BofA update shows where active managers are putting money
Rayonier Advanced Materials is a global producer of cellulose specialties used in filters, food, pharmaceuticals and other industrial applications, with operations in the U.S., Canada and France. Trading at just 0.38 times book value, the stock appears undervalued according to InvestingPro’s comprehensive analysis. Investors can access the full Pro Research Report, which provides deep-dive analysis of RYAM’s financials, valuation metrics, and growth prospects, along with expert insights available for over 1,400 US stocks. Trading at just 0.38 times book value, the stock appears undervalued according to InvestingPro’s comprehensive analysis. Investors can access the full Pro Research Report, which provides deep-dive analysis of RYAM’s financials, valuation metrics, and growth prospects, along with expert insights available for over 1,400 US stocks.
Under the agreement, GranBio will lead the proposed project using its proprietary AVAP technology to convert lignocellulosic biomass into second-generation ethanol, which will then be upgraded into Sustainable Aviation Fuel. The project would utilize RYAM’s existing infrastructure at the Jesup plant, including feedstock, utilities, and logistics capabilities.
Partial financing for the project would come through GranBio’s $100 million grant from the U.S. Department of Energy.
If the project proceeds, RYAM would receive a license to GranBio’s latest-generation Celer2L yeast and AVAP technologies for ethanol and sugar production at its own facility, representing a step toward diversification into biofuel and biochemical markets.
"This MoU aligns with our strategy to unlock new value from our core assets and expand into renewable markets where our infrastructure and technical capabilities create a competitive advantage," said De Lyle Bloomquist, President and CEO of RYAM. The strategic pivot comes as the company, which generates annual revenues of $1.6 billion, grapples with challenging gross profit margins of 9.56%. InvestingPro subscribers can access detailed analysis of RYAM’s financial health metrics and 10 additional exclusive ProTips about the company’s performance and outlook.
Luiz Oliveira, CEO of GranBio, stated the project would leverage "complementary capabilities in the development of a cost-effective, scalable solution for the production of Sustainable Aviation Fuels."
Due diligence on the project is expected to conclude later this year, at which point both companies will determine next steps. The companies described the initiative as a "first-of-its-kind project" with potential for replication.
Rayonier Advanced Materials is a global producer of cellulose specialties used in filters, food, pharmaceuticals and other industrial applications, with operations in the U.S., Canada and France.
In other recent news, Rayonier Advanced Materials reported its first-quarter 2025 financial results, which fell short of market expectations. The company announced an earnings per share (EPS) of -$0.49, which was significantly below the projected $0.04. Additionally, its revenue was reported at $356 million, missing the anticipated $395.75 million. These figures highlight a challenging quarter for the company. In other developments, Rayonier Advanced Materials held its Annual Meeting of Stockholders, where the election of three director nominees was confirmed for terms expiring in 2028. However, stockholders did not approve amendments to declassify the board of directors or eliminate the supermajority voting provisions. The compensation for named executive officers was approved, and the 2023 Incentive Stock Plan was ratified. Furthermore, Grant Thornton LLP was selected as the independent registered public accounting firm for 2025.
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