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. 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
WY had positive earnings in the past year.
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 of 2.21%. This is comparable to the rest of the industry: WY outperforms 50.00% of its industry peers.
WY has a Return On Equity (3.78%) which is in line with its industry peers.
WY has a Return On Invested Capital (4.11%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
The Profit Margin of WY (5.15%) is worse than 63.33% of its industry peers.
WY's Profit Margin has declined in the last couple of years.
The Operating Margin of WY (9.94%) is worse than 86.67% of its industry peers.
WY's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 18.23%, WY is doing worse than 80.00% of the companies in the same industry.
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
Compared to 1 year ago, WY has a worse debt to assets ratio.
2.2 Solvency
WY has an Altman-Z score of 2.41. 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's Altman-Z score of 2.41 is amongst the best of 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 has a better Debt to FCF ratio (9.86) than 73.33% of its industry peers.
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 | 9.86 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.51
WACC8.04%
2.3 Liquidity
WY has a Current Ratio of 2.04. This indicates that WY is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of WY (2.04) is better than 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.
The Quick ratio of WY (1.26) is better than 70.00% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 6.88% on average over the past years.
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
Based on estimates for the next years, WY will show a very strong growth in Earnings Per Share. The EPS will grow by 24.02% on average per year.
WY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.08% yearly.
EPS Next Y22.79%
EPS Next 2Y32.98%
EPS Next 3Y32.06%
EPS Next 5Y24.02%
Revenue Next Year2.28%
Revenue Next 2Y3.66%
Revenue Next 3Y3.56%
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.
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 53.52, WY can be considered very expensive at the moment.
WY's Price/Earnings ratio is in line with the industry average.
WY is valuated expensively when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 27.41, the valuation of WY can be described as expensive.
WY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WY is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WY to the average of the S&P500 Index (21.60), we can say WY is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.52 | ||
| Fwd PE | 27.41 |
4.2 Price Multiples
WY's Enterprise Value to EBITDA ratio is in line with the industry average.
66.67% of the companies in the same industry are cheaper than WY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.56 | ||
| EV/EBITDA | 19.35 |
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 32.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.35
PEG (5Y)7.78
EPS Next 2Y32.98%
EPS Next 3Y32.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.19%, WY has a reasonable but not impressive dividend return.
WY's Dividend Yield is slightly below the industry average, which is at 5.88.
WY's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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
WY pays out 161.10% of its income as dividend. This is not a sustainable payout ratio.
DP161.1%
EPS Next 2Y32.98%
EPS Next 3Y32.06%
25.69
-0.16 (-0.62%)
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 Change1.7%
Ins Owners0.28%
Ins Owner Change7.08%
Market Cap18.63B
Analysts80.95
Price Target35.09 (36.59%)
Short Float %1.64%
Short Ratio2.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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)-1.26%
EPS NQ rev (3m)-18.7%
EPS NY rev (1m)0.77%
EPS NY rev (3m)-19.19%
Revenue NQ rev (1m)-1%
Revenue NQ rev (3m)-3.7%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-3.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.52 | ||
| Fwd PE | 27.41 | ||
| P/S | 2.63 | ||
| P/FCF | 35.56 | ||
| P/OCF | 19.53 | ||
| P/B | 1.93 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 19.35 |
EPS(TTM)0.48
EY1.87%
EPS(NY)0.94
Fwd EY3.65%
FCF(TTM)0.72
FCFY2.81%
OCF(TTM)1.32
OCFY5.12%
SpS9.78
BVpS13.3
TBVpS13.3
PEG (NY)2.35
PEG (5Y)7.78
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 | 2.41 |
F-Score4
WACC8.04%
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)-50.52%
EPS 3Y-46.02%
EPS 5Y6.88%
EPS Q2Q%-31.25%
EPS Next Y22.79%
EPS Next 2Y32.98%
EPS Next 3Y32.06%
EPS Next 5Y24.02%
Revenue 1Y (TTM)-6.56%
Revenue growth 3Y-11.28%
Revenue growth 5Y1.68%
Sales Q2Q%-1.84%
Revenue Next Year2.28%
Revenue Next 2Y3.66%
Revenue Next 3Y3.56%
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%