tiprankstipranks
Trending News
More News >
Rayonier Inc. REIT (RYN)
NYSE:RYN
Advertisement

Rayonier (RYN) AI Stock Analysis

Compare
215 Followers

Top Page

RYN

Rayonier

(NYSE:RYN)

Rating:75Outperform
Price Target:
$30.00
â–²(12.15% 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
Asset Sales
Following the completion of $1B+ of asset sales, we assume RYN can generate normalized post-NZ EBITDA of ~$250mm, fully covering the ~$156mm annual dividend.
Balance Sheet Strength
Rayonier announced a successful exit from its New Zealand joint venture at favorable pricing, positioning the company as an entirely U.S.-based timber REIT with a nearly net debt-free balance sheet.
Valuation Gap
Rayonier's current 21% NAV discount is considered too steep, with expectations for a meaningful narrowing of the valuation gap.
Negative Factors
Valuation
Valuation seems roughly fair here; remain Neutral.

Rayonier (RYN) vs. SPDR S&P 500 ETF (SPY)

Rayonier Business Overview & Revenue Model

Company DescriptionRayonier 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 MoneyRayonier 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 Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
Rayonier's earnings call reflected a generally positive outlook with successful asset dispositions, improved financial metrics, and strong real estate performance. However, challenges in the Southern Timber segment and market uncertainties were notable concerns.
Q2-2025 Updates
Positive Updates
Successful Sale of New Zealand Business
Rayonier completed the sale of its New Zealand joint venture interest for $710 million, exceeding the original $1 billion target for asset dispositions and achieving new leverage targets.
Improved Adjusted EBITDA
Adjusted EBITDA increased by 35% versus the prior year quarter, driven by improvements in the Pacific Northwest Timber and Real Estate segments.
Positive Real Estate Segment Performance
Real Estate segment adjusted EBITDA of $19 million was significantly above expectations, with strong demand and accelerated timing of transactions contributing to the results.
Share Repurchase Program
Rayonier repurchased 1.5 million shares at an average price of $23.71 per share, totaling $35 million, and has $262 million remaining on its share repurchase authorization.
Credit Rating Upgrade
Rayonier's credit rating from S&P was upgraded from BBB- to BBB following the New Zealand transaction.
Negative Updates
Southern Timber Segment Challenges
Adjusted EBITDA in the Southern Timber segment decreased by 16% due to lower harvest volumes and net stumpage realizations, with a 14% decrease in weighted average stumpage prices.
Impact of Salvage Volume and Mill Downtime
The availability of salvage volume and extended mill downtime negatively impacted timber prices, particularly in the Southern Timber segment.
Continued Uncertainty in the Timber Market
The timber market continues to face headwinds, including Chinese bans on U.S. log imports and the impact of salvage operations from hurricanes.
Company Guidance
During Rayonier's second quarter 2025 conference call, the company provided comprehensive guidance on several financial metrics and strategic actions. Rayonier's sale of its New Zealand joint venture for $710 million marked a key milestone, contributing to total asset dispositions of $1.45 billion, surpassing the initial $1 billion target. This transaction is expected to enhance leverage management, with at least 50% of proceeds aimed at reducing leverage and returning capital to shareholders via share repurchases and a special dividend. Rayonier generated adjusted EBITDA of $45 million and pro forma net income of $10 million, or $0.06 per share, excluding New Zealand contributions. The company's Southern Timber segment saw a 14% decline in weighted average net stumpage realizations, but improvements are anticipated in the latter half of 2025. The Pacific Northwest Timber segment experienced a 17% increase in adjusted EBITDA, while the Real Estate segment's adjusted EBITDA soared to $19 million, driven by accelerated transaction timings. Looking forward, Rayonier remains on track to meet its full-year adjusted EBITDA guidance of $215 million to $235 million, with expectations of stronger contributions from the Southern Timber and Real Estate segments in the second half of the year.

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
75
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.11B1.26B1.06B909.10M1.11B859.20M
Gross Profit457.81M478.16M296.66M220.80M313.50M146.70M
EBITDA521.76M543.56M378.19M315.73M411.31M240.56M
Net Income761.19M359.15M173.49M107.08M152.55M37.08M
Balance Sheet
Total Assets1.06B3.47B3.65B3.79B3.64B3.73B
Cash, Cash Equivalents and Short-Term Investments892.30M323.16M207.70M114.30M362.20M84.60M
Total Debt1.06B1.19B1.45B1.60B1.46B1.46B
Total Liabilities-1.24B1.64B1.69B1.80B1.69B1.74B
Stockholders Equity2.30B1.77B1.86B1.87B1.77B1.47B
Cash Flow
Free Cash Flow88.37M159.06M202.87M-264.10M70.00M113.00M
Operating Cash Flow153.97M261.59M298.38M269.20M325.10M204.20M
Investing Cash Flow1.06B354.01M124.09M-516.40M-26.30M-213.60M
Financing Cash Flow-552.88M-479.36M-328.87M-4.60M-16.30M27.00M

Rayonier Technical Analysis

Technical Analysis Sentiment
Positive
Last Price26.75
Price Trends
50DMA
24.65
Positive
100DMA
24.08
Positive
200DMA
25.25
Positive
Market Momentum
MACD
0.46
Positive
RSI
62.72
Neutral
STOCH
39.16
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 26.75 is above the 20-day moving average (MA) of 26.39, above the 50-day MA of 24.65, and above the 200-day MA of 25.25, indicating a bullish trend. The MACD of 0.46 indicates Positive momentum. The RSI at 62.72 is Neutral, neither overbought nor oversold. The STOCH value of 39.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RYN.

Rayonier Risk Analysis

Rayonier disclosed 18 risk factors in its most recent earnings report. Rayonier reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Rayonier Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$4.05B10.9936.96%10.90%9.90%137.73%
65
Neutral
$18.43B64.602.85%3.17%-6.57%-62.32%
63
Neutral
$7.02B13.41-0.50%6.86%4.08%-25.24%
59
Neutral
$3.26B77.192.07%4.20%-1.15%14.51%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RYN
Rayonier
26.75
-0.62
-2.27%
PCH
PotlatchDeltic
42.87
2.96
7.42%
WY
Weyerhaeuser
26.15
-3.24
-11.02%

Rayonier Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Rayonier Amends Credit Agreement for Financial Flexibility
Positive
Aug 20, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Rayonier Completes Sale of New Zealand Business
Positive
Jun 30, 2025

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.

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 21, 2025