NasdaqGS:PCH

Stock Analysis Report

Executive Summary

PotlatchDeltic (NASDAQ:PCH) is a leading Real Estate Investment Trust (REIT) that owns nearly 1.9 million acres of timberlands in Alabama, Arkansas, Idaho, Louisiana, Minnesota and Mississippi.

Rewards

Trading at 3.8% below its fair value

Earnings are forecast to grow 28.93% per year

Risk Analysis

Dividend of 3.75% is not well covered by earnings

Profit margins (5.5%) are lower than last year (14.2%)

Shareholders have been diluted in the past year



Snowflake Analysis

Moderate growth potential second-rate dividend payer.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

PCH

1.0%

US REITs

0.7%

US Market


1 Year Return

22.2%

PCH

13.0%

US REITs

18.2%

US Market

Return vs Industry: PCH exceeded the US REITs industry which returned 13% over the past year.

Return vs Market: PCH exceeded the US Market which returned 18.2% over the past year.


Shareholder returns

PCHIndustryMarket
7 Day1.2%1.0%0.7%
30 Day-3.0%1.7%1.5%
90 Day1.6%0.8%5.0%
1 Year27.7%22.2%17.8%13.0%20.8%18.2%
3 Year18.4%-1.3%34.3%17.5%45.2%35.8%
5 Year37.4%4.9%58.3%25.6%71.6%52.7%

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?

3.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PCH ($42.64) is trading below our estimate of fair value ($44.33)

Significantly Below Fair Value: PCH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PCH is poor value based on its PE Ratio (62.3x) compared to the REITs industry average (38.8x).

PE vs Market: PCH is poor value based on its PE Ratio (62.3x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: PCH is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: PCH is overvalued based on its PB Ratio (2.3x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

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

28.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PCH's forecast earnings growth (28.9% per year) is above the savings rate (1.7%).

Earnings vs Market: PCH's earnings (28.9% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PCH's revenue (6.7% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: PCH's revenue (6.7% per year) is forecast to grow slower than 20% 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


Next Steps

Past Performance

How has PotlatchDeltic performed over the past 5 years?

15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PCH has high quality earnings.

Growing Profit Margin: PCH's current net profit margins (5.5%) are lower than last year (14.2%).


Past Earnings Growth Analysis

Earnings Trend: PCH's earnings have grown by 15.4% per year over the past 5 years.

Accelerating Growth: PCH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PCH had negative earnings growth (-65.3%) over the past year, making it difficult to compare to the REITs industry average (8.3%).


Return on Equity

High ROE: PCH's Return on Equity (3.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PotlatchDeltic's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: PCH has a high level of physical assets or inventory.

Debt Coverage by Assets: PCH's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: PCH's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if PCH has a sufficient allowance for bad loans.

Low Risk Liabilities: PCH reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if PCH has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PCH has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if PCH has an appropriate level of bad loans.


Next Steps

Dividend

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

3.75%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years3.8%

Current dividend yield vs market & industry

Notable Dividend: PCH's dividend (3.75%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: PCH's dividend (3.75%) is in the top 25% of dividend payers in the US market (3.7%)


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: At its current payout ratio (79.4%), PCH's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PCH's dividends in 3 years are not forecast to be well covered by earnings (125% payout ratio).


Next Steps

Management

What is the CEO of PotlatchDeltic's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Mike Covey (61yo)

13.8yrs

Tenure

US$4,947,922

Compensation

Mr. Michael J. Covey, also known as Mike, has been the Chief Executive Officer of PotlatchDeltic Corporation (formerly, Potlatch Corporation) since February 6, 2006 and served as President since February 6 ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD4.95M) is about average for companies of similar size in the US market ($USD5.09M).

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


Management Age and Tenure

4.0yrs

Average Tenure

54yo

Average Age

Experienced Management: PCH's management team is considered experienced (4 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

62.5yo

Average Age

Experienced Board: PCH's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$619,18721 Nov 19
William DeReu
EntityIndividual
Shares14,269.05
Max PriceUS$44.07
SellUS$59,98504 Jun 19
John Moody
EntityIndividual
Shares1,781
Max PriceUS$33.68
SellUS$33,22419 Feb 19
Darin Ball
EntityIndividual
Role
Other Key Executive
Vice President of Resource
Shares949
Max PriceUS$35.01
SellUS$1,425,67719 Feb 19
Michael Covey
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares40,722
Max PriceUS$35.01
SellUS$407,65619 Feb 19
Eric Cremers
EntityIndividual
Role
Member of the Board of Directors
President
Shares11,644
Max PriceUS$35.01
SellUS$328,74419 Feb 19
Jerald Richards
EntityIndividual
Role
Chief Financial Officer
VP & CFO
Shares9,390
Max PriceUS$35.01
SellUS$162,02619 Feb 19
William DeReu
EntityIndividual
Shares4,628
Max PriceUS$35.01
SellUS$132,89819 Feb 19
Lorrie Scott
EntityIndividual
Role
Senior Key Executive
Executive
Shares3,796
Max PriceUS$35.01
SellUS$161,67619 Feb 19
Thomas Temple
EntityIndividual
Role
Other Key Executive
Vice President of Wood Products
Shares4,618
Max PriceUS$35.01

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 24%.


Management Team

  • Mike Covey (61yo)

    Chairman & CEO

    • Tenure: 13.8yrs
    • Compensation: US$4.95m
  • Eric Cremers (55yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$2.27m
  • Thomas Temple (62yo)

    Vice President of Wood Products

    • Tenure: 10.9yrs
    • Compensation: US$1.13m
  • Lorrie Scott (64yo)

    Executive

    • Tenure: 0.3yrs
    • Compensation: US$1.00m
  • Jerry Richards (51yo)

    VP & CFO

    • Tenure: 6.3yrs
    • Compensation: US$1.20m
  • Michele Tyler (50yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 0.3yrs
  • Robert Schwartz

    Vice President of Human Resources

    • Tenure: 5.9yrs
  • Darin Ball (53yo)

    Vice President of Resource

    • Tenure: 2yrs
    • Compensation: US$949.01k
  • Wayne Wasechek (49yo)

    Controller & Principal Accounting Officer

    • Tenure: 1.1yrs
  • Anna Torma

    Vice President of Public Affairs

    • Tenure: 0.9yrs

Board Members

  • Larry Peiros (64yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$153.50k
  • Greg Quesnel (70yo)

    Independent Director

    • Tenure: 19.3yrs
    • Compensation: US$154.50k
  • Mike Covey (61yo)

    Chairman & CEO

    • Tenure: 13.8yrs
    • Compensation: US$4.95m
  • D. Leland (57yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$127.81k
  • Charles Grenier (70yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$143.25k
  • R. Pierson (67yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$121.81k
  • Christoph Keller (64yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$124.31k
  • Eric Cremers (55yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$2.27m
  • Bill Driscoll (56yo)

    Independent Director

    • Tenure: 15.9yrs
    • Compensation: US$137.50k
  • Linda Breard (49yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$155.75k

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$2.866b
  • Shares outstanding: 67.22m
  • Website: https://www.potlatchdeltic.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PCHNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1969
P4CDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969

Biography

PotlatchDeltic (NASDAQ:PCH) is a leading Real Estate Investment Trust (REIT) that owns nearly 1.9 million acres of timberlands in Alabama, Arkansas, Idaho, Louisiana, Minnesota and Mississippi. Through its ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 00:12
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.