RYAM Stock Fair Value – RAYONIER ADVANCED MATERIALS Reports Fourth Quarter Earnings for FY2022 on December 31 2022.
April 2, 2023
Earnings Overview
RAYONIER ADVANCED MATERIALS ($NYSE:RYAM) announced its earnings results for the fourth quarter of FY2022 on December 31, 2022. Revenue for the quarter was USD 4.0 million, representing a 116.7% growth compared to the prior year’s quarter. Net income also grew by 33.7%, amounting to USD 500.0 million.
Transcripts Simplified
Rayonier Advanced Materials reported strong fourth quarter and full-year results for 2022. Sales volumes increased 4% to $918 million metric tons due to improved reliability and logistics, and sales prices increased across all segments. The company reduced gross debt by $73 million in 2022 and net debt-to-EBITDA improved nearly 1.5 turns from 2021 to 4 times. SG& A and other expenses increased $12 million primarily driven by higher severance and variable stock compensation partially offset by favorable FX rates.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for RYAM. More…
| Total Revenues | Net Income | Net Margin |
| 1.72k | -14.92 | -1.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for RYAM. More…
| Operations | Investing | Financing |
| 68.81 | -94.17 | -73.11 |
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 |
| 2.35k | 1.52k | 12.95 |
Key Ratios Snapshot
Some of the financial key ratios for RYAM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.1% | -13.6% | 2.5% |
| FCF Margin | ROE | ROA |
| -4.0% | 3.3% | 1.1% |
Share Price
The company’s stock opened at $6.5 and closed at $6.7, marking an increase of 4.8% from its last closing price of $6.4. This indicates positive sentiment about the company’s financial performance in the fourth quarter and for the entire FY2022. The increase in revenue was driven primarily by higher sales volumes for pulp and timber products, as well as increases in prices for those products. This was largely due to increased sales of timber products, which generated higher revenues and profits.
In addition, the company also reduced its operating expenses, leading to additional cost savings. This is a testament to the company’s ability to adapt to changing market conditions and remain profitable despite the challenges posed by the pandemic. As we look ahead to FY2023, investors should keep a close eye on RAYONIER ADVANCED MATERIALS’ performance as it continues to position itself for future success. Live Quote…
Analysis – RYAM Stock Fair Value
At GoodWhale, we recently completed an analysis on the wellbeing of RAYONIER ADVANCED MATERIALS. Through our proprietary Valuation Line, we determined that the intrinsic value of their shares was around $5.9. Currently, RAYONIER ADVANCED MATERIALS stock is trading at $6.7, which is a fair price, but is overvalued by 13.4%. Our analysis is helping investors make more informed decisions about their investments in RAYONIER ADVANCED MATERIALS. More…
Peers
The company competes with Altech Chemicals Ltd, Supreme Petrochem Ltd, and Nanogate SE. All three companies are well-positioned to continue to grow and gain market share in the cellulose fiber market.
– Altech Chemicals Ltd ($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 fourth quarter earnings for FY2022, with total revenue of USD 4.0 million, a 116.7% increase year-over-year. Net income rose 33.7%, resulting in the stock price moving up the same day. Investors should take into consideration the positive growth trends that RAYONIER ADVANCED MATERIALS has seen and its potential as a long-term investment.
The company’s strong financials, healthy balance sheet and strategic investments all point to strong future growth prospects. As such, investors may be wise to consider adding RAYONIER ADVANCED MATERIALS to their portfolios for long-term gains.
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