July 18, 2025 a 03:31 pm
WY: Dividend Analysis - Weyerhaeuser Company
Weyerhaeuser Company presents a mixed dividend profile characterized by an attractive yield and a longstanding dividend history. However, challenges arise from its negative dividend growth rate, reflecting potential volatility or strategic management decisions in tough market conditions. Evaluating its payout ratio indicates strategic risk management areas to observe in future earnings reports.
📊 Overview
The evaluation of Weyerhaeuser's dividend profile requires a carefully considered perspective, factoring in its established track record and current financial metrics.
| Metric | Value |
|---|---|
| Sector | Materials |
| Dividend yield | 3.94 % |
| Current dividend per share | 0.94 USD |
| Dividend history | 49 years |
| Last cut or suspension | None |
🗣️ Dividend History
An established dividend history is a critical factor in assessing the reliability and commitment of a company to its shareholders.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.42 |
| 2024 | 0.94 |
| 2023 | 1.66 |
| 2022 | 2.17 |
| 2021 | 1.18 |
📈 Dividend Growth
Observing the dividend growth trends elucidates the company's strategic trajectory and signals potential investor returns.
| Time | Growth (%) |
|---|---|
| 3 years | -0.07 |
| 5 years | -0.07 |
The average dividend growth is -0.07 % over 5 years. This shows moderate but steady dividend de-growth, suggesting potential strategic reassessment.
⚖️ Payout Ratio
Payout ratios serve as a vital indicator of dividend coverage capacity, highlighting operational efficiency and fiscal prudence.
| Key figure | Ratio |
|---|---|
| EPS-based | 186.82 % |
| Free cash flow-based | 186.08 % |
These figures reflect significant pressure on earnings to sustain payouts, suggesting possible overextension if earnings falter.
💰 Cashflow & Capital Efficiency
Cash flow and capital efficiency metrics are pivotal for evaluating operational health and resource utilization.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 0.0166 | 0.0296 | 0.0900 |
| Earnings Yield | 0.0193 | 0.0330 | 0.0817 |
| CAPEX to Operating Cash Flow | 0.662 | 0.475 | 0.269 |
| Stock-based Compensation to Revenue | 0% | 0.47% | 0.32% |
| Free Cash Flow / Operating Cash Flow Ratio | 0.338 | 0.525 | 0.731 |
The cash flow metrics suggest a need to bolster free cash reserves to sustain operational and dividend histories sustainably.
💼 Balance Sheet & Leverage Analysis
Assessment of balance sheet strength and leverage ratios illuminates the firm's risk exposure and capital structure robustness.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.525 | 0.497 | 0.470 |
| Debt-to-Assets | 0.309 | 0.300 | 0.291 |
| Debt-to-Capital | 0.344 | 0.332 | 0.320 |
| Net Debt to EBITDA | 3.597 | 2.285 | 0.985 |
| Current Ratio | 1.789 | 2.935 | 1.578 |
| Quick Ratio | 1.168 | 2.217 | 1.262 |
| Financial Leverage | 1.701 | 1.659 | 1.613 |
The balance sheet reflects disciplined leverage management, though ongoing monitoring of debt exposure is advisable.
📉 Fundamental Strength & Profitability
Analyzing key profitability metrics aids in understanding market positioning and revenue generation efficacy.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 4.07% | 8.20% | 17.49% |
| Return on Assets | 2.39% | 4.94% | 10.84% |
| Net Margin | 5.56% | 10.93% | 18.46% |
| EBIT Margin | 9.77% | 15.86% | 25.28% |
| Gross Margin | 18.43% | 21.92% | 35.55% |
| Research & Development to Revenue | 0.10% | 0.09% | 0.06% |
Margins indicate competitive pressures; however, a resilience in operational margins supports profitability outlook.
Price Development
Dividend Scoring System
| Category | Score | |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 3 | |
| Dividend growth | 2 | |
| Payout ratio | 2 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Total Score: 27/40
Rating
Based on current financial assessments, Weyerhaeuser Company holds a robust dividend yield with potential for strategic growth if structural challenges in dividend payouts are resolved. Investors are encouraged to carefully monitor dividend decisions alongside looming market developments for informed positioning.