Skip to Content

Weyerhaeuser Co WY

Morningstar Rating
$34.23 +1.33 (4.04%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Weyerhaeuser Earnings: Pricing Continues to Constrain Results Despite End Market Improvements

No-moat-rated Weyerhaeuser reported fourth-quarter results that were largely in line with our expectations. Weyerhaeuser navigated a challenging year as high interest rates constrained housing markets and weighed on lumber demand. Some of that weakness carried over to the fourth quarter as net sales declined roughly 2.5% year over year, while operating margins expanded 300 basis points to 15.7%, largely due to strength in the timberlands segment. Despite some end market improvements in the fourth quarter, Weyerhaeuser will have to navigate a tricky demand environment and ample industry supply in 2024. We've increased our fair value estimate to $35 per share from $34 due to the time value of money.

Price vs Fair Value

WY is trading at a 2% discount.
Price
$34.23
Fair Value
$61.00
Uncertainty
Medium
1-Star Price
$94.78
5-Star Price
$44.60
Economic Moat
Wjpbk
Capital Allocation
Hqsxfjnq

Bulls Say, Bears Say

Bulls

Weyerhaeuser’s growing mill capacity in the Southeastern U.S. will reduce its exposure to export taxes and trade disputes, allowing increased profit generation.

Bears

Weyerhaeuser’s reliance on lumber profitability could put the firm at risk during times of economic weakness.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if WY is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$32.90
Day Range
$32.8234.24
52-Week Range
$27.6535.14
Bid/Ask
$33.20 / $34.23
Market Cap
$24.97 Bil
Volume/Avg
3.7 Mil / 3.7 Mil

Key Statistics

Price/Earnings (Normalized)
33.56
Price/Sales
3.27
Dividend Yield (Trailing)
2.22%
Dividend Yield (Forward)
2.34%
Total Yield
2.74%

Company Profile

Weyerhaeuser ranks among the world's largest forest product companies. Following the 2016 sale of its pulp business to International Paper, Weyerhaeuser operates three business segments: timberlands, wood products, and real estate. Weyerhaeuser is structured as a real estate investment trust and is not required to pay federal income taxes on earnings generated by timber harvest activities. Earnings from its wood products segment are subject to federal income tax. Weyerhaeuser acquired fellow timber REIT Plum Creek in 2016.
Sector
Real Estate
Industry
REIT - Specialty
Stock Style Box
Mid Value
Total Number of Employees
9,318

Competitors

Valuation

Metric
WY
WFG
RYN
Price/Earnings (Normalized)
33.5610.5893.44
Price/Book Value
2.440.932.68
Price/Sales
3.271.044.81
Price/Cash Flow
18.1813.7317.33
Price/Earnings
WY
WFG
RYN

Financial Strength

Metric
WY
WFG
RYN
Quick Ratio
1.941.241.77
Current Ratio
2.942.262.26
Interest Coverage
4.08−11.584.37
Quick Ratio
WY
WFG
RYN

Profitability

Metric
WY
WFG
RYN
Return on Assets (Normalized)
4.36%2.08%1.44%
Return on Equity (Normalized)
7.28%2.71%2.91%
Return on Invested Capital (Normalized)
5.96%2.07%2.29%
Return on Assets
WY
WFG
RYN
See how this stock stacks up to its competitors with Morningstar Investor

REIT - Specialty Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
AMT
American Tower CorpKrdvzs$90.3 Bil
EQIX
Equinix IncYmvsl$84.4 Bil
CCI
Crown Castle IncNhhrdfw$47.1 Bil
DLR
Digital Realty Trust IncBthmpvr$44.6 Bil
SBAC
SBA Communications Corp Class AYjdxdt$22.2 Bil
IRM
Iron Mountain IncSrzqnnl$22.0 Bil
GLPI
Gaming and Leisure Properties IncCfjv$12.3 Bil
RYN
Rayonier IncKlk$5.0 Bil
UNIT
Uniti Group IncSqlvp$1.4 Bil

Sponsor Center