However, the equity ratio is not available, which limits a comprehensive assessment of asset financing.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth by 87.30% in the TTM period, which is concerning. The operating cash flow to net income ratio of 0.88 suggests adequate cash generation relative to net income. The free cash flow to net income ratio of 0.36 indicates some cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.09B	1.26B	1.06B	909.07M	1.11B	859.15M
Gross Profit	468.52M	478.16M	294.36M	220.79M	313.48M	146.72M
EBITDA	533.39M	553.20M	390.19M	315.73M	425.78M	240.56M
Net Income	775.61M	359.15M	173.49M	107.08M	152.55M	37.08M
Balance Sheet
Total Assets	3.49B	3.47B	3.65B	3.79B	3.64B	3.73B
Cash, Cash Equivalents and Short-Term Investments	919.58M	323.16M	207.70M	114.25M	362.17M	84.51M
Total Debt	1.06B	1.19B	1.45B	1.60B	1.46B	1.46B
Total Liabilities	1.17B	1.64B	1.69B	1.80B	1.69B	1.74B
Stockholders Equity	2.28B	1.77B	1.86B	1.87B	1.77B	1.47B
Cash Flow
Free Cash Flow	211.93M	159.06M	202.87M	-264.10M	70.00M	113.00M
Operating Cash Flow	292.69M	261.59M	298.38M	269.20M	325.10M	204.20M
Investing Cash Flow	1.07B	354.01M	124.09M	-516.40M	-26.30M	-213.60M
Financing Cash Flow	-521.52M	-479.36M	-328.87M	-4.60M	-16.30M	27.00M

Rayonier Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RYN, the sentiment is Negative. The current price of 21.78 is above the 20-day moving average (MA) of 21.66, below the 50-day MA of 22.06, and below the 200-day MA of 22.72, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.10 is Neutral, neither overbought nor oversold. The STOCH value of 47.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RYN.

Rayonier Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RYN	72 Outperform	$3.35B	8.97	38.06%	12.74%	8.88%	131.78%
WY	66 Neutral	$16.93B	51.43	3.42%	3.58%	-1.64%	-37.58%
PCH	66 Neutral	$3.06B	48.46	3.25%	4.54%	5.40%	294.38%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Rayonier Corporate Events

Rayonier Announces Merger with PotlatchDeltic Corporation

On October 13, 2025, Rayonier Inc., a North Carolina-based company, announced a merger agreement with PotlatchDeltic Corporation, a Delaware corporation, to combine in an all-stock merger-of-equals transaction. This merger is expected to create a significant impact on both companies’ operations and industry positioning, as it involves the consolidation of their financial information and resources.

Rayonier Revises 2024 Financial Statements Post-Sale

Rayonier Inc. announced revisions to its 2024 financial statements following the sale of its 77% interest in a New Zealand joint venture on June 30, 2025. The company’s New Zealand operations are now classified as discontinued operations, and its reportable segments have been realigned, with the Trading segment’s activities now included in the Southern Timber and Pacific Northwest Timber segments. These changes reflect the company’s strategic shift and compliance with SEC requirements.

Rayonier Announces Merger with PotlatchDeltic

On October 13, 2025, Rayonier Inc. and PotlatchDeltic Corporation announced an all-stock merger of equals, creating a leading land resources REIT with a diversified timberland portfolio of approximately 4.2 million acres. The merger, unanimously approved by both companies’ boards, is expected to close in late first quarter or early second quarter of 2026, with the combined company operating under a new name. The merger aims to leverage complementary assets and expertise, offering strategic and financial opportunities, including $40 million in annual synergies. The combined company will be the second-largest publicly traded timber and wood products company in North America, enhancing its position in the housing market and land-based natural climate solutions.