Skip to main content

Trade-Ideas LLC identified

Rayonier Advanced Materials

(

RYAM

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Rayonier Advanced Materials as such a stock due to the following factors:

  • RYAM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.9 million.
  • RYAM has traded 60,066 shares today.
  • RYAM is down 4.7% today.
  • RYAM was up 6.1% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in RYAM with the Ticky from Trade-Ideas. See the FREE profile for RYAM NOW at Trade-Ideas

More details on RYAM:

Rayonier Advanced Materials Inc. manufactures and sells cellulose specialty products in the United States, China, Japan, Canada, Europe, Latin America, other Asian countries, and internationally. The stock currently has a dividend yield of 2.1%. RYAM has a PE ratio of 9. Currently there is 1 analyst that rates Rayonier Advanced Materials a buy, 2 analysts rate it a sell, and none rate it a hold.

The average volume for Rayonier Advanced Materials has been 603,600 shares per day over the past 30 days. Rayonier Advanced has a market cap of $587.3 million and is part of the basic materials sector and chemicals industry. Shares are up 47.1% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Rayonier Advanced Materials as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from the ratings report include:

  • The debt-to-equity ratio is very high at 268.33 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • RYAM's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 29.88%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • The gross profit margin for RAYONIER ADVANCED MATERIALS is currently lower than what is desirable, coming in at 28.44%. Regardless of RYAM's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, RYAM's net profit margin of 9.63% compares favorably to the industry average.
  • RAYONIER ADVANCED MATERIALS reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, RAYONIER ADVANCED MATERIALS increased its bottom line by earning $1.30 versus $0.02 in the prior year. For the next year, the market is expecting a contraction of 13.1% in earnings ($1.13 versus $1.30).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.1%. Since the same quarter one year prior, revenues slightly dropped by 1.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.