Weyerhaeuser logged a 1.8% change during today's afternoon session, and is now trading at a price of $31.14 per share.
Over the last year, Weyerhaeuser logged a -4.2% change, with its stock price reaching a high of $36.27 and a low of $26.73. Over the same period, the stock underperformed the S&P 500 index by -34.7%. AThe company's 50-day average price was $32.3. 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 has offered a 2.6% dividend yield over the last 12 months.
The Company's Revenues Are Declining:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $7,476 | $6,554 | $7,532 | $10,201 | $10,184 | $7,674 |
| Operating Margins | 19% | 10% | 23% | 36% | 30% | 15% |
| Net Margins | 10% | -1% | 11% | 26% | 18% | 11% |
| Net Income (M) | $748 | -$76 | $797 | $2,607 | $1,880 | $839 |
| Net Interest Expense (M) | $375 | $378 | $351 | $313 | $270 | $280 |
| Depreciation & Amort. (M) | $486 | $510 | $472 | $477 | $480 | $500 |
| Diluted Shares (M) | 757 | 746 | 748 | 751 | 743 | 732 |
| Earnings Per Share | $0.99 | -$0.1 | $1.07 | $3.47 | $2.53 | $1.15 |
| EPS Growth | n/a | -110.1% | 1170.0% | 224.3% | -27.09% | -54.55% |
| Avg. Price | $26.61 | $22.23 | $22.72 | $32.11 | $36.27 | $31.23 |
| P/E Ratio | 26.88 | -222.3 | 21.23 | 9.23 | 14.34 | 27.16 |
| Free Cash Flow (M) | $744 | $909 | $1,473 | $3,104 | $2,779 | $1,376 |
| CAPEX (M) | $368 | $57 | $56 | $55 | $53 | $57 |
| EV / EBITDA | 13.83 | 19.47 | 10.11 | 6.61 | 8.85 | 15.88 |
| Total Debt (M) | $6,221 | $6,147 | $5,625 | $5,099 | $6,035 | $5,069 |
| Net Debt / EBITDA | 3.13 | 5.17 | 2.35 | 0.78 | 1.25 | 2.32 |
| Current Ratio | 0.83 | 1.6 | 1.69 | 3.29 | 1.58 | 2.94 |
Weyerhaeuser has generally positive cash flows and an excellent current ratio of 2.94. Additionally, the company's financial statements display positive EPS growth and healthy leverage levels. However, the firm suffers from slight revenue growth and decreasing reinvestment in the business and weak operating margins with a stable trend.
Weyerhaeuser's Valuation Is in Line With Its Sector Averages:
Weyerhaeuser has a trailing twelve month P/E ratio of 44.2, compared to an average of 31.12 for the Real Estate sector. Based on its EPS guidance of $0.86, the company has a forward P/E ratio of 37.6. The -2.0% compound average growth rate of Weyerhaeuser's historical and projected earnings per share yields a PEG ratio of -22.22. This indicates that its shares are overvalued.The market is placing a fair value on Weyerhaeuser's equity, since its P/B ratio of 2.28 is comparable to its sector average of 2.15. The company's shares are currently trading 63.7% below their Graham number. In conclusion, Weyerhaeuser's impressive cash flow trend, decent P/B ratio, and reasonable use of leverage demonstrate that the company may still be fairly valued — despite its elevated earnings multiple.
There's an Analyst Consensus of Some Upside Potential for Weyerhaeuser:
The 10 analysts following Weyerhaeuser have set target prices ranging from $34.0 to $40.0 per share, for an average of $36.8 with a buy rating. The company is trading -15.4% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Weyerhaeuser has a very low short interest because 1.3% of the company's shares are sold short. Institutions own 88.0% of the company's shares, and the insider ownership rate stands at 0.28%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 16% stake in the company is worth $3,541,751,208.
