Cash flow quality is frequently obscured by lumpy maintenance capital expenditures, which contributed to a dividend payout ratio relative to AFFO reaching as high as 118% in 2024Q3.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 | Dec'95 |
|---|
| Cash from Operations | 201.12M | 188.47M | 159.11M | 491.9M | 504.89M | 335.26M | 139.07M | 178.89M | 162.66M | 102.12M | 74.01M | 131.37M | 92.25M | 79.98M | 77.11M | 125.24M | 112.05M | 35.23M | 145.77M | 181.99M | 66.72M | 562.14M | 184.96M | 419.77M | 85.08M | 93.91M | 204.6M | 217.5M | 154.9M | 224.8M | 247.6M |
| Operating CF Growth % | 303.61% | 18.45% | -67.65% | -2.57% | 50.59% | 141.08% | -22.26% | 9.98% | 59.29% | 37.97% | -43.66% | 42.41% | 15.34% | 3.72% | -38.43% | 11.78% | 218.03% | -75.83% | -19.9% | 172.78% | -88.13% | 203.93% | -55.94% | 393.4% | -9.41% | -54.1% | -5.93% | 40.41% | -31.09% | -9.21% | 35.37% |
| Operating CF / Revenue % | 18.03% | 17.75% | 15.54% | 36.96% | 37.75% | 32.21% | 16.81% | 18.36% | 23.97% | 17.05% | 12.86% | 21.64% | 16.18% | 15.23% | 15.5% | 23.22% | 23.53% | 8.01% | 8.81% | 11.32% | 4.46% | 41.59% | 12.28% | 32.64% | 4.86% | 5.19% | 12.2% | 13.89% | 9.87% | 14.46% | 15.42% |
| Net Income | 64.25M | 0 | 62.1M | 333.9M | 423.86M | 166.83M | 55.66M | 122.88M | 86.45M | 10.94M | 31.71M | 89.91M | 70.58M | 42.59M | 40.27M | 40.27M | 81.43M | 68.84M | 56.43M | 139.11M | 32.96M | 271.25M | 50.73M | -234.38M | -79.44M | -33.21M | 40.9M | 37.2M | 36.1M | 61.5M | 108.5M |
| Depreciation & Amortization | 53.12M | 0 | 0 | 98.23M | 126.86M | 169.89M | 100.87M | 73.16M | 29.91M | 34.19M | 38.1M | 26.75M | 26.96M | 26.25M | 29.09M | 31.2M | 30.15M | 30.15M | 80.08M | 91.02M | 89.39M | 88.32M | 104.86M | 115.47M | 169.39M | 161.85M | 150.3M | 150.3M | 149.8M | 141.5M | 137M |
| Stock-Based Compensation | 11.65M | 0 | 9.12M | 18.5M | 8.61M | 8.06M | 7.27M | 8.21M | 4.72M | 4.39M | 4.76M | 4.14M | 4.38M | 4.07M | 4.4M | 3.95M | 4.32M | 4.32M | 5.8M | 4.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 81.29M | 189.5M | 123.35M | 37.12M | -21.27M | -17.98M | -15.26M | -25.23M | 12.83M | 64.51M | 9.95M | 5.03M | 10.49M | -10.16M | -258K | 42.34M | 6.23M | -29.57M | 7.34M | -21M | -2.22M | 349.96M | 7.93M | 742.25M | 5.11M | -2.13M | -100K | -3.1M | -5.9M | 100K | 100K |
| Working Capital Changes | -3.01M | -1.02M | -26.19M | 9.41M | -33.2M | 23.07M | 1.56M | -12.29M | 13.38M | -13.77M | -4.82M | 7.17M | -17.69M | 1.24M | -607K | 2.05M | 10.95M | -20.62M | -880K | 39.33M | -51.4M | -177.67M | 9.13M | -49.62M | 73.37M | -50.91M | -5.3M | 16.3M | -38.6M | -3.6M | -25.9M |
| Cash from Investing | -55M | -92.06M | -95.3M | -147.52M | -59.15M | -42.19M | 4.52M | -47.91M | -50.02M | 93.35M | -14.26M | -382.68M | -14M | -8.65M | 4.5M | -41.65M | -46.72M | -47.44M | -183.5M | -22.82M | -57.72M | -128.09M | -131.39M | 65.78M | -173.12M | -167.54M | -188.8M | -146.6M | -210.7M | -139.7M | -268.3M |
| Acquisitions (Net) | 0 | 0 | 0 | 23.57M | 15M | 1.37M | 61.18M | 3.42M | 0 | 111.46M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10.39M | 1.88M | 3M | 3.1M | 2.9M | 5.1M | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -31.84M | 0 | 0 | 0 | 0 | -71.88M | -38.09M | 0 | -35.28M | -4.49M | -51.7M | -13.2M | -13.6M | -48M | -100.4M |
| Sale of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 37.32M | 7.3M | 36.14M | 54.27M | 0 | 0 | 28.5M | 2.36M | 1.5M | 57.5M | 13.8M | 13.5M | 167M | 0 |
| Other Investing | -21.32M | -28.17M | 612K | 13.71M | 1.27M | 2.22M | 809K | 807K | 85K | 113.88M | 28.71M | 30.5M | 9.65M | 20.54M | 9.84M | -36.43M | 821K | -20.68M | -100.74M | -5.27M | -6.42M | -7.3M | -13.61M | 88.89M | -99.67M | -6K | 50.1M | -13.1M | -64.2M | -32.4M | -7.7M |
| Cash from Financing | -213.58M | -182.37M | -171.71M | -295.56M | -401.31M | -124.98M | -138.77M | -172M | -74.77M | -120.81M | -56.52M | 250.37M | -89.65M | -62.17M | -79.39M | -79.54M | -64.68M | 4.04M | 39.02M | -157.54M | -11.51M | -432.6M | -55.35M | -484.05M | 84.16M | 73.75M | -15.9M | -68.3M | 57.1M | -84.9M | 19.3M |
| Dividends Paid | -140.4M | -142.35M | -143.59M | -208.13M | -388.24M | -107.85M | -107.72M | -146.77M | -61.93M | -60.84M | -61.02M | -57.85M | -51.87M | -50.04M | -73.92M | -81.58M | -81.13M | -80.67M | -77.46M | -165.12M | -17.5M | -92.43M | -17.22M | -17.07M | -33.11M | -49.7M | -50.4M | -50.5M | -49.5M | -48.3M | -47.1M |
| Common Dividends | -140.4M | -142.35M | -143.59M | -208.13M | -388.24M | -107.85M | -107.72M | -146.77M | -61.93M | -60.84M | -61.02M | -57.85M | -51.87M | -50.04M | -73.92M | -81.58M | -81.13M | -80.67M | -77.46M | -165.12M | -17.5M | -92.43M | -17.22M | -17.07M | -33.11M | -49.7M | -50.4M | -50.5M | -49.5M | -48.3M | -47.1M |
| Debt Issuance (Net) | 265K | 265K | 0 | -1000K | -1000K | 0 | 0 | -1000K | -1000K | -1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -11K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | -1000K | 1000K |
| Share Repurchases | -67.63M | -35.02M | -25.01M | -54.55M | 0 | -15.36M | -25.17M | 0 | 0 | -5.96M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.87M | -75.35M | 0 | 0 | -10.45M | -25.89M | 0 | -3.3M | 0 | -5M | -11.3M |
| Other Financing | -5.81M | -5.27M | -3.1M | -7.38M | -6.7M | -1.77M | -5.88M | -4.98M | -1.83M | -3.91M | -3M | -1.78M | -3.02M | -3.54M | -1.89M | -105K | -4.24M | 70.35M | 663K | 591K | -669K | -34.53M | 8.41M | -4.53M | -18.03M | -9.16M | -1.3M | 0 | 0 | -4M | -100K |
| Net Change in Cash | -67.46M | -85.96M | -107.9M | 48.82M | 44.43M | 168.09M | 4.81M | -41.02M | 37.87M | 74.66M | 3.24M | -942K | -11.4M | 9.17M | 2.23M | 4.06M | 647K | -8.16M | 1.29M | 1.63M | -2.51M | 1.46M | -1.78M | 1.5M | -3.88M | 121K | -200K | 2.7M | 1.3M | 100K | 19.3M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -100K | 100K | 0 | -100K | 20.7M |
| Cash at Beginning | 96.04M | 237.69M | 345.59M | 296.77M | 252.34M | 84.25M | 79.44M | 120.46M | 82.58M | 7.92M | 4.64M | 5.59M | 16.98M | 7.82M | 5.59M | 1.53M | 885K | 9.05M | 7.76M | 6.13M | 8.65M | 7.19M | 8.97M | 7.47M | 11.65M | 11.53M | 11.7M | 9M | 7.7M | 7.6M | 9M |
| Cash at End | 93.67M | 151.72M | 237.69M | 345.59M | 296.77M | 252.34M | 84.25M | 79.44M | 120.46M | 82.58M | 7.89M | 4.64M | 5.59M | 16.98M | 7.82M | 5.59M | 1.53M | 885K | 9.05M | 7.76M | 6.13M | 8.65M | 7.19M | 8.97M | 7.77M | 11.65M | 11.5M | 11.7M | 9M | 7.7M | 28.3M |
| Free Cash Flow | 131.44M | 67.47M | 37.5M | 307.1M | 429.47M | 289.48M | 81.59M | 126.76M | 112.55M | 81.58M | 31.05M | -281.81M | 68.6M | 50.79M | 71.78M | 120.03M | 96.35M | -28.85M | 55.7M | 128.3M | -38.86M | 513.24M | 105.27M | 368.15M | 34.16M | -72.51M | -43.1M | 80.3M | 5.6M | -6.6M | 87.4M |
| FCF Growth % | 2007.17% | 79.94% | -87.79% | -28.49% | 48.36% | 254.78% | -35.63% | 12.62% | 37.96% | 162.74% | 111.02% | -510.81% | 35.06% | -29.23% | -40.2% | 24.58% | 433.99% | -151.79% | -56.58% | 430.18% | -107.57% | 387.54% | -71.41% | 977.79% | 147.11% | -68.24% | -153.67% | 1333.93% | 184.85% | -107.55% | -0.23% |
| FCF / Revenue % | 11.78% | 6.35% | 3.66% | 23.08% | 32.11% | 27.81% | 9.87% | 13.01% | 16.59% | 13.62% | 5.4% | -46.43% | 12.03% | 9.67% | 14.43% | 22.25% | 20.23% | -6.56% | 3.37% | 7.98% | -2.6% | 37.98% | 6.99% | 28.62% | 1.95% | -4.01% | -2.57% | 5.13% | 0.36% | -0.42% | 5.44% |
Cyclical housing demand sensitivity
According to the company's reported financial data, the dividend payout ratio relative to AFFO has fluctuated wildly, reaching as high as 118% in 2024Q3 and dipping to 65% in 2023Q3, which highlights the inherent difficulty in maintaining a consistent distribution policy amidst cyclical timber and lumber markets.
The frequent breach of the 100% payout threshold suggests that the dividend is not always supported by recurring cash flow after accounting for necessary maintenance capital. Investors should monitor whether management continues to prioritize dividend stability during periods of negative AFFO, as this may necessitate reliance on balance sheet liquidity.
As reported in financial statements, the FFO to Net Income ratio has reached extreme levels, such as the 8.74x multiple observed in 2024Q4, indicating that GAAP net income is a poor proxy for the company's actual cash-generating capacity due to heavy non-cash depreciation and depletion charges.
The massive divergence between GAAP earnings and FFO underscores the capital-intensive nature of timberland ownership and manufacturing. Relying on net income to evaluate performance may lead to a fundamental misunderstanding of the company's ability to fund operations and shareholder returns.
Based on the provided cash flow data, maintenance capital expenditures have been highly inconsistent, peaking at $67.8 million in 2023Q4, which directly impacts the company's ability to generate positive AFFO and suggests that sustaining the asset base requires significant, lumpy reinvestment that complicates cash flow predictability.
The volatility in capital spending appears to be a primary driver of the erratic AFFO performance. This suggests that the company's cash flow profile is sensitive to the timing of mill upgrades and forest management requirements, which may not always align with favorable commodity price environments.
As evidenced by the quarterly cash flow reports, the conversion of operating cash flow into FFO is frequently disrupted by working capital swings, with OCF reaching $100.6 million in 2024Q2 while FFO remained significantly lower at $43.4 million, indicating a disconnect between accounting earnings and actual cash inflows.
This disparity suggests that timing differences in timber sales and inventory management play a substantial role in the company's liquidity profile. Analysts should be cautious in assuming that high OCF in any single quarter translates directly into sustainable distributable cash for shareholders.
Quick answers to the most common questions about buying PCH stock.
PotlatchDeltic Corporation (PCH) generated $188.5M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
PotlatchDeltic Corporation (PCH) generated $67.5M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
PotlatchDeltic Corporation (PCH) spent $63.9M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2024, PotlatchDeltic Corporation (PCH) returned $142.3M to shareholders via cash dividends and spent $35.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.