PCH  Potlatch Corporation

Exchange

NYSE

Sector

Consumer Services

Industry

Real Estate Investment Trusts

Market Cap.

1.80B

Vuru Grade

17.77/100

Current Price

$44.15
+0.55 (+1.26%)

Growth Price

$11.51
Overvalued by 73.92%

Company Metrics

  • P/E 164.74
  • P/S 2.97
  • P/B 11.37
  • EPS 0.27
  • Cash ROIC 15.85%
  • Cash Ratio -
  • Dividend 1.5 / 3.44%
  • Avg. Vol. 254,719.00
  • Shares 40.77M
  • Market Cap. 1.80B

Company Description

Potlatch Corporation operates as a real estate investment trust (REIT) that owns and manages timberlands located in Arkansas, Idaho, Minnesota and Wisconsin in the United States. The Resource Management Division manages its timberlands, harvests timber, procures other wood fiber, sells logs and leases land for hunting and other recreational activity. The Real Estate Division develops and sells lan... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Potlatch Corporation (PCH) Breaks into New 52-Week High on February 10 Session
Equities.com - Feb 10, 2017
Shares of Potlatch Corporation (PCH) broke into a new 52-week high yesterday, hitting a peak of $45.50. Shares closed at $44.75 after opening at $45.25 for a move of -0.89%.
Potlatch Corporation (PCH) Moves Lower on Volume Spike for February 06
Equities.com - Feb 6, 2017
Potlatch Corporation (PCH) traded on unusually high volume on Feb. 06, as the stock lost 1.15% to close at $43.05. On the day, Potlatch Corporation saw 360,595 shares trade hands on 3,124 trades. Considering that the stock averages only a daily volume ...
Zacks Investment Research Downgrades Potlatch Corporation (PCH) to Hold - The Cerbat Gem
Potlatch Corporation (PCH) Lowered to Hold at Zacks Investment Research - Community Financial News
Potlatch Corporation (PCH) Moves Higher on Volume Spike for February 02
Equities.com - Feb 2, 2017
Potlatch Corporation (PCH) traded on unusually high volume on Feb. 02, as the stock gained 2.77% to close at $42.60. On the day, Potlatch Corporation saw 540,188 shares trade hands on 4,867 trades. Considering that the stock averages only a daily ...
Potlatch Corporation's (PCH) CEO Michael Covey on Q4 2016 Results - Earnings ...
Seeking Alpha - Jan 31, 2017
Good morning. My name is Karen and I will be your conference operator today. At this time, I would like to welcome everyone to the Potlatch Fourth Quarter 2016 Conference Call. All lines have been placed on mute to prevent any background noise. After ...
Analysts Set Potlatch Corporation (PCH) PT at $40.75
Chaffey Breeze - 7 hours ago
Potlatch Corporation logo Potlatch Corporation (NASDAQ:PCH) has been assigned an average recommendation of “Hold” from the nine analysts that are covering the stock.
Sales Estimates Of Potlatch Corporation (NASDAQ:PCH) At $648.654 - Investor Newswire
Potlatch Corporation (NASDAQ:PCH) Dividend Payout At $0.375
Equities Focus - 6 hours ago
On 2017-01-13, Potlatch Corporation (NASDAQ:PCH) updated dividend disbursement of $0.375 a share for record date 2016-12-13.
Potlatch Corp. PCH (US: Nasdaq)
Wall Street Journal - Feb 13, 2011
Potlatch Corp. PCH (U.S.: Nasdaq). search. View All companies. AT CLOSE 4:00 PM EST 01/18/17. $40.85 USD; -0.35 -0.85%.
Potlatch Corporation (PCH) Given Consensus Recommendation of “Hold” by Brokerages
Sports Perspectives - Jan 13, 2017
Potlatch Corporation logo Potlatch Corporation (NASDAQ:PCH) has received an average rating of “Hold” from the ten analysts that are covering the company.
Potlatch Corporation (NASDAQ:PCH) Specifies Dividend Payout At $0.375 - Equities Focus
Potlatch Corporation Reports First Quarter 2016 Results and Announces 172000 ...
GlobeNewswire (press release) - Apr 26, 2016
SPOKANE, Wash., April 26, 2016 (GLOBE NEWSWIRE) -- Potlatch Corporation (Nasdaq:PCH) today announced its first quarter 2016 results and the sale of approximately 172,000 acres of timberlands in central Idaho to Southern Pine Plantations, a private ...
REIT Potlatch Sells Idaho Timberlands For $114M - Law360 (subscription)
Potlatch Corporation (PCH) Announces Quarterly Dividend of $0.38
The Cerbat Gem - Feb 17, 2017
Potlatch Corporation logo Potlatch Corporation (NASDAQ:PCH) announced a quarterly dividend on Friday, February 17th.
Analysts Set Potlatch Corporation (PCH) Price Target at $40.75 - Sports Perspectives
The Patten Group Inc. Cuts Stake in Potlatch Corporation (PCH) - DailyQuint
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for PCH to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate PCH's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$44.15 Current Price

$11.51 Growth Price (DCF)

Overvalued by 73.92%


Growth Rate Assumed by Market: 43.14%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$31.94 Book Price

Overvalued by 27.66%


Varying Cash Return on Invested Capital over the past 5 years

PCH has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. However, there is a substantial variation in their Cash ROIC from year-to-year. This company may have unreliable free cash flow or operates in a business where invested capital costs increase substantially on a sporadic basis. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

PCH has created $15.85 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 71.78M 74.35M 79.97M -281.81M 41.28M
divided by
Invested Capital 746.22M 138.64M 204.15M 1.04B 1.02B
Cash ROIC 9.62% 53.62% 39.17% -27.22% 4.06%

Varying Return on Equity over the past 5 years

PCH has generated strong profits with money shareholders have invested. However, there is a substantial variation in their Return on Equity from year-to-year. This may reflect management's inability to generate consistent returns or may be caused by one-time events. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

PCH has generated $16.77 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 40.27M - - 89.91M 31.71M
divided by
Stockholders' Equity 142.14M 138.64M 204.15M 225.07M 203.74M
Return on Equity 28.33% - - 39.95% 15.57%

Good Business Performance over the past 10 years

It's likely PCH has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is PCH has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

PCH has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 128.30M 55.70M -28.85M 96.35M 120.03M 71.78M 74.35M 79.97M -281.81M 41.28M

Weak Balance Sheet

PCH's financial position is not ideal. The key is to check whether PCH is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash - - - - - - - - - -
Current Assets - - - - - - - - - -
Total Assets 1.46B 1.52B 938.32M 823.57M 781.71M 746.22M - - 1.04B 1.02B
Current Liabilities - - - - - - - - - -
Total Liabilities 879.75M 938.87M 740.09M 593.78M 577.27M 604.08M - - 810.36M 812.88M
Stockholder' Equity 577.86M 578.34M 198.23M 229.79M 204.44M 142.14M 138.64M 204.15M 225.07M 203.74M
Current Ratio - - - - - - - - - -
TL-to-TA 0.60 0.62 0.79 0.72 0.74 0.81 - - 0.78 0.80

Low or No Reinvestment of Profits over the past 10 years

PCH has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to PCH operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 144.81M 123.78M -7.75M -11.55M -52.73M -86.39M -94.20M -75.56M -43.59M -72.98M
Retained Earnings Growth - -14.52% -106.26% -49.12% -356.60% -63.82% -9.04% 19.79% 42.31% -67.44%

Competitive Industry over the past 10 years

PCH is likely operating in an industry with medium to low barriers to entry. This may mean that PCH doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that PCH invests heavily in R&D and Sales, General & Administrative expenses.

Only $7.62 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 139.11M 56.43M 52.64M 77.33M 40.39M 40.27M - - 89.91M 31.71M
divided by
Revenue 1.61B 1.65B 439.96M 476.17M 539.45M 497.42M 525.13M 570.29M 606.95M 575.34M
Net Profit Margin 8.65% 3.41% 11.96% 16.24% 7.49% 8.09% - - 14.81% 5.51%

Weak Pricing Power over the past 10 years

PCH is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that PCH has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit - - - - - - - - - -
divided by
Revenue 1.61B 1.65B 439.96M 476.17M 539.45M 497.42M 525.13M 570.29M 606.95M 575.34M
Gross Margin - - - - - - - - - -

High Capital Intensity over the past 10 years

PCH spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

116.15% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 53.68M 90.07M 64.08M 15.70M 5.22M 5.34M 5.64M 10.28M 413.18M 32.73M
divided by
Net Income 139.11M 56.43M 52.64M 77.33M 40.39M 40.27M - - 89.91M 31.71M
Capital Expenditure Ratio 38.59% 159.61% 121.74% 20.30% 12.91% 13.26% - - 459.55% 103.21%

Inconsistent Dividend History over the past 10 years

PCH has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid 165.12M 77.46M - - 81.58M 73.92M - - 57.85M 61.02M
divided by
Shares Outstanding 36.70M 39.46M 39.80M 39.97M 40.22M 40.38M 40.55M 40.71M 40.89M 40.99M
Dividend Paid Per Share 4.50 1.96 - - 2.03 1.83 - - 1.41 1.49
Price at Year End 27.17 28.94 21.00 28.86 31.01 31.11 38.52 41.86 42.52 30.98
Dividend Yield 16.56% 6.78% - - 6.54% 5.88% - - 3.33% 4.81%

No History of Stock Buybacks over the past 10 years

We're neutral on this. It's not necessarily good or bad that PCH hasn't initiated a stock buyback.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 36.70M 39.46M 39.80M 39.97M 40.22M 40.38M 40.55M 40.71M 40.89M 40.99M
Stock Bought Back - -6.99% -0.86% -0.43% -0.61% -0.41% -0.42% -0.38% -0.45% -0.23%
Share your thoughts about PCH

Sign Up or Log In to start contributing!


Discussion

Nothing here yet. Be the first to post!