Home Sectors Basic Materials Stock in the Spotlight: Rayonier Advanced Materials (NYSE: RYAM)

Stock in the Spotlight: Rayonier Advanced Materials (NYSE: RYAM)

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Rayonier Advanced Materials is part of the chemicals industry and is in the basic materials sector. The company CEO is Paul G. Boynton. Rayonier Advanced Materials Inc manufactures cellulose from wood. Its products are mainly used in a variety of applications, including cigarette filters, liquid crystal displays, paints, pharmaceuticals, and food.

Previous Intraday Trading Performance:

The RYAM stock showed a previous change of -1.12% with an open at 20.47 and a close of 20.25. It reached an intraday high of 20.67 and a low of 20.10.

SeekingAlpha:  Rayonier Advanced Materials (RYAM) Q2 2018 Results - Earnings Call Transcript

Liquidity:

The stock has a market cap of $1.1b with 51.9m shares outstanding, of which the float is 50.8m shares. Trading volume reached 821,418 shares compared to its average volume of 811,159 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Rayonier Advanced Materials shares returned 2.58% and in the past 30 trading days it returned 20.75%. Over three months, it changed 0.21%. In one year it has changed 48.53% and within that year its 52-week high was 22.96 and its 52-week low was 12.68. RYAM stock is 59.70% above its 52 Week Low.

Our calculations show a 200 day moving average of 18.70 and a 50 day moving average of 17.74. Currently RYAM stock is trading 8.31% above its 200 day moving average.

SeekingAlpha:  Rayonier Advanced Materials 2018 Q2 - Results - Earnings Call Slides

Earnings:

The last annual fiscal EPS for the company was reported at 5.81 that ended on 31st of December 2017, which according to the previous close, that is a PE of 3.49. Based on 2 analyst estimates, the consensus EPS for the next quarter is 0.52. The TTM EPS is 1.66, which comes to a TTM PE of 12.20.

The following are the last four quarter reported earnings per share:
06-30-2018:  0.60
03-31-2018:  0.38
12-31-2017:  0.50
09-30-2017:  0.18

The dividend per share is currently 0.28, which is a dividend yield of 1.38%. Also, the payout ratio is 16.87%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 34.44, which means it is possibly undervalued and has a margin of safety of 41.20%

Indicators to Watch:

Based on the latest filings, there is 2.00% of insider ownership and 91.20% of institutional ownership. Short-interest is 9,345,101, which is 18.02% of shares outstanding. The short-interest ratio or days-to-cover ratio is 12.20. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 3.41

SeekingAlpha:  Rayonier Advanced Materials 2018 Q2 - Results - Earnings Call Slides

Fundamental Indicators:

Based on last reported financials, the company's return on equity is 77.99%, return on assets is 18.19%, profit margin is 23.98%, price-to-sales is 0.65 and price-to-book is 1.47.

Company Scores:

All scores are out of six:
 5  :Valuation Score
 5  :Past Performance Score
 2  :Financial Strength Score
 0  :Future Growth Score
 2  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks. Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.

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