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Are Investors Undervaluing Rayonier Advanced Materials (RYAM) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Rayonier Advanced Materials (RYAM - Free Report) . RYAM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors will also notice that RYAM has a PEG ratio of 0.45. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RYAM's industry has an average PEG of 0.63 right now. Over the last 12 months, RYAM's PEG has been as high as 6.73 and as low as 0.37, with a median of 2.26.

Another notable valuation metric for RYAM is its P/B ratio of 1.53. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.86. Over the past 12 months, RYAM's P/B has been as high as 3.83 and as low as 1.11, with a median of 1.45.

Finally, our model also underscores that RYAM has a P/CF ratio of 2.61. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. RYAM's P/CF compares to its industry's average P/CF of 5.49. RYAM's P/CF has been as high as 8.03 and as low as 2.07, with a median of 2.74, all within the past year.

These are just a handful of the figures considered in Rayonier Advanced Materials's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that RYAM is an impressive value stock right now.


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