Weyerhaeuser Company (WY) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Weyerhaeuser Company

Updated on October 3, 2026 · accounts published on July 30, 2026

Reading of October 3, 2026: A soundly financed REIT whose margins have sunk to their weakest level in years

Weyerhaeuser trades at 16.0× fiscal 2025 FFO, inside the 15× to 20× range seen as healthy for REITs, with the stock down 21 % in 12 months.

• Is Weyerhaeuser expensive or cheap? At 16.0× fiscal 2025 FFO, Weyerhaeuser sits at the low end of the 15× to 20× range considered healthy for REITs.
• How is the business doing? Operating margin was 6.7 % in fiscal 2025, the lowest in 12 years and well below the 17 % average for 2014-2025.
• How strong is the balance sheet? Net debt is 4.9× fiscal 2025 EBITDA, inside the 5× level considered excellent for REITs, with debt at 34 % of assets.
• What to expect from the next earnings? On October 29, 2026, analysts expect EPS of $0.09; Weyerhaeuser has beaten estimates in 7 of its last 8 quarters.
• Does FFO cover the dividend, and at what multiple does it trade? FFO covered the dividend 1.4× in fiscal 2025, above the 1.1× floor considered healthy for REITs.

Is Weyerhaeuser expensive or cheap?

For a REIT, price to FFO is the starting point. Weyerhaeuser trades at 16.0× its fiscal 2025 FFO, near the bottom of the 15× to 20× band regarded as healthy. Price to book is 1.4× over the last 12 months. That is a modest premium to the balance sheet for a company whose margins are depressed. Over the same period, the free cash flow yield is 6.8 % and EV/EBITDA is 15.7×. The market has already marked the stock down: it is 21 % lower than a year ago and 28 % below its 52-week high of $27.08.

How is the business doing?

Profitability is the weak spot. The operating margin of 6.7 % in fiscal 2025 was the lowest of the 12 fiscal years since 2014, against an average of 17 % over that period. Over the last 12 months it has partly recovered to 8.4 %, still less than half the long-run average. Revenue fell 3.1 % year over year over the last 12 months, so the improvement came from margins and not from sales growth. FFO per share was $1.15 in fiscal 2025. There is no fixed bar for this figure, so what counts is whether it rises if margins move back toward their historical level.

How strong is the balance sheet?

Leverage is under control. Debt equaled 34 % of assets in fiscal 2025, far from the 60 % ceiling considered healthy for a REIT, and debt to equity is 0.57 over the last 12 months. Net debt of 4.9× EBITDA in fiscal 2025 clears the 6× threshold and even the 5× mark for excellent. The tension is in the dividend. The yield is 4.5 % over the last 12 months, and in fiscal 2025 the payout took 108 % of operating cash flow, above the 80 % limit considered healthy. The debt load leaves room, but paying out more cash than operations generate cannot last long if margins stay this low.

What to expect from the next earnings?

Weyerhaeuser reports on October 29, 2026, and the consensus calls for quarterly EPS of $0.09. The track record favors a beat: the company topped estimates in 7 of the last 8 quarters. On July 30, 2026 it posted $0.13 against $0.08 expected, a 67 % surprise. Full-year expectations are stable. The 2026 EPS consensus has held at $0.33 over the last 18 days across 8 analysts, and revenue estimates are also flat. Of the 25 analysts covering the stock, 12 recommend buying, 10 holding and 2 selling, a mildly positive but divided view.

Does FFO cover the dividend, and at what multiple does it trade?

In a REIT, EPS and the P/E mislead because property depreciation is a large non-cash charge that pushes reported earnings down. FFO adds it back and gives a better read of the cash available for dividends. On that measure, Weyerhaeuser covered its dividend 1.4× in fiscal 2025, a comfortable cushion over the 1.1× healthy floor, and the stock trades at 16.0× that FFO. The two views of the payout disagree. FFO coverage passes, while the 108 % payout on operating cash flow fails, so the next FFO figures will show which reading holds.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.