RAYONIER ADVANCED MATERIALS Reports 3.6% Decrease in Total Revenue for FY2023 Q2
August 20, 2023
☀️Earnings Overview
For the second quarter of fiscal 2023 ending June 30, 2023, RAYONIER ADVANCED MATERIALS ($NYSE:RYAM) reported total revenue of USD 385.0 million, a drop of 3.6% from the same period the previous year. Net income for the quarter was USD -17.0 million, a decrease from the prior year’s figure of -23.3 million. The report was released on August 8, 2023.
Analysis
GoodWhale has analyzed the fundamentals of RAYONIER ADVANCED MATERIALS and the Star Chart shows that it has an intermediate health score of 6/10 with regard to its cashflows and debt, indicating that it might be able to safely ride out any crisis without the risk of bankruptcy. More specifically, the company is strong in asset, medium in growth, profitability and weak in dividend. Based on this analysis, RAYONIER ADVANCED MATERIALS has been classified as a ‘Cheetah’ company. This type of company usually achieved high revenue or earnings growth, but is considered less stable due to lower profitability. Investors who are attracted to companies that have achieved high growth but are wary of the risks posed by low profitability would be interested in RAYONIER ADVANCED MATERIALS. These investors can benefit from the potentially high returns while mitigating the risk of investment through careful analysis of the company’s financials and market trends. Other investors who are looking for consistent dividend income may want to look elsewhere, as RAYONIER ADVANCED MATERIALS is not a good option for them. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for RYAM. More…
| Total Revenues | Net Income | Net Margin |
| 1.82k | 18.06 | 0.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for RYAM. More…
| Operations | Investing | Financing |
| 188.96 | -105.2 | -77.08 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for RYAM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.31k | 1.49k | 12.46 |
Key Ratios Snapshot
Some of the financial key ratios for RYAM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.5% | -13.6% | 3.6% |
| FCF Margin | ROE | ROA |
| 4.6% | 4.9% | 1.8% |
Peers
The company competes with Altech Chemicals Ltd, Supreme Petrochem Ltd, and Nanogate SE. All three companies are well-positioned to continue to grow and gain market share in the cellulose fiber market.
– Altech Chemicals Ltd ($ASX:ATC)
Altech Chemicals Ltd is an Australian-based chemicals company. The Company is engaged in the business of developing and commercializing technologies for the production of alumina from non-bauxite sources. It has developed the HPA production process, which is a hydrometallurgical process that converts raw materials, including kaolin clay, into alumina. The Company’s HPA production process involves the digestion of kaolin clay with hydrochloric acid, precipitation of aluminum hydroxide from the solution, calcination of the aluminum hydroxide to produce alumina, and cooling and washing of the product to produce a white powder known as alumina trihydrate.
– Supreme Petrochem Ltd ($LTS:0W1E)
Nanogate SE is a Germany-based company that develops, produces, and sells nanoscale coatings, surface treatments, and additives. It operates in three segments: Automotive, Industry, and Home. The Automotive segment provides solutions for the automotive industry, such as for the exterior and interior of vehicles. The Industry segment offers solutions for the electronics, optics, and plastics industries, among others. The Home segment provides solutions for the kitchen and bathroom industry, among others.
Summary
RAYONIER ADVANCED MATERIALS reported its financial results for the second quarter of fiscal year 2023, with total revenue of USD 385.0 million, a decrease of 3.6% year-over-year. Net income was reported at USD -17.0 million, a decrease from the prior year figure of -23.3 million. Investors should be aware of the decreased profits and revenue as they consider investing in RAYONIER ADVANCED MATERIALS. As part of their analysis, investors should assess the company’s financials, operational performance, business strategy, and industry trends to evaluate its potential for future return on investment.
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