Return On Invested Capital
Potlatch (PCH) converted to a REIT in 2006 and management followed through with strong execution. We estimate that the firm has earned average ROIC for the period of approximately 11.6%:
(Source: Author estimates based on data from S&P Global MI)
Over the past five years Potlatch has average ROIC of approximately 12.3%, significantly higher than our estimate of 7.6% for much larger peer Weyerhaeuser (WY) and 6.1% for Rayonier (RYN). It is no surprise that Potlatch shareholders have realized the highest total returns since 2006: