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Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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Rayonier Advanced Materials / Equity Bottom-Up

<ul><li>Strong 4Q24 caps off a year of continuous improvement. RYAM reported 4Q24 results that included record EBITDA of $62 million in its HPC division despite lower revenue on reduced sales of commodity products.</li><li>For the year, the company delivered $222 million in EBITDA and 13.4% EBITDA margin, up significantly from 2023 EBITDA of $139 million and 8.3% EBITDA margin, reflecting the positive outcome of management’s decision to reduce exposure to commodity markets and invest in growth of specialty businesses, especially in Biomaterials.</li><li>The strong results came despite still soft acetates demand and only modest growth in ethers, as margins benefited from cost optimization investments that resulted in lower unit production costs and optimized efficiencies.</li></ul>

Strong 4Q24 caps off a year of continuous improvement. RYAM reported 4Q24 results that included record EBITDA of $62 million in its HPC division despite lower revenue on reduced sales of commodity products.For the year, the company delivered $222 million in EBITDA and 13.4% EBITDA margin, up significantly from 2023 EBITDA of $139 million and 8.3% EBITDA margin, reflecting the positive outcome of management’s decision to reduce exposure to commodity markets and invest in growth of specialty businesses, especially in Biomaterials.The strong results came despite still soft acetates demand and only modest growth in ethers, as margins benefited from cost optimization investments that resulted in lower unit production costs and optimized efficiencies.

Rayonier Advanced Materials, Inc. - Strong 4Q24 Bodes Well for 2025...