WEYERHAEUSER CO (WY) Stock Fundamental Analysis
NYSE:WY - New York Stock Exchange, Inc. - US9621661043 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to WY. WY was compared to 30 industry peers in the Specialized REITs industry. WY has only an average score on both its financial health and profitability. WY is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WY was profitable.
WY had a positive operating cash flow in the past year.
WY had positive earnings in each of the past 5 years.
Each year in the past 5 years WY had a positive operating cash flow.
1.2 Ratios
WY has a Return On Assets of 2.21%. This is comparable to the rest of the industry: WY outperforms 50.00% of its industry peers.
Looking at the Return On Equity, with a value of 3.78%, WY is in line with its industry, outperforming 46.67% of the companies in the same industry.
WY has a Return On Invested Capital (4.11%) which is comparable to the rest of the industry.
WY had an Average Return On Invested Capital over the past 3 years of 9.55%. This is above the industry average of 5.28%.
The 3 year average ROIC (9.55%) for WY is well above the current ROIC(4.11%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 3.78% | ||
| ROIC | 4.11% |
ROA(3y)6.06%
ROA(5y)7.57%
ROE(3y)9.92%
ROE(5y)12.62%
ROIC(3y)9.55%
ROIC(5y)11.54%
1.3 Margins
WY has a Profit Margin of 5.15%. This is in the lower half of the industry: WY underperforms 63.33% of its industry peers.
WY's Profit Margin has declined in the last couple of years.
WY's Operating Margin of 9.94% is on the low side compared to the rest of the industry. WY is outperformed by 86.67% of its industry peers.
WY's Operating Margin has declined in the last couple of years.
WY has a worse Gross Margin (18.23%) than 80.00% of its industry peers.
In the last couple of years the Gross Margin of WY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.94% | ||
| PM (TTM) | 5.15% | ||
| GM | 18.23% |
OM growth 3Y-33.75%
OM growth 5Y-2.22%
PM growth 3Y-39.86%
PM growth 5YN/A
GM growth 3Y-22.87%
GM growth 5Y1.13%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WY is creating some value.
WY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for WY has been reduced compared to 5 years ago.
WY has a worse debt/assets ratio than last year.
2.2 Solvency
WY has an Altman-Z score of 2.40. This is not the best score and indicates that WY is in the grey zone with still only limited risk for bankruptcy at the moment.
WY has a Altman-Z score of 2.40. This is amongst the best in the industry. WY outperforms 90.00% of its industry peers.
WY has a debt to FCF ratio of 9.86. This is a negative value and a sign of low solvency as WY would need 9.86 years to pay back of all of its debts.
WY's Debt to FCF ratio of 9.86 is fine compared to the rest of the industry. WY outperforms 73.33% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that WY is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.52, WY belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 9.86 | ||
| Altman-Z | 2.4 |
ROIC/WACC0.5
WACC8.21%
2.3 Liquidity
A Current Ratio of 2.04 indicates that WY has no problem at all paying its short term obligations.
WY's Current ratio of 2.04 is fine compared to the rest of the industry. WY outperforms 73.33% of its industry peers.
WY has a Quick Ratio of 1.26. This is a normal value and indicates that WY is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.26, WY is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
WY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -50.52%.
WY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.88% yearly.
The Revenue has decreased by -6.56% in the past year.
The Revenue has been growing slightly by 1.68% on average over the past years.
EPS 1Y (TTM)-50.52%
EPS 3Y-46.02%
EPS 5Y6.88%
EPS Q2Q%-31.25%
Revenue 1Y (TTM)-6.56%
Revenue growth 3Y-11.28%
Revenue growth 5Y1.68%
Sales Q2Q%-1.84%
3.2 Future
WY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.02% yearly.
WY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.08% yearly.
EPS Next Y11.13%
EPS Next 2Y29.01%
EPS Next 3Y30.17%
EPS Next 5Y24.02%
Revenue Next Year1.17%
Revenue Next 2Y3.2%
Revenue Next 3Y3.15%
Revenue Next 5Y5.08%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 52.73, WY can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of WY is on the same level as its industry peers.
WY is valuated expensively when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 28.69, the valuation of WY can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WY indicates a somewhat cheap valuation: WY is cheaper than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. WY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.73 | ||
| Fwd PE | 28.69 |
4.2 Price Multiples
WY's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, WY is valued a bit more expensive than the industry average as 63.33% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.03 | ||
| EV/EBITDA | 19.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WY does not grow enough to justify the current Price/Earnings ratio.
WY's earnings are expected to grow with 30.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.74
PEG (5Y)7.66
EPS Next 2Y29.01%
EPS Next 3Y30.17%
5. Dividend
5.1 Amount
WY has a Yearly Dividend Yield of 3.21%.
Compared to an average industry Dividend Yield of 5.78, WY is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.35, WY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
5.2 History
The dividend of WY decreases each year by -7.11%.
WY has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-7.11%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WY pays out 161.10% of its income as dividend. This is not a sustainable payout ratio.
DP161.1%
EPS Next 2Y29.01%
EPS Next 3Y30.17%
25.31
-0.37 (-1.44%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners90.19%
Inst Owner Change-0.1%
Ins Owners0.28%
Ins Owner Change7.08%
Market Cap18.36B
Analysts80.95
Price Target35.09 (38.64%)
Short Float %1.51%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
Yearly Dividend0.94
Dividend Growth(5Y)-7.11%
DP161.1%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)33.07%
Min EPS beat(2)10.61%
Max EPS beat(2)55.52%
EPS beat(4)3
Avg EPS beat(4)146.38%
Min EPS beat(4)-2.96%
Max EPS beat(4)522.36%
EPS beat(8)5
Avg EPS beat(8)78.31%
EPS beat(12)9
Avg EPS beat(12)62.58%
EPS beat(16)11
Avg EPS beat(16)47.06%
Revenue beat(2)0
Avg Revenue beat(2)-2.97%
Min Revenue beat(2)-3.34%
Max Revenue beat(2)-2.6%
Revenue beat(4)0
Avg Revenue beat(4)-2.9%
Min Revenue beat(4)-3.34%
Max Revenue beat(4)-2.55%
Revenue beat(8)0
Avg Revenue beat(8)-4.15%
Revenue beat(12)1
Avg Revenue beat(12)-3.57%
Revenue beat(16)2
Avg Revenue beat(16)-2.8%
PT rev (1m)-1.15%
PT rev (3m)-4.71%
EPS NQ rev (1m)-15.37%
EPS NQ rev (3m)-31.19%
EPS NY rev (1m)-8.8%
EPS NY rev (3m)-26.86%
Revenue NQ rev (1m)-1.37%
Revenue NQ rev (3m)-4.97%
Revenue NY rev (1m)-1.54%
Revenue NY rev (3m)-4.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.73 | ||
| Fwd PE | 28.69 | ||
| P/S | 2.59 | ||
| P/FCF | 35.03 | ||
| P/OCF | 19.24 | ||
| P/B | 1.9 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 19.25 |
EPS(TTM)0.48
EY1.9%
EPS(NY)0.88
Fwd EY3.48%
FCF(TTM)0.72
FCFY2.85%
OCF(TTM)1.32
OCFY5.2%
SpS9.78
BVpS13.3
TBVpS13.3
PEG (NY)4.74
PEG (5Y)7.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 3.78% | ||
| ROCE | 4.5% | ||
| ROIC | 4.11% | ||
| ROICexc | 4.26% | ||
| ROICexgc | 4.26% | ||
| OM | 9.94% | ||
| PM (TTM) | 5.15% | ||
| GM | 18.23% | ||
| FCFM | 7.39% |
ROA(3y)6.06%
ROA(5y)7.57%
ROE(3y)9.92%
ROE(5y)12.62%
ROIC(3y)9.55%
ROIC(5y)11.54%
ROICexc(3y)10.45%
ROICexc(5y)12.64%
ROICexgc(3y)10.45%
ROICexgc(5y)12.64%
ROCE(3y)10.47%
ROCE(5y)12.66%
ROICexcg growth 3Y-41.29%
ROICexcg growth 5Y-0.06%
ROICexc growth 3Y-41.29%
ROICexc growth 5Y-0.06%
OM growth 3Y-33.75%
OM growth 5Y-2.22%
PM growth 3Y-39.86%
PM growth 5YN/A
GM growth 3Y-22.87%
GM growth 5Y1.13%
F-Score4
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 9.86 | ||
| Debt/EBITDA | 4.16 | ||
| Cap/Depr | 85.66% | ||
| Cap/Sales | 6.06% | ||
| Interest Coverage | 2.71 | ||
| Cash Conversion | 79.04% | ||
| Profit Quality | 143.56% | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 2.4 |
F-Score4
WACC8.21%
ROIC/WACC0.5
Cap/Depr(3y)89.92%
Cap/Depr(5y)84.35%
Cap/Sales(3y)5.42%
Cap/Sales(5y)4.86%
Profit Quality(3y)130.92%
Profit Quality(5y)130.72%
High Growth Momentum
Growth
EPS 1Y (TTM)-50.52%
EPS 3Y-46.02%
EPS 5Y6.88%
EPS Q2Q%-31.25%
EPS Next Y11.13%
EPS Next 2Y29.01%
EPS Next 3Y30.17%
EPS Next 5Y24.02%
Revenue 1Y (TTM)-6.56%
Revenue growth 3Y-11.28%
Revenue growth 5Y1.68%
Sales Q2Q%-1.84%
Revenue Next Year1.17%
Revenue Next 2Y3.2%
Revenue Next 3Y3.15%
Revenue Next 5Y5.08%
EBIT growth 1Y-35.44%
EBIT growth 3Y-41.22%
EBIT growth 5Y-0.57%
EBIT Next Year115.61%
EBIT Next 3Y42.29%
EBIT Next 5Y26.56%
FCF growth 1Y-65.8%
FCF growth 3Y-39.83%
FCF growth 5Y0.34%
OCF growth 1Y-52.32%
OCF growth 3Y-31.67%
OCF growth 5Y0.85%