Weyerhaeuser Story

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WY -- USA Stock  

USD 27.28  0.30  1.11%

As many millenniums are excited about real estate space, it is only fair to break down Weyerhaeuser. We will check why this entity may not get much respect from investors given the current market uncertainty. Is Weyerhaeuser valuation sustainable? Here I will cover a perspective on valuation of Weyerhaeuser to give you a better outlook on taking a position in this stock.
Published over a month ago
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Should I rely on Weyerhaeuser management in August 2020?
This firm reports 7.46 B of total liabilities with total debt to equity ratio (D/E) of 0.92, which is normal for its line of buisiness. The company has a current ratio of 1.34, which is generally considered normal. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Weyerhaeuser has an asset utilization ratio of 23.53 percent. This suggests that the company is making $0.24 for each dollar of assets. An increasing asset utilization means that Weyerhaeuser is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of Weyerhaeuser using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Weyerhaeuser based exclusively on its fundamental and basic technical indicators. By analyzing Weyerhaeuser's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Weyerhaeuser's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Weyerhaeuser. We calculate exposure to Weyerhaeuser's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Weyerhaeuser's related companies.

Weyerhaeuser Investment Alerts

Weyerhaeuser investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Weyerhaeuser performance across your portfolios.Please check all investment alerts for Weyerhaeuser

Weyerhaeuser Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Weyerhaeuser value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Weyerhaeuser competition to find correlations between indicators driving the intrinsic value of Weyerhaeuser.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Weyerhaeuser, but it might be worth checking our own buy vs. sell analysis

Purchase by Albert Monaco of 10000 shares of Weyerhaeuser

Legal trades by Weyerhaeuser insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Weyerhaeuser insider trading alert for perchase of common by Albert Monaco, the corporate stakeholder, on 17th of September 2020. This event was filed by Weyerhaeuser Co with SEC on 2020-09-17. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper Perspective

Weyerhaeuser generated the yearly revenue of 6.64 B. Reported Net Income was 363 M with gross profit of 1.14 B.

Margins Breakdown

Weyerhaeuser profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Weyerhaeuser itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Weyerhaeuser profit margins.
Operating Margin
Operating Margin9.53
EBITDA Margin5.87
Gross Margin17.92
Profit Margin(1.190113)

Weyerhaeuser Earnings Before Interest Taxes and Depreciation Amortization EBITDA is fairly stable at the moment. Weyerhaeuser Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 8 years. The previous year's value of Weyerhaeuser Earnings Before Interest Taxes and Depreciation Amortization EBITDA was 384,868,421.

How will Weyerhaeuser investors react to the next slide?

Current variance is at 17.34. Weyerhaeuser exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Weyerhaeuser individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Weyerhaeuser future systematic risk.

Our Conclusion on Weyerhaeuser

While some other firms in the reit?specialty industry are either recovering or due for a correction, Weyerhaeuser may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 31st of July 2020, our analysis shows that Weyerhaeuser actively responds to the market. The company is fairly valued and projects below average odds of financial turmoil for the next 2 years. Our concluding 30 days 'Buy-vs-Sell' recommendation on the company is Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Weyerhaeuser. Please refer to our Terms of Use for any information regarding our disclosure principles.

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