Rayonier Advanced Materials Inc (RYAM) Stock Analysis
Verdict: AVOID
Strategic review optionality is capped by severe debt ($779M), mill idling costs, and a -9.6% net margin cash burn profile.
Investment score: 31/100
Analysis as of
Is Rayonier Advanced Materials Inc stock worth reviewing? The TradeMates thesis
The TradeMates model evaluates Rayonier Advanced Materials as an AVOID due to high leverage ($779M debt vs $75M cash), negative operating margins (-3.5%), ongoing mill restructuring costs, and a track record of severe earnings misses, despite M&A optionality from its formal strategic review.
7-factor investment score
- Valuation: 40/100 (weight 20%)
- Financial Health: 20/100 (weight 15%)
- Technical Momentum: 35/100 (weight 15%)
- Earnings Quality: 10/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 60/100 (weight 10%)
- Risk-Adjusted Return: 25/100 (weight 15%)
Rayonier Advanced Materials Inc opportunities and risks
What speaks for RYAM
- Formal Strategic Alternatives Review
What speaks against RYAM
- High Financial Leverage and Cash Burn
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| RYAM | n/a | 0.3x | 7.8x | 5.9% | -9.6% | -7.7% |
| IOSP | 19.7x | 1.3x | 12.0x | 27.5% | 6.6% | 2.7% |
| MTX | n/a | 0.9x | 33.9x | 24.5% | -3.1% | 6.1% |
| SCL | n/a | 0.6x | 12.5x | 11.8% | -0.1% | -2.4% |
| ECVT | n/a | 1.3x | 9.8x | 21.0% | -7.1% | 6.5% |
| FTK | 23.2x | 3.1x | 18.5x | 24.5% | 13.0% | -0.6% |
| Peer median | n/a | 1.3x | 12.5x | 24.5% | -0.1% | 2.7% |
Frequently asked questions about Rayonier Advanced Materials Inc (RYAM)
Is RYAM stock a good investment?
The TradeMates model rates Rayonier Advanced Materials Inc as AVOID with an investment score of 31/100. The TradeMates model evaluates Rayonier Advanced Materials as an AVOID due to high leverage ($779M debt vs $75M cash), negative operating margins (-3.5%), ongoing mill restructuring costs, and a track record of severe earnings misses, despite M&A optionality from its formal strategic review. This is algorithmic model output, not personal investment advice.
Is RYAM stock a buy?
The TradeMates model verdict for RYAM is AVOID with an investment score of 31/100. Treat this as a model signal to review, not a personal buy recommendation.