September 19, 2024
Top 10 Stock Weyerhaeuser Sell Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Weyerhaeuser Sell

360 METRICS	September 19, 2024
VALUE
VALUE	43
GROWTH
GROWTH	11
SAFETY
SAFETY	60
SENTIMENT
SENTIMENT	43
360° VIEW
360° VIEW	16

ANALYSIS: With an Obermatt 360° View of 16 (better than 16% compared with alternatives), overall professional sentiment and financial characteristics for the stock Weyerhaeuser are critical, mostly below average. The 360° View is based on consolidating four consolidated indicators, with three out of four metrics below average for Weyerhaeuser. The only rank that is above average is the consolidated Safety Rank at 60, which means that the company has a financing structure that is safer than those of 60% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. But the Value, Growth and Sentiment Ranks are all below average. The consolidated Value Rank has a less desirable rank of 43, which means that the share price of Weyerhaeuser is on the high side compared with typical size in indicators such as revenues, profits, and invested capital. The consolidated Growth Rank also has a low rank of 11, which implies that the company exhibits below-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. Finally, the consolidated Sentiment Rank is also low at a rank of 43, which means that professional investors are more pessimistic about the stock than for 57% of alternative investment opportunities. While Safety is strong, it’s not the most critical indicator, so we suggest proceeding with caution if you are considering this stock. ...read more

RECOMMENDATION: With a consolidated 360° View of 16, Weyerhaeuser is worse than 84% of all alternative stock investment opportunities based on the Obermatt Method. This means that Weyerhaeuser shares are on the riskier side for investors. As only the financing structure, namely the Safety Rank, is on the safer side and all other consolidated Obermatt Ranks are below-average, this is a riskier stock investment proposition. This is especially the case, since professional investor sentiment, the consolidated Obermatt Sentiment Rank, is also low at 43. The negative market view on Weyerhaeuser may be the high stock price (low value) or the low level of growth. This is a problem. As the Safety Rank is the least significant of the four consolidated Obermatt Ranks, we cannot identify enough positive facts that are visible today to make a case for this stock investment. The company may have a strong future which would justify the high stock price, but this is not visible from investor behavior today. As market sentiment is critical, you should be careful with paying more than market-average for this stock, and conduct further research into the company's future growth potential. Prudent investors may only want to invest a smaller portion of their wealth in such situations. Young investors can carry more risk but should still thrive for sufficient diversification. ...read more

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Sentiment Strategy: Professional Market Sentiment for Weyerhaeuser only reserved

SENTIMENT METRICS	September 19, 2024
ANALYST OPINION
ANALYST OPINION	46
OPINIONS CHANGE
OPINIONS CHANGE	39
PRO HOLDINGS
PRO HOLDINGS	43
MARKET PULSE
MARKET PULSE	70
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	43

ANALYSIS: With an Obermatt Sentiment Rank of 43 (better than 43% compared with alternatives), overall professional sentiment and engagement for the stock Weyerhaeuser is below industry average. The Sentiment Rank is based on consolidating four sentiment indicators, with half the indicators below and half above average for Weyerhaeuser. Analyst Opinions are at a rank of 46 (worse than 54% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. Worse, Analyst Opinions Change has a rank of 39, which means that stock research experts are getting even more pessimistic. In addition, the Professional Investors rank is 43, which means that professional investors hold less stock in this company than in 57% of alternative investment opportunities. Pros tend to invest in other companies. The only positive sentiment indicator for Weyerhaeuser is Market Pulse, with a rank of 70, which means that the current professional news and professional social networks tend to be positive when discussing this company (more positive news than for 70% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 43 (less encouraging than 57% compared with investment alternatives), Weyerhaeuser has a reputation among professional investors that is below that of its competitors. This is an ambiguous picture: analysts are negative and getting even more critical while the news in the market is positive. Who should investors believe? This is a difficult question in such a situation. Investors should proceed cautiously and verify not only the financial performance in the Obermatt Value, Growth and Safety Ranks but also independent news coverage of the company. ...read more

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Value Strategy: Weyerhaeuser Stock Price Value below-average critical

VALUE METRICS	September 19, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	43
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	24
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	33
DIVIDEND YIELD
DIVIDEND YIELD	64
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	43

ANALYSIS: With an Obermatt Value Rank of 43 (worse than 57% compared with alternatives), Weyerhaeuser shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Weyerhaeuser. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 64% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 43 which means that the stock price compared with what market professionals expect for future profits is higher than 57% of comparable companies, indicating a low value concerning Weyerhaeuser's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 24 which means that the stock price compared with what market professionals expect for future profit levels is higher than 76% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 33 is also low. Compared with invested capital, the stock price is higher than for 67% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 43, is a hold recommendation based on Weyerhaeuser's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Weyerhaeuser? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Weyerhaeuser only if they reasonably expect the low current profit levels to be transitory. ...read more

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Growth Strategy: Weyerhaeuser Growth Momentum negative

GROWTH METRICS	September 19, 2024
REVENUE GROWTH
REVENUE GROWTH	52
PROFIT GROWTH
PROFIT GROWTH	4
CAPITAL GROWTH
CAPITAL GROWTH	44
STOCK RETURNS
STOCK RETURNS	33
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	11

ANALYSIS: With an Obermatt Growth Rank of 11 (better than 11% compared with alternatives), Weyerhaeuser shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for Weyerhaeuser. While Sales Growth ranks at 52, professionals currently expect the company to grow more than 52% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 4, which means that, currently, professionals expect the company to grow its profits less than 96% of its competitors, and Capital Growth has a low rank of 44. Historic stock returns were also below average with a current Stock Returns rank of 33 which means that the stock returns have recently been below 67% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 11, is a sell recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. ...read more

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Safety Strategy: Weyerhaeuser Debt Financing Safety above-average

SAFETY METRICS	September 19, 2024
LEVERAGE
LEVERAGE	62
REFINANCING
REFINANCING	36
LIQUIDITY
LIQUIDITY	67
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	60

ANALYSIS: With an Obermatt Safety Rank of 60 (better than 60% compared with alternatives), the company Weyerhaeuser has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Weyerhaeuser is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Weyerhaeuser. Leverage is at a rank of 62, meaning the company has a below-average debt-to-equity ratio. It has less debt than 62% of its competitors. Liquidity is also good at a rank of 67, meaning the company generates more profit to service its debt than 67% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 36, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 64% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 60 (better than 60% compared with alternatives), Weyerhaeuser has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Weyerhaeuser. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. ...read more

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Combined financial peformance: Weyerhaeuser Below-Average Financial Performance

COMBINED PERFORMANCE	September 19, 2024
VALUE
VALUE	43
GROWTH
GROWTH	11
SAFETY
SAFETY	67
COMBINED
COMBINED	25

ANALYSIS: With an Obermatt Combined Rank of 25 (worse than 75% compared with investment alternatives), Weyerhaeuser (REITs: Specialized, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Weyerhaeuser are low in value (priced high) with a consolidated Value Rank of 43 (worse than 57% of alternatives) and show below-average growth (Growth Rank of 11) but are safely financed (Safety Rank of 60), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 25, is a hold recommendation based on Weyerhaeuser's financial characteristics. As the company Weyerhaeuser's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 43) and low growth (Obermatt Growth Rank of 11), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 60) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. ...read more

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