NYSE:WY
$39.70
(2/9 1:41PM)
+1.1%
| Open | $39.82 |
Mkt Cap | $8.3 Billion |
| High | $40.26 |
52Wk High | $46.80 |
| Low | $39.02 |
52Wk Low | $18.67 |
| Volume | 1.1 Million |
Avg Vol 10D | 2.2 Million |
Ockham's Rating/Recommendation Summary
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WY Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, WY the high and low end of the Price to Sales per share ratios are 1.11x and 0.63x respectively.
Notice that WY's current Price to Sales per share ratio is 1.45x, which is significantly above its historical average. This places WY at the upper end of its historical range relative to sales per share and makes it difficult to suggest an attractive price outlook. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 66% merely to return WY to its historical average.
WY Cash Earnings
When reviewing a company and their prospects for success, it is necessary to analyze their ability to generate positive Cash Earnings. This is a vital component to our analysis, because as a long term investment research firm, there are few factors more closely tied to the valuation of a company as Cash Earnings. In the case of WY, it appears that either the current estimate for Cash Earnings is negative or WY is not likely to generate positive Cash Earnings based upon their prior performance in the last several quarters.
Remember that Cash Earnings is not the only way to value a company's potential, but in our analysis it is the most important. Thus, for our analysis WY receives a negative score from a Cash perspective. At Ockham, we are fond of saying "Cash is King," and in this case the company is not generating any. If a company is not able to generate a profit then there is no reason to invest in them. Unless of course you believe in the story, and hope it will eventually lead to a profitable enterprise.
WY Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.
When reviewing dividend yields for WY, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. WY’s estimated annual dividend is $0.20 resulting in a current dividend yield of 0.51%. The highest dividend yield from WY over recent history was 12.85% while the lowest dividend yield was 0.43%. It is never a good sign for a company to pay significantly lower dividends, in this case 92.32% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.
Zero Hedge Has News on WY
Weyerhaeuser Company is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Zero Hedge.
While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. We noticed recently that in comparison to all other stocks we analyze in the news; WY has received less coverage from the financial media in business television and blogs.
“… The largest “fallen angels” were WEYERHAEUSER, J. C. Penney, Sprint Nextel, Masco and Harrah’s Entertainment. …”
WY's Back in the News After More than a Month on Zero Hedge
There has not been much to report from WY in the last few weeks at least, but Zero Hedge talked about the stock recently.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; WY has received less coverage from the financial media in business television and blogs.
“… WEYERHAEUSER Q4 loss narrows, misses expectations. RECENT RATING ACTIONSWESTERN UNION CO/THE (WU)ROPER INDUSTRIES INC (ROP)STARWOOD HOTELS & RESORTS (HOT)RENT-A-CENTER INC/TX ... …”
News on Earnings Per Share for WY on Seeking Alpha Wall St Breakfast
WY's earnings per share was discussed on Seeking Alpha Wall St Breakfast which means there is something significant going on. Profits are the metric we pay the most attention to in our methodology.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. We noticed recently that in comparison to all other stocks we analyze in the news; WY has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… (PR) WEYERHAEUSER (WY): Q4 EPS of -$0. 52 misses by $0. 14. Revenue of $1. 4B (-18. 1%) vs. $1. 3B. (PR) Earnings: Thursday After Close Alkermes (ALKS): 2010 Q3 EPS of -$0. …”
WY's Dividends Mentioned by The Call
If WY's dividends are important to you, take a look at the news as they were the topic of conversation on The Call.
As of this week's report, we have an Overvalued valuation on WY because the price has gotten too high to be justified by the fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Weyerhaeuser Company has actually sunk a bit in comparison to the others. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Weyerhaeuser Company underperforming.
“… WEYERHAEUSER announcing plans to convert to real estate investment trust and pay a special dividend. The conversion is expected to take place next year. …”
Notice a Discussion Covering WY Appeared Recently in the Financial News
The latest news from The Call on WY is available through Ockham's news analytics platform RazorWire.
Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Weyerhaeuser Company underperforming. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Weyerhaeuser Company has actually sunk a bit in comparison to the others. As of this week's report, we have an Overvalued valuation on WY because the price has gotten too high to be justified by the fundamentals.
“… WEYERHAEUSER, one of the largest tum behr companies in the world, announcing to convert to real estate investment trusts. This is a tax now of and it's really interesting. > > …”
The Call Discussed the Latest Development of Weyerhaeuser Company
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on WY from The Call.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, WY has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying Weyerhaeuser Company at the current price level because according to our methodology it is not supported by the fundamentals. The crowd at The Motley Fool does not like WY and believes that it will Underperform.
“… and one of the largest timber companies in the world announcing plans to become a reit in a rare interview, we'll speak live with WEYERHAEUSER ceo coming up here only on "the ... …”
Heard on The Call: CEO of WY Discussed
Weyerhaeuser Company's CEO is obviously vital to his company, so we believe any news covering him is worth knowing for investors.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; WY has received less coverage from the financial media in business television and blogs.
“… and in a cnbc exclusive we'll talk with WEYERHAEUSER's chief dan fulton and to pay a special dividend with shareholders. It is a jam-packed show. This is "the call" on cnbc. > ... …”
Check Out The Call and News on WY
The latest news on The Call in regards to WY came through on RazorWire recently.
The crowd at The Motley Fool does not like WY and believes that it will Underperform. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, WY has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying Weyerhaeuser Company at the current price level because according to our methodology it is not supported by the fundamentals. Check the news on this stock because there is a catalyst that has allowed this stock to advance 5.52% today.
“… WEYERHAEUSER and its conversion to reed status and metropcs with a convention and tenet health care just loving the -- not loving the doa status of the health care bill, but the ... …”
Interested in WY? See What the Pundits Said on The Opening Bell on Fox Business
Weyerhaeuser Company is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on The Opening Bell on Fox Business.
Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Weyerhaeuser Company underperforming. Take notice of the news on this stock because it is up $2.68 since the close of trading yesterday. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Weyerhaeuser Company has actually sunk a bit in comparison to the others. As of this week's report, we have an Overvalued valuation on WY because the price has gotten too high to be justified by the fundamentals.
“… WEYERHAEUSER this morning making a huge statement about taxes, the ceo, saying the company had been under pressure about the high taxes. …”
After the Close: WY on The Opening Bell on Fox Business
There may be significant news on WY that is causing them to be talked about in after hours trading on The Opening Bell on Fox Business.
The crowd at The Motley Fool does not like WY and believes that it will Underperform. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, WY has been less covered in the news compared to the rest of our universe of stocks. Check the news on this stock because there is a catalyst that has allowed this stock to advance 8.87% today. At Ockham, we are not advising buying Weyerhaeuser Company at the current price level because according to our methodology it is not supported by the fundamentals. Even since our report, the price has increased 10.1%.
“… top stories we're watching this morning. WEYERHAEUSER, I talked about the stock a few minutes ago, converting to a reit and …”