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Rayonier Inc. REIT (RYN)
NYSE:RYN
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Rayonier
(NYSE:RYN)
Rating:64Neutral
Price Target:―
Rayonier (RYN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.72B
Dividend Yield4.84%
Average Volume (3M)1.11M
Price to Earnings (P/E)10.3
Beta (1Y)0.80
Revenue Growth12.61%
EPS Growth111.99%
CountryUS
Employees424
SectorReal Estate
Sector Strength62
IndustryREIT - Specialty
Share Statistics
EPS (TTM)-0.02
Shares Outstanding155,777,130
10 Day Avg. Volume1,022,389
30 Day Avg. Volume1,114,976
Financial Highlights & Ratios
PEG Ratio-4.84
Price to Book (P/B)1.88
Price to Sales (P/S)0.00
P/FCF Ratio29.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$31.50Price Target Upside34.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
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 through several key streams, primarily centered around its timberland holdings. The company earns income by selling timber directly from its forests, either through lump-sum contracts or pay-as-cut agreements. Additionally, Rayonier leases its land for recreational use and other purposes, such as hunting and conservation. The company also derives earnings from its real estate operations, which involve selling parcels of land for development or conservation. Strategic partnerships and joint ventures in both domestic and international markets further enhance its revenue potential, allowing Rayonier to capitalize on global demand for wood and forest products.
Rayonier Financial Statement Overview
Summary
Rayonier presents a robust financial performance with steady revenue and profit growth, alongside effective leverage management. The company shows promising profitability and cash generation, although attention to liquidity and consistent cash flow stability will be crucial for sustaining long-term financial health.Income Statement
Rayonier's income statement shows a solid performance with a consistent increase in total revenue over the years, reaching $1.18 billion in TTM. Gross profit and net income margins have improved, indicating good cost management and profitability. However, the revenue growth rate has exhibited fluctuations, requiring attention to sustaining growth momentum.75
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a strong equity base. The debt-to-equity ratio has been managed effectively, suggesting good leverage control. However, the current assets and equity ratio indicate a need for monitoring liquidity and asset utilization to maintain balance sheet strength.70
Positive
Cash Flow
Rayonier's cash flow statement indicates positive free cash flow generation in the TTM, a recovery from previous negative figures. Operating cash flow remains strong relative to net income, showcasing efficient cash operations. However, fluctuations in free cash flow growth rates point to potential volatility in cash management.68
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.18B | 1.26B | 1.06B | 909.10M | 1.11B | 859.20M | Gross Profit |
| 497.24M | 478.16M | 296.66M | 220.80M | 313.50M | 146.70M | EBIT |
| 422.44M | 402.47M | 211.28M | 165.80M | 269.80M | 74.40M | EBITDA |
| 505.92M | 543.56M | 378.19M | 303.84M | 411.31M | 275.73M | Net Income Common Stockholders |
| 354.39M | 359.15M | 173.49M | 107.08M | 210.50M | 37.08M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 216.24M | 323.16M | 207.70M | 114.30M | 362.20M | 84.60M | Total Assets |
| 3.35B | 3.47B | 3.65B | 3.79B | 3.64B | 3.73B | Total Debt |
| 1.06B | 1.19B | 1.45B | 1.60B | 1.46B | 1.46B | Net Debt |
| 843.70M | 862.35M | 1.25B | 1.49B | 1.10B | 1.38B | Total Liabilities |
| 1.37B | 1.64B | 1.69B | 1.80B | 1.69B | 1.74B | Stockholders Equity |
| 1.92B | 1.77B | 1.86B | 1.87B | 1.77B | 1.47B |
| Cash Flow | Free Cash Flow | ||||
| 125.63M | 159.06M | 202.87M | -264.10M | 70.00M | 113.00M | Operating Cash Flow |
| 209.29M | 261.59M | 298.38M | 269.20M | 325.10M | 204.20M | Investing Cash Flow |
| 378.06M | 354.01M | 124.09M | -516.40M | -26.30M | -213.60M | Financing Cash Flow |
| -404.27M | -479.36M | -328.87M | -4.60M | -16.30M | 27.00M |
Rayonier Technical Analysis
Negative
23.34
Price Trends
25.31
Negative
25.63
Negative
27.02
Negative
Market Momentum
-0.40
Negative
39.08
Neutral
27.27
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 23.34 is below the 20-day moving average (MA) of 23.81, below the 50-day MA of 25.31, and below the 200-day MA of 27.02, indicating a bearish trend. The MACD of -0.40 indicates Negative momentum. The RSI at 39.08 is Neutral, neither overbought nor oversold. The STOCH value of 27.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (60)
Financial Indicators
Performance Comparison
RYN
Rayonier
23.34
-3.26
-12.26%
PCH
PotlatchDeltic
38.39
-2.64
-6.43%
WY
Weyerhaeuser
25.25
-4.07
-13.88%
Rayonier Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -4.58%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging first quarter with significant headwinds in the Southern Timber segment and overall financial performance. However, the strategic sale of the New Zealand business and focused capital returns signal a positive long-term outlook. Despite current challenges, there is optimism for improvement in the second half of the year.Q1-2025 Updates
Positive Updates
Pending Sale of New Zealand Business
Rayonier announced an agreement to sell its New Zealand joint venture interest to the Rohatyn Group for $710 million. This move aligns with the company's strategy to focus on core U.S. operations and is expected to close in 2025.
Shareholder Returns Strategy
Rayonier plans to use at least 50% of the New Zealand sale proceeds to reduce leverage and return capital to shareholders through share repurchases and a special dividend of $1 to $1.4 per share, similar to their 2024 dividend.
Pacific Northwest Timber Performance
The Pacific Northwest Timber segment reported an adjusted EBITDA increase to $6 million, despite an 18% decrease in harvest volumes, due to higher net stumpage realizations and lower costs.
Real Estate Segment Prospects
Despite a slow start, the Real Estate segment is expected to have an active second half of 2025 with strong buyer interest and a robust transaction pipeline.
Negative Updates
Southern Timber Segment Challenges
Adjusted EBITDA in the Southern Timber segment was down due to a 21% decline in harvest volumes and a 19% drop in weighted average net stumpage realizations, impacted by hurricane salvage volumes and market conditions.
First Quarter Financial Decline
Rayonier reported a 39% decline in adjusted EBITDA year-over-year to $27 million, with a pro forma net loss of $3 million or $0.02 per share, due to lower results in the Southern Timber and Real Estate segments.
Real Estate Segment Adjusted EBITDA Decline
The Real Estate segment's adjusted EBITDA was $2 million, down $3 million from the prior year, due to fewer acres sold, although at higher average prices.
Company Guidance
During Rayonier's First Quarter 2025 Conference Call, the company provided guidance on several financial metrics and strategic actions. The sale of their New Zealand joint venture for $710 million is expected to close by the end of 2025, with at least 50% of the proceeds intended to reduce leverage and return capital to shareholders through share repurchases and a special dividend of $1 to $1.4 per share. Despite a challenging start to the year, Rayonier maintains a full-year adjusted EBITDA guidance of $215 million to $235 million, excluding New Zealand operations. In the first quarter, Rayonier reported an adjusted EBITDA of $27 million, with a pro forma net loss of $3 million or $0.02 per share. The Southern Timber segment faced a 39% decline in adjusted EBITDA due to a 21% drop in harvest volumes and a 19% decrease in stumpage realizations, while the Pacific Northwest segment saw a rise in adjusted EBITDA to $6 million. The Real Estate segment generated $2 million in adjusted EBITDA, with future activity expected to be concentrated in the latter half of the year. Rayonier's net debt to enterprise value stood at 16%, and they had $216 million in cash at the quarter's end. The company is optimistic about improving conditions in the second half of the year, driven by expected increases in timber prices and real estate activities.Rayonier Corporate Events
Executive/Board ChangesShareholder Meetings
Rayonier Holds Annual Shareholder Meeting, Elects Directors
Neutral
May 15, 2025
On May 15, 2025, Rayonier Inc. held its Annual Meeting of Shareholders, during which all nine director nominees were elected to terms expiring in 2026. Additionally, shareholders approved the compensation of the company’s named executive officers on a non-binding advisory basis and ratified the appointment of Ernst & Young, LLP as the independent registered public accounting firm for 2025.
The most recent analyst rating on (RYN) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Rayonier stock, see the RYN Stock Forecast page.
M&A TransactionsBusiness Operations and Strategy
Rayonier Sells New Zealand Stake for $710 Million
Positive
Mar 10, 2025
On March 9, 2025, Rayonier announced a $710 million agreement to sell its 77% interest in its New Zealand joint venture to Taurus Forest Holdings Limited, managed by The Rohatyn Group. This transaction aligns with Rayonier’s strategy to focus on U.S. operations, reduce leverage, and enhance shareholder value, while TRG will leverage its expertise to drive growth in the New Zealand forestry business.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.