Business Analysis of Weyerhaeuser

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Weyerhaeuser

WEYERHAEUSER

Business Overview

Weyerhaeuser Company is a timber, land and forest products company. As of December 31, 2016, the Company owned or controlled 13.1 million acres of timberlands, primarily in the United States, and manages additional timberlands under long-term licenses in Canada. The Company's segments include Timberlands; Real Estate, Energy and Natural Resources (Real Estate & ENR), and Wood Products. The Timberlands segment's offerings include logs, timber and recreational access via leases. The Real Estate & ENR segment includes sales of timberlands; rights to explore for and extract hard minerals, oil and gas production, and coal, and equity interests in its Real Estate Development Ventures. The Wood Products segment includes the manufacturing and distribution of wood products. The Wood Products segment is engaged in softwood lumber, engineered wood products, structural panels, medium density fiberboard and building materials distribution.

Weyerhaeuser

Weyerhaeuser


R&P Rank: 429
Sector: Real Estate & REITs
Industry:Specialty REITs
H.Q Location:Washington
Website: www.weyerhaeuser.com
Company Address:
220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104
Ph:206-539-3000

Business Analysis of Weyerhaeuser

The Real Estate & REITs Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Weyerhaeuser compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Weyerhaeuser to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Weyerhaeuser with an interactive chart.

  1. Revenue Growth: Weyerhaeuser reported a revenue growth of 21.3% year-on-year during 2016. Specialty REITs Industry grew at 15.7% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Weyerhaeuser spent 76.8% of its total revenues on COGS. Specialty REITs industry average (COGS share of revenue) in the same period was 46.1%
  3. R&D share of Revenues: As a percentage of revenue, Weyerhaeuser spent 0.3% of its total revenues on R&D. Specialty REITs industry average R&D spending in the same period was 0.0%
  4. SG&A share of Revenues: As a percentage of revenue, Weyerhaeuser spent 6.6% of its total revenues on Sales, Marketing, and General Administration (SG&A). Specialty REITs industry average SG&A spending in the same period was 10.0%
  5. Inventory share of Revenues: As a percentage of revenue, Weyerhaeuser spent 5.6% of its total revenues on Inventories. Specialty REITs industry average Inventory spending in the same period was 1.0%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Weyerhaeuser invested 3.7% of its total revenues on Accounts Payable (A/P) Specialty REITs industry average Accounts Payable investment in the same period was 13.4%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Weyerhaeuser invested 6.1% of its total revenues on Accounts Receivable (A/R). Specialty REITs industry average Accounts Receivable investment in the same period was 11.5%
  8. PP&E share of Revenues: As a percentage of revenue, Weyerhaeuser invested 252.5% of its total revenues on Property, Plants, and Equipments (PP&E). Specialty REITs industry average PPE investment in the same period was 404.9%
  9. Intangibles share of Revenues: As a percentage of revenue, Weyerhaeuser invested 0.6% of its total revenues on Intangibles. Specialty REITs industry average Intangibles investment in the same period was 33.5%
  10. Net Margins: Weyerhaeuser Net Margins in the year 2016 were 16.1%. Specialty REITs industry average Net Margins in the same period were 18.5%

Sector and Industry Association of Weyerhaeuser

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Weyerhaeuser is associated with Financials Sector Group, Real Estate & REITs Sector, and Specialty REITs Industry.

Real Estate & REITs (Real Estate Investment Trusts) sector is comprised of the following industries: Diversified REITs; Industrial & Office REITs; Hotel & Lodging REITs; Retail REITs; Residential REITs; Specialty REITs; Mortgage REITs; Real Estate Holding & Development; Real Estate Services. The definitions for each of the industries is as follows:

  • Diversified REITs industry includes REITs or corporations that invest in a variety of property types without a concentration on any single type.
  • Industrial & Office REITs industry includes REITs that primarily invest in office, industrial, and flex properties.
  • Hotel & Lodging REITs industry includes REITs that primarily invest in hotels or lodging properties.
  • Retail REITs industry includes REITs that primarily invest in retail properties, malls, shopping centers, strip centers and factory outlets.
  • Residential REITs industry includes REITs that primarily invest in residential home properties, apartment buildings, and residential communities.
  • Specialty REITs industry includes REITs that invest in self storage properties, properties in the health care industry such as hospitals, assisted living facilities and health care laboratories, and other specialized properties such as auto dealership facilities, timber properties and net lease properties.
  • Mortgage REITs industry includes REITs that are directly involved in lending money to real estate owners and operators or indirectly through the purchase or mortgages or mortgage backed securities.
  • Real Estate Holding & Development industry includes companies that invest directly or indirectly in real estate through development, investment or ownership.
  • Real Estate Services industry includes companies that provide services to real estate companies but do not own the properties themselves. It includes agencies, brokers, leasing companies, management companies and advisory services.

Industry Ranking of Weyerhaeuser

With $6.4 billion revenues, Weyerhaeuser ranked number 1 of all the companies in the US Specialty REITs industry. There were a total of 36 public companies in the US Specialty REITs industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Specialty REITs industry by revenues during 2016 were:

  1. Weyerhaeuser ($6.4 billion)
  2. Welltower ($4.3 billion)
  3. Equinix ($3.6 billion)
  4. Iron Mountain ($3.5 billion)
  5. Ventas ($3.4 billion)
  6. Public Storage ($2.6 billion)
  7. GEO Group ($2.2 billion)
  8. Digital Realty Trust ($2.1 billion)
  9. HCP ($2.1 billion)
  10. CoreCivic ($1.8 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Weyerhaeuserand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of weyerhaeuser

Welltower (HCN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Welltower Inc. with $4 billion revenues in the year 2016 was the number 2 Specialty REITs company. Read this report to know the top competitors of Welltower and identify growth and cost optimization opportunities of Welltower

Equinix (EQIX) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Equinix Inc with $4 billion revenues in the year 2016 was the number 3 Specialty REITs company. Read this report to know the top competitors of Equinix and identify growth and cost optimization opportunities of Equinix

Iron Mountain (IRM) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Iron Mountain Inc with $4 billion revenues in the year 2016 was the number 4 Specialty REITs company. Read this report to know the top competitors of Iron Mountain and identify growth and cost optimization opportunities of Iron Mountain

Ventas (VTR) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Ventas Inc with $3 billion revenues in the year 2016 was the number 5 Specialty REITs company. Read this report to know the top competitors of Ventas and identify growth and cost optimization opportunities of Ventas

Public Storage (PSA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Public Storage with $3 billion revenues in the year 2016 was the number 6 Specialty REITs company. Read this report to know the top competitors of Public Storage and identify growth and cost optimization opportunities of Public Storage

GEO Group (GEO) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

GEO Group Inc with $2 billion revenues in the year 2016 was the number 7 Specialty REITs company. Read this report to know the top competitors of GEO Group and identify growth and cost optimization opportunities of GEO Group

Revenues Analysis

Weyerhaeuser (WY) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Weyerhaeuser Co (WY) from 2012 to 2016. Weyerhaeuser generated a total of $6.4 billion revenues during 2016. Weyerhaeuser reported a revenue growth of 21.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Weyerhaeuser (WY) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Weyerhaeuser Co (WY) from 2002 to 2016. Weyerhaeuser generated a total of $6.4 billion revenues during 2016. Weyerhaeuser reported a revenue growth of 21.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Weyerhaeuser (WY) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Weyerhaeuser Co (WY) revenue growth with Specialty REITs industry growth during the last five years from 2012 to 2016. Weyerhaeuser reported a revenue growth of 21.3% year-over-year during 2016. The Specialty REITs industry growth was 15.7% year-over-year during 2016. Weyerhaeuser growth was faster than the industry during 2016.

Profit Analysis