PotlatchDeltic: Great Point To Exit This REIT
Portfolio Pulse from
PotlatchDeltic's cash flow remains weak despite high timber prices, with adjusted EBITDA annualized at just $180 million against a $4.5 billion enterprise value. Dividends and buybacks are not financed by cash flows, with only $6.3 million available for distribution against $142 million in dividends. The stock is downgraded to a hold.
December 01, 2024 | 9:45 pm
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PotlatchDeltic's financials are under pressure with weak cash flow despite high timber prices. The company's dividends and buybacks are not supported by cash flows, leading to a downgrade to hold.
PotlatchDeltic's weak cash flow, despite high timber prices, indicates financial strain. The inability to finance dividends and buybacks from cash flows suggests potential financial instability, leading to a downgrade to hold. This is likely to negatively impact the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100