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PotlatchDeltic Corporation (PCH)
NASDAQ:PCH
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PotlatchDeltic
(NASDAQ:PCH)
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Select Model
Rating:66Neutral
Price Target:
$43.00
â–²(9.86% Upside)
PotlatchDeltic's overall stock score reflects a balance of moderate financial performance and valuation concerns, offset by positive strategic initiatives and corporate events. The company's strong cash flow and strategic merger plans provide a positive outlook, but current profitability and market conditions pose challenges.
Positive Factors
Strong Cash Flow
Strong cash flow growth indicates robust cash generation capabilities, providing financial flexibility for strategic investments and debt management.
Strategic Merger
The merger with Rayonier is poised to enhance operational scale and efficiency, unlocking growth opportunities and synergies that can drive long-term value.
Real Estate Performance
Strong performance in real estate underscores the company's ability to leverage its land holdings effectively, contributing to revenue diversification and stability.
Negative Factors
Declining Margins
Declining margins suggest challenges in cost management or pricing power, which could impact profitability and competitiveness over time.
Weak Lumber Market
Weak lumber prices negatively affect the Wood Products segment, posing a risk to revenue and profitability in the near to medium term.
Challenging Housing Market
The challenging housing market may limit growth in the real estate segment, affecting revenue and strategic initiatives tied to housing demand.
PotlatchDeltic (PCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.06B
Dividend Yield4.54%
Average Volume (3M)539.89K
Price to Earnings (P/E)48.5
Beta (1Y)0.59
Revenue Growth5.40%
EPS Growth294.38%
CountryUS
Employees1,383
SectorReal Estate
Sector Strength53
IndustryREIT - Specialty
Share Statistics
EPS (TTM)0.36
Shares Outstanding77,291,000
10 Day Avg. Volume632,572
30 Day Avg. Volume539,886
Financial Highlights & Ratios
PEG Ratio-2.22
Price to Book (P/B)1.53
Price to Sales (P/S)2.93
P/FCF Ratio46.09
Enterprise Value/Market Cap1.35
Enterprise Value/Revenue3.71
Enterprise Value/Gross Profit23.65
Enterprise Value/Ebitda21.00
Forecast
1Y Price Target
$45.40Price Target Upside15.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.64
Revenue Forecast (FY)$1.09B
PotlatchDeltic Business Overview & Revenue Model
Company DescriptionPotlatchDeltic (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 MoneyPotlatchDeltic 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 Earnings Call Summary
Earnings Call Date:Nov 03, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 02, 2026
Earnings Call Sentiment Neutral
The earnings call presented a balance of strong real estate performance and strategic initiatives like the proposed merger with Rayonier, against challenges in the lumber and housing markets. While operational efficiencies and long-term optimism were highlighted, immediate market conditions remain challenging.Q3-2025 Updates
Positive Updates
Strong Real Estate Performance
The real estate segment delivered robust performance, driven by 15,600 acres sold at an average price of nearly $3,300 per acre, including two large transactions in Georgia totaling $39 million.
Timberlands Segment Achievement
The Timberlands segment delivered on its Q3 planned harvest volume of 1.9 million tons, with Idaho producing its highest quarterly volume this year.
Proposed Merger with Rayonier
PotlatchDeltic announced a merger with Rayonier, expected to create significant synergies of $40 million primarily through corporate and operational cost optimization.
Increased Liquidity and Financial Stability
The company finished the quarter with $388 million in liquidity and maintained a weighted average cost of debt at approximately 2.3%.
Positive Long-term Outlook
The company maintains a positive view on long-term industry fundamentals, with expectations of improved lumber pricing due to tariffs and supply reductions.
Negative Updates
Weak Lumber Market
The Wood Products segment reported an EBITDA loss of $2 million, driven by historically weak lumber prices.
Challenging U.S. Housing Market
Overall housing demand remains constrained by weaker consumer confidence and affordability challenges, although there are signs of improvement.
Pulpwood Market Pressures
Continued mill closures and capacity reductions in the pulpwood market are putting pressure on pricing.
Company Guidance
During PotlatchDeltic's Third Quarter 2025 Conference Call, the company provided guidance on various key metrics. The total adjusted EBITDA for the third quarter was reported at $89 million, a significant increase from the $52 million recorded in the previous quarter. This increase was largely driven by strong performance in the real estate segment, which included rural and development sales. The Timberlands segment achieved an adjusted EBITDA of $41 million, with a harvest volume of 1.9 million tons, while the Wood Products segment faced an EBITDA loss of $2 million due to historically weak lumber prices. On a positive note, lumber shipments increased to 333 million board feet, and the company achieved its lowest average manufacturing cost per thousand board feet since Q2 2021. In real estate, the company completed notable transactions in Georgia, generating $39 million in revenue, and saw continued strong demand for rural properties. PotlatchDeltic also highlighted its ongoing merger with Rayonier, expecting synergies of $40 million, and discussed its strategic initiatives in natural climate solutions, with 34,000 acres under solar option agreements, expanding to 40,000-45,000 acres by year-end. Looking ahead, the company anticipates a decline in fourth-quarter adjusted EBITDA due to seasonal and market factors, while maintaining optimism for improved lumber pricing and a favorable housing market environment in 2026.PotlatchDeltic Financial Statement Overview
Summary
PotlatchDeltic demonstrates operational efficiency with positive EBIT and EBITDA margins but faces challenges in revenue growth and profitability. The balance sheet is stable with a balanced leverage position, while cash flow metrics indicate room for improvement in cash generation. The company should focus on enhancing revenue growth and profitability to strengthen its financial position.Income Statement
PotlatchDeltic's income statement shows a declining trend in revenue and profitability. The TTM data indicates a decrease in revenue growth rate by -4.15% and a reduction in gross profit margin to 16.29%. Net profit margin also decreased to 3.94%. However, the company maintains a positive EBIT margin of 6.01% and EBITDA margin of 15.98%, suggesting operational efficiency despite revenue challenges.65
Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio of 0.56, indicating a balanced leverage position. Return on equity is relatively low at 2.08%, suggesting limited profitability from equity. The equity ratio stands at 60.34%, highlighting a strong equity base relative to total assets, which provides stability.70
Positive
Cash Flow
Cash flow analysis reveals a decline in free cash flow growth by -22.62% in the TTM period. The operating cash flow to net income ratio is 0.71, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is 0.63, suggesting a reasonable conversion of earnings into free cash flow, albeit with room for improvement.75
Positive
| 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 | 1.07B | 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
Negative
39.14
Price Trends
39.91
Negative
40.51
Negative
39.92
Negative
Market Momentum
0.13
Negative
46.50
Neutral
21.37
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 39.14 is below the 20-day moving average (MA) of 39.49, below the 50-day MA of 39.91, and below the 200-day MA of 39.92, indicating a bearish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 46.50 is Neutral, neither overbought nor oversold. The STOCH value of 21.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PCH.
PotlatchDeltic Risk Analysis
PotlatchDeltic disclosed 33 risk factors in its most recent earnings report. PotlatchDeltic reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PotlatchDeltic Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $3.35B | 8.97 | 38.06% | 12.74% | 8.88% | 131.78% | |
67 Neutral | $432.70M | 8.39 | 14.30% | 14.15% | -9.27% | 333.85% | |
66 Neutral | $16.93B | 51.43 | 3.42% | 3.54% | -1.64% | -37.58% | |
66 Neutral | $3.06B | 48.46 | 3.25% | 4.54% | 5.40% | 294.38% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
PCH
PotlatchDeltic
39.14
1.29
3.41%
RYN
Rayonier
21.45
-2.39
-10.03%
WY
Weyerhaeuser
23.71
-3.64
-13.31%
FPI
Farmland
9.97
-1.34
-11.85%
PotlatchDeltic Corporate Events
M&A TransactionsBusiness Operations and Strategy
PotlatchDeltic Releases Financial Strategy Presentation
Positive
Dec 5, 2025
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.
M&A TransactionsBusiness Operations and Strategy
PotlatchDeltic Announces Merger with Rayonier Inc.
Positive
Oct 14, 2025
On October 13, 2025, PotlatchDeltic Corporation and Rayonier Inc. announced an all-stock merger of equals, creating a leading land resources REIT with a diversified timberland portfolio and significant real estate development potential. The merger, unanimously approved by both companies’ boards, is expected to close in early 2026 and aims to leverage synergies, enhance operational scale, and capitalize on growth opportunities in land-based and natural climate solutions, benefiting stakeholders with anticipated annual synergies of $40 million.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.