WEYERHAEUSER CO (WY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WY - US9621661043 - REIT
26.23 USD
-0.37 (-1.39%)
26.35 USD
+0.12 (+0.46%)
Taking everything into account, WY scores 4 out of 10 in our fundamental rating. WY was compared to 30 industry peers in the Specialized REITs industry. Both the profitability and the financial health of WY get a neutral evaluation. Nothing too spectacular is happening here. WY is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year WY was profitable.
- In the past year WY had a positive cash flow from operations.
- Each year in the past 5 years WY has been profitable.
- WY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- WY has a Return On Assets (1.99%) which is in line with its industry peers.
- WY has a Return On Equity (3.51%) which is comparable to the rest of the industry.
- With a Return On Invested Capital value of 3.51%, WY perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for WY is above the industry average of 4.86%.
- The last Return On Invested Capital (3.51%) 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 | 1.99% | ||
| ROE | 3.51% | ||
| ROIC | 3.51% |
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's Profit Margin of 4.68% is on the low side compared to the rest of the industry. WY is outperformed by 63.33% of its industry peers.
- WY's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 8.37%, WY is doing worse than 80.00% of the companies in the same industry.
- WY's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 16.52%, WY is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
- 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 | 8.37% | ||
| PM (TTM) | 4.68% | ||
| GM | 16.52% |
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.
- Compared to 1 year ago, WY has less shares outstanding
- Compared to 5 years ago, WY has less shares outstanding
- Compared to 1 year ago, WY has a worse debt to assets ratio.
2.2 Solvency
- WY has an Altman-Z score of 2.26. 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.
- The Altman-Z score of WY (2.26) is better than 90.00% of its industry peers.
- WY has a debt to FCF ratio of 13.02. This is a negative value and a sign of low solvency as WY would need 13.02 years to pay back of all of its debts.
- The Debt to FCF ratio of WY (13.02) is comparable to the rest of the industry.
- WY has a Debt/Equity ratio of 0.52. This is a neutral value indicating WY is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.52, WY belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 13.02 | ||
| Altman-Z | 2.26 |
ROIC/WACC0.43
WACC8.2%
2.3 Liquidity
- WY has a Current Ratio of 1.23. 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 Current ratio value of 1.23, WY is doing good in the industry, outperforming 73.33% of the companies in the same industry.
- WY has a Quick Ratio of 1.23. This is a bad value and indicates that WY is not financially healthy enough and could expect problems in meeting its short term obligations.
- WY has a Quick ratio (0.78) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
- The earnings per share for WY have decreased strongly by -31.03% in the last year.
- 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 -1.64% in the past year.
- Measured over the past years, WY shows a small growth in Revenue. The Revenue has been growing by 1.68% on average per year.
EPS 1Y (TTM)-31.03%
EPS 3Y-46.02%
EPS 5Y6.88%
EPS Q2Q%20%
Revenue 1Y (TTM)-1.64%
Revenue growth 3Y-11.28%
Revenue growth 5Y1.68%
Sales Q2Q%2.14%
3.2 Future
- Based on estimates for the next years, WY will show a very strong growth in Earnings Per Share. The EPS will grow by 25.47% on average per year.
- The Revenue is expected to grow by 5.35% on average over the next years.
EPS Next Y-68.91%
EPS Next 2Y-33.54%
EPS Next 3Y11.92%
EPS Next 5Y25.47%
Revenue Next Year-2.91%
Revenue Next 2Y-0.13%
Revenue Next 3Y2.94%
Revenue Next 5Y5.35%
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
- A Price/Earnings ratio of 65.58 indicates a quite expensive valuation of WY.
- Based on the Price/Earnings ratio, WY is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
- WY is valuated expensively when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 112.05, WY can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, WY is valued a bit more expensive than 70.00% of the companies in the same industry.
- WY's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.58 | ||
| Fwd PE | 112.05 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WY is valued a bit more expensive than the industry average as 63.33% of the companies are valued more cheaply.
- WY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.02 | ||
| EV/EBITDA | 21.84 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)9.53
EPS Next 2Y-33.54%
EPS Next 3Y11.92%
5. Dividend
5.1 Amount
- WY has a Yearly Dividend Yield of 3.26%.
- WY's Dividend Yield is slightly below the industry average, which is at 5.51.
- Compared to an average S&P500 Dividend Yield of 1.82, WY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
5.2 History
- The dividend of WY decreases each year by -7.11%.
- WY has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-7.11%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 180.97% of the earnings are spent on dividend by WY. This is not a sustainable payout ratio.
DP180.97%
EPS Next 2Y-33.54%
EPS Next 3Y11.92%
WEYERHAEUSER CO / WY FAQ
Can you provide the ChartMill fundamental rating for WEYERHAEUSER CO?
ChartMill assigns a fundamental rating of 4 / 10 to WY.
Can you provide the valuation status for WEYERHAEUSER CO?
ChartMill assigns a valuation rating of 1 / 10 to WEYERHAEUSER CO (WY). This can be considered as Overvalued.
What is the profitability of WY stock?
WEYERHAEUSER CO (WY) has a profitability rating of 4 / 10.
Can you provide the financial health for WY stock?
The financial health rating of WEYERHAEUSER CO (WY) is 5 / 10.
Is the dividend of WEYERHAEUSER CO sustainable?
The dividend rating of WEYERHAEUSER CO (WY) is 3 / 10 and the dividend payout ratio is 180.97%.