Rayonier Inc (RYN) stock analysis

P/E above its 5-year median

Rayonier's P/E of 47.9 is above its own 5-year median of 31.5.

P/E above the industry

Rayonier's P/E of 47.9 is above the Miscellaneous Investing median of 26.3.

EV/EBITDA above its 5-year median

Rayonier's EV/EBITDA of 136.2 is above its 5-year median of 14.1.

P/B above the industry

Rayonier's price-to-book of 1.23 is above the Miscellaneous Investing median of 1.20.

Trading above fair value

The share price of $21.55 is above our fair value estimate of $14.84.

Margin of safety under 20%

The price is 45.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -18.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 60.7% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -90.0% over the last twelve months, against a 5-year average of 66.5% a year.

Growing slower than the industry

Revenue grew 0.4% over the last twelve months; the Miscellaneous Investing median is 4.6%.

Guidance lowered

Rayonier lowered its third quarter lumber shipments outlook on Aug 5, 2026.

Gross margin slipping

Gross margin was 23.7% over the last twelve months, against 45.3% a year earlier.

Return on equity under 15%

Return on equity was 2.0% over the last twelve months and averaged 13.6% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 1.3%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Rayonier's return on equity of 2.0% is below the Miscellaneous Investing median of 3.1%.

Earnings grew over 5 years

Net income grew 66.5% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 7.8% over the last twelve months, against a 5-year average of 36.4%.

Net margin below the industry

Rayonier's net margin of 7.8% is below the Miscellaneous Investing median of 10.3%.

Low debt

Debt is 35.6% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 92.3% five years ago to 35.6%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 16.9% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 1.3 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 3.56 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 1.95; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Rayonier paid dividends worth 4.9% of the share price over the last twelve months.

Yield above Treasuries

The 4.9% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Rayonier yields 4.9%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Not covered by earnings

Dividends take 393% of net income, leaving little room.

Cash-flow cover

Needs dividends paid and free cash flow.