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Short Report on Weyerhaeuser Company Stock

Weyerhaeuser Company logged a 0.2% change during today's afternoon session, and is now trading at a price of $32.88 per share.

Over the last year, Weyerhaeuser Company logged a -3.6% change, with its stock price reaching a high of $35.14 and a low of $27.65. Over the same period, the stock underperformed the S&P 500 index by -23.9%. AThe company's 50-day average price was $32.99. 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 9,300 full time employees. Weyerhaeuser Company has offered a 2.3% dividend yield over the last 12 months.

The Company's Revenues Are Declining:

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
Earnings Per Share $0.99 -$0.1 $1.07 $3.47 $2.53 $0.87
EPS Growth n/a -110.1% 1170.0% 224.3% -27.09% -65.61%
Diluted Shares (MM) 757 746 748 751 743 732
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

Weyerhaeuser Company has generally positive cash flows, decent operating margins with a stable trend, and a decent current ratio of 1.79. However, the firm suffers from weak revenue growth and decreasing reinvestment in the business and declining EPS growth.

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

Weyerhaeuser Company has a trailing twelve month P/E ratio of 28.7, compared to an average of 25.55 for the Real Estate sector. Based on its EPS guidance of $1.33, the company has a forward P/E ratio of 24.8. The 4.3% compound average growth rate of Weyerhaeuser Company's historical and projected earnings per share yields a PEG ratio of 6.66. This suggests that these shares are overvalued. Furthermore, Weyerhaeuser Company is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.34 is higher than the sector average of 2.1. The company's shares are currently trading -49.7% below their Graham number.

Weyerhaeuser Company Has an Analyst Consensus of Some Upside Potential:

The 8 analysts following Weyerhaeuser Company have set target prices ranging from $36.0 to $40.0 per share, for an average of $37.88 with a buy rating. The company is trading -13.2% 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 1.1% of the company's shares are sold short. Institutions own 85.5% of the company's shares, and the insider ownership rate stands at 0.22%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 16% stake in the company is worth $3,823,271,136.

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.

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