Weyerhaeuser Co (WY) stock analysis

P/E above its 5-year median

Weyerhaeuser's P/E of 32.8 is above its own 5-year median of 27.5.

P/E above the industry

Weyerhaeuser's P/E of 32.8 is above the Miscellaneous Investing median of 26.3.

EV/EBITDA below its 5-year median

Weyerhaeuser's EV/EBITDA of 14.9 is below its 5-year median of 16.0.

P/B above the industry

Weyerhaeuser's price-to-book of 1.59 is above the Miscellaneous Investing median of 1.20.

Trading above fair value

The share price of $20.65 is above our fair value estimate of $17.20.

Margin of safety under 20%

The price is 20.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -12.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -43.8% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 36.9% over the last twelve months, against a 5-year average of -16.5% a year.

Growing slower than the industry

Revenue grew -1.1% over the last twelve months; the Miscellaneous Investing median is 4.6%.

Guidance lowered

Weyerhaeuser lowered its full year basis as a percentage of Strategic Land Solutions sales outlook on Jul 30, 2026.

Gross margin slipping

Gross margin was 15.0% over the last twelve months, against 16.5% a year earlier.

Return on equity under 15%

Return on equity was 4.8% over the last twelve months and averaged 11.9% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 5.8%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Weyerhaeuser's return on equity of 4.8% is above the Miscellaneous Investing median of 3.1%.

Earnings shrank over 5 years

Net income shrank 16.5% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 6.5% over the last twelve months, against a 5-year average of 13.0%.

Net margin below the industry

Weyerhaeuser's net margin of 6.5% is below the Miscellaneous Investing median of 10.3%.

High debt

Debt is 57.1% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 62.7% five years ago to 57.1%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 9.9% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 3.1 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.82 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.03; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Weyerhaeuser paid dividends worth 4.1% of the share price over the last twelve months.

Yield below Treasuries

The 4.1% yield is below the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Weyerhaeuser yields 4.1%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Not covered by earnings

Dividends take 134% of net income, leaving little room.

Cash-flow cover

Needs dividends paid and free cash flow.