NasdaqGS:PCH

Stock Analysis Report

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Market Cap

US$3.5b

Last Updated

2021/08/01 22:11 UTC

Data Sources

Company Financials +

Executive Summary

PotlatchDeltic (NASDAQ:PCH) is a leading Real Estate Investment Trust (REIT) that owns 1.8 million acres of timberlands in Alabama, Arkansas, Idaho, Louisiana, Minnesota and Mississippi. More Details


Snowflake Analysis

Outstanding track record and good value.


Similar Companies

Share Price & News

How has PotlatchDeltic's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PCH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PCH's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.2%

PCH

0.1%

US REITs

-0.4%

US Market


1 Year Return

21.3%

PCH

30.6%

US REITs

35.9%

US Market

Return vs Industry: PCH underperformed the US REITs industry which returned 30.2% over the past year.

Return vs Market: PCH underperformed the US Market which returned 35.9% over the past year.


Shareholder returns

PCHIndustryMarket
7 Day-1.2%0.1%-0.4%
30 Day-3.8%3.4%-0.3%
90 Day-13.4%7.7%3.1%
1 Year25.4%21.3%34.9%30.6%38.0%35.9%
3 Year36.8%12.3%44.7%28.5%62.9%52.7%
5 Year77.5%36.3%52.9%23.5%121.3%96.9%

Long-Term Price Volatility Vs. Market

How volatile is PotlatchDeltic's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PotlatchDeltic undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PCH ($51.94) is trading below our estimate of fair value ($245.48)

Significantly Below Fair Value: PCH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PCH is good value based on its PE Ratio (7x) compared to the US REITs industry average (46.7x).

PE vs Market: PCH is good value based on its PE Ratio (7x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: PCH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PCH is overvalued based on its PB Ratio (2.2x) compared to the US REITs industry average (1.9x).


Future Growth

How is PotlatchDeltic forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-62.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PCH's earnings are forecast to decline over the next 3 years (-62% per year).

Earnings vs Market: PCH's earnings are forecast to decline over the next 3 years (-62% per year).

High Growth Earnings: PCH's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PCH's revenue is expected to decline over the next 3 years (-17.9% per year).

High Growth Revenue: PCH's revenue is forecast to decline over the next 3 years (-17.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PCH's Return on Equity is forecast to be high in 3 years time


Past Performance

How has PotlatchDeltic performed over the past 5 years?

43.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PCH has high quality earnings.

Growing Profit Margin: PCH's current net profit margins (34.4%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: PCH has become profitable over the past 5 years, growing earnings by 43% per year.

Accelerating Growth: PCH's earnings growth over the past year (2713.9%) exceeds its 5-year average (43% per year).

Earnings vs Industry: PCH earnings growth over the past year (2713.9%) exceeded the REITs industry -9.1%.


Return on Equity

High ROE: PCH's Return on Equity (31%) is considered high.


Financial Health

How is PotlatchDeltic's financial position?


Financial Position Analysis

Short Term Liabilities: PCH's short term assets ($666.3M) exceed its short term liabilities ($147.0M).

Long Term Liabilities: PCH's short term assets ($666.3M) do not cover its long term liabilities ($924.0M).


Debt to Equity History and Analysis

Debt Level: PCH's debt to equity ratio (45.9%) is considered high.

Reducing Debt: PCH's debt to equity ratio has reduced from 416.7% to 45.9% over the past 5 years.

Debt Coverage: PCH's debt is well covered by operating cash flow (79.5%).

Interest Coverage: PCH's interest payments on its debt are well covered by EBIT (22.2x coverage).


Balance Sheet


Dividend

What is PotlatchDeltic current dividend yield, its reliability and sustainability?

3.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PCH's dividend (3.16%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: PCH's dividend (3.16%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

Stable Dividend: PCH's dividend payments have been volatile in the past 10 years.

Growing Dividend: PCH's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.5%), PCH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PCH's dividends in 3 years are forecast to be covered by earnings (62.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Eric Cremers (57 yo)

0.50

Tenure

US$2,966,723

Compensation

Mr. Eric J. Cremers has been the President of PotlatchDeltic Corporation (formerly, Potlatch Corporation) since March 1, 2013.He has been its Chief Executive Officer since January 1, 2021. He served as its...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD2.97M) is below average for companies of similar size in the US market ($USD5.32M).

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PCH's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: PCH's board of directors are considered experienced (7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PCH insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PotlatchDeltic Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PotlatchDeltic Corporation
  • Ticker: PCH
  • Exchange: NasdaqGS
  • Founded: 1903
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: US$3.482b
  • Shares outstanding: 67.04m
  • Website: https://www.potlatchdeltic.com

Number of Employees


Location

  • PotlatchDeltic Corporation
  • 601 West First Avenue
  • Suite 1600
  • Spokane
  • Washington
  • 99201
  • United States

Listings


Biography

PotlatchDeltic (NASDAQ:PCH) is a leading Real Estate Investment Trust (REIT) that owns 1.8 million acres of timberlands in Alabama, Arkansas, Idaho, Louisiana, Minnesota and Mississippi. Through its taxabl...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:11
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.