Weyerhaeuser (WY) AI Stock Analysis

• Market Cap: $18.43B
• Dividend Yield: 3.17%
• Average Volume (3M): 4.27M
• Price to Earnings (P/E): 66.5
• Beta (1Y): 0.82
• Revenue Growth: -6.57%
• EPS Growth: -62.32%
• Country: US
• Employees: 9,400
• Sector: Real Estate
• Sector Strength: 52
• Industry: REIT - Specialty
• EPS (TTM): 0.12
• Shares Outstanding: 721,511,000
• 10 Day Avg. Volume: 4,075,622
• 30 Day Avg. Volume: 4,266,276
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 3.30
• Enterprise Value/Gross Profit: 19.11
• Enterprise Value/Ebitda: 22.03
• 1Y Price Target: $33.25
• Price Target Upside: 27.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 65 Neutral
• Price Target: $28.00 ▲(7.07% Upside)

Weyerhaeuser's overall stock score is driven by a stable financial position and strategic growth initiatives, including acquisitions and share repurchases. However, high valuation metrics and operational challenges in the lumber market and housing sector weigh on the score. Technical indicators suggest mixed market sentiment, with short-term stability but longer-term concerns.

Positive Factors

Operating Model

Weyerhaeuser's 2Q results underscore the resilience of its operating model, with cost reduction efforts providing greater operational and financial flexibility against current headwinds.

Timberlands Value

Weyerhaeuser’s expanding portfolio of timberlands provides underlying value at $33/share with upside potential from NCS initiatives.

Negative Factors

Housing and Construction Trends

Housing and construction trends are currently weak, which will likely continue to pressure Wood Products.

Interest Rates Impact

Continued high interest rates are resulting in a wide gap between the cost to own vs. cost to rent.

Weyerhaeuser Business Overview & Revenue Model

Company Description

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2020, we generated $7.5 billion in net sales and employed approximately 9,400 people who serve customers worldwide. We are listed on the Dow Jones Sustainability North America Index. Our common stock trades on the New York Stock Exchange under the symbol WY.

How the Company Makes Money

Weyerhaeuser generates revenue primarily through the sale of timber and wood products. Its Timberland segment earns money by selling standing timber to lumber mills and other wood product manufacturers, as well as through long-term leases and arrangements for timber harvesting. The Wood Products segment contributes to revenue through the production and sale of lumber, oriented strand board (OSB), and engineered wood products. Key revenue streams also include the sale of real estate and land development projects. The company benefits from strategic partnerships with builders, manufacturers, and retailers, which enhance its market reach and create stable demand for its products. Additionally, Weyerhaeuser's commitment to sustainable forestry practices positions it favorably in an increasingly eco-conscious marketplace, potentially attracting more customers and investors.

Weyerhaeuser Financial Statement Overview

Summary

Weyerhaeuser's financial statements show a stable balance sheet with conservative leverage and a healthy equity position. However, the income statement and cash flow indicate challenges in sustaining revenue and profit growth, with margins under pressure. Despite these challenges, the company maintains a strong cash conversion from earnings, supporting its financial flexibility.

Income Statement

The income statement shows moderate performance with a decrease in total revenue from 2023 to 2024 and into TTM. Gross Profit Margin in TTM is around 17.25%, indicating an efficient cost structure, though slightly down from 2024's 18.43%. Net Profit Margin has decreased to 3.97% in TTM from 5.56% in 2024, reflecting pressure on profitability. Revenue growth has been volatile, with negative growth in recent years, indicating potential challenges in maintaining consistent revenue streams. EBIT and EBITDA margins in TTM are at 8.19% and 15.45%, respectively, showing a contraction compared to previous periods.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.09 in TTM, indicating conservative leverage. The equity ratio stands at 57.81%, demonstrating solid capitalization and financial stability. Return on Equity in TTM is lower at 2.93%, down from 4.07% in 2024, suggesting reduced profitability on equity. Overall, the balance sheet reflects a well-managed capital structure with moderate risk.

Cash Flow

Cash flow analysis shows a decline in operating cash flow from 2023 to TTM, but it remains positive at $918 million. Free Cash Flow to Net Income ratio is robust at 1.35, indicating effective conversion of earnings to cash. However, Free Cash Flow growth is negative in TTM, suggesting pressure on cash generation. The Operating Cash Flow to Net Income ratio is strong at 3.29, reflecting a good cash-generating ability relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.04B	7.12B	7.67B	10.18B	10.20B	7.53B
Gross Profit	1.21B	1.31B	1.68B	3.62B	4.10B	2.08B
EBITDA	1.05B	1.20B	1.72B	3.06B	4.11B	1.90B
Net Income	279.00M	396.00M	839.00M	1.88B	2.61B	797.00M
Balance Sheet
Total Assets	16.48B	16.54B	16.98B	17.34B	17.65B	16.31B
Cash, Cash Equivalents and Short-Term Investments	592.00M	684.00M	1.16B	1.58B	1.88B	495.00M
Total Debt	5.19B	5.11B	5.09B	5.08B	5.12B	5.50B
Total Liabilities	6.95B	6.82B	6.75B	6.59B	6.88B	7.58B
Stockholders Equity	9.52B	9.72B	10.24B	10.75B	10.77B	8.73B
Cash Flow
Free Cash Flow	377.00M	341.00M	753.00M	2.07B	2.57B	823.00M
Operating Cash Flow	918.00M	1.01B	1.43B	2.83B	3.16B	1.53B
Investing Cash Flow	-624.00M	-636.00M	-508.00M	-759.00M	-325.00M	185.00M
Financing Cash Flow	-699.00M	-852.00M	-1.34B	-2.49B	-1.33B	-1.36B

Weyerhaeuser Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.15
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 26.15 is above the 20-day moving average (MA) of 25.72, above the 50-day MA of 25.66, and below the 200-day MA of 27.33, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 37.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WY.

Weyerhaeuser Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RYN	75 Outperform	$4.12B	11.42	36.96%	10.90%	9.90%	137.73%
WY	65 Neutral	$18.43B	66.50	2.85%	3.17%	-6.57%	-62.32%
Sector *	63 Neutral	$7.09B	13.59	-0.50%	6.85%	4.08%	-25.24%
PCH	59 Neutral	$3.26B	80.00	2.07%	4.20%	-1.15%	14.51%

Weyerhaeuser Corporate Events

Weyerhaeuser Unveils Strategic Goals in Investor Presentation

On September 4, 2025, Weyerhaeuser Company released presentation materials for investors, outlining its strategic goals and achievements. The company highlighted its commitment to driving growth and shareholder value through disciplined capital allocation, operational excellence, and sustainable practices. Key targets include a $1 billion investment in timberlands by 2025, growing annual EBITDA from natural climate solutions to $100 million, and increasing lumber production by 5% annually. Weyerhaeuser also emphasized its leadership in ESG performance, aiming for net-zero emissions by 2040, and maintaining strong shareholder returns with a sustainable dividend policy.

Weyerhaeuser Secures $800 Million Term Loan Agreement

On August 25, 2025, Weyerhaeuser Company and its subsidiary entered into a Term Loan Agreement to borrow $800 million in senior unsecured term loans. The funds are being used to partially redeem $500 million of Weyerhaeuser’s 4.75% senior unsecured notes due in 2026, with the remainder allocated for general corporate purposes. This financial maneuver aims to optimize the company’s debt structure and maintain financial flexibility. The loan agreement includes customary covenants for investment-grade credit facilities, ensuring Weyerhaeuser’s compliance with financial metrics and operational limitations, which could impact its strategic decisions and stakeholder interests.

Weyerhaeuser Secures $1.75 Billion Credit Facility Agreement

On June 30, 2025, Weyerhaeuser Company entered into a $1.75 billion five-year senior unsecured Amended and Restated Revolving Credit Facility Agreement, which updates its previous $1.5 billion credit facility. This agreement, expiring on June 30, 2030, allows Weyerhaeuser to use the funds for general corporate purposes, including working capital, debt refinancing, acquisitions, stock repurchases, and capital expenditures. The agreement includes covenants requiring Weyerhaeuser to maintain a minimum total adjusted shareholders’ equity of $3.0 billion and a funded debt ratio of 65% or less, reflecting its commitment to financial stability and operational flexibility.

Weyerhaeuser Updates Q2 2025 Outlook and Targets

On June 26, 2025, Weyerhaeuser Company released presentation materials to update its second-quarter 2025 outlook for certain business segments. The company highlighted its progress towards multi-year targets, including significant investments in timberlands, operational improvements, and shareholder returns. Weyerhaeuser is on track to meet its 2025 targets for EBITDA growth in natural climate solutions and has maintained its ESG listings. The announcement underscores Weyerhaeuser’s strategic focus on growth, sustainability, and delivering value to shareholders.