PotlatchDeltic (PCH) AI Stock Analysis

• Market Cap: $3.23B
• Dividend Yield: 4.53%
• Average Volume (3M): 965.37K
• Price to Earnings (P/E): 51.0
• Beta (1Y): 0.62
• Revenue Growth: 5.40%
• EPS Growth: 294.38%
• Country: US
• Employees: 1,383
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Specialty
• EPS (TTM): N/A
• Shares Outstanding: 77,416,980
• 10 Day Avg. Volume: 1,917,523
• 30 Day Avg. Volume: 965,372
• PEG Ratio: -2.22
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 2.93
• P/FCF Ratio: 46.09
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 3.74
• Enterprise Value/Gross Profit: 23.84
• Enterprise Value/Ebitda: 21.17
• 1Y Price Target: $45.20
• Price Target Upside: 8.32% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.77
• Revenue Forecast (FY): $1.09B

• Rating: 68 Neutral
• Price Target: $47.00 ▲(12.63% Upside)

The score is driven mainly by solid cash flow growth and a stable balance sheet, alongside constructive price momentum. Offsetting factors include pressured profitability (low margins/ROE) and a high P/E valuation; earnings commentary and merger progress are net supportive but tempered by near-term market weakness and legal/closing risks.

Positive Factors

Strong free cash flow generation

Sustained FCF growth (TTM +35.11%) and high conversion metrics indicate durable cash generation capacity. This supports recurring capital allocation to dividends, debt service, M&A, and land development, providing flexibility to manage cyclical timber revenues and fund strategic initiatives over the medium term.

Relatively conservative balance sheet

Moderate leverage and a strong equity base (equity ratio ~60%) give PotlatchDeltic financial flexibility. Lower leverage and access to liquidity reduce refinancing risk, enabling continued timber management and real estate development investment through cyclical downturns and supporting integration of strategic transactions.

Diversified revenue mix with strong real estate results

A meaningful real estate business complements timber operations, providing higher-margin, less cyclical cash inflows via land sales and development. Recent large acreage transactions and development revenue materially bolstered adjusted EBITDA, improving resilience and offering a durable value-monetization pathway for land assets.

Negative Factors

Compressed profitability and low ROE

Persistently low net margins and ROE signal limited profitability on core assets, constraining the company's ability to reinvest and generate attractive shareholder returns. Over the medium term, this structural profitability weakness can limit capital allocation flexibility and make outcomes more sensitive to commodity and real estate cycles.

Material exposure to lumber price volatility

Significant exposure to lumber markets creates earnings volatility: weak lumber prices drove manufacturing losses despite shipment gains. Given the cyclical nature of wood commodities and pulpwood market pressures, commodity swings can materially depress margins and cash flow for extended periods, stressing operations and returns.

Merger execution and litigation risk

Ongoing disclosure suits and supplemental filings introduce execution, timing, and cost uncertainty around the Rayonier merger. Legal challenges can delay closing, increase transaction costs, distract management, and complicate realization of projected $40M synergies, making near-term strategic benefits less certain until fully resolved.

PotlatchDeltic Business Overview & Revenue Model

Company Description

PotlatchDeltic (NASDAQ:PCH) is a leading Real Estate Investment Trust (REIT) that owns 1.8 million acres of timberlands in Alabama, Arkansas, Idaho, Louisiana, Minnesota and Mississippi. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest management, is committed to environmental and social responsibility and to responsible governance.

How the Company Makes Money

PotlatchDeltic generates revenue through multiple key streams. The primary revenue source comes from the sale of timber and wood products, which includes logs, lumber, and other forest-derived products. The company's sustainable timber management practices ensure a steady supply of raw materials for both internal and external sales. Additionally, the real estate segment contributes significantly to revenue through the development and sale of residential and commercial properties. This includes land sales and the monetization of real estate assets. The company also engages in partnerships with various developers and builders, enhancing its market reach and profitability. Factors such as timber prices, real estate market conditions, and operational efficiencies play critical roles in the company's overall financial performance.

PotlatchDeltic Financial Statement Overview

Summary

Mixed fundamentals: revenue is growing (TTM +5.59%) and free cash flow is strong (TTM FCF growth +35.11%), supported by a stable balance sheet with moderate leverage (debt-to-equity 0.56; equity ratio 60.10%). However, profitability is pressured with declining margins and low TTM net margin (3.94%) and ROE (2.08%).

Income Statement

PotlatchDeltic's income statement shows moderate performance with a recent revenue growth rate of 5.59% in TTM, indicating a positive trend. However, margins have been declining over the years, with the TTM gross profit margin at 16.29% and net profit margin at 3.94%, both significantly lower than historical figures. The EBIT and EBITDA margins also reflect this downward trend. While revenue is growing, profitability is under pressure, suggesting potential challenges in cost management or pricing power.

Balance Sheet

The balance sheet of PotlatchDeltic is relatively stable with a debt-to-equity ratio of 0.56 in TTM, indicating a moderate level of leverage. The equity ratio stands at 60.10%, showing a strong equity base. However, the return on equity has decreased to 2.08% in TTM, reflecting lower profitability on shareholders' equity. Overall, the company maintains a solid financial structure but faces challenges in generating returns.

Cash Flow

PotlatchDeltic's cash flow statement demonstrates strong free cash flow growth of 35.11% in TTM, a positive indicator of cash generation capabilities. The operating cash flow to net income ratio is 0.71, suggesting efficient conversion of earnings into cash. The free cash flow to net income ratio is 0.63, indicating a healthy cash flow relative to earnings. The company shows resilience in cash flow management despite profitability pressures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.12B	1.06B	1.02B	1.33B	1.34B	1.04B
Gross Profit	175.22M	116.40M	124.50M	523.96M	621.59M	353.15M
EBITDA	197.28M	33.19M	207.26M	524.95M	615.72M	356.89M
Net Income	64.25M	21.88M	62.10M	333.90M	423.86M	166.83M
Balance Sheet
Total Assets	3.17B	3.31B	3.43B	3.55B	2.54B	2.38B
Cash, Cash Equivalents and Short-Term Investments	88.77M	151.55M	230.12M	343.81M	296.15M	252.34M
Total Debt	1.04B	1.03B	1.03B	1.03B	758.26M	761.65M
Total Liabilities	1.27B	1.27B	1.26B	1.29B	1.01B	1.08B
Stockholders Equity	1.91B	2.04B	2.17B	2.26B	1.53B	1.30B
Cash Flow
Free Cash Flow	131.44M	67.47M	37.50M	307.10M	429.47M	289.48M
Operating Cash Flow	201.12M	188.47M	159.11M	491.90M	504.89M	335.26M
Investing Cash Flow	-55.00M	-92.06M	-95.30M	-147.52M	-59.15M	-42.19M
Financing Cash Flow	-213.58M	-182.37M	-171.71M	-295.56M	-401.31M	-124.98M

PotlatchDeltic Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 41.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PCH, the sentiment is Neutral. The current price of 41.73 is below the 20-day moving average (MA) of 42.71, above the 50-day MA of 40.74, and above the 200-day MA of 39.93, indicating a neutral trend. The MACD of 0.48 indicates Positive momentum. The RSI at 47.16 is Neutral, neither overbought nor oversold. The STOCH value of 18.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PCH.

PotlatchDeltic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RYN	75 Outperform	$3.64B	9.30	38.06%	12.79%	8.88%	131.78%
PCH	68 Neutral	$3.23B	51.00	3.25%	4.53%	5.40%	294.38%
FPI	67 Neutral	$485.71M	9.42	14.30%	14.23%	-9.27%	333.85%
WY	66 Neutral	$18.63B	57.70	―	3.57%	-1.64%	-37.58%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

PotlatchDeltic Corporate Events

PotlatchDeltic Shareholders Approve Merger With Rayonier

On January 27, 2026, PotlatchDeltic stockholders approved the merger agreement under which the company will be merged into a Rayonier subsidiary, though they voted against, on a non-binding basis, the merger-related compensation for named executive officers. With a strong quorum of more than 65 million shares represented, the vote clears a key hurdle for the deal, which, alongside Rayonier stockholder approvals announced the same day, paves the way for closing after market close on January 30, 2026. Under the agreed terms, each PotlatchDeltic share will be converted into 1.8185 Rayonier shares plus $0.61 in cash, leaving Rayonier shareholders owning about 54% of the combined timberland REIT and former PotlatchDeltic stockholders holding roughly 46%; the merged company will initially retain the Rayonier name and NYSE ticker RYN as it seeks to consolidate its position in U.S. timberland and wood products markets.

The most recent analyst rating on (PCH) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on PotlatchDeltic stock, see the PCH Stock Forecast page.

PotlatchDeltic issues supplemental disclosures amid merger lawsuits

PotlatchDeltic, which agreed on October 13, 2025 to merge with Rayonier via a subsidiary that will become a wholly owned unit of Rayonier, reported that three shareholder lawsuits and multiple demand letters have been filed challenging disclosures in the joint proxy statement/prospectus for the deal ahead of special shareholder meetings scheduled for January 27, 2026. While both companies maintain that the claims are without merit and that their existing disclosures comply with securities laws and exchange rules, they are voluntarily issuing detailed supplemental financial and valuation information—primarily expanding on analyses by Morgan Stanley and BofA Securities—to moot the disclosure challenges, reduce litigation-related cost and distraction, and minimize the risk of delays to closing the merger, signaling their determination to keep the transaction on track despite mounting legal scrutiny from investors.

The most recent analyst rating on (PCH) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on PotlatchDeltic stock, see the PCH Stock Forecast page.

PotlatchDeltic Releases Financial Strategy Presentation

On December 5, 2025, PotlatchDeltic Corporation released presentation materials on its website, detailing its financial strategies and market outlook. The materials highlight the company’s strategic positioning to benefit from favorable long-term drivers in the lumber industry, including a pending merger with Rayonier Inc., and its focus on sustainable capital allocation. The presentation emphasizes the company’s strong balance sheet and operational efficiencies, which support its growth strategies and shareholder returns.

The most recent analyst rating on (PCH) stock is a Hold with a $41.00 price target. To see the full list of analyst forecasts on PotlatchDeltic stock, see the PCH Stock Forecast page.