Education
About Us
Working with TipRanks
Follow Us
Weyerhaeuser (WY)
NYSE:WY
Top Page
Weyerhaeuser
(NYSE:WY)67Neutral
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.
Valuation
Current stock price provides an attractive entry point, trading almost 20% below the prudent $38 net asset value.
Negative Factors
Weyerhaeuser (WY) vs. S&P 500 (SPY)
Market Cap
$22.44B
Dividend Yield2.65%
Average Volume (3M)3.71M
Price to Earnings (P/E)56.9
Beta (1Y)1.03
Revenue Growth-7.17%
EPS Growth-52.62%
CountryUS
Employees9,440
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)0.54
Shares Outstanding725,578,000
10 Day Avg. Volume4,138,589
30 Day Avg. Volume3,711,566
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.15
Price to Cash Flow (P/CF)25.70
P/FCF Ratio19.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$35.00Price Target Upside14.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Weyerhaeuser Business Overview & Revenue Model
Company DescriptionWeyerhaeuser Company (NYSE: WY) is a leading American timberland and forest products company headquartered in Seattle, Washington. With a history dating back to 1900, the company owns or controls over 11 million acres of timberlands in the United States and manages additional timberlands under long-term licenses in Canada. Weyerhaeuser operates primarily in two business segments: Timberlands and Wood Products. The company is a major producer of lumber, oriented strand board, and other wood products, serving the construction and industrial sectors.
How the Company Makes MoneyWeyerhaeuser generates revenue primarily through its Timberlands and Wood Products segments. In the Timberlands segment, the company earns income from the sale of timber harvested from its extensive land holdings, as well as through leasing land for recreational purposes and selling non-core land. In the Wood Products segment, Weyerhaeuser manufactures and sells a variety of wood-based building materials, including lumber, plywood, and engineered wood products. These products are sold to a diverse range of customers, including homebuilders, architects, and industrial manufacturers. Additionally, the company benefits from strategic partnerships and sustainable forestry practices that enhance operational efficiency and market reach.
Weyerhaeuser Financial Statement Overview
Summary
Weyerhaeuser shows strong profitability with high gross and net profit margins and efficient operations indicated by robust EBIT and EBITDA margins. However, revenue decline and negative free cash flow growth present challenges.Income Statement
Weyerhaeuser's income statement shows strong gross and net profit margins, with a gross profit margin of 100% and a net profit margin of 30.14% for the latest year. However, revenue has declined over the past few years, with a significant drop from 2022 to 2023. EBIT and EBITDA margins remain robust at 52.18%, indicating efficient operations despite revenue challenges.65
Positive
Balance Sheet
The company has a strong equity position, with an equity ratio of 58.78% for 2023. The debt-to-equity ratio is low at 0.02, reflecting minimal reliance on debt financing, which enhances financial stability. Return on Equity (ROE) is at a moderate 8.63%, suggesting decent returns on shareholder investments.70
Positive
Cash Flow
Operating cash flow is strong, but there is a notable decline in free cash flow over recent years. The free cash flow to net income ratio is 1.49, indicating efficient cash conversion. However, the free cash flow growth rate has been negative, reflecting challenges in maintaining cash flow levels amid declining revenues.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.31B | 7.67B | 10.18B | 10.20B | 7.53B | Gross Profit |
| 1.31B | 1.68B | 3.62B | 4.10B | 2.08B | EBIT |
| 685.00M | 1.19B | 3.08B | 3.64B | 1.24B | EBITDA |
| 1.20B | 1.72B | 3.53B | 4.02B | 1.72B | Net Income Common Stockholders |
| 396.00M | 839.00M | 1.88B | 2.61B | 797.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 684.00M | 1.16B | 1.58B | 1.88B | 495.00M | Total Assets |
| 16.54B | 16.98B | 17.34B | 17.73B | 16.31B | Total Debt |
| 210.00M | 5.09B | 5.05B | 5.10B | 5.47B | Net Debt |
| -474.00M | 3.92B | 3.47B | 3.22B | 4.98B | Total Liabilities |
| 6.82B | 6.75B | 6.59B | 6.96B | 7.58B | Stockholders Equity |
| 9.72B | 10.24B | 10.75B | 10.77B | 8.73B |
| Cash Flow | Free Cash Flow | |||
| 592.00M | 753.00M | 2.07B | 2.57B | 823.00M | Operating Cash Flow |
| 1.01B | 1.43B | 2.83B | 3.16B | 1.53B | Investing Cash Flow |
| -636.00M | -508.00M | -759.00M | -325.00M | 185.00M | Financing Cash Flow |
| -852.00M | -1.34B | -2.49B | -1.33B | -1.36B |
Weyerhaeuser Technical Analysis
Positive
30.65
Price Trends
29.42
Positive
30.17
Positive
30.08
Positive
Market Momentum
0.23
Negative
56.46
Neutral
42.31
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 30.65 is above the 20-day moving average (MA) of 29.89, above the 50-day MA of 29.42, and above the 200-day MA of 30.08, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 56.46 is Neutral, neither overbought nor oversold. The STOCH value of 42.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WY.
Weyerhaeuser Risk Analysis
Weyerhaeuser disclosed 42 risk factors in its most recent earnings report. Weyerhaeuser reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Weyerhaeuser Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $3.64B | 167.72 | 1.04% | 3.89% | 3.71% | -64.41% | |
67 Neutral | $22.44B | 56.94 | 3.97% | 2.65% | -7.17% | -52.62% | |
67 Neutral | $4.27B | 11.42 | 19.79% | 4.17% | 19.50% | 106.12% | |
66 Neutral | $6.51B | 15.85 | 12.80% | 1.23% | -7.84% | -17.33% | |
64 Neutral | $6.70B | 16.26 | 26.08% | 1.10% | 13.95% | 138.97% | |
62 Neutral | $639.37M | 12.75 | 8.29% | ― | -5.86% | 16.49% | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% |
* Real Estate Sector Average
Performance Comparison
WY
Weyerhaeuser
30.65
-3.28
-9.67%
BXC
Bluelinx Holdings
78.49
-41.28
-34.47%
LPX
Louisiana-Pacific
92.83
16.75
22.02%
PCH
PotlatchDeltic
46.28
1.18
2.62%
RYN
Rayonier
27.29
-4.59
-14.40%
UFPI
UFP Industries
109.13
-4.81
-4.22%
Weyerhaeuser Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -0.29% | Next Earnings Date: Apr 25, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong focus on strategic growth and shareholder returns despite a challenging market environment in 2024. Significant advancements were made in Natural Climate Solutions and Engineered Wood Products, with ambitious expansion plans in place. However, the lumber market faced notable difficulties, impacting cash flow and earnings. The company's strategic initiatives and strong balance sheet position it well for future growth.Highlights
Increased Cash Returns to Shareholders
Weyerhaeuser returned $735 million of cash to shareholders in 2024, including $153 million in share repurchases and an increase in the base dividend by more than 5%.
Strong Performance in Natural Climate Solutions
The Natural Climate Solutions business achieved $84 million in adjusted EBITDA, a 79% increase from 2023, driven by conservation, mitigation banking, and renewables.
Expansion in Engineered Wood Products
Weyerhaeuser plans to invest $500 million in a new TimberStrand facility in Arkansas, expected to generate over $100 million in annual adjusted EBITDA once operational in 2027.
Record Adjusted EBITDA for Real Estate and ENR
The segment generated $349 million of adjusted EBITDA for 2024, exceeding initial expectations and driven by high-value transactions in the real estate business.
Lumber and OSB Pricing Improvements
Wood Products adjusted EBITDA increased by 77% compared to the third quarter, driven by higher lumber and OSB prices.
Lowlights
Challenging Lumber Market
2024 was noted as one of the most challenging years for the lumber market in the past 15 years, impacting earnings and cash generation.
Soft Demand in Japan and China
Log markets in Japan remained soft due to consumption headwinds, while sales volumes to China were significantly lower as logs were redirected to domestic markets.
Lower Cash Generation
Cash generation in 2024 was lower than the past few years due to challenging market conditions, although adjusted funds available for distribution totaled $567 million.
Temporary Downtime and Costs in OSB
Adverse weather conditions in January led to temporary downtime at several wood products facilities, and a slight increase in unit manufacturing costs is expected for OSB.
Company Guidance
During Weyerhaeuser's fourth quarter 2024 earnings call, the company reported full-year GAAP earnings of $396 million, or $0.54 per diluted share, on net sales of $7.1 billion. Excluding special items, earnings reached $384 million, or $0.53 per diluted share, with adjusted EBITDA totaling $1.3 billion for the year. In the fourth quarter alone, the company achieved GAAP earnings of $81 million, or $0.11 per diluted share, on net sales of $1.7 billion, with adjusted EBITDA increasing by 25% from the previous quarter to $294 million. Weyerhaeuser highlighted several strategic initiatives, including acquiring new timberlands in Alabama, expanding its engineered wood products portfolio, and advancing its Natural Climate Solutions business. The company also raised its base dividend by over 5% and returned $735 million to shareholders in 2024, including $153 million in share repurchases. Looking ahead, Weyerhaeuser announced plans to invest approximately $500 million in a new TimberStrand facility in Arkansas, expected to significantly increase production capacity and generate over $100 million in annual adjusted EBITDA once operational.Weyerhaeuser Corporate Events
Business Operations and StrategyFinancial Disclosures
Weyerhaeuser Highlights Achievements and Future Targets
Positive
Feb 27, 2025
On February 27, 2025, Weyerhaeuser Company announced the posting of new presentation materials on its website for discussions with the investment community. The company highlighted its achievements and targets, including significant investments in timberlands, growth in natural climate solutions, and operational improvements. Weyerhaeuser is committed to returning a substantial portion of its adjusted funds to shareholders and has made progress in reducing greenhouse gas emissions. The company’s unmatched portfolio and industry-leading performance position it strongly in the market, with a focus on sustainable practices and long-term value creation.
Executive/Board Changes
Weyerhaeuser Appoints New VP and Chief Accounting Officer
Positive
Feb 21, 2025
Weyerhaeuser announced a significant leadership change effective February 18, 2025, with Alex G. Whitney appointed as the new vice president and chief accounting officer. This change in leadership is expected to enhance the company’s financial management, with Mr. Whitney bringing extensive experience from his previous roles both within the company and at KPMG LLP.
Executive/Board ChangesBusiness Operations and Strategy
Weyerhaeuser Updates Executive Compensation Plan for 2025
Neutral
Jan 28, 2025
On January 22, 2025, Weyerhaeuser’s Board of Directors approved new terms and conditions for future performance share unit awards and restricted stock unit awards for executive officers, under the 2022 Long-Term Incentive Plan. This decision reflects the company’s ongoing efforts to align executive compensation with long-term performance goals, potentially impacting stakeholder engagement and corporate strategy.
Business Operations and Strategy
Weyerhaeuser Highlights Strategic Goals and Sustainability
Positive
Dec 18, 2024
Weyerhaeuser Company has released its December 2024 investor presentation, highlighting its strategic goals and achievements, such as timberlands growth, operational excellence, and shareholder returns. The company aims to invest $1 billion in timberlands by 2025, grow its natural climate solutions business, and achieve significant greenhouse gas reductions by 2040, positioning itself as a leader in sustainable forestry and carbon investment opportunities.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.