To determine which stocks are the best stocks to buy now, a detailed analysis of each and every stock of interest is crucial. In this report, we do a detailed analysis of Rayonier Incorporated (RYN).
Background
Rayonier Incorporated (RYN) is a real estate investment trust (REIT) specializing in timberland. The company owns, leases, or manages 2.7 million acres of timberland in the U.S. and New Zealand. In addition, the company is involved in the trading of logs from New Zealand and Australia to the Pacific Rim markets. The company operates in five segments: Southern Timber, Pacific Northwest Timber, New Zealand Timber, Real Estate, and Trading. Rayonier is headquartered in Jacksonville, Florida; and it is one of the largest private landowners in the U.S.
Stock Fundamentals
In some ways Rayonier is the kind of company we like to buy (or at least like to analyze). It is very easy to understand and its assets are real and not susceptible to change quickly or arbitrarily. But there is not much else we like about RYN.
RYN’s strong Asian focus means it is particularly affected by developments in that part of the world. And China’s demand for raw materials (and timber especially) has fallen as of late. And it does not promise to reignite soon (and may even go lower).
Even independent of events in Asia, we feel RYN’s growth outlook is cloudy if not outright poor. And despite the fact that its stock price has been weak over the last three years, we feel this company’s price is still too high given its diminished growth outlook.
We would not consider RYN one of the best stocks to buy now. In fact, we rate its fundamentals as below average.
Stat Sheet – Rayonier Incorporated 4/26/16
| Ticker | RYN |
| Industry | Real Estate Operations |
| Price | $ 25.13 |
| Market Cap | $ 3,145 |
| Dividend Yield | 3.98 |
| Dividend/CFOp | 0.711 |
| Equity/Assets | 0.565 |
| Average Equity/Assets | 0.508 |
| Financial Strength | Average |
| Growth Prospects | Below Average |
| Beta | 0.65 |
| Price Volatility | Below Average |
| Stock Fundamentals | D |
(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016.)
If you would like to see the other stocks we would consider some of the best stocks to buy now, click the link below.
To learn the reason why we favor the best dividend stocks, click the link below
Disclaimer – Information contained herein has been obtained from sources believed to be reliable. Neither the author nor the publisher guarantees the accuracy or completeness of the information and methods described. This information is offered as general commentary only. It is not intended as investment advice. Investment and trading of securities involves risk, including of loss of capital. Market conditions change over time, and no assurance can be given that a reader may apply the principles described to make a profit. The author and publisher expressly disclaim all and any liability to any person for any investment or trading decisions that the reader may make in reliance on this information.
vershire 