Home Sectors Basic Materials Present Movement: Rayonier Advanced Materials (NYSE: RYAM)

Present Movement: Rayonier Advanced Materials (NYSE: RYAM)


Rayonier Advanced Materials trades as 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 2.72% with an open at 6.72 and a close of 6.80. It reached an intraday high of 6.83 and a low of 6.59.

SeekingAlpha:  Rayonier Advanced Materials: Deep Value But No Catalyst


The stock has a market cap of $338.6m with 49.8m shares outstanding, of which the float is 48.3m shares. Trading volume reached 659,282 shares compared to its average volume of 1,227,704 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 2.26% and in the past 30 trading days it returned -53.03%. Over three months, it changed -47.10%. In one year it has changed -61.53% and within that year its 52-week high was 22.07 and its 52-week low was 6.18. RYAM stock is 10.03% above its 52 Week Low.

Our calculations show a 200 day moving average of 13.70 and a 50 day moving average of 11.02. Currently RYAM stock is trading -50.36% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  Rayonier Advanced Materials: Deep Value But No Catalyst


The last annual fiscal EPS for the company was reported at 1.95 that ended on 31st of December 2018, 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 0.15. The TTM EPS is 1.71, which comes to a TTM PE of 3.98. Historically, the PE high was 39.40 and the PE low was 1.60. If the stock reached its PE low, that would represent a price of 2.73, which is a decrease of -59.80%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 05/08/2019): -0.52
4thQtr of 2018 (Reported on 02/13/2019): 0.18
3rdQtr of 2018 (Reported on 11/05/2018): 0.60
2ndQtr of 2018 (Reported on 08/02/2018): 0.83
1stQtr of 2018 (Reported on 05/07/2018): 0.38

The dividend per share is currently 0.28, which is a dividend yield of 4.12%. Also, the payout ratio is 16.37%, therefore the dividend is safe according to our calculations. RYAM stock has a high dividend yield, but because the company has sufficient earnings to cover future dividends, it may be a good investment opportunity for an income portfolio.

Base on our calculations, the intrinsic value per share is 24.60, which means it is possibly undervalued and has a margin of safety of 72.36%.

Indicators to Watch:

Short-interest was 8,377,774, which was 16.82% of shares outstanding. The short-interest ratio or days-to-cover ratio was 6.47. 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 3.78.

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 10.19%, return on assets is 2.67%, profit margin is 3.89%, price-to-sales is 0.16 and price-to-book is 0.49.

Company Scores:

All scores are out of six:
 6  :Valuation Score
 1  :Past Performance Score
 1  :Financial Strength Score
 3  :Future Growth Score
 4  :Dividend Score
 3  :Overall Score

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.