What Should You Know About Weyerhaeuser Company (WY)?

Today we're going to take a closer look at large-cap Real Estate company Weyerhaeuser Company, whose shares are currently trading at $34.28. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!

Weyerhaeuser Company's Valuation Is in Line With Its Sector Averages:

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. The company belongs to the Real Estate sector, which has an average price to earnings (P/E) ratio of 24.81 and an average price to book (P/B) ratio of 2.24. In contrast, Weyerhaeuser Company has a trailing 12 month P/E ratio of 20.0 and a P/B ratio of 2.49.

Weyerhaeuser Company's PEG ratio is 7.71, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.

Growing Revenues With Increasing Reinvestment in the Business:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $6,554 $7,532 $10,201 $10,184
Operating Margins 10.1% 20.2% 35.4% 30.2%
Net Margins -1.16% 10.58% 25.56% 18.46%
Net Income (MM) -$76 $797 $2,607 $1,880
Net Interest Expense (MM) -$348 -$438 -$308 -$245
Depreciation & Amort. (MM) -$510 -$472 -$477 -$480
Earnings Per Share -$0.1 $1.07 $3.47 $1.71
EPS Growth n/a 1170.0% 224.3% -50.72%
Diluted Shares (MM) 746 748 751 732
Free Cash Flow (MM) $582 $823 $2,569 $2,069
Capital Expenditures (MM) -$384 -$706 -$590 -$763
Net Current Assets (MM) -$6,618 -$5,971 -$3,750 -$3,845
Current Ratio 1.6 1.69 3.12 1.58
Long Term Debt (MM) $6,147 $5,325 $5,099 $4,071
Net Debt / EBITDA 9.67 2.63 0.79 1.15

Weyerhaeuser Company has growing revenues and increasing reinvestment in the business, exceptional EPS growth, and generally positive cash flows. However, the firm has a highly leveraged balance sheet. Finally, we note that Weyerhaeuser Company has average net margins with a positive growth rate and a decent current ratio.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.