RYAM Stock Fair Value – RAYONIER ADVANCED MATERIALS Reports FY2023 Q2 Earnings Results for June 30, 2023
August 23, 2023
☀️Earnings Overview
RAYONIER ADVANCED MATERIALS ($NYSE:RYAM) announced the financial outcomes of Q2 2023 (ending June 30, 2023) on August 8, 2023. The total revenue for the quarter was USD 385.0 million, a 3.6% decrease from the same quarter in the previous year. Net income was USD -17.0 million, a 6.3 million improvement from the same period in 2022 (-23.3 million).
Market Price
On Tuesday, RAYONIER ADVANCED MATERIALS reported its financial results for the second quarter of the financial year 2023, ending on June 30, 2023. The company’s stock opened at $4.2 and closed at $4.2, representing a decrease of 0.5 percent from the prior closing price of 4.3. Overall, while the company’s financial performance showed some improvement over the prior quarter, it wasn’t significant enough to result in a major increase in stock prices. 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 Stock Fair Value
At GoodWhale, we recently conducted a comprehensive analysis of RAYONIER ADVANCED MATERIALS’ wellbeing. After taking both quantitative and qualitative factors into account, we determined that the intrinsic value of the company’s share is around $6.4, which was calculated using our proprietary Valuation Line. However, the current stock price of RAYONIER ADVANCED MATERIALS sits at $4.2, indicating that it is currently undervalued by 34.0%. This is an excellent opportunity for investors to get into the stock before it reaches its true potential. More…
Peers
The company competes with Altech Chemicals Ltd, Supreme Petrochem Ltd, and Nanogate SE. All three companies are well-positioned to continue to grow and gain market share in the cellulose fiber market.
– Altech Chemicals Ltd ($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 its Q2 FY2023 results on August 8th. Total revenue dropped 3.6% year-over-year to USD 385 million. Net income was USD -17 million, 6.3 million better than the previous year’s figure. This suggests that despite the revenue decline, the company is able to cut costs and improve efficiency.
Investors should watch closely for signs of further cost savings and potential new revenue opportunities, as the company looks to return to profitability. A diversified portfolio of products and services may also be beneficial for investors, to help mitigate the risks associated with tough economic conditions and unpredictable market fluctuations.
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