Weyerhaeuser Co. (WY) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Welltower, Inc.

Realty Income Corp.

VICI Properties, Inc.

Digital Realty Trust, Inc.

Equity Residential

Extra Space Storage, Inc.

Simon Property Group, Inc.

Public Storage

AvalonBay Communities, Inc.

Weyerhaeuser Co.

Crown Castle, Inc.

Why is Weyerhaeuser Co. ?

Poor long term growth as Operating profit has grown by an annual rate of -5.70%

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(HY) At USD 174.31 MM has Grown at -42.32%
OPERATING CASH FLOW(Y) Lowest at USD 918 MM
ROCE(HY) Lowest at 2.85%

With ROE of 4.16%, it has a expensive valuation with a 2.01 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -31.05%, its profits have fallen by -50.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -31.05% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Weyerhaeuser Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Weyerhaeuser Co.

-31.5%

-0.93

27.48%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.36%

EBIT Growth (5y)

-5.70%

EBIT to Interest (avg)

7.88

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

6.89%

Dividend Payout Ratio

147.28%

Pledged Shares

Institutional Holding

94.03%

ROCE (avg)

27.06%

ROE (avg)

13.55%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.01

EV to EBIT

15.58

EV to EBITDA

11.01

EV to Capital Employed

2.07

EV to Sales

2.65

PEG Ratio

Dividend Yield

2.78%

ROCE (Latest)

13.30%

ROE (Latest)

4.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 174.71%

DIVIDEND PER SHARE(HY)

Highest at USD 17.63

INTEREST COVERAGE RATIO(Q)

Highest at 653.03

-16What is not working for the Company

NET PROFIT(HY)

At USD 174.31 MM has Grown at -42.32%

OPERATING CASH FLOW(Y)

Lowest at USD 918 MM

ROCE(HY)

Lowest at 2.85%

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.51 times

RAW MATERIAL COST(Y)

Grown by 18.09% (YoY

CASH AND EQV(HY)

Lowest at USD 1,156 MM

DEBT-EQUITY RATIO (HY)

Highest at 48.26 %

Here's what is working for Weyerhaeuser Co.

Interest Coverage Ratio

Highest at 653.03

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at USD 17.63 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 174.71% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 250 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Depreciation

At USD 250 MM has Grown at 100%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for Weyerhaeuser Co.

Net Profit

At USD 174.31 MM has Grown at -42.32%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Inventory Turnover Ratio

Lowest at 9.51 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Cash Flow

Lowest at USD 918 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv

Lowest at USD 1,156 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 48.26 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 18.09% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales