WY Stock – An Editor's Briefing

Now trading at a price of $33.11, Weyerhaeuser Company has moved 0.3% so far today.

Over the last year, Weyerhaeuser Company logged a 1.0% change, with its stock price reaching a high of $36.0 and a low of $27.37. Over the same period, the stock underperformed the S&P 500 index by -15.0%. As of April 2023, the company's 50-day average price was $33.15. Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. Based in Seattle, WA, the large-cap Real Estate company has 9,264 full time employees. Weyerhaeuser Company has offered a 2.2% dividend yield over the last 12 months.

Overview of the Company's Finances:

2018-02-16 2019-02-15 2020-02-14 2021-02-19 2022-02-18 2023-02-17
Revenue (MM) $7,196 $7,476 $6,554 $7,532 $10,201 $10,184
Operating Margins 20% 19% 9% 20% 35% 30%
Net Margins 8.0% 10.0% -1.0% 11.0% 26.0% 18.0%
Net Income (MM) $582 $748 -$76 $797 $2,607 $1,880
Net Interest Expense (MM) -$353 -$315 -$348 -$346 -$308 -$245
Depreciation & Amort. (MM) -$521 -$486 -$510 -$472 -$477 -$480
Earnings Per Share $0.77 $0.99 -$0.1 $1.07 $3.47 $2.53
EPS Growth n/a 28.57% -110.1% 1170.0% 224.3% -27.09%
Diluted Shares (MM) 757 757 746 748 751 743
Free Cash Flow (MM) $1,392 $1,539 $1,350 $1,810 $3,600 $3,300
Capital Expenditures (MM) -$190 -$427 -$384 -$281 -$441 -$468
Net Current Assets (MM) -$7,445 -$6,601 -$6,618 -$6,083 -$3,750 -$3,845
Long Term Debt (MM) $6,232 $5,419 $6,147 $5,325 $5,099 $4,071
Net Debt / EBITDA 2.92 3.35 5.54 2.5 0.79 0.98

Weyerhaeuser Company has weak revenue growth and a flat capital expenditure trend, average net margins with a positive growth rate, and irregular cash flows. In addition, we note a decent current ratio. We also note that the company benefits from positive EPS growth and healthy leverage. Furthermore, Weyerhaeuser Company's financial statements do not display any obvious red flags.

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

Weyerhaeuser Company has a trailing twelve month P/E ratio of 34.5, compared to an average of 24.81 for the Real Estate sector. Based on its EPS guidance of $1.34, the company has a forward P/E ratio of 24.7. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 3.7%. On this basis, the company's PEG ratio is 9.22, which suggests that it is overpriced. The market is placing a fair value on Weyerhaeuser Company's equity, since its P/B ratio of 2.39 is comparable to its sector average of 2.24. The company's shares are currently trading 15.4% above their Graham number.

Weyerhaeuser Company Has an Analyst Consensus of Some Upside Potential:

The 9 analysts following Weyerhaeuser Company have set target prices ranging from $36.0 to $42.0 per share, for an average of $38.67 with a buy rating. As of April 2023, the company is trading -14.3% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Weyerhaeuser Company has a very low short interest because 1.6% of the company's shares are sold short. Institutions own 85.7% of the company's shares, and the insider ownership rate stands at 0.23%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 16% stake in the company is worth $3,886,123,387.

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.