## Rayonier Advanced Materials (RYAM) Earnings Preview: What to Expect on November 5th
Investors are gearing up for Rayonier Advanced Materials’ (RYAM) upcoming earnings report, scheduled for Tuesday, November 5th. The anticipation is palpable, with analysts predicting an earnings per share (EPS) of -$0.11 for the quarter. While meeting or exceeding these estimates is important, investors will be particularly interested in the company’s guidance for the next quarter, as it often drives market reactions.
Looking Back: Previous Earnings Performance
Rayonier Advanced Materials has a history of exceeding expectations. In their last earnings release, the company beat EPS by $0.29, leading to a significant 30.12% surge in the share price the following trading session. Here’s a quick breakdown of their recent performance and the resulting stock price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | -0.10 | 0.19 | 30.0% |
| Q1 2024 | -0.10 | -0.02 | 2.0% |
| Q4 2023 | -0.07 | -0.22 | -21.0% |
| Q3 2023 | -0.24 | -0.40 | 2.0% |
Current Market Sentiment
As of November 1st, shares of Rayonier Advanced Materials were trading at $8.1. Over the past year, the stock has seen a remarkable 167.21% increase, making long-term shareholders optimistic about the company’s future.
Analyst Insights
To gain a better understanding of the market’s sentiment towards Rayonier Advanced Materials, we’ve gathered insights from industry analysts. Currently, analysts have issued 2 ratings for the company, resulting in a consensus rating of ‘Outperform.’ The average one-year price target sits at $9.5, suggesting a potential upside of 17.28% from current levels.
Comparing Ratings with Peers
To put Rayonier Advanced Materials’ performance in perspective, we’ll compare it to three prominent players in the industry: Ginkgo Bioworks Holdings, Ecovyst, and Alto Ingredients.
*
Ginkgo Bioworks Holdings:
Analysts are favoring a ‘Buy’ trajectory for Ginkgo Bioworks Holdings, with an average one-year price target of $8.5, indicating a potential 4.94% upside.*
Ecovyst:
Analysts are also favoring a ‘Buy’ trajectory for Ecovyst, with an average one-year price target of $10.5, suggesting a potential 29.63% upside.*
Alto Ingredients:
Analysts currently favor a ‘Buy’ trajectory for Alto Ingredients, with an average one-year price target of $5.5, suggesting a potential 32.1% downside.Peer Analysis Summary
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Rayonier Advanced Materials | Outperform | 8.73% | $48.31M | 1.52% |
| Ginkgo Bioworks Holdings | Buy | -30.24% | $42.48M | -23.88% |
| Ecovyst | Buy | -1.98% | $53.66M | 1.98% |
| Alto Ingredients | Buy | -25.47% | $7.55M | -1.28% |
The peer analysis highlights that Rayonier Advanced Materials stands out with its impressive 8.73% revenue growth, placing it at the top among its peers. While its Gross Profit and Return on Equity fall in the middle of the pack, the company’s strong revenue growth is a positive signal for investors.
Discovering Rayonier Advanced Materials: A Closer Look
Rayonier Advanced Materials Inc. specializes in the production of high-purity cellulose derived from wood. This cellulose, also known as cellulose specialties, finds application in various industries, including:
* Cigarette filters
* Liquid crystal displays
* Paints
* Pharmaceuticals
* Food
The company operates in four reportable segments: High Purity Cellulose, Paperboard, High-Yield Pulp, and Corporate and Other. The majority of its revenue is generated from the High Purity Cellulose segment, with significant operations in the United States.
Financial Overview
*
Market Capitalization:
Rayonier Advanced Materials has a restricted market capitalization, falling below industry averages. This indicates a smaller scale relative to its peers.*
Revenue Growth:
As of June 30, 2024, Rayonier Advanced Materials achieved a notable revenue growth rate of 8.73%, exceeding the average among peers in the Materials sector.*
Net Margin:
The company boasts an exceptional net margin of 2.72%, exceeding industry averages, showcasing strong profitability and effective cost management.*
Return on Equity (ROE):
Rayonier Advanced Materials demonstrates strong financial performance with an impressive ROE of 1.52%, surpassing industry averages.*
Return on Assets (ROA):
With a remarkable ROA of 0.53%, Rayonier Advanced Materials showcases efficient use of assets and robust financial health.*
Debt Management:
The company’s debt-to-equity ratio is notably higher than the industry average, reaching 1.03. This suggests a heavier reliance on borrowed funds, which could raise concerns about financial leverage.Key Takeaway
While investors are waiting for the official earnings release, the positive market sentiment and analyst expectations suggest a potentially promising future for Rayonier Advanced Materials. Its strong revenue growth, high net margin, and efficient asset management are key indicators to watch. However, the company’s high debt-to-equity ratio should also be monitored for any potential risks. Stay tuned for the earnings release on November 5th to see how Rayonier Advanced Materials performs and what direction it sets for the future.
