1. Weyerhaeuser Co.
Industrials Sector
Evan Szakos, Jamie Sperrazzo, Tyler
Clark and Gunnar Schifley

2. Company Description
•Founded in 1900 by Frederick Weyerhaeuser
•One of the largest private owners of timberlands
•13 million acres of land
•Company also manufactures wood and cellulose
fiber products
•Became a REIT in 2010
•Cut down 70% of employees and cut assets and
revenues in half to focus more on timberlands
•Also gave investors $5.6 billion of past earnings in
special dividend

3. What is a REIT??
•Investment instrument for real estate similar to a
mutual fund
•3 types: Equity, Mortgage, Hybrid
•By law must pay out 90% of profits as dividends
•Excluded from paying corporate income taxes
http://www.investopedia.com/video/play/real-estate-investment-trust/

4. Stock Performance
Ticker Market
Value
52 Week
High
52 Week
Low
Beta Market Cap P/E (TTM)
WY $29.86 $37.04
1/13/15
$26.73
10/02/15
.77 15.30B 28.09

5. Operating Segments
% of Revenue 2013 % Of Revenue 2014
Wood Products
55.3% 53.6%
Cellulose Fibers 26.2% 26.2%
Timberlands 18.5% 20.2%

6. Operating Segments By Geography
% of Revenue 2013 % of Revenue 2014
United States 65.63% 66.04%
Japan 10.45% 9.21%
Other Foreign Countries 6.70% 6.97%
China 6.24% 6.44%
Canada 5.76% 5.73%
Europe 4.11% 4.43%
South America 1.10% 1.18%

7. Operating Segments

8. Industry Analysis
•According to Fannie Mae, new housing starts
are estimated to increase by approximately
16% year over year in 2016
•Softwood sales expected to increase Q4 2015
and Q1 2016, hardwood sales in increase Q2
and Q3 2016
•Timber companies across the market are
diversifying land holdings

9. Peer Analysis
Ticker Market
Cap ($
Mil)
P/E Forward
P/E
P/S P/B P/CF EV/EBIT
DA
WY $15.4B 19.71 12.2 0.7 2.34 2.9 12.85
PCH $1.3B 27.2 27.7 2.3 6.1 16.7 16.18
RYN $2.9B 66.5 54.9 5.3 2.2 16.8 18.59
PCL $8.3B 35.1 38.5 5.2 5.3 14.6 22.31

10. Recent Company News
• Acquisition of Plum Creek
• Q3 earnings
• Reviewing cellulose fiber business
• Benefitting from infestation in
Canadian forests

11. Analyst Opinions
Consensus
Rating
4.47
Buys 73.3% (11)
Holds 26.7% (4)
Sells 0.0% (0)
12 M Target
Price
$36.31
Analyst
Date Company Target Price
9/15/2015 RBC Capital Markets $37
9/15/2015 Buckingham Research $38
9/15/2015 Argus Research Corp $43
9/14/2015 D.A Davidson & Co $38
9/14/2015 Scotia Capital $34
9/11/2015 BMO Capital Markets $38
8/28/2015 Dundee Securities $34
8/6/2015 Raymond James $38
7/24/2015 J.P. Morgan $34
High $43
Low $34
Mean $37
Median $38

12. Earnings Trends
Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015
Analysts Revenue
Estimate
$1.97B $1.81B $1.76B $1.81B $1.83B
Actual Revenue $1.92B $1.79B $1.72B $1.81B $1.82B
Analyst EPS
Estimate
$2.99 $2.87 $2.49 $1.98 $2.47
Actual EPS $3.33 $2.78 $1.85 $2.52 $3.51

13. Technical Analysis

14. Summary
• Overall we believe that WY is a good
investment at this time because:
– Industry leader and continue to achieve growth
– Positive outlook in construction industry
– Acquisiton of Plum Creek Timber