WEYERHAEUSER CO (WY)

US9621661043 - REIT

35.915  -0.02 (-0.04%)

Fundamental Rating

5

Taking everything into account, WY scores 5 out of 10 in our fundamental rating. WY was compared to 28 industry peers in the Specialized REITs industry. While WY has a great health rating, its profitability is only average at the moment. WY is valued expensive and it does not seem to be growing.



6

1. Profitability

1.1 Basic Checks

WY had positive earnings in the past year.
In the past year WY had a positive cash flow from operations.
WY had positive earnings in 4 of the past 5 years.
In the past 5 years WY always reported a positive cash flow from operatings.

1.2 Ratios

WY has a better Return On Assets (4.94%) than 82.14% of its industry peers.
Looking at the Return On Equity, with a value of 8.20%, WY is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.95%, WY is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WY is significantly above the industry average of 5.06%.
The last Return On Invested Capital (5.95%) for WY is well below the 3 year average (13.71%), which needs to be investigated, but indicates that WY had better years and this may not be a problem.
Industry RankSector Rank
ROA 4.94%
ROE 8.2%
ROIC 5.95%
ROA(3y)10.18%
ROA(5y)6.99%
ROE(3y)16.63%
ROE(5y)11.62%
ROIC(3y)13.71%
ROIC(5y)10.86%

1.3 Margins

WY's Profit Margin of 10.93% is on the low side compared to the rest of the industry. WY is outperformed by 60.71% of its industry peers.
In the last couple of years the Profit Margin of WY has grown nicely.
WY's Operating Margin of 14.67% is on the low side compared to the rest of the industry. WY is outperformed by 82.14% of its industry peers.
WY's Operating Margin has declined in the last couple of years.
WY has a worse Gross Margin (21.92%) than 82.14% of its industry peers.
WY's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 14.67%
PM (TTM) 10.93%
GM 21.92%
OM growth 3Y-12%
OM growth 5Y-4.99%
PM growth 3Y1.1%
PM growth 5Y1.79%
GM growth 3Y-7.49%
GM growth 5Y-2.75%

9

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.
Compared to 1 year ago, WY has less shares outstanding
The number of shares outstanding for WY has been reduced compared to 5 years ago.
Compared to 1 year ago, WY has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 3.27 indicates that WY is not in any danger for bankruptcy at the moment.
The Altman-Z score of WY (3.27) is better than 96.43% of its industry peers.
WY has a debt to FCF ratio of 5.14. This is a neutral value as WY would need 5.14 years to pay back of all of its debts.
WY has a better Debt to FCF ratio (5.14) than 92.86% of its industry peers.
WY has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
WY has a better Debt to Equity ratio (0.50) than 92.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 5.14
Altman-Z 3.27
ROIC/WACC0.68
WACC8.8%

2.3 Liquidity

WY has a Current Ratio of 2.94. This indicates that WY is financially healthy and has no problem in meeting its short term obligations.
WY's Current ratio of 2.94 is amongst the best of the industry. WY outperforms 92.86% of its industry peers.
A Quick Ratio of 2.22 indicates that WY has no problem at all paying its short term obligations.
WY has a Quick ratio of 2.22. This is amongst the best in the industry. WY outperforms 89.29% of its industry peers.
Industry RankSector Rank
Current Ratio 2.94
Quick Ratio 2.22

3

3. Growth

3.1 Past

The earnings per share for WY have decreased strongly by -66.34% in the last year.
WY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.87% yearly.
Looking at the last year, WY shows a very negative growth in Revenue. The Revenue has decreased by -24.65% in the last year.
The Revenue has been growing slightly by 0.52% on average over the past years.
EPS 1Y (TTM)-66.34%
EPS 3Y-7.53%
EPS 5Y-2.87%
EPS growth Q2Q-33.33%
Revenue 1Y (TTM)-24.65%
Revenue growth 3Y0.62%
Revenue growth 5Y0.52%
Revenue growth Q2Q-2.69%

3.2 Future

Based on estimates for the next years, WY will show a small growth in Earnings Per Share. The EPS will grow by 5.27% on average per year.
The Revenue is expected to grow by 5.20% on average over the next years.
EPS Next Y10.07%
EPS Next 2Y16.08%
EPS Next 3Y13.55%
EPS Next 5Y5.27%
Revenue Next Year1.86%
Revenue Next 2Y2.83%
Revenue Next 3Y2.89%
Revenue Next 5Y5.2%

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 accelerating: in the next years the growth will be better than in the last years.

2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 35.21, WY can be considered very expensive at the moment.
WY's Price/Earnings is on the same level as the industry average.
WY is valuated rather expensively when we compare the Price/Earnings ratio to 26.42, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 31.99 indicates a quite expensive valuation of WY.
WY's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.74. WY is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 35.21
Fwd PE 31.99

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WY is on the same level as its industry peers.
WY's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 26.57
EV/EBITDA 18.52

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 has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WY's earnings are expected to grow with 13.55% in the coming years.
PEG (NY)3.5
PEG (5Y)N/A
EPS Next 2Y16.08%
EPS Next 3Y13.55%

3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.25%, WY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.65, WY's dividend is way lower than its industry peers. On top of this 82.14% of the companies listed in the same industry pay a better dividend than WY!
WY's Dividend Yield is comparable with the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 2.25%

5.2 History

The dividend of WY has a limited annual growth rate of 4.64%.
WY has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)4.64%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

144.93% of the earnings are spent on dividend by WY. This is not a sustainable payout ratio.
The dividend of WY is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP144.93%
EPS Next 2Y16.08%
EPS Next 3Y13.55%

WEYERHAEUSER CO

NYSE:WY (3/28/2024, 12:26:50 PM)

35.915

-0.02 (-0.04%)

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 Cap26.20B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.25%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 35.21
Fwd PE 31.99
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)3.5
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.94%
ROE 8.2%
ROCE
ROIC
ROICexc
ROICexgc
OM 14.67%
PM (TTM) 10.93%
GM 21.92%
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 Turnover0.45
Health
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.94
Quick Ratio 2.22
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)-66.34%
EPS 3Y-7.53%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.07%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-24.65%
Revenue growth 3Y0.62%
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