RAYONIER ADVANCED MATERIALS Reports 32.8% Increase in Revenue for Q1 of FY 2023

Earnings Overview

For the first quarter of financial year 2023 ending on March 31, 2023, RAYONIER ADVANCED MATERIALS ($NYSE:RYAM) reported a 32.8% increase in total revenue, amounting to USD 467.0 million compared to the same period in the preceding year. Net income also saw an impressive 108.0% increase, reaching USD 2.0 million year-over-year. The report was released on May 9, 2023.

Analysis

GoodWhale has conducted an analysis of RAYONIER ADVANCED MATERIALS’s financials. According to the Star Chart, the company has an intermediate health score of 6/10 with regard to its cashflows and debt, which suggests that it might be able to sustain future operations in times of crisis. Specifically, RAYONIER ADVANCED MATERIALS is strong in terms of asset, medium in terms of growth, profitability and weak in dividend. Based on this assessment, GoodWhale has classified RAYONIER ADVANCED MATERIALS as a ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. Given its characteristics, investors looking for high-growth companies with less stability may be interested in investing in RAYONIER ADVANCED MATERIALS. On the other hand, investors with a more conservative approach may prefer to look for other companies with higher stability and lower risk. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for RYAM. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for RYAM. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for RYAM. More…

Key Ratios Snapshot

Some of the financial key ratios for RYAM are shown below. More…

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 strong financial results in the first quarter of 2023 with total revenue rising 32.8% to USD 467.0 million and net income up 108.0% to USD 2.0 million compared to the prior year. This signals a positive outlook for investors as the company continues to experience significant growth. The company has shown consistent progress in increasing sales and profitability, which may suggest RAYONIER ADVANCED MATERIALS is a worthwhile stock to consider investing in.