Report
Valens Research

WY - Embedded Expectations Analysis - 2018 01 26

 Weyerhaeuser Company (WY:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Assets, with a 2.4x Uniform P/B, implying bullish expectations for the firm. Additionally, management is confident about shareholder returns, costs, and productivity

 Specifically, management generated an excitement marker when saying that their financial priorities are still returning cash to shareholders primarily through a growing dividend but also through share repurchases. Additionally, they are confident that they will achieve their goal of $35 million in cost reductions formerly allocated to their Cellulose Fibers business by year-end, and that they are continuing to work on flexing their existing mills by increasing their productivity and reliability through OpEx
Underlying
Weyerhaeuser Company

Weyerhaeuser is a real estate investment trust. The company's business segments are: Timberlands, which provides delivered logs (grade logs and fiber logs), timber, recreational leases and other products; Real Estate, Energy and Natural Resources (ENR), in which Real Estate sells timberland tracts for recreational, conservation, commercial or residential purposes, whereas ENR sells rights to explore, extract and sell construction aggregates (rock, sand and gravel), industrial materials and oil and natural gas; and Wood Products, which provides structural lumber, oriented strand board, wood products, other products, and complementary building products.

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Valens Research
Valens Research

In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:

  • GAAP and IFRS have failed to provide rules for reliable financial statement reporting
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Many years later, our business model remains because little has changed on Wall Street.

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Valens Research

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