One-glance verdict
Undervalued
$32.74 our estimate vs market $22.29
Wall Street consensus: $31.00 (-5.3% lower than our fair-value estimate)
32% below our estimate, below the bear case
Fundamentals snapshot
Weyerhaeuser Company
WY · NYQ · Real Estate · REIT - Specialty
Current price
$22.29
52-week range
$21.16 - $27.75
Market cap
$16.07B
Balance sheet
Stretched
1.64x Concerning
Net debt $4.92B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Returns 5.0% on equity, ahead of 60% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 46.9% over 3 years.
- Risk Operating margin compressed from 30.4% to 8.0% over 3 years.
What this company does
Weyerhaeuser Company
Weyerhaeuser is one of the world's largest private forest owners, making most of its money by selling timber and manufacturing wood products like lumber for building houses. As a key part of the housing supply chain (the network of businesses involved in creating and distributing a product), the company's success is closely tied to the health of the construction and homebuilding markets. This means that when more new homes are being built, Weyerhaeuser's business tends to do well.
How the company got here
Founded in 1900 by Frederick Weyerhaeuser, the company started with a large timberland purchase in the Pacific Northwest. Over the 20th century, it grew into a major forest products company, expanding its business to include not just timber, but also lumber, paper, and other related areas. A key moment was in 2010 when it converted to a Real Estate Investment Trust (REIT), a move that changed how it manages its finances and returns value to its shareholders. More recently, in 2016, it merged with Plum Creek Timber Company, which significantly increased the amount of land it owns and manages.
What it actually does
Weyerhaeuser is one of the world's largest private owners of timberlands, which are large areas of forest used for growing and harvesting trees. Think of them as massive tree farms. They manage these forests to sustainably produce wood for a variety of products people use every day, from the lumber that frames houses to materials for furniture and packaging. Beyond just selling logs, the company also turns the wood into building materials and finds other ways to earn money from its vast land holdings, such as for conservation or renewable energy projects.
Timberlands
This is the company's core business and involves growing and harvesting trees. Weyerhaeuser owns millions of acres of forests in the U.S. and manages millions more in Canada under long-term licenses. They sell the logs to other companies or use them in their own manufacturing plants. This segment's customers are typically sawmills, paper manufacturers, and other wood product makers who need the raw wood to create their goods. This part of the business provides the essential raw material for everything else the company does.
Wood Products
This division takes the harvested trees and turns them into building materials that construction companies and homebuilders buy. Their main products include lumber (the wooden boards used to build the frame of a house), oriented strand board or OSB (panels used for walls and roofing), and engineered wood products (specialty wood items designed for specific construction needs). This is the largest part of the company by revenue (the total amount of money generated from sales). Customers for these products are typically homebuilders, commercial construction firms, and building material dealers.
Real Estate, Energy & Natural Resources
This segment focuses on getting more value from the company's vast land holdings beyond just growing trees for timber. They sell some parcels of land that are more valuable for real estate development, like building homes or businesses, than for growing trees. They also lease land for other purposes, such as for renewable energy projects like wind or solar farms, and are exploring opportunities in what they call climate solutions, like storing carbon. This is a smaller but important part of the company that finds creative ways to generate income from their land assets.
What management is betting on now
The company is focused on getting the most value out of every acre of land it owns. This includes investing in their Wood Products business to make their mills more efficient and to produce more profitable types of engineered wood. They are also actively managing their timberlands, buying more productive forests and selling less strategic ones to improve the overall quality of their holdings. A growing area of focus is on "climate solutions," which involves using their forests and land for things like carbon capture and renewable energy to create new sources of income.
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 Q3
$226.00M
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
Revenue
$1.87B
Net income
$162.00M
Diluted EPS
0.23
Operating cash flow
$399.00M
Free cash flow
$391.00M
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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
Fetching…
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
Revenue
$1.68B
Net income
$28.00M
Diluted EPS
0.04
Operating cash flow
$234.00M
Free cash flow
$226.00M
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Sources
Is it cheap or expensive?
Fair value $32.74 vs current price $22.29
Wall Street consensus is the average analyst price target: $31.00 (-5.3% lower than our fair-value estimate).
Our most-likely fair value is $32.74 a share — about 46.9% above today's price of $22.29, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $4.9B. Interest coverage 1.6x.
Net debt
$4.92B
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 $5.45B 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 $391.00M 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
-
Returns 5.0% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 10/10 years.
-
Trades at 33.8x P/E vs peer median 44.4x (23.9% cheaper).
Risks
-
Net debt grew 46.9% over 3 years.
-
Operating margin compressed from 30.4% to 8.0% over 3 years.
-
Insider ownership is only 0.3% (peer median: 5.4%).
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)
33.77x
Forward P/E
33.15x
P/B
1.70x
P/S
2.34x
EV/EBITDA
30.50x
PEG ratio
1.86x
Profitability
How much profit each dollar creates
Gross margin
14.5%
Operating margin
8.0%
Net margin
6.9%
ROE
5.0%
ROA
0.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.58x
Current ratio
1.82x
Quick ratio
1.00x
Total debt
$5.45B
Total cash
$527.00M
Growth
How the business has been compounding
Revenue TTM
$6.85B
Revenue 5Y CAGR
-9.3%
EPS TTM
0.66
EPS 5Y CAGR
-43.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$547.00M
Free CF TTM
$511.00M
FCF margin
7.5%
Dividend
Shareholder payout
Yield
3.8%
Payout ratio
127.3%
Last ex-div date
2026-09-04