Rayonier Advanced MaterialsRYAM -3.56%56 3-Year ROIIC % is 2.94 as of Dec. 2025, which is 1860% above its 10-year median of 0.15. GuruFocus rates RYAM with a GF Score™ of 56/100 and a GF Value™ of $4.92 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,525 Chemicals companies, Rayonier Advanced Materials ranks better than 55.8% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Rayonier Advanced Materials's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 2.94%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Rayonier Advanced Materials's 3-Year ROIIC % or its related term are showing as below:
RYAM's 3-Year ROIIC % is ranked better than 55.8% of 1525
companies
in the Chemicals industry
Industry Median: -0.13
vs RYAM: 2.94
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Rayonier Advanced Materials 3-Year ROIIC % Related Terms
Rayonier Advanced Materials 3-Year ROIIC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
RYAM vs ASIX, VHI, ASPI: 3-Year ROIIC % Comparison
For the Chemicals subindustry, Rayonier Advanced Materials's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rayonier Advanced Materials 3-Year ROIIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Rayonier Advanced Materials's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Rayonier Advanced Materials's 3-Year ROIIC % falls into.
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 11.247 (Dec. 2025) - 27.888 (Dec. 2022) )
/
( 1392.696 (Dec. 2025) - 1958.035 (Dec. 2022) )
=
-16.641
/
-565.339
=
2.94%***
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Rayonier Advanced Materials (RYAM) has a 3-Year ROIIC % of 2.94 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Rayonier Advanced Materials and its competitors. This is 1860% above median its historical median of 0.15. According to the industry distribution chart, Rayonier Advanced Materials ranks #674 out of 1525 companies in the Chemicals industry, placing it in the top 44.2%.
Is Rayonier Advanced Materials' 3-Year ROIIC % too high?
Rayonier Advanced Materials' current 3-Year ROIIC % of 2.94 is 1860% above median its 10-year median of 0.15. Based on the distribution chart, Rayonier Advanced Materials ranks #674 out of 1525 companies in the Chemicals industry, which is above the industry midpoint. Overall, Rayonier Advanced Materials has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rayonier Advanced Materials' 3-Year ROIIC % compare to ASIX and VHI?
According to the Chemicals industry distribution chart, Rayonier Advanced Materials ranks #674 out of 1525 companies for 3-Year ROIIC %. This puts Rayonier Advanced Materials in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Chemicals company?
A good 3-Year ROIIC % depends on the Chemicals industry context. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Rayonier Advanced Materials and its competitors. Rayonier Advanced Materials's current 3-Year ROIIC % is 2.94, which is 1860% above median its own 10-year median of 0.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rayonier Advanced Materials stock overvalued right now?
Based on GuruFocus' analysis, Rayonier Advanced Materials (RYAM) is currently considered Significantly Overvalued. The stock's GF Value™ is $4.92, compared to a current price of $7.72 — trading 56.8% above its estimated fair value. The current 3-Year ROIIC % is 2.94, which is 1860% above median its 10-year median of 0.15. Rayonier Advanced Materials' overall GF Score™ is 56/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Rayonier Advanced Materials (RYAM), the current 3-Year ROIIC % is 2.94 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rayonier Advanced Materials (RYAM) Overvalued in 2026?
Based on GuruFocus' analysis, Rayonier Advanced Materials stock appears to be overvalued.
The current stock price of $7.72 is trading 56.8% above its estimated GF Value™ of $4.92.
GuruFocus considers Rayonier Advanced Materials to be Significantly Overvalued.
Key valuation signals for RYAM:
3-Year ROIIC %: 2.94 (1860% above median its 10-year median of 0.15)
GF Value™: $4.92 vs. price of $7.72 (56.8% above fair value)
No single metric tells the full story. See the RYAM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rayonier Advanced Materials Inc engaged in the production and sale of high-purity cellulose and other cellulose-based materials derived from renewable wood fiber. The company operates through five segments: Cellulose Specialties, which produces purified cellulose used in products such as filters, pharmaceuticals, food additives and electronics; Biomaterials, which produces products including biofuels, lignosulfonates and other bio-based chemicals; Cellulose Commodities, which manufactures absorbent and viscose pulp used in textiles and hygiene products; Paperboard, which produces coated paperboard used for packaging and printing applications; and High-Yield Pulp, which produces pulp used in paperboard, packaging and printing paper products.
56GF Score
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