Weyerhaeuser Co. (WY) Overview Weyerhaeuser Co. is a timberland owner and wood-products company that combines asset-heavy forestry operations with manufacturing, producing strong cash flows and high reported margins alongside notable quarter-to-quarter earnings volatility. Financial Strengths The company displays clear strengths on a capital and margin basis: revenue per share grew 35.44% year‑ove
Weyerhaeuser Co. is a timberland owner and wood-products company that combines asset-heavy forestry operations with manufacturing, producing strong cash flows and high reported margins alongside notable quarter-to-quarter earnings volatility.
The company displays clear strengths on a capital and margin basis: revenue per share grew 35.44% year‑over‑year in the most recent comparable period and the five‑year revenue‑per‑share CAGR is 9.89%, indicating sustained top‑line expansion on a per‑share basis. Profitability and cash generation are robust on reported metrics — gross margin of 40.17%, net margin of 25.56% and operating margin of 17.42% in the most recent series — and free cash flow margin is 27.18% with operating cash flow exceeding net income by 1.21x; operating cash flow peaked at $3.16B (TTM, 2021) in the available history. The balance sheet also shows conservative leverage and solid liquidity with a current ratio of 2.01, debt‑to‑equity of 0.0394 and net debt effectively negligible versus owner earnings (0.00x).
Areas of concern include recent earnings and return metrics: diluted EPS has contracted — one‑year EPS growth −18.18% — and recent quarterly EPS readings have downshifted to about $0.55 (most recent quarter), compared with multi‑dollar quarters in 2021. Reported net income (TTM) has moderated to $397M from the $2.6–$2.7B range in 2021, and return on equity has fallen into low single digits (most recent ROE ~4.2%) with ROE growth negative (~−15.62%). Valuation has moved to higher multiples than historical norms — the trailing PE stands at 44.45x and has ranged roughly 32x–52.8x over the last year — which accompanies the earnings volatility noted above.
The foundation of business quality and long-term value creation
WEYERHAEUSER CO's net income shows notable variability over the past several years. After large quarterly peaks in 2022 — $771.0M on 2022-03-31 and $788.0M on 2022-06-30 — results moderated through 2023 with quarters generally between $151.0M and $239.0M, then moved into a volatile 2024 (including a low of $28.0M on 2024-09-30 and a rebound to $254.0M on 2024-12-31). In 2025, quarterly net income settled in a narrower $74.0M–$87.0M range before rising to $156.0M in the most recent quarter.
Revenue reporting in this dataset is sparse and the latest revenue observation is from year-end 2021. The most recent quarterly net income was $156.0M. The most recent reported revenue was $10.20B.
Why Growth Matters
Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.
Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.
Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.
Year-over-year growth rates for revenue and earnings per share
Reading the Growth Rate Chart
This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.
Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.
Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.
How revenue converts to net income for the most recent annual period
Period Information
Report Type: Annual (10-K)
Period: Jan 2021 to Dec 2021
Analyzing long-term margin stability and competitive positioning
WEYERHAEUSER CO’s margins show a clear upward inflection beginning in 2020. Gross margin moved from mid-to-high teens for much of the 2011–2019 period (around 17–22%) to 27.7% in 2020 and then to 40.2% in 2021, indicating a sharp recent increase. Net profit margin likewise improved markedly after 2019: it was −1.2% in 2019, rose to 10.6% in 2020, and reached 25.6% in 2021. Operating margin data in the provided series is stable in earlier years (9.6% in 2011, rising to the mid-teens and low-20s in subsequent years) with the last reported operating margin being 17.4% at 2019 year-end.
Recent data points therefore place WEYERHAEUSER CO at substantially higher reported profitability in 2021 compared with the prior decade in this dataset. The most recent Gross Margin observed was 40.2%, the most recent Operating Margin available in the series was 17.4% (2019-12-31), and the most recent Net Profit Margin observed was 25.6%.
Understanding Profit Margins
Between Jan 2021 and Dec 2021, Weyerhaeuser Co converts every dollar of revenue through the following stages:
Sustainable competitive advantages reveal themselves through consistently superior profit margins over extended periods. Companies with durable economic moats maintain pricing power and operational efficiency that competitors struggle to match.
A sign of durable competitive advantage is earning sustained higher margins than competitors.Look for margins that remain stable or improve over time, especially during economic downturns. Declining margins may signal increasing competition, pricing pressure, or deteriorating business fundamentals.
Comparing reported earnings to actual cash generation
WEYERHAEUSER CO's trailing twelve-month net income shows marked volatility in recent quarters. Net income declined from $802.0M at 2024-03-31 to $396.0M at 2024-12-31, then rose to $452.0M (2025-06-30) and $504.0M (2025-09-30) before falling to $324.0M at 2025-12-31 and recovering to $397.0M at 2026-03-31. The most pronounced inflection in the provided series is the drop from the +$2.6–$2.7B levels in 2021–2022 to the sub-$1.0B range from 2024 onward.
Operating cash flow (TTM) entries in the dataset are older and peak at $3.16B with a period end of 2021-12-31; earlier points include $1.53B at 2020-12-31 and $966.0M at 2019-12-31. Within the supplied data, operating cash flow values after 2021 are not present, so the most recent available operating cash flow observation is from 2021-12-31. The most recent Net Income (TTM) was $397.0M, and the most recent Operating Cash Flow (TTM) in the dataset was $3.16B.
The Earnings vs. Cash Flow Gap
Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.
Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.
What to Look For
Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.
Measuring management's efficiency at generating profits from shareholder capital
WEYERHAEUSER CO's return on equity has declined materially from the elevated levels seen in 2020–2021 and has been at low single-digit percentages across the most recent quarters. After peaking above 25% in 2021, ROE fell through 2022 and into 2023; the series shows 8.2% at 2023-12 and 8.0% at 2024-03, then settled in the 3.4%–4.7% range across 2024-12, 2025-06, 2025-12 and 2026-03, indicating lower profitability on shareholders’ equity in the latest periods.
Earlier data show larger volatility, including a historical high of 34.4% at 2014-12 and a negative ROE of −0.9% at 2019-12, but the most relevant recent movement is the descent from the 2021 peak into the low-single-digit readings of 2024–2026. The most recent quarterly ROE was 4.2%.
The Gold Standard of Profitability
Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.
A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.
What to Look For:
How the company generates and deploys its cash
WEYERHAEUSER CO's trailing-twelve-month operating cash flow rose materially through the late 2010s and into 2021, increasing from $966.0M in 2019 to $1.53B in 2020 and reaching $3.16B at the 2021-12-31 TTM period. The 2021 figure is the most recent operating cash flow data point provided and represents the highest operating cash flow in the series.
Investing cash flow shows variability across the history and notable shifts in recent years. It moved between small positive values in 2014 and 2017 (around $361M–$367M) and negative outflows in 2012 and 2015; the most recent investing TTM at 2025-12-31 is a -475.0M outflow.
Financing cash flow has generally been negative in recent years, with a large outflow in 2016 (-3.63B) and a -852.0M TTM outflow at 2024-12-31 that narrowed to -290.0M at 2025-12-31. The most recent trailing twelve-month values are: Operating Cash Flow $3.16B, Investing Cash Flow -475.0M, Financing Cash Flow -290.0M.
Understanding Company Strategy
Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:
What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.
Net assets attributable to each share — the accounting floor of intrinsic value
Why Book Value per Share Matters
Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.
A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.
Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.
How much of the company is financed by debt versus shareholders' equity
Reading the Debt-to-Equity Ratio
The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.
Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.
Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.
Short-term liquidity — can the company cover its near-term obligations?
Liquidity: Can the Business Pay Its Bills?
The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?
A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.
Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.
How much the market is paying for each dollar of company earnings
Over the most recent year, the PE ratio for WEYERHAEUSER CO has been volatile but at an elevated level. After rising from 32.0x at 2024-03-31 to 51.4x at 2024-12-31, the ratio declined to 41.1x (2025-06-30) and 35.5x (2025-09-30) before spiking to 52.8x at 2025-12-31 and then easing to 44.5x as of 2026-03-31. The sequence shows sizable quarter-to-quarter moves with the most recent observation below the late-2025 peak but above the low points seen earlier in the period.
A clear inflection occurred between 2022 and 2023: the PE ratio was in the single digits through 2022 (9.0x–10.2x) and moved into the ~30x range by 2023–2024, then produced multiple peaks around the low-50s (comparable to the 2012 peak of 52.2x). The pattern indicates a shift from the low-teens/single-digit valuations of 2021–2022 to a higher and more variable valuation regime thereafter.
Most recent PE ratio: 44.5x
What Is the PE Ratio?
The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.
Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.
What to Look For:
Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.