Weyerhaeuser (WY) AI Stock Analysis

• Market Cap: $18.49B
• Dividend Yield: 3.18%
• Average Volume (3M): 4.04M
• Price to Earnings (P/E): 46.9
• Beta (1Y): 0.99
• Revenue Growth: -7.17%
• EPS Growth: -52.62%
• Country: US
• Employees: 9,440
• Sector: Real Estate
• Sector Strength: 86
• Industry: REIT - Specialty
• EPS (TTM): 0.54
• Shares Outstanding: 725,848,940
• 10 Day Avg. Volume: 4,191,844
• 30 Day Avg. Volume: 4,042,371
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.97
• Price to Cash Flow (P/CF): 24.30
• P/FCF Ratio: 18.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $34.50
• Price Target Upside: 29.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

Weyerhaeuser's stock score reflects strong financial stability and strategic initiatives aimed at long-term growth, offset by valuation concerns and current market challenges. The company's robust balance sheet and shareholder-friendly actions are positive, but declining revenue and cash flow growth are significant risks. Technical indicators point to potential short-term weakness, while recent corporate events provide a positive outlook.

Positive Factors

Earnings

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

Export Duties

Higher export duties on lumber coming from CN will push prices higher and will benefit producers like WY with a greater mix of production in the US.

Valuation

Valuation is attractive at current levels.

Negative Factors

Housing Demand

Housing demand remains weak with slow single-family starts due to high mortgage rates and unsold inventory.

Operational Disruptions

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

Weyerhaeuser Business Overview & Revenue Model

Company Description

Weyerhaeuser 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 Money

Weyerhaeuser 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 demonstrates strong profitability and a solid balance sheet with low leverage, which positions the company well for financial stability. However, declining revenue and free cash flow growth pose challenges that need addressing to sustain long-term growth.

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.

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.

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.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.12B	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
1.23B	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
5.11B	5.09B	5.05B	5.10B	5.47B
	Net Debt
4.42B	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
341.00M	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

• Technical Analysis Sentiment: Negative
• Last Price: 26.56
• 50DMA: Negative
• 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 Negative. The current price of 26.56 is below the 20-day moving average (MA) of 28.65, below the 50-day MA of 29.44, and below the 200-day MA of 30.06, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 44.32 is Neutral, neither overbought nor oversold. The STOCH value of 30.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WY.

Weyerhaeuser Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RYN	72 Outperform	$3.78B	10.11	19.79%	4.79%	19.50%	106.12%
PCH	70 Outperform	$3.08B	141.97	1.04%	4.71%	3.71%	-64.41%
Sector *	61 Neutral	$4.31B	16.14	-3.60%	11.88%	6.17%	-20.99%
WY	59 Neutral	$18.49B	46.91	3.97%	3.18%	-7.17%	-52.62%

Weyerhaeuser Corporate Events

Weyerhaeuser Updates Q1 2025 Outlook and ESG Focus

On March 27, 2025, Weyerhaeuser Company released updated presentation materials for its first-quarter 2025 outlook, highlighting adjustments in its business segments. The company has made significant investments in timberlands and achieved substantial progress in its operational excellence and natural climate solutions, with a strong commitment to ESG practices and shareholder returns.

Weyerhaeuser Highlights Achievements and Future Targets

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.

Weyerhaeuser Appoints New VP and Chief Accounting Officer

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.

Weyerhaeuser Updates Executive Compensation Plan for 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.