Rayonier (RYN) AI Stock Analysis

• Market Cap: $4.08B
• Dividend Yield: 10.97%
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.72
• Revenue Growth: 9.90%
• EPS Growth: 137.73%
• Country: US
• Employees: 424
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Specialty
• EPS (TTM): 0.06
• Shares Outstanding: 154,162,340
• 10 Day Avg. Volume: 1,318,089
• 30 Day Avg. Volume: 1,021,144
• 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: 0.91
• Enterprise Value/Revenue: 3.35
• Enterprise Value/Gross Profit: 8.12
• Enterprise Value/Ebitda: 7.12
• 1Y Price Target: $27.33
• Price Target Upside: 3.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 75 Outperform
• Price Target: $30.00 ▲(13.42% Upside)

Rayonier's overall stock score is driven by its strong valuation and positive corporate events, which enhance financial flexibility and shareholder value. While the company shows strong profitability, challenges in revenue and free cash flow growth, along with market uncertainties, slightly temper the outlook. The technical analysis indicates a bullish trend, but caution is advised due to overbought signals.

Positive Factors

Financial Flexibility

The amended credit agreement extends the maturity date and includes covenants for leverage and interest coverage, enhancing financial flexibility and supporting long-term stability.

Asset Disposition Success

The successful sale of the New Zealand business exceeds asset disposition targets, improving leverage management and capital allocation, which strengthens the company's financial position.

Real Estate Segment Performance

Strong performance in the Real Estate segment, driven by high demand and accelerated transactions, highlights the segment's growth potential and contribution to overall profitability.

Negative Factors

Southern Timber Segment Challenges

Decreased EBITDA due to lower harvest volumes and stumpage realizations in the Southern Timber segment indicates operational challenges that could impact future profitability.

Declining Revenue Growth

A decline in revenue growth suggests potential difficulties in maintaining market position and expanding operations, which could affect long-term financial performance.

Free Cash Flow Concerns

Declining free cash flow growth raises concerns about future liquidity and the ability to fund operations and investments, potentially impacting financial resilience.

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 two key streams: Timber and Real Estate. In the Timber segment, the company earns money by selling standing timber and through the sale of logs to sawmills and other wood product manufacturers. The revenue in this segment is influenced by timber prices, harvest volumes, and management of its timberland assets. In the Real Estate segment, Rayonier generates income from land sales, leases, and development activities. This includes selling parcels of land for residential and commercial development, which can be lucrative in growing markets. Additionally, the company may engage in joint ventures or partnerships with developers and other entities, further enhancing its revenue potential. Overall, Rayonier's business model focuses on maximizing the value of its land and timber assets while adhering to sustainable practices.

Rayonier Financial Statement Overview

Summary

Rayonier demonstrates strong profitability with high net profit margins and return on equity. The company maintains a balanced leverage position, but faces challenges with declining revenue and free cash flow growth. Overall, Rayonier is financially stable with strong profitability, but needs to address growth concerns.

Income Statement

Rayonier's income statement shows a strong net profit margin of 68.53% for TTM, indicating high profitability. However, the revenue growth rate has declined by 5.70% in the TTM, which is a concern. The gross profit margin and EBIT margin are healthy, reflecting efficient cost management. Overall, the company demonstrates solid profitability but faces challenges in revenue growth.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.46 in the TTM, suggesting a balanced leverage position. Return on equity is robust at 39.17%, indicating effective use of equity to generate profits. However, the equity ratio is not available, which limits a complete assessment of asset financing. Overall, the balance sheet shows financial stability with a strong ROE.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth by 37.46% in the TTM, which is a concern for future liquidity. The operating cash flow to net income ratio is strong at 9.93, suggesting efficient cash generation relative to net income. However, the free cash flow to net income ratio is moderate at 0.57. Overall, cash flow performance is mixed, with strong cash generation but declining free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.11B	1.26B	1.06B	909.10M	1.11B	859.20M
Gross Profit	457.81M	478.16M	296.66M	220.80M	313.50M	146.70M
EBITDA	521.76M	543.56M	378.19M	315.73M	411.31M	240.56M
Net Income	761.19M	359.15M	173.49M	107.08M	152.55M	37.08M
Balance Sheet
Total Assets	3.51B	3.47B	3.65B	3.79B	3.64B	3.73B
Cash, Cash Equivalents and Short-Term Investments	892.30M	323.16M	207.70M	114.30M	362.20M	84.60M
Total Debt	1.06B	1.19B	1.45B	1.60B	1.46B	1.46B
Total Liabilities	1.16B	1.64B	1.69B	1.80B	1.69B	1.74B
Stockholders Equity	2.30B	1.77B	1.86B	1.87B	1.77B	1.47B
Cash Flow
Free Cash Flow	88.37M	159.06M	202.87M	-264.10M	70.00M	113.00M
Operating Cash Flow	242.65M	261.59M	298.38M	269.20M	325.10M	204.20M
Investing Cash Flow	1.06B	354.01M	124.09M	-516.40M	-26.30M	-213.60M
Financing Cash Flow	-552.88M	-479.36M	-328.87M	-4.60M	-16.30M	27.00M

Rayonier Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RYN, the sentiment is Positive. The current price of 26.45 is above the 20-day moving average (MA) of 25.98, above the 50-day MA of 25.34, and above the 200-day MA of 24.83, indicating a bullish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 58.30 is Neutral, neither overbought nor oversold. The STOCH value of 66.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RYN.

Rayonier Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RYN	75 Outperform	$4.08B	11.30	36.96%	10.97%	9.90%	137.73%
WY	62 Neutral	$17.71B	63.87	2.93%	3.38%	-6.57%	-62.32%
PCH	59 Neutral	$3.11B	76.17	2.17%	4.48%	-1.15%	14.51%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Rayonier Corporate Events

Rayonier Amends Credit Agreement for Financial Flexibility

On August 15, 2025, Rayonier Inc. and its subsidiaries entered into an Amended and Restated Credit Agreement with several banks and financial institutions, extending the maturity date for their Revolving Credit Facility to August 15, 2030. The agreement, which maintains the existing maturity dates for other term loan facilities, allows for potential increases in commitments and includes financial covenants related to leverage and interest coverage, providing Rayonier with enhanced financial flexibility.

Rayonier Completes Sale of New Zealand Business

On June 30, 2025, Rayonier Inc. announced the completion of the sale of its New Zealand business to an investment fund managed by The Rohatyn Group for $710 million. The net proceeds of $699 million are intended to reduce leverage, return capital to shareholders, and fund other capital allocation priorities. This transaction is part of Rayonier’s asset disposition and capital structure realignment plan, which has exceeded its original target, allowing the company to better position itself for long-term shareholder value.