11 Best Small Cap Chemical Stocks to Buy According to Hedge Funds

Page 4 of 10

7. Rayonier Advanced Materials Inc. (NYSE:RYAM)

Market Capitalization: $544.46 Million

Number of Hedge Fund Holders: 18

Rayonier Advanced Materials Inc. (NYSE:RYAM) is a leading global supplier of high-purity cellulose specialties for the chemical industry. Cellulose specialties are natural polymers essential for various industries, including chemicals, textiles, and pharmaceuticals. The company focuses on cellulose-based technologies that cater to the production of specialty chemicals and polymers used in applications like liquid crystal displays, filters, textiles, and performance additives for pharmaceutical, food, and other industrial applications.

In the third quarter of 2024, Rayonier Advanced Materials Inc. (NYSE:RYAM) reported net sales of $401 million, an increase of $32 million compared to the same quarter last year. The adjusted EBITDA from continuing operations rose significantly to $51 million, up $27 million from the prior year, highlighting improved operational performance.

The company is actively investing in new products to diversify its market presence and enhance profitability. Notable projects include its bioethanol facility in Tartas, France, which aims to generate $42 million in annual EBITDA by 2027 from future biomaterial products. Rayonier Advanced Materials Inc. (NYSE:RYAM) has also submitted a self-certification for a prebiotics product to the US Food and Drug Administration and is advancing plans for a bioethanol facility in Fernandina.

On November 12, 2024, Rayonier Advanced Materials Inc. (NYSE:RYAM) announced it had raised EUR 67 million in green capital to support its biomaterials initiatives. This funding will help develop a second-generation bioethanol plant and a prebiotics project. With strong financial results, strategic investments in growth areas, and a commitment to sustainability, Rayonier Advanced Materials Inc. (NYSE:RYAM) is well-positioned for future success.

Page 4 of 10