WEYERHAEUSER CO (WY) Stock Fundamental Analysis
NYSE:WY - New York Stock Exchange, Inc. - US9621661043 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to WY. WY was compared to 29 industry peers in the Specialized REITs industry. WY has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, WY is valued expensive at the moment.
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 each of the past 5 years.
Each year in the past 5 years WY had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WY (2.39%) is comparable to the rest of the industry.
WY has a worse Return On Equity (4.07%) than 60.71% of its industry peers.
With a Return On Invested Capital value of 4.24%, WY perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WY is above the industry average of 5.33%.
The last Return On Invested Capital (4.24%) 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 | 2.39% | ||
| ROE | 4.07% | ||
| ROIC | 4.24% |
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 5.56%, WY is doing worse than 71.43% of the companies in the same industry.
In the last couple of years the Profit Margin of WY has declined.
With a Operating Margin value of 10.16%, WY is not doing good in the industry: 89.29% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of WY has declined.
With a Gross Margin value of 18.43%, WY is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
WY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.16% | ||
| PM (TTM) | 5.56% | ||
| GM | 18.43% |
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.
The number of shares outstanding for WY has been reduced compared to 5 years ago.
The debt/assets ratio for WY is higher compared to a year ago.
2.2 Solvency
WY has an Altman-Z score of 2.70. 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.
With an excellent Altman-Z score value of 2.70, WY belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
WY has a debt to FCF ratio of 8.57. This is a slightly negative value and a sign of low solvency as WY would need 8.57 years to pay back of all of its debts.
WY's Debt to FCF ratio of 8.57 is amongst the best of the industry. WY outperforms 82.14% of its industry peers.
WY has a Debt/Equity ratio of 0.50. This is a neutral value indicating WY is somewhat dependend on debt financing.
The Debt to Equity ratio of WY (0.50) is better than 89.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 8.57 | ||
| Altman-Z | 2.7 |
ROIC/WACC0.51
WACC8.24%
2.3 Liquidity
WY has a Current Ratio of 1.79. This is a normal value and indicates that WY is financially healthy and should not expect problems in meeting its short term obligations.
WY's Current ratio of 1.79 is amongst the best of the industry. WY outperforms 92.86% of its industry peers.
A Quick Ratio of 1.17 indicates that WY should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.17, WY is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The earnings per share for WY have decreased strongly by -48.04% 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 -7.17% 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)-48.04%
EPS 3Y-46.02%
EPS 5Y6.88%
EPS Q2Q%-31.25%
Revenue 1Y (TTM)-7.17%
Revenue growth 3Y-11.28%
Revenue growth 5Y1.68%
Sales Q2Q%-3.72%
3.2 Future
The Earnings Per Share is expected to grow by 20.37% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 4.87% on average over the next years.
EPS Next Y51.94%
EPS Next 2Y45.28%
EPS Next 3Y34.64%
EPS Next 5Y20.37%
Revenue Next Year6.11%
Revenue Next 2Y6.1%
Revenue Next 3Y4.86%
Revenue Next 5Y4.87%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 59.23, WY can be considered very expensive at the moment.
64.29% of the companies in the same industry are cheaper than WY, based on the Price/Earnings ratio.
WY's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.75.
WY is valuated quite expensively with a Price/Forward Earnings ratio of 38.98.
WY's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.44. WY is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.23 | ||
| Fwd PE | 38.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WY indicates a slightly more expensive valuation: WY is more expensive than 75.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WY is valued a bit more expensive than 67.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.53 | ||
| EV/EBITDA | 21.42 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as WY's earnings are expected to grow with 34.64% in the coming years.
PEG (NY)1.14
PEG (5Y)8.61
EPS Next 2Y45.28%
EPS Next 3Y34.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.79%, WY has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.79, WY pays less dividend than the industry average, which is at 4.49. 82.14% of the companies listed in the same industry pay a better dividend than WY!
WY's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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
172.73% of the earnings are spent on dividend by WY. This is not a sustainable payout ratio.
DP172.73%
EPS Next 2Y45.28%
EPS Next 3Y34.64%
31.39
+1.29 (+4.29%)
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 Change0.53%
Ins Owners0.28%
Ins Owner Change8.6%
Market Cap22.81B
Analysts81
Price Target36.82 (17.3%)
Short Float %1.26%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
Yearly Dividend0.94
Dividend Growth(5Y)-7.11%
DP172.73%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)288.94%
Min EPS beat(2)55.52%
Max EPS beat(2)522.36%
EPS beat(4)3
Avg EPS beat(4)144.79%
Min EPS beat(4)-2.96%
Max EPS beat(4)522.36%
EPS beat(8)5
Avg EPS beat(8)86.79%
EPS beat(12)9
Avg EPS beat(12)62.27%
EPS beat(16)10
Avg EPS beat(16)46.21%
Revenue beat(2)0
Avg Revenue beat(2)-2.94%
Min Revenue beat(2)-3.34%
Max Revenue beat(2)-2.55%
Revenue beat(4)0
Avg Revenue beat(4)-3.7%
Min Revenue beat(4)-5.82%
Max Revenue beat(4)-2.55%
Revenue beat(8)0
Avg Revenue beat(8)-3.99%
Revenue beat(12)2
Avg Revenue beat(12)-3.09%
Revenue beat(16)2
Avg Revenue beat(16)-2.86%
PT rev (1m)1.12%
PT rev (3m)-2.43%
EPS NQ rev (1m)-13.04%
EPS NQ rev (3m)-13.87%
EPS NY rev (1m)-9.41%
EPS NY rev (3m)-9.62%
Revenue NQ rev (1m)-1.91%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)-1.14%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.23 | ||
| Fwd PE | 38.98 | ||
| P/S | 3.2 | ||
| P/FCF | 38.53 | ||
| P/OCF | 22.63 | ||
| P/B | 2.35 | ||
| P/tB | 2.35 | ||
| EV/EBITDA | 21.42 |
EPS(TTM)0.53
EY1.69%
EPS(NY)0.81
Fwd EY2.57%
FCF(TTM)0.81
FCFY2.6%
OCF(TTM)1.39
OCFY4.42%
SpS9.8
BVpS13.38
TBVpS13.38
PEG (NY)1.14
PEG (5Y)8.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 4.07% | ||
| ROCE | 4.65% | ||
| ROIC | 4.24% | ||
| ROICexc | 4.44% | ||
| ROICexgc | 4.44% | ||
| OM | 10.16% | ||
| PM (TTM) | 5.56% | ||
| GM | 18.43% | ||
| FCFM | 8.31% |
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-Score5
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 8.57 | ||
| Debt/EBITDA | 3.97 | ||
| Cap/Depr | 82.87% | ||
| Cap/Sales | 5.84% | ||
| Interest Coverage | 2.8 | ||
| Cash Conversion | 82.22% | ||
| Profit Quality | 149.5% | ||
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 2.7 |
F-Score5
WACC8.24%
ROIC/WACC0.51
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)-48.04%
EPS 3Y-46.02%
EPS 5Y6.88%
EPS Q2Q%-31.25%
EPS Next Y51.94%
EPS Next 2Y45.28%
EPS Next 3Y34.64%
EPS Next 5Y20.37%
Revenue 1Y (TTM)-7.17%
Revenue growth 3Y-11.28%
Revenue growth 5Y1.68%
Sales Q2Q%-3.72%
Revenue Next Year6.11%
Revenue Next 2Y6.1%
Revenue Next 3Y4.86%
Revenue Next 5Y4.87%
EBIT growth 1Y-35.7%
EBIT growth 3Y-41.22%
EBIT growth 5Y-0.57%
EBIT Next Year135.21%
EBIT Next 3Y43.96%
EBIT Next 5Y24.05%
FCF growth 1Y-39.96%
FCF growth 3Y-39.83%
FCF growth 5Y0.34%
OCF growth 1Y-29.66%
OCF growth 3Y-31.67%
OCF growth 5Y0.85%