One-glance verdict
Undervalued
$31.98 our estimate vs market $25.03
Wall Street consensus: $31.18 (-2.5% lower than our fair-value estimate)
22% below our estimate, below the bear case
Fundamentals snapshot
Weyerhaeuser Company
WY · NYQ · Real Estate · REIT - Specialty
Current price
$25.03
52-week range
$21.16 - $27.75
Market cap
$18.05B
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 biggest owners of forests, making most of its money by turning its trees into wood products like lumber for building houses. Because the company owns its entire supply chain (the full process from growing the tree to selling the finished wood), its success is closely tied to the health of the housing and construction markets. This control over its own resources gives the company a major advantage in managing costs.
How the company got here
Weyerhaeuser started in 1900 when Frederick Weyerhaeuser and his partners bought 900,000 acres of timberland in Washington. For much of its history, the company focused on the idea of "timber as a crop," pioneering sustainable forestry practices like replanting seedlings after harvesting. Over the years, it grew by acquiring other forestry companies and expanding its operations across North America. The company eventually became a Real Estate Investment Trust (REIT), a special type of company that owns and often operates income-producing real estate, which has tax advantages. Today, it is one of the largest private owners of timberlands in the world.
What it actually does
Weyerhaeuser is a land company that primarily grows and harvests trees to make a variety of wood products. Think of the lumber and panels used to build a new house; there's a good chance some of that wood came from Weyerhaeuser's forests. They own and manage millions of acres of forests in the U.S. and Canada, operating on a cycle of planting, growing, and harvesting trees. Beyond just selling logs, they also manufacture building materials and find other ways to earn money from their vast land holdings, such as leasing land for energy projects.
Timberlands
This is the foundation of the company, focused on growing and harvesting trees. This segment sells logs to customers both in the U.S. and in other countries, particularly in Asia. The customers are typically sawmills and other wood product manufacturers who need the raw wood. This part of the business is a significant, steady contributor to the company's overall revenue, providing the raw materials for its other segments.
Wood Products
This is the company's largest segment by revenue, where they take the harvested trees and turn them into building materials. They manufacture products you'd find at a construction site, like lumber for framing walls, oriented strand board (OSB) for sheathing roofs and floors, and engineered wood products like I-joists that are used for support beams. The main customers are homebuilders, construction companies, and retail home improvement stores.
Real Estate, Energy & Natural Resources
This segment finds ways to make money from the company's land beyond just growing trees. This includes selling land that has a higher value for other uses, like real estate development or conservation. They also lease their land for things like renewable energy projects, such as solar farms or wind turbines, and manage the rights to resources below the surface, like minerals. While smaller than the other segments, it's a way for the company to generate additional income from its massive land assets.
What management is betting on now
Management is focused on increasing the value they get from each acre of land they own. A key part of their strategy is to grow their "Climate Solutions" business, which includes projects like leasing land for carbon capture and storage and developing biocarbon products. They are also investing in modernizing their mills to make them more efficient and to produce more profitable, specialized wood products. The company aims to significantly increase its earnings by 2030 through these growth initiatives while continuing to return a large portion of its cash to shareholders through dividends (a regular payment made to investors).
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 $31.98 vs current price $25.03
Wall Street consensus is the average analyst price target: $31.18 (-2.5% lower than our fair-value estimate).
Our most-likely fair value is $31.98 a share — about 27.8% above today's price of $25.03, 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 $2.09B 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 $378.00M Interest coverage 18.50x +1,030% vs WY Carries about 11.3x more debt cushion than WY.
Total debt $551.96M 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 37.9x P/E vs peer median 47.3x (19.9% 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: 5.3%).
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)
37.92x
Forward P/E
37.59x
P/B
1.91x
P/S
2.63x
EV/EBITDA
33.38x
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
3.4%
Payout ratio
127.3%
Last ex-div date
2026-06-05