WEYERHAEUSER CO (WY) Stock Fundamental Analysis
NYSE:WY - New York Stock Exchange, Inc. - US9621661043 - REIT - Currency: USD
Overall WY gets a fundamental rating of 4 out of 10. We evaluated WY against 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
WY had positive earnings in the past year.
WY had a positive operating cash flow in the past year.
Each year in the past 5 years WY has been profitable.
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 53.33% of its industry peers.
WY has a Return On Equity (3.78%) which is comparable to the rest of the industry.
WY has a Return On Invested Capital (4.11%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for WY is above the industry average of 5.28%.
The last Return On Invested Capital (4.11%) for WY is well below the 3 year average (9.55%), which needs to be investigated, but indicates that WY had better years and this may not be a problem.
| 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
Looking at the Profit Margin, with a value of 5.15%, WY is doing worse than 63.33% of the companies in the same industry.
WY's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 9.94%, WY is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
WY's Operating Margin has declined in the last couple of years.
The Gross Margin of WY (18.23%) is worse 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WY is still creating some value.
The number of shares outstanding for WY has been reduced compared to 1 year ago.
Compared to 5 years ago, WY has less shares outstanding
The debt/assets ratio for WY is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.37 indicates that WY is not a great score, but indicates only limited risk for bankruptcy at the moment.
WY has a Altman-Z score of 2.37. 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.
WY's Debt to Equity ratio of 0.52 is amongst the best of the industry. WY outperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 9.86 | ||
| Altman-Z | 2.37 |
ROIC/WACC0.5
WACC8.15%
2.3 Liquidity
A Current Ratio of 2.04 indicates that WY has no problem at all paying its short term obligations.
WY has a better Current ratio (2.04) than 76.67% 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 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The earnings per share for WY have decreased strongly by -50.52% in the last year.
Measured over the past 5 years, WY shows a small growth in Earnings Per Share. The EPS has been growing by 6.88% on average per year.
Looking at the last year, WY shows a decrease in Revenue. The Revenue has decreased by -6.56% in the last year.
WY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.68% yearly.
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 22.51% yearly.
WY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.69% yearly.
EPS Next Y21.85%
EPS Next 2Y33.06%
EPS Next 3Y32.06%
EPS Next 5Y22.51%
Revenue Next Year2.76%
Revenue Next 2Y3.98%
Revenue Next 3Y4.03%
Revenue Next 5Y5.69%
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.
4. Valuation
4.1 Price/Earnings Ratio
WY is valuated quite expensively with a Price/Earnings ratio of 52.46.
WY's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.03. WY is valued rather expensively when compared to this.
WY is valuated quite expensively with a Price/Forward Earnings ratio of 26.83.
Based on the Price/Forward Earnings ratio, WY is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
WY's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.46 | ||
| Fwd PE | 26.83 |
4.2 Price Multiples
WY's Enterprise Value to EBITDA is on the same level as the industry average.
WY's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. WY is more expensive than 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.85 | ||
| EV/EBITDA | 18.95 |
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.
A more expensive valuation may be justified as WY's earnings are expected to grow with 32.06% in the coming years.
PEG (NY)2.4
PEG (5Y)7.62
EPS Next 2Y33.06%
EPS Next 3Y32.06%
5. Dividend
5.1 Amount
WY has a Yearly Dividend Yield of 3.17%.
WY's Dividend Yield is slightly below the industry average, which is at 5.68.
WY's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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
161.10% of the earnings are spent on dividend by WY. This is not a sustainable payout ratio.
DP161.1%
EPS Next 2Y33.06%
EPS Next 3Y32.06%
25.18
-1.03 (-3.93%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners89.36%
Inst Owner Change1.57%
Ins Owners0.28%
Ins Owner Change7.12%
Market Cap18.26B
Analysts80.95
Price Target35.5 (40.98%)
Short Float %1.62%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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)-3.6%
PT rev (3m)-2.52%
EPS NQ rev (1m)-17.66%
EPS NQ rev (3m)-17.66%
EPS NY rev (1m)-19.1%
EPS NY rev (3m)-19.8%
Revenue NQ rev (1m)-2.68%
Revenue NQ rev (3m)-2.73%
Revenue NY rev (1m)-3.11%
Revenue NY rev (3m)-3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.46 | ||
| Fwd PE | 26.83 | ||
| P/S | 2.58 | ||
| P/FCF | 34.85 | ||
| P/OCF | 19.14 | ||
| P/B | 1.89 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 18.95 |
EPS(TTM)0.48
EY1.91%
EPS(NY)0.94
Fwd EY3.73%
FCF(TTM)0.72
FCFY2.87%
OCF(TTM)1.32
OCFY5.22%
SpS9.78
BVpS13.3
TBVpS13.3
PEG (NY)2.4
PEG (5Y)7.62
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 | 2.37 |
F-Score4
WACC8.15%
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 Y21.85%
EPS Next 2Y33.06%
EPS Next 3Y32.06%
EPS Next 5Y22.51%
Revenue 1Y (TTM)-6.56%
Revenue growth 3Y-11.28%
Revenue growth 5Y1.68%
Sales Q2Q%-1.84%
Revenue Next Year2.76%
Revenue Next 2Y3.98%
Revenue Next 3Y4.03%
Revenue Next 5Y5.69%
EBIT growth 1Y-35.44%
EBIT growth 3Y-41.22%
EBIT growth 5Y-0.57%
EBIT Next Year133.92%
EBIT Next 3Y42.77%
EBIT Next 5Y25.99%
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%