NYSE:CTT

Stock Analysis Report

Executive Summary

CatchMark (NYSE: CTT) seeks to deliver consistent and growing per share cash flow from disciplined acquisitions and superior management of prime timberlands located in high demand U.S.

Rewards

Trading at 34.8% below its fair value

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Dividend of 4.95% is not well covered by earnings

Shareholders have been diluted in the past year



Snowflake Analysis

Second-rate dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has CatchMark Timber Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CTT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.0%

CTT

0.9%

US REITs

0.6%

US Market


1 Year Return

26.0%

CTT

18.9%

US REITs

24.6%

US Market

Return vs Industry: CTT exceeded the US REITs industry which returned 17.9% over the past year.

Return vs Market: CTT matched the US Market which returned 25.1% over the past year.


Shareholder returns

CTTIndustryMarket
7 Day-3.0%0.9%0.6%
30 Day-4.0%3.9%3.0%
90 Day-4.0%0.1%10.6%
1 Year33.0%26.0%23.8%18.9%27.3%24.6%
3 Year19.2%2.8%35.5%18.4%50.5%40.8%
5 Year20.2%-5.5%46.8%16.5%78.9%59.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is CatchMark Timber Trust undervalued compared to its fair value and its price relative to the market?

34.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTT ($10.91) is trading below our estimate of fair value ($16.74)

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


Price To Earnings Ratio

PE vs Industry: CTT is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: CTT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CTT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CTT is overvalued based on its PB Ratio (2.6x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is CatchMark Timber Trust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

100.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTT is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CTT is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CTT is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CTT's revenue (4.3% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: CTT's revenue (4.3% 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 CTT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has CatchMark Timber Trust performed over the past 5 years?

-73.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTT is currently unprofitable.

Growing Profit Margin: CTT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CTT is unprofitable, and losses have increased over the past 5 years at a rate of -73.4% per year.

Accelerating Growth: Unable to compare CTT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CTT is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (8.1%).


Return on Equity

High ROE: CTT has a negative Return on Equity (-58.41%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CatchMark Timber Trust'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: CTT has a high level of physical assets or inventory.

Debt Coverage by Assets: CTT's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable CTT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CTT is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 37.1% per year.


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is CatchMark Timber Trust's current dividend yield, its reliability and sustainability?

4.95%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years5.0%

Current dividend yield vs market & industry

Notable Dividend: CTT's dividend (4.95%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: CTT's dividend (4.95%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CTT has been paying a dividend for less than 10 years.

Growing Dividend: CTT's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (90.6%), CTT's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CTT is forecast to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not forecast to be well covered.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Brian Davis (50yo)

0yrs

Tenure

US$1,069,226

Compensation

Mr. Brian M. Davis serves as President of CatchMark Timber Trust, Inc. since April 04, 2019 and is its Chief Executive Officer since January 21, 2020. He was Chief Financial Officer of CatchMark Timber Tru ...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD1.07M) is below average for companies of similar size in the US market ($USD1.67M).

Compensation vs Earnings: Jerry's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.8yrs

Average Tenure

50yo

Average Age

Experienced Management: CTT's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

6.1yrs

Average Tenure

63yo

Average Age

Experienced Board: CTT's board of directors are considered experienced (6.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$9,71008 Aug 19
Brian Davis
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares1,000
Max PriceUS$9.71
BuyUS$31,05910 May 19
Brian Davis
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares3,100
Max PriceUS$10.05
BuyUS$95,20011 Mar 19
Donald Moss
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$9.52

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.9%.


Management Team

  • Jerry Barag (60yo)

    Consultant

    • Compensation: US$1.73m
  • Lesley Solomon (47yo)

    General Counsel & Corporate Secretary

    • Tenure: 1.3yrs
    • Compensation: US$278.71k
  • Brian Davis (50yo)

    CEO, President & Director

    • Compensation: US$1.07m
  • John Rasor (76yo)

    President of Triple T Timberlands

    • Tenure: 1.7yrs
    • Compensation: US$890.60k
  • Todd Reitz (47yo)

    Chief Resources Officer

    • Tenure: 2.8yrs
    • Compensation: US$441.78k
  • Glen Smith

    Chief Accounting Office

    • Tenure: 2yrs
  • Ursula Godoy-Arbelaez

    Chief Financial Officer


    Board Members

    • Paul Fisher (63yo)

      Independent Director

      • Tenure: 4yrs
      • Compensation: US$110.00k
    • Don Moss (83yo)

      Independent Director

      • Tenure: 14yrs
      • Compensation: US$116.00k
    • Mary McBride (63yo)

      Independent Director

      • Tenure: 1.9yrs
      • Compensation: US$121.14k
    • Willis Potts (73yo)

      Independent Chairman of the Board

      • Tenure: 6.2yrs
      • Compensation: US$149.28k
    • Doug Rubenstein (56yo)

      Independent Director

      • Tenure: 6.1yrs
      • Compensation: US$116.00k
    • Brian Davis (50yo)

      CEO, President & Director

      • Compensation: US$1.07m

    Company Information

    CatchMark Timber Trust, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: CatchMark Timber Trust, Inc.
    • Ticker: CTT
    • Exchange: NYSE
    • Founded: 2005
    • Industry: Specialized REITs
    • Sector: Real Estate
    • Market Cap: US$534.178m
    • Shares outstanding: 49.01m
    • Website: https://www.catchmark.com

    Number of Employees


    Location

    • CatchMark Timber Trust, Inc.
    • 5 Concourse Parkway
    • Suite 2650
    • Atlanta
    • Georgia
    • 30328
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    CTTNYSE (New York Stock Exchange)YesClass A Common StockUSUSDDec 2013

    Biography

    CatchMark (NYSE: CTT) seeks to deliver consistent and growing per share cash flow from disciplined acquisitions and superior management of prime timberlands located in high demand U.S. mill markets. Concentrating on maximizing cash flows throughout business cycles, the company strategically harvests its high-quality timberlands to produce durable revenue growth and takes advantage of proximate mill markets, which provide a reliable outlet for merchantable inventory. Headquartered in Atlanta and focused exclusively on timberland ownership and management, CatchMark began operations in 2007 and owns interests in 1.5 million acres* of timberlands located in Alabama, Florida, Georgia, North Carolina, Oregon, South Carolina, Tennessee and Texas. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/23 00:47
    End of Day Share Price2020/01/22 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.