Weyerhaeuser (WY) AI Stock Analysis

• Market Cap: $19.08B
• Dividend Yield: 3.19%
• Average Volume (3M): 4.43M
• Price to Earnings (P/E): 52.5
• Beta (1Y): 0.78
• Revenue Growth: -6.56%
• EPS Growth: -54.29%
• Country: US
• Employees: 9,400
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Specialty
• EPS (TTM): 0.11
• Shares Outstanding: 725,273,000
• 10 Day Avg. Volume: 4,488,209
• 30 Day Avg. Volume: 4,431,208
• PEG Ratio: -0.43
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.78
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 18.16
• Enterprise Value/Ebitda: 4.06
• 1Y Price Target: $32.88
• Price Target Upside: 24.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 65 Neutral
• Price Target: $28.00 ▲(6.42%Upside)

Weyerhaeuser's strong balance sheet and operational efficiency are overshadowed by declining revenues and profit margins. Positive corporate developments and strategic plans offer upside potential, but the high valuation and moderate technical indicators suggest cautious optimism. The most notable strengths include the company's financial stability and strategic positioning in carbon capture and real estate.

Positive Factors

Earnings

Weyerhaeuser's adjusted EPS of $0.11 in 4Q exceeded expectations from BofA and the Street, which were at $0.07.

Financial Performance

Weyerhaeuser's 4Q adjusted EBITDA was $294 million, which was higher than the estimate of $258 million.

Market Positioning

Weyerhaeuser is considered a defensive play on the current market conditions.

Negative Factors

Interest Rates

Continued high interest rates are resulting in a wide gap between the cost to own vs. cost to rent.

Operational Challenges

Operational disruptions at the Montana facility due to a fire have increased costs for engineered wood products.

Sales Realizations

The main driver of the lower estimates is the weaker lumber/OSB sales realizations that the company reported.

Weyerhaeuser Business Overview & Revenue Model

Company Description

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 North America. Our company is a real estate investment trust. In 2020, we generated $7.5 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.

How the Company Makes Money

Weyerhaeuser generates revenue primarily through its Timberlands and Wood Products segments. The Timberlands segment involves the management and harvesting of timber, which is sold as logs to third parties. The company also leases land for recreational purposes and receives royalties from natural resources such as minerals and oil and gas extracted from its properties. The Wood Products segment manufactures and sells a range of products, including lumber, oriented strand board (OSB), and engineered wood products like laminated veneer lumber (LVL), which are sold to retailers, wholesalers, and industrial entities. Significant partnerships in the forestry and construction industries, as well as market demand for sustainable building materials, are key factors contributing to Weyerhaeuser's earnings.

Weyerhaeuser Financial Statement Overview

Summary

Weyerhaeuser demonstrates stability in its balance sheet with low leverage and strong equity financing. However, declining revenues and profit margins have impacted overall financial performance. The company's operational efficiency remains a strength, supported by solid cash flow generation. Continued focus on revenue growth and margin improvement is essential for enhancing financial health.

Income Statement

Weyerhaeuser's income statement shows a mixed performance. The TTM data indicates a gross profit margin of 25.1% and a net profit margin of 6.4%. Both margins have decreased compared to previous years, reflecting a decline in profitability. Revenue has also decreased year-on-year, showing a negative growth trend. However, the company maintains a solid EBITDA margin of 21.3%, indicating operational efficiency.

Balance Sheet

The balance sheet is robust, with a low debt-to-equity ratio of 0.016, suggesting low financial leverage. The equity ratio is strong at 58.4%, indicating high asset financing through equity. The ROE is moderate at 3.8%, reflecting the impact of reduced net income on equity returns.

Cash Flow

Cash flow analysis shows a healthy operating cash flow to net income ratio of 2.61, indicating efficient cash generation. The free cash flow growth rate is 7.33%, showing a positive trajectory. However, the free cash flow to net income ratio is relatively modest at 1.00, suggesting limited free cash generation compared to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.09B	7.12B	7.67B	10.18B	10.20B	7.53B
Gross Profit	1.42B	1.31B	1.68B	3.62B	4.10B	2.08B
EBITDA	1.32B	1.23B	1.72B	3.53B	4.02B	1.72B
Net Income	365.00M	396.00M	839.00M	1.88B	2.61B	797.00M
Balance Sheet
Total Assets	16.52B	16.54B	16.98B	17.34B	17.73B	16.31B
Cash, Cash Equivalents and Short-Term Investments	560.00M	684.00M	1.16B	1.58B	1.88B	495.00M
Total Debt	5.19B	5.11B	5.09B	5.05B	5.10B	5.47B
Total Liabilities	6.88B	6.82B	6.75B	6.59B	6.96B	7.58B
Stockholders Equity	9.64B	9.72B	10.24B	10.75B	10.77B	8.73B
Cash Flow
Free Cash Flow	269.00M	341.00M	753.00M	2.07B	2.57B	823.00M
Operating Cash Flow	954.00M	1.01B	1.43B	2.83B	3.16B	1.53B
Investing Cash Flow	-656.00M	-636.00M	-508.00M	-759.00M	-325.00M	185.00M
Financing Cash Flow	-641.00M	-852.00M	-1.34B	-2.49B	-1.33B	-1.36B

Weyerhaeuser Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.31
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WY, the sentiment is Positive. The current price of 26.31 is above the 20-day moving average (MA) of 26.29, above the 50-day MA of 26.13, and below the 200-day MA of 28.71, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 50.80 is Neutral, neither overbought nor oversold. The STOCH value of 62.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WY.

Weyerhaeuser Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RYN	74 Outperform	$3.66B	10.10	18.78%	12.40%	12.61%	111.99%
WY	65 Neutral	$19.08B	52.49	3.71%	3.19%	-6.56%	-54.29%
PCH	64 Neutral	$3.19B	67.06	2.31%	4.43%	10.86%	6.72%
Sector *	54 Neutral	$1.19B	3.63	0.13%	7.02%	-2.13%	-128.06%

Weyerhaeuser Corporate Events

Weyerhaeuser Secures $1.75 Billion Credit Facility Agreement

On June 30, 2025, Weyerhaeuser Company entered into a $1.75 billion five-year senior unsecured Amended and Restated Revolving Credit Facility Agreement, which updates its previous $1.5 billion credit facility. This agreement, expiring on June 30, 2030, allows Weyerhaeuser to use the funds for general corporate purposes, including working capital, debt refinancing, acquisitions, stock repurchases, and capital expenditures. The agreement includes covenants requiring Weyerhaeuser to maintain a minimum total adjusted shareholders’ equity of $3.0 billion and a funded debt ratio of 65% or less, reflecting its commitment to financial stability and operational flexibility.

The most recent analyst rating on (WY) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Weyerhaeuser stock, see the WY Stock Forecast page.

Weyerhaeuser Updates Q2 2025 Outlook and Targets

On June 26, 2025, Weyerhaeuser Company released presentation materials to update its second-quarter 2025 outlook for certain business segments. The company highlighted its progress towards multi-year targets, including significant investments in timberlands, operational improvements, and shareholder returns. Weyerhaeuser is on track to meet its 2025 targets for EBITDA growth in natural climate solutions and has maintained its ESG listings. The announcement underscores Weyerhaeuser’s strategic focus on growth, sustainability, and delivering value to shareholders.

The most recent analyst rating on (WY) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Weyerhaeuser stock, see the WY Stock Forecast page.

Weyerhaeuser Unveils Strategic Growth Plans for 2025

On May 29, 2025, Weyerhaeuser Company announced the posting of new presentation materials for investors, highlighting its strategic focus on growth and shareholder value. The company outlined its targets for 2025, including disciplined investments in timberlands, growth in natural climate solutions, and operational excellence improvements. Weyerhaeuser also emphasized its commitment to sustainability and shareholder returns, with plans to increase production and dividends. The announcement reflects Weyerhaeuser’s strong industry positioning and its focus on maintaining a competitive edge through innovation and sustainable practices.

The most recent analyst rating on (WY) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Weyerhaeuser stock, see the WY Stock Forecast page.

Weyerhaeuser Holds Annual Shareholders Meeting on May 9

On May 9, 2025, Weyerhaeuser held its Annual Meeting of Shareholders where key decisions were made regarding the company’s governance and financial oversight. Shareholders elected directors to the board for one-year terms, approved executive compensation on an advisory basis, and ratified the appointment of KPMG LLP as the independent registered public accounting firm for 2025. These decisions reflect the company’s ongoing commitment to maintaining strong leadership and financial accountability.

The most recent analyst rating on (WY) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Weyerhaeuser stock, see the WY Stock Forecast page.