Built from weaker models, sales multiples or analyst targets, so treat it as a rough guide.
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Valued as a loss-making company: Sales comps and Analyst consensus.
ACCE opinionRayonier Advanced Materials Inc. Common Stock (RYAM)
Fair value (2 models)
Not available
ACCE price target
$7.30
Rating
Not rated
Horizon
12 months
ACCE price target published on 15 Oct 2026, 00:00 CEST.
Price used: $6.70 at the close on 23 Oct 2026, 22:00 CEST.
Models: Analyst consensus and Sales comps.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
35
out of 100
Analysts
100% buy
1 covering
1-year return
-9.9%
Dividend yield
0.00%
Rayonier Advanced Materials Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Rayonier Advanced Materials makes high-purity cellulose specialties, the dissolving pulp that goes into acetate tow for cigarette filters, rayon, and cellulose ethers used in food, pharma and construction. The business is a single-product-family chemical maker sitting on a commodity-like pulp base, so its edge comes from the qualification and pricing discipline of specialty grades rather than from scale or a protected moat. Revenue grew 10.6% but gross margin is only 5.9% and operating margin 1.9%, and ROE of -49.7% shows the equity base has been eroded by losses, so earnings power is thin. The stock trades at about 8x forward earnings with a 481M market cap, a multiple that prices in a recovery in pulp pricing and volumes plus successful deleveraging. The score of 35/100 reflects the balance sheet and margin risk, so this earns a deeper look only if the thesis rests on a specific margin inflection that the next few reporting periods can confirm.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
severe
Free cash flow deeply negative
Free cash flow is -$92M against a $465M market cap, with debt/equity at 2.46. Burning cash at that rate on a balance sheet this levered raises refinancing and dilution risk.
high
Earnings collapsing despite revenue growth
Revenue grew 10.6% year on year, yet earnings fell 70.4% and net margin is -9.6%. Costs are outrunning sales, and the quarter-on-quarter revenue drop of 23.5% makes the trend worse.
high
Return on equity deeply negative
ROE is -49.7% and the operating margin of 1.9% is thin. The business is not currently earning a return on the equity it uses.
moderate
ACCE score slipping
The ACCE score fell from 39 to 35 over 90 days, with quality at 17 and momentum at 25. The trend is weakening, though not sharply.
AI research notes
AI-assisted·How I use AIWritten Oct 19, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 10.6% year over year in the latest period, a clear step up from the 1.8% annual pace averaged over five years.
The stock trades at a forward P/E of 6.0x, a low multiple if earnings recover as expected.
Why it could disappoint
Free cash flow over the last twelve months was negative at -$92M, so the business is consuming cash rather than generating it.
Debt is 2.46 times equity, leaving the balance sheet heavily leveraged going into any downturn.
The latest earnings missed badly, with EPS of -0.30 against -0.17 expected, a surprise of -76.5%.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 3, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where RYAM's valuation models land
Price
$6.70
Model fair valueConfidence: low
about $25.23
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Analyst consensus
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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+Conviction breakdown and growth / value / quality / momentum scores