PotlatchDeltic (PCH) AI Stock Analysis

• Market Cap: $3.02B
• Dividend Yield: 4.65%
• Average Volume (3M): 536.60K
• Price to Earnings (P/E): 63.4
• Beta (1Y): 0.76
• Revenue Growth: 10.86%
• EPS Growth: 6.72%
• Country: US
• Employees: 1,383
• Sector: Real Estate
• Sector Strength: 83
• Industry: REIT - Specialty
• EPS (TTM): 0.60
• Shares Outstanding: 78,744,510
• 10 Day Avg. Volume: 612,452
• 30 Day Avg. Volume: 536,599
• PEG Ratio: 9.43
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 38.31
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $48.00
• Price Target Upside: 25.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

PotlatchDeltic's overall stock score reflects a mixed outlook. The company has shown strength in its Real Estate and strategic initiatives, which are balanced by challenges in the Wood Products segment and market pressures. Financial performance is stable but with areas needing improvement. The technical indicators suggest a bearish trend, and although the stock is overvalued, it offers a decent dividend yield. The earnings call provided a cautiously optimistic outlook, supporting future potential despite existing challenges.

Positive Factors

Earnings

PotlatchDeltic's Wood results were ahead of forecasts, with momentum continuing into the next quarter due to higher pricing and improved costs.

Market Position

Higher export duties on lumber coming from Canada are expected to raise the cost floor and push prices higher, benefiting companies with production in the US like PCH.

Valuation

Current stock price provides an attractive entry point as PCH is trading below its estimated net asset value.

Negative Factors

Lumber Pricing

Lumber pricing and Timberlands margin came in below expectations.

Timberlands Performance

There is a desire for better trends in Timberlands, as results were slightly below forecasts with lower guidance for the next quarter and 2025.

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 makes money through three main revenue streams: timberland management, wood products manufacturing, and real estate sales. In timberland management, the company generates revenue by selling timber harvested from its extensive landholdings, which are sustainably managed to ensure long-term yields. The wood products segment contributes by producing and selling lumber and plywood, primarily to the construction and housing sectors. Additionally, PotlatchDeltic engages in real estate development, capitalizing on the value of its land by selling parcels for residential, recreational, and commercial use. Key partnerships with construction companies and strategic land sales further support its earnings, while sustainable forestry practices enhance its market position and long-term profitability.

PotlatchDeltic Financial Statement Overview

Summary

PotlatchDeltic demonstrates a balanced financial position with improving revenue and profitability metrics, robust equity, and positive cash flow trends. However, fluctuations in earnings and asset management challenges indicate areas for improvement. Continuous focus on operational efficiency and strategic asset management will be crucial for sustained financial health.

Income Statement

The company experienced a modest revenue growth in the TTM period, with Total Revenue increasing from the previous year. Profitability metrics such as Gross Profit Margin and Net Profit Margin have shown improvement compared to some previous periods, indicating healthy operational performance. However, the decline in revenue from earlier years and fluctuating EBIT and EBITDA margins highlight some volatility in earnings, which could pose risks if not managed carefully.

Balance Sheet

The balance sheet reflects a strong equity position with a stable Debt-to-Equity Ratio, indicating manageable leverage levels. The Equity Ratio is healthy, suggesting that the company has a solid capital structure. However, the reduction in Total Assets and Stockholders' Equity over recent years signals potential challenges in asset management or profitability that need attention.

Cash Flow

The company shows positive Free Cash Flow growth in the TTM period, which is a favorable sign for liquidity. However, the Operating Cash Flow to Net Income Ratio highlights dependency on operational efficiency for cash generation. The historical variation in Free Cash Flow and significant capital expenditures have impacted cash reserves, suggesting a need for careful cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.06B	1.02B	1.33B	1.34B	1.04B
	Gross Profit
116.40M	124.50M	523.96M	621.59M	353.15M
	EBIT
33.19M	85.75M	449.08M	551.52M	223.42M
	EBITDA
33.19M	207.26M	524.95M	615.72M	280.63M
	Net Income Common Stockholders
21.88M	62.10M	333.90M	423.86M	166.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
151.55M	230.12M	343.81M	296.15M	252.34M
	Total Assets
3.31B	3.43B	3.55B	2.54B	2.38B
	Total Debt
1.07B	1.03B	1.03B	758.26M	757.35M
	Net Debt
918.10M	803.61M	688.87M	462.11M	505.01M
	Total Liabilities
1.27B	1.26B	1.29B	1.01B	1.08B
	Stockholders Equity
2.04B	2.17B	2.26B	1.53B	1.30B
Cash Flow		Free Cash Flow
67.47M	37.50M	307.10M	429.47M	289.48M
	Operating Cash Flow
188.47M	159.11M	491.90M	504.89M	335.26M
	Investing Cash Flow
-92.06M	-95.30M	-147.52M	-59.15M	-42.19M
	Financing Cash Flow
-182.37M	-171.71M	-295.56M	-401.31M	-124.98M

PotlatchDeltic Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PCH, the sentiment is Negative. The current price of 38.39 is below the 20-day moving average (MA) of 39.60, below the 50-day MA of 43.00, and below the 200-day MA of 42.09, indicating a bearish trend. The MACD of -1.23 indicates Negative momentum. The RSI at 36.78 is Neutral, neither overbought nor oversold. The STOCH value of 39.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PCH.

PotlatchDeltic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RYN	70 Outperform	$3.84B	10.29	19.79%	4.60%	19.50%	106.12%
PCH	62 Neutral	$3.02B	63.42	2.31%	4.65%	10.86%	6.72%
WY	61 Neutral	$18.55B	51.02	3.71%	3.14%	-6.56%	-54.29%
Sector *	60 Neutral	$2.73B	11.44	0.07%	8661.49%	5.94%	-15.68%

PotlatchDeltic Corporate Events

PotlatchDeltic Releases Investor Presentation Materials

On February 25, 2025, PotlatchDeltic Corporation released presentation materials on its Investor Relations website, which include reconciliations of non-GAAP financial measures to GAAP measures. These materials are intended for use in presentations to investors and analysts, reflecting the company’s commitment to transparency in financial reporting.