Weyerhaeuser Operating Margin vs. Return On Asset
| WY Stock | USD 32.35 0.44 1.38% |
Weyerhaeuser Operating Profit Margin |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.26 | 0.2192 |
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| Operating Profit Margin | 0.16 | 0.1545 |
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For Weyerhaeuser profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Weyerhaeuser to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Weyerhaeuser utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Weyerhaeuser's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Weyerhaeuser over time as well as its relative position and ranking within its peers.
Weyerhaeuser |
Is Specialized REITs space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Weyerhaeuser. If investors know Weyerhaeuser will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Weyerhaeuser listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.88) | Dividend Share 0.79 | Earnings Share 0.73 | Revenue Per Share 9.859 | Quarterly Revenue Growth (0.17) |
The market value of Weyerhaeuser is measured differently than its book value, which is the value of Weyerhaeuser that is recorded on the company's balance sheet. Investors also form their own opinion of Weyerhaeuser's value that differs from its market value or its book value, called intrinsic value, which is Weyerhaeuser's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Weyerhaeuser's market value can be influenced by many factors that don't directly affect Weyerhaeuser's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Weyerhaeuser's value and its price as these two are different measures arrived at by different means. Investors typically determine if Weyerhaeuser is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Weyerhaeuser's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Weyerhaeuser Return On Asset vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Weyerhaeuser's current stock value. Our valuation model uses many indicators to compare Weyerhaeuser value to that of its competitors to determine the firm's financial worth. Weyerhaeuser is rated below average in operating margin category among its peers. It is rated below average in return on asset category among its peers reporting about 0.50 of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for Weyerhaeuser is roughly 2.00 . At this time, Weyerhaeuser's Operating Profit Margin is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Weyerhaeuser's earnings, one of the primary drivers of an investment's value.Weyerhaeuser Return On Asset vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Weyerhaeuser |
| = | 0.05 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Weyerhaeuser |
| = | 0.0267 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Weyerhaeuser Return On Asset Comparison
Weyerhaeuser is currently under evaluation in return on asset category among its peers.
Weyerhaeuser Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Weyerhaeuser, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Weyerhaeuser will eventually generate negative long term returns. The profitability progress is the general direction of Weyerhaeuser's change in net profit over the period of time. It can combine multiple indicators of Weyerhaeuser, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -293 M | -307.6 M | |
| Operating Income | 1.2 B | 1.1 B | |
| Income Before Tax | 937 M | 687.6 M | |
| Total Other Income Expense Net | -249 M | -261.4 M | |
| Net Income | 839 M | 665 M | |
| Income Tax Expense | 98 M | 102 M | |
| Net Income Applicable To Common Shares | 2.2 B | 2.3 B | |
| Net Income From Continuing Ops | 839 M | 960.9 M | |
| Non Operating Income Net Other | -248.4 M | -236 M | |
| Interest Income | 76 M | 135.8 M | |
| Net Interest Income | -204 M | -214.2 M | |
| Change To Netincome | 661.2 M | 694.3 M | |
| Net Income Per Share | 1.15 | 0.81 | |
| Income Quality | 1.71 | 1.51 | |
| Net Income Per E B T | 0.90 | 1.14 |
Weyerhaeuser Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Weyerhaeuser. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Weyerhaeuser position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Weyerhaeuser's important profitability drivers and their relationship over time.
Use Weyerhaeuser in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Weyerhaeuser position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Weyerhaeuser will appreciate offsetting losses from the drop in the long position's value.Weyerhaeuser Pair Trading
Weyerhaeuser Pair Trading Analysis
The ability to find closely correlated positions to Weyerhaeuser could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Weyerhaeuser when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Weyerhaeuser - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Weyerhaeuser to buy it.
The correlation of Weyerhaeuser is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Weyerhaeuser moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Weyerhaeuser moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Weyerhaeuser can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Weyerhaeuser position
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Additional Tools for Weyerhaeuser Stock Analysis
When running Weyerhaeuser's price analysis, check to measure Weyerhaeuser's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Weyerhaeuser is operating at the current time. Most of Weyerhaeuser's value examination focuses on studying past and present price action to predict the probability of Weyerhaeuser's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Weyerhaeuser's price. Additionally, you may evaluate how the addition of Weyerhaeuser to your portfolios can decrease your overall portfolio volatility.