Weyerhaeuser Company [NYSE:WY]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For Weyerhaeuser Company [WY], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in December. On average, stock market experts give WY an Outperform rating. Its stock price has been found in the range of 20.52 to 38.39. This is compared to its latest closing price of $25.55.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Weyerhaeuser Company [WY] is sitting at 1.92. This is compared to 1 month ago, when its average rating was 2.00.
For the quarter ending in Dec-18 Weyerhaeuser Company [WY] generated $1.64 billion in sales. That’s 3.17% lower than the average estimate of $1.69 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Fri 26 Apr (In 42 Days).
Fundamental Analysis of Weyerhaeuser Company [WY]
Now let’s turn to look at profitability: with a current Operating Margin for Weyerhaeuser Company [WY] sitting at +13.95 and its Gross Margin at +25.20, this company’s Net Margin is now 10.00%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 6.71, and its Return on Invested Capital has reached 8.50%. Its Return on Equity is 8.34, and its Return on Assets is 4.24. These metrics suggest that this Weyerhaeuser Company does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Weyerhaeuser Company [WY] has generated a Total Debt to Total Equity ratio of 73.47. Similarly, its Total Debt to Total Capital is 42.35, while its Total Debt to Total Assets stands at 38.53. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 59.90, and its Long-Term Debt to Total Capital is 34.53. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 16.00 and its Total Debt to EBITDA Value is 3.49. The Enterprise Value to Sales for this firm is now 3.27, and its Total Debt to Enterprise Value stands at 0.29. Weyerhaeuser Company [WY] has a Price to Book Ratio of 1.80, a Price to Cash Flow Ratio of 14.88 and P/E Ratio of 25.89. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Weyerhaeuser Company [WY] earns $803,871 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 16.91 and its Total Asset Turnover is 0.42.
Weyerhaeuser Company [WY] has 748.63M shares outstanding, amounting to a total market cap of $19.13B. Its stock price has been found in the range of 20.52 to 38.39. At its current price, it has moved by -33.19% from its 52-week high, and it has moved 25.00% from its 52-week low.
This stock’s Beta value is currently 1.63, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 54.86. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Weyerhaeuser Company [WY] a Reliable Buy?
Shares of Weyerhaeuser Company [WY], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.