RYAM Intrinsic Value Calculator – RAYONIER ADVANCED MATERIALS Reports Earnings for Second Quarter of FY2023 Ending August 8, 2023
August 28, 2023
☀️Earnings Overview
RAYONIER ADVANCED MATERIALS ($NYSE:RYAM) reported total revenue of USD 385.0 million for the second quarter of FY2023, ending August 8 2023, a 3.6% decrease from the same period one year ago. Net income for the quarter was -17.0 million, an improvement from the -23.3 million reported in the same quarter of the previous fiscal year.
Market Price
On Tuesday, the company’s stock opened at $4.2 and closed at $4.2, down by 0.5% from its previous closing price of 4.3. During the quarter, RAYONIER ADVANCED MATERIALS continued to focus on its core operations and made significant investments in expanding its production capacity and developing new products. The company also announced plans to create a joint venture with a Chinese company to produce cellulose-based materials, which are expected to boost its future earnings.
Additionally, the company said it would continue to use its strong balance sheet to invest in strategic research and development projects in order to further diversify its product offerings. Overall, RAYONIER ADVANCED MATERIALS reported lower earnings than expected for the second quarter of FY2023, yet the company is still focused on making strategic investments and expanding its production capabilities in order to capitalize on future growth opportunities. Live Quote…
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% |
Analysis – RYAM Intrinsic Value Calculator
At GoodWhale, we have analyzed the financials of RAYONIER ADVANCED MATERIALS and our proprietary Valuation Line has concluded that the intrinsic value of the share is around $6.3. Currently, the stock is trading at $4.2, which means that it is undervalued by 33.8%. This presents a great opportunity for investors to buy RAYONIER ADVANCED MATERIALS stock at a lower price than its actual value. We recommend that investors take advantage of this opportunity and invest in RAYONIER ADVANCED MATERIALS stock. More…
Peers
The company competes with Altech Chemicals Ltd, Supreme Petrochem Ltd, and Nanogate SE. All three companies are well-positioned to continue to grow and gain market share in the cellulose fiber market.
– Altech Chemicals Ltd ($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 relatively weak financial results for the second quarter of FY2023, ending August 8 2023. Total revenue decreased 3.6% year over year to USD 385.0 million, while net income decreased to -17.0 million, compared to -23.3 million the same period last year. Despite the decline in net income, investors may have reason to remain optimistic about the company’s prospects due to the cost reduction measures they are implementing.
Additionally, their core business remains strong and has the potential to deliver growth in the long term. As such, investors should conduct further research before making any investing decisions.
