One-glance verdict
Undervalued
$41.12 our estimate vs market $20.35
Wall Street consensus: $26.55 (-35.5% lower than our fair-value estimate)
51% below our estimate, below the bear case
Fundamentals snapshot
Weyerhaeuser Company
WY · NYQ · Real Estate · REIT - Specialty
Current price
$20.35
52-week range
$18.26 - $27.75
Market cap
$14.66B
Balance sheet
Stretched
1.64x Concerning
Net debt $5.00B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 1.3% last year.
- Reward Returns 4.8% on equity, ahead of 60% of its peers.
- Risk Forward P/E (37.0x) is higher than trailing (32.3x) - earnings are expected to drop.
- Risk Net debt grew 46.9% over 3 years.
What this company does
Weyerhaeuser Company
Weyerhaeuser owns huge forests and makes money by selling timber and wood products, which are mainly used to build houses. This means the company's performance is closely linked to the health of the housing and construction markets. As a special type of company called a Real Estate Investment Trust (which owns income-producing property and must pay out most profits to investors), it is designed to provide regular income payments.
How the company got here
Weyerhaeuser started in 1900 when Frederick Weyerhaeuser bought 900,000 acres of timberland in Washington. Over the decades, it grew by acquiring more forest land and expanding into making wood products, even building the world's largest sawmill in 1929. The company was a leader in sustainable forestry, introducing the concept of tree farms and replanting harvested areas. In 2010, it became a Real Estate Investment Trust (or REIT), a special type of company that owns income-producing properties, which provides tax advantages. Major acquisitions of other timber companies, like Plum Creek in 2016, made it the largest private owner of timberland in the United States.
What it actually does
Think of Weyerhaeuser as a massive tree farmer that also turns its harvest into materials for building houses. The company owns and manages millions of acres of forests, growing and harvesting trees in a continuous cycle. It then processes that wood into everyday building products you'd find at a construction site, like lumber for framing walls and panels for floors and roofs. Beyond just wood, the company also makes money from its vast land holdings in other ways, such as selling parcels of land or leasing them for things like renewable energy projects.
Timberlands
This is the foundation of the company and involves growing and harvesting trees. Weyerhaeuser owns about 10.4 million acres of timberlands in the U.S. and manages another 14 million acres in Canada under long-term licenses. The main customers for this segment are sawmills (including Weyerhaeuser's own) and other wood product manufacturers who buy the raw logs. This part of the business provides the essential raw material for the company's other operations and also sells timber to outside customers.
Wood Products
This is the manufacturing side of the business, which turns trees into building materials. This segment takes the harvested logs and produces things like lumber (the 2x4s used to build houses), oriented strand board (OSB), which are panels used for sheathing walls and roofs, and engineered wood products like beams and joists. The customers are primarily homebuilders, construction companies, and building material dealers. This is the largest part of the company by revenue (the total amount of money generated from sales).
Real Estate, Energy & Natural Resources
This segment focuses on getting value from the company's land beyond just the timber. Weyerhaeuser sells land that is more valuable for other uses, such as real estate development or recreation. It also leases its land and subsurface rights for energy and natural resource projects, like solar farms, wind turbines, or even carbon capture and storage. This is a smaller but growing part of the business that aims to maximize the value of every acre the company owns.
What management is betting on now
Management is focused on growing the value of its assets through several key initiatives. A major priority is improving the efficiency and product mix of its Wood Products mills to lower costs and sell more value-added materials. The company is also heavily investing in what it calls "Climate Solutions," which includes projects like renewable energy leasing and selling forest carbon credits, aiming to make this a significant source of earnings. Ultimately, the strategy is to maximize the cash generated from each acre of land and each manufacturing facility, and then return a large portion of that cash to its shareholders (the owners of the company's stock).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$205.00M
FY2025 Q1
$48.00M
FY2025 Q2
$388.00M
FY2025 Q3
$203.00M
FY2025 Q4
$-128.00M
FY2026 Q1
$29.00M
FY2026 Q2
$391.00M
FY2026 Q3
$186.00M
Revenue
$1.86B
Net income
$61.00M
Diluted EPS
0.08
Operating cash flow
$193.00M
Free cash flow
$186.00M
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Sources
Revenue
$1.87B
Net income
$162.00M
Diluted EPS
0.23
Operating cash flow
$399.00M
Free cash flow
$391.00M
Fetching…
Sources
Revenue
$1.73B
Net income
$156.00M
Diluted EPS
0.22
Operating cash flow
$52.00M
Free cash flow
$29.00M
Fetching…
Sources
Revenue
$1.54B
Net income
$74.00M
Diluted EPS
0.11
Operating cash flow
$-114.00M
Free cash flow
$-128.00M
Fetching…
Sources
Revenue
$1.72B
Net income
$80.00M
Diluted EPS
0.11
Operating cash flow
$210.00M
Free cash flow
$203.00M
Fetching…
Sources
Revenue
$1.88B
Net income
$87.00M
Diluted EPS
0.12
Operating cash flow
$396.00M
Free cash flow
$388.00M
Fetching…
Sources
Revenue
$1.76B
Net income
$83.00M
Diluted EPS
0.11
Operating cash flow
$70.00M
Free cash flow
$48.00M
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Sources
Revenue
$1.71B
Net income
$81.00M
Diluted EPS
0.10
Operating cash flow
$218.00M
Free cash flow
$205.00M
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Sources
Is it cheap or expensive?
Fair value $41.12 vs current price $20.35
Wall Street consensus is the average analyst price target: $26.55 (-35.5% lower than our fair-value estimate).
Our most-likely fair value is $41.12 a share — about 102.1% above today's price of $20.35, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $5.0B. Interest coverage 1.6x.
Net debt
$5.00B
Interest coverage
1.64x
Weyerhaeuser Company's profit covers its interest bill about 1.6 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
WY
BASELINE
Weyerhaeuser Company
Total debt $5.35B Interest coverage 1.64x This is the baseline the peer rows are being compared against.
Total debt $1.89B Interest coverage 3.45x +110% vs WY Carries about 2.1x more debt cushion than WY.
Total debt $532.00M Interest coverage -25.00x -100% vs WY This peer has almost no interest-payment cushion compared with WY.
Total debt $377.00M Interest coverage 18.50x +1,030% vs WY Carries about 11.3x more debt cushion than WY.
Total debt $549.25M Interest coverage 8.39x +413% vs WY Carries about 5.1x more debt cushion than WY.
What you should know
The case for and against WY
3 Rewards
3 Risks
Rewards
-
Revenue grew 1.3% last year.
-
Returns 4.8% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Forward P/E (37.0x) is higher than trailing (32.3x) - earnings are expected to drop.
-
Net debt grew 46.9% over 3 years.
-
Operating margin compressed from 30.4% to 4.6% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
32.30x
Forward P/E
36.96x
P/B
1.56x
P/S
2.10x
EV/EBITDA
28.75x
PEG ratio
1.86x
Profitability
How much profit each dollar creates
Gross margin
15.0%
Operating margin
4.6%
Net margin
6.5%
ROE
4.8%
ROA
0.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.57x
Current ratio
1.82x
Quick ratio
0.92x
Total debt
$5.35B
Total cash
$349.00M
Growth
How the business has been compounding
Revenue TTM
$7.00B
Revenue 5Y CAGR
-9.3%
EPS TTM
0.63
EPS 5Y CAGR
-43.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$530.00M
Free CF TTM
$511.00M
FCF margin
7.3%
Dividend
Shareholder payout
Yield
4.1%
Payout ratio
133.3%
Last ex-div date
2026-09-04