WOOD

Home Depot Shows the Home Has Never Been More Important

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Image Source: Home Depot. By Brian Nelson, CFA On Tuesday, February 23, Home Depot (HD) reported fiscal fourth-quarter 2021 results (period ending January 31, 2021) that came in better than consensus estimates across the board. Not only did the top- and bottom- lines beat, but comparable store sales growth of 24.5% exceeded even some of the most optimistic forecasts for the home improvement retailer during the period. The average ticket price and the number of transactions advanced, while both professional (“Pro”) and Do-It-Yourself (“DIY”) customer revenue increased at a double-digit pace in the quarter. Home Depot also raised its dividend 10% and now yields ~2.5% on a forward-looking basis ($6.60 per-share dividend on an annualized basis). We continue to like … Read more

Weyerhaeuser Faces Deteriorating Financials While Trying to Manage a Monstrous Debt Load

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Image Shown: Weyerhaeuser Company – Second quarter 2019 IR Presentation By Callum Turcan One very interesting space of the REIT investing world includes the timber industry. Weyerhaeuser Company (WY) is a Seattle-based timber REIT that controls and owns ~12 million acres of timberland in the US, along with managing ~14 million acres in Canada via long-term licenses. The company commenced operations way back in 1900, and shares of WY yield 4.6% as of this writing. Most of Weyerhaeuser’s adjusted EBITDA comes from its ‘Timberlands’ and ‘Wood Products’ segments; however, its ‘Real Estate, Energy, and Natural Resources’ segment has become more relevant of late. Our fair value estimate for WY stands at $30 per share, roughly where Weyerhaeuser is trading at … Read more