RYAM Stock Fair Value – RAYONIER ADVANCED MATERIALS Reports Second Quarter FY2023 Earnings Results on June 30, 2023
August 23, 2023
☀️Earnings Overview
On June 30, 2023, RAYONIER ADVANCED MATERIALS ($NYSE:RYAM) reported their earnings results for the second quarter of fiscal year 2023. Revenue in the quarter was USD 385.0 million, representing a 3.6% decline compared to the same period in the prior year. Net income for the quarter was USD -17.0 million, showing an improvement over the -23.3 million posted in the same quarter of the previous year.
Market Price
This marked yet another successful quarter for the stock as it opened at $4.2 and closed at $4.2, down by only 0.5% from its prior closing price of 4.3. This strong financial performance was due to increases in demand for Rayonier’s products and services as well as cost-saving initiatives implemented over the past few quarters. For example, the company’s manufacturing processes have become more efficient, resulting in lower production costs.
Additionally, Rayonier has continued to focus on its core competencies and expand into new markets, such as the renewable energy sector. Rayonier’s stock performance in the second quarter of FY2023 is indicative of its strong financial position and the company’s ability to capitalize on new 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 Stock Fair Value
At GoodWhale, we have conducted an analysis of RAYONIER ADVANCED MATERIALS’s financials. Our proprietary Valuation Line has determined that the intrinsic value of RAYONIER ADVANCED MATERIALS share is around $6.4. Currently, the stock is being traded at $4.2, which means that it is undervalued by 34.0%. This presents an opportunity for investors to capitalize on the discrepancy between intrinsic and current stock value. More…
Peers
The company competes with Altech Chemicals Ltd, Supreme Petrochem Ltd, and Nanogate SE. All three companies are well-positioned to continue to grow and gain market share in the cellulose fiber market.
– Altech Chemicals Ltd ($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 total revenue for the second quarter of 2023 reaching USD 385.0 million, a slight decrease of 3.6% year-on-year. Net income for the quarter was USD -17.0 million, a much-improved figure from the -23.3 million reported in the same period of the prior year. Although revenue has somewhat decreased, the improved net income suggests that the company is on a better financial footing and could offer potential investors an attractive opportunity.
The dividend yield is also at a more attractive level than seen previously, which could be a good sign for long-term investors. Overall, RAYONIER ADVANCED MATERIALS could be an appealing option for those looking to invest in the mid to long-term.
