WY:NYSEWeyerhaeuser Company Analysis
Data as of 2026-03-11 - not real-time
$24.18
Latest Price
7/10Risk
Risk Level: Medium
Executive Summary
Weyerhaeuser (WY) trades at a **price-to-earnings of 53.7**, well above the industry average of 33, while offering a **3.47% dividend yield**. The stock sits near its technical support at $23.82 and the RSI of 31.6 suggests it is oversold, yet the MACD remains bearish and operating margins are negative (-11.4%). The balance sheet is strained with a **debt‑to‑equity of 60.7%**, a **payout ratio of 187%**, and negative free cash flow of $‑146.5 M, raising concerns about dividend sustainability. However, the company’s timberland assets provide a stable, inflation‑hedged revenue base, and the market sentiment is bullish (Fear‑Greed Index at 76.9, “Extreme Greed”), supporting the **upside potential of roughly 31%** to a median target of $31.
Given the increasing volume trend and low beta (0.66), short‑term price pressure may be limited, but the high valuation, leverage, and cash‑flow weakness elevate risk. Over the medium to long horizon, the sustainable timberland portfolio and attractive yield could justify a **buy** stance, provided investors monitor debt service and cash‑flow trends closely.
Given the increasing volume trend and low beta (0.66), short‑term price pressure may be limited, but the high valuation, leverage, and cash‑flow weakness elevate risk. Over the medium to long horizon, the sustainable timberland portfolio and attractive yield could justify a **buy** stance, provided investors monitor debt service and cash‑flow trends closely.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Price near technical support and oversold RSI
- Bearish MACD and negative operating margins
- High payout ratio exceeding earnings
Medium Term
1–3 yearsPositive
Model confidence: 7/10
Key Factors
- Upside potential of ~31% to target price
- Stable timberland asset base providing inflation hedge
- Attractive dividend yield relative to peers
Long Term
> 3 yearsPositive
Model confidence: 8/10
Key Factors
- Long‑term demand for sustainable wood products
- Low beta indicating defensive characteristics
- Potential for debt reduction and cash‑flow improvement
Key Metrics & Analysis
REIT Metrics
P/FFO31.014981238434164
Technical Analysis
TrendNeutral
RSI31.6
Support$23.82
Resistance$27.75
MA 20$25.36
MA 50$25.53
MA 200$24.91
MACDBearish
VolumeIncreasing
Fear & Greed Index76.91
Risk Assessment
Beta0.66
Volatility17.78%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.