POTLATCHDELTIC CORP (PCH)
US7376301039 - REIT
Taking everything into account, PCH scores 4 out of 10 in our fundamental rating. PCH was compared to 28 industry peers in the Specialized REITs industry. PCH scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. PCH is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PCH had positive earnings in the past year.
In the past year PCH had a positive cash flow from operations.
In the past 5 years PCH has always been profitable.
Each year in the past 5 years PCH had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.34%, PCH is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 2.11%, PCH is doing worse than 64.29% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.76%, PCH is doing worse than 92.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PCH is significantly above the industry average of 5.08%.
The last Return On Invested Capital (0.76%) for PCH is well below the 3 year average (10.43%), which needs to be investigated, but indicates that PCH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.34% | ||
| ROE | 2.11% | ||
| ROIC | 0.76% |
ROA(3y)9.31%
ROA(5y)7.49%
ROE(3y)15.13%
ROE(5y)12.54%
ROIC(3y)10.43%
ROIC(5y)9.04%
1.3 Margins
Looking at the Profit Margin, with a value of 4.58%, PCH is doing worse than 64.29% of the companies in the same industry.
In the last couple of years the Profit Margin of PCH has declined.
PCH's Operating Margin of 2.88% is on the low side compared to the rest of the industry. PCH is outperformed by 92.86% of its industry peers.
PCH's Operating Margin has declined in the last couple of years.
PCH's Gross Margin of 10.75% is on the low side compared to the rest of the industry. PCH is outperformed by 85.71% of its industry peers.
In the last couple of years the Gross Margin of PCH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.88% | ||
| PM (TTM) | 4.58% | ||
| GM | 10.75% |
OM growth 3Y-43.89%
OM growth 5Y-25.85%
PM growth 3Y-27.67%
PM growth 5Y-13.62%
GM growth 3Y-28.97%
GM growth 5Y-14.99%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PCH is still creating some value.
PCH has less shares outstanding than it did 1 year ago.
PCH has more shares outstanding than it did 5 years ago.
PCH has a worse debt/assets ratio than last year.
2.2 Solvency
PCH has an Altman-Z score of 1.85. This is not the best score and indicates that PCH is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.85, PCH belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
PCH has a debt to FCF ratio of 132.50. This is a negative value and a sign of low solvency as PCH would need 132.50 years to pay back of all of its debts.
The Debt to FCF ratio of PCH (132.50) is worse than 71.43% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that PCH is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.40, PCH belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 132.5 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.1
WACC7.72%
2.3 Liquidity
A Current Ratio of 1.42 indicates that PCH should not have too much problems paying its short term obligations.
PCH's Current ratio of 1.42 is fine compared to the rest of the industry. PCH outperforms 71.43% of its industry peers.
A Quick Ratio of 1.12 indicates that PCH should not have too much problems paying its short term obligations.
PCH's Quick ratio of 1.12 is fine compared to the rest of the industry. PCH outperforms 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
PCH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -86.82%.
The earnings per share for PCH have been decreasing by -24.46% on average. This is quite bad
Looking at the last year, PCH shows a very negative growth in Revenue. The Revenue has decreased by -15.56% in the last year.
Measured over the past years, PCH shows a small growth in Revenue. The Revenue has been growing by 1.00% on average per year.
EPS 1Y (TTM)-86.82%
EPS 3Y-41.85%
EPS 5Y-24.46%
EPS growth Q2Q-100%
Revenue 1Y (TTM)-15.56%
Revenue growth 3Y-0.54%
Revenue growth 5Y1%
Revenue growth Q2Q-11.57%
3.2 Future
PCH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.19% yearly.
The Revenue is expected to grow by 1.16% on average over the next years.
EPS Next Y14.28%
EPS Next 2Y24.24%
EPS Next 3Y26.19%
EPS Next 5YN/A
Revenue Next Year6.45%
Revenue Next 2Y4.26%
Revenue Next 3Y1.16%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 123.34, the valuation of PCH can be described as expensive.
Based on the Price/Earnings ratio, PCH is valued a bit more expensive than 71.43% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.39, PCH is valued quite expensively.
With a Price/Forward Earnings ratio of 48.39, PCH can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, PCH is valued a bit more expensive than 64.29% of the companies in the same industry.
PCH is valuated expensively when we compare the Price/Forward Earnings ratio to 20.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 123.34 | ||
| Fwd PE | 48.39 |
4.2 Price Multiples
89.29% of the companies in the same industry are cheaper than PCH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PCH is valued a bit more expensive than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 439.83 | ||
| EV/EBITDA | 28.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as PCH's earnings are expected to grow with 26.19% in the coming years.
PEG (NY)8.64
PEG (5Y)N/A
EPS Next 2Y24.24%
EPS Next 3Y26.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.19%, PCH is a good candidate for dividend investing.
PCH's Dividend Yield is comparable with the industry average which is at 4.94.
PCH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
5.2 History
The dividend of PCH decreases each year by -7.82%.
PCH has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-7.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PCH pays out 314.94% of its income as dividend. This is not a sustainable payout ratio.
DP314.94%
EPS Next 2Y24.24%
EPS Next 3Y26.19%
POTLATCHDELTIC CORP
NASDAQ:PCH (5/10/2024, 7:12:03 PM)
After market: 43.17 0 (0%)43.17
+0.21 (+0.49%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 123.34 | ||
| Fwd PE | 48.39 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)8.64
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.34% | ||
| ROE | 2.11% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.88% | ||
| PM (TTM) | 4.58% | ||
| GM | 10.75% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-86.82%
EPS 3Y-41.85%
EPS 5Y
EPS growth Q2Q
EPS Next Y14.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-15.56%
Revenue growth 3Y-0.54%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y