Weyerhaeuser Company logged a 0.1% change during today's morning session, and is now trading at a price of $34.12 per share.
Weyerhaeuser Company returned gains of 9.8% last year, with its stock price reaching a high of $36.0 and a low of $27.65. Over the same period, the stock underperformed the S&P 500 index by -13.1%. As of April 2023, the company's 50-day average price was $30.87. 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 9,200 full time employees. Weyerhaeuser Company has offered a 2.2% dividend yield over the last 12 months.
Overview of the Company's Finances:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $7,476 | $6,554 | $7,532 | $10,201 | $10,184 | $7,723 |
| Revenue Growth | n/a | -12.33% | 14.92% | 35.44% | -0.17% | -24.17% |
| Operating Margins | 19% | 10% | 23% | 36% | 30% | 15% |
| Net Margins | 10% | -1% | 11% | 26% | 18% | 8% |
| Net Income (MM) | $748 | -$76 | $797 | $2,607 | $1,880 | $631 |
| Net Interest Expense (MM) | $375 | $378 | $351 | $313 | $270 | $274 |
| Depreciation & Amort. (MM) | $486 | $510 | $472 | $477 | $480 | $494 |
| Diluted Shares (MM) | 757 | 746 | 748 | 751 | 743 | 705 |
| Free Cash Flow (MM) | $744 | $909 | $1,473 | $3,104 | $2,779 | $1,255 |
| Capital Expenditures (MM) | $368 | $57 | $56 | $55 | $53 | $57 |
| Current Ratio | 0.83 | 1.6 | 1.69 | 3.29 | 1.58 | 1.79 |
| Total Debt (MM) | $6,344 | $6,649 | $6,026 | $5,184 | $5,075 | $5,740 |
| Net Debt / EBITDA | 3.2 | 5.61 | 2.53 | 0.8 | 0.98 | 2.79 |
Weyerhaeuser Company has average net margins with a stable trend, positive expected EPS Growth, and significant leverage. We also note that the company benefits from growing revenues and decreasing reinvestment in the business and irregular cash flows. 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 35.5, compared to an average of 25.55 for the Real Estate sector. Based on its EPS guidance of $1.17, the company has a forward P/E ratio of 26.4. Furthermore, Weyerhaeuser Company is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.44 is higher than the sector average of 2.1. The company's shares are currently trading 86.1% above their Graham number.
Analysts Give Weyerhaeuser Company an Average Rating of Buy:
The 9 analysts following Weyerhaeuser Company have set target prices ranging from $36.0 to $40.0 per share, for an average of $37.44 with a buy rating. As of April 2023, the company is trading -17.5% 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 1.8% of the company's shares are sold short. Institutions own 85.6% 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 $3,966,854,607.
