NYSE:WY

Stock Analysis Report

Executive Summary

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900.


Snowflake Analysis

Moderate growth potential second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.2%

WY

-0.07%

US REITs

-1.1%

US Market


1 Year Return

17.8%

WY

16.0%

US REITs

17.9%

US Market

Return vs Industry: WY exceeded the US REITs industry which returned 16% over the past year.

Return vs Market: WY matched the US Market which returned 17.9% over the past year.


Shareholder returns

WYIndustryMarket
7 Day0.2%-0.07%-1.1%
30 Day0.7%3.6%1.4%
90 Day4.5%7.8%6.9%
1 Year24.1%17.8%20.7%16.0%20.3%17.9%
3 Year4.5%-8.2%37.9%20.6%47.8%38.3%
5 Year7.1%-12.5%60.3%27.3%71.9%53.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.8x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: WY ($30.73) is trading above our estimate of fair value ($28.24)

Significantly Below Fair Value: WY is trading above our estimate of fair value.


Price To Earnings Ratio

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

PE vs Market: WY 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 WY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WY is overvalued based on its PB Ratio (2.8x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is Weyerhaeuser forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

84.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: WY is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: WY's is expected to become profitable in the next 3 years.

Revenue vs Market: WY's revenue (4.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: WY's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WY's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has Weyerhaeuser performed over the past 5 years?

-11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WY is currently unprofitable.

Growing Profit Margin: WY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WY is unprofitable, and losses have increased over the past 5 years at a rate of -11.3% per year.

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

Earnings vs Industry: WY is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (7.6%).


Return on Equity

High ROE: WY has a negative Return on Equity (-0.93%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Weyerhaeuser'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: WY has a high level of physical assets or inventory.

Debt Coverage by Assets: WY's debt is not covered by short term assets (assets are 0.3x 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: WY has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: WY has been profitable on average in the past, therefore cash runway is not a concern.


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

4.43%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Weyerhaeuser before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.4%marketbottom25%1.4%markettop25%3.7%industryaverage3.5%forecastin3Years4.5%

Current dividend yield vs market & industry

Notable Dividend: WY's dividend (4.43%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: WY's dividend (4.43%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

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

Growing Dividend: WY's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (104.9%), WY's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WY's dividends in 3 years are not forecast to be well covered by earnings (164.7% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Devin Stockfish (45yo)

1.1yrs

Tenure

US$2,980,086

Compensation

Mr. Devin W. Stockfish, Esq., J.D., has been President, Chief Executive Officer and Director of Weyerhaeuser Company since January 1, 2019. He was Senior Vice President of Timberlands at Weyerhaeuser Compa ...


CEO Compensation Analysis

Compensation vs Market: Devin's total compensation ($USD2.98M) is below average for companies of similar size in the US market ($USD10.81M).

Compensation vs Earnings: Insufficient data to compare Devin's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Devin Stockfish
President1.1yrsUS$2.98m0.042% $9.6m
Russell Hagen
Senior VP & CFO4yrsUS$3.06m0.025% $5.7m
Adrian Blocker
Senior Vice President of Timberlands6.5yrsUS$5.26m0.030% $6.8m
James Kilberg
Senior Vice President of Real Estate3.8yrsUS$2.89m0.024% $5.5m
David Wold
VP & Chief Accounting Officer0.8yrsno data0.0022% $510.9k
Denise Merle
Senior VP & Chief Administration Officer2yrsno data0.011% $2.6m
Elizabeth Baum
Senior Director of Investor Relations & Enterprise Planning5.5yrsno datano data
Paul Leuzzi
VP, Assistant General Counsel & Chief Compliance Officer0yrsno datano data
Kristy Harlan
Senior VP3.1yrsno data0.0028% $643.8k
Keith O'Rear
Senior Vice President of Wood Products1.1yrsno data0.0078% $1.8m

3.1yrs

Average Tenure

54yo

Average Age

Experienced Management: WY's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Devin Stockfish
President1.1yrsUS$2.98m0.042% $9.6m
Douglas Steuert
Independent Director15.3yrsUS$239.97k0.0031% $703.3k
Rick Holley
Non-Executive Chairman4yrsUS$359.99k0.072% $16.6m
Charles Williamson
Lead Independent Director4yrsUS$259.97k0.0048% $1.1m
Marc Racicot
Independent Director4yrsUS$239.97k0.0047% $1.1m
Sara Lewis
Independent Director4yrsUS$259.97k0.0027% $630.0k
Nicole Piasecki
Independent Director17.1yrsUS$254.97k0.027% $6.2m
Lawrence Selzer
Independent Director4yrsUS$239.97k0.0039% $882.0k
Mark Emmert
Independent Director11.7yrsUS$239.97k0.0024% $556.7k
Kim Williams
Independent Director13.3yrsUS$239.97k0.0037% $838.5k

4.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: WY's board of directors are considered experienced (4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

Weyerhaeuser Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Weyerhaeuser Company
  • Ticker: WY
  • Exchange: NYSE
  • Founded: 1900
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: US$22.910b
  • Shares outstanding: 745.52m
  • Website: https://www.weyerhaeuser.com

Number of Employees


Location

  • Weyerhaeuser Company
  • 220 Occidental Avenue South
  • Seattle
  • Washington
  • 98104
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WYNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
WHCDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
0LWGLSE (London Stock Exchange)YesCommon SharesGBUSDJan 1968
WHCBRSE (Berne Stock Exchange)YesCommon SharesCHCHFJan 1968
WHCETLX (Eurotlx)YesCommon SharesITEURJan 1968
W1YC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S., and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in America. Our company is a real estate investment trust. In 2019, we generated $6.6 billion in net sales and employed approximately 9,400 people who serve customers worldwide. We are listed on the Dow Jones Sustainability North America Index. Our common stock trades on the New York Stock Exchange under the symbol WY. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 01:07
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.