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Boise Cascade (BCC)
NYSE:BCC
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Boise Cascade
(NYSE:BCC)64Neutral
Positive Factors
Financial Performance
Boise Cascade Company is well positioned to return to positive revenue growth and margin expansion due to multiple catalysts.
Valuation
The recent pullback in the stock is making valuation attractive.
Negative Factors
Market Conditions
With housing demand off to a slow start, uncertainty around the extent of demand uptick during the busy spring/summer season, and price pressure in EWP, the case to buy the stock today isn't obvious.
Boise Cascade (BCC) vs. S&P 500 (SPY)
Market Cap
$3.81B
Dividend Yield0.83%
Average Volume (3M)345.90K
Price to Earnings (P/E)10.5
Beta (1Y)1.55
Revenue Growth-1.67%
EPS Growth-21.20%
CountryUS
Employees7,560
SectorBasic Materials
Sector Strength56
IndustryConstruction Materials
Share Statistics
EPS (TTM)9.55
Shares Outstanding37,932,987
10 Day Avg. Volume521,332
30 Day Avg. Volume345,899
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.57
Price to Cash Flow (P/CF)10.10
P/FCF Ratio9.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$124.80Price Target Upside23.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Boise Cascade Business Overview & Revenue Model
Company DescriptionBoise Cascade (BCC) is a leading manufacturer and distributor of building materials and engineered wood products. The company operates primarily in two segments: Wood Products and Building Materials Distribution. Its core products include engineered wood products, plywood, and lumber, which serve various construction and industrial applications. With a strong presence across North America, Boise Cascade provides essential materials for residential and commercial construction projects.
How the Company Makes MoneyBoise Cascade makes money through its two main business segments: Wood Products and Building Materials Distribution. In the Wood Products segment, the company generates revenue by manufacturing and selling engineered wood products, such as I-joists and laminated veneer lumber, as well as plywood and lumber. These products are used in residential and commercial construction and are sold to wholesalers, retail lumberyards, and industrial customers. In the Building Materials Distribution segment, Boise Cascade earns revenue by distributing a wide range of building materials sourced from various suppliers. This segment includes the sale of products such as roofing, siding, insulation, and other construction materials. The company benefits from strategic partnerships with suppliers and a broad distribution network, which enhance its ability to meet customer demands efficiently. Additionally, Boise Cascade's earnings are influenced by factors such as housing market trends, construction activity levels, and commodity prices, which affect the demand and pricing for its products.
Boise Cascade Financial Statement Overview
Summary
Boise Cascade's financial performance is solid with strong gross profit margins and a robust balance sheet. However, declining sales and net income, along with increased operational costs, put pressure on profitability. The company demonstrates strong free cash flow generation but faces capital expenditure constraints.Income Statement
Boise Cascade's income statement shows a strong gross profit margin due to effective cost management. However, the net profit margin has decreased from the previous year, reflecting increased operational costs. The revenue growth rate is negative, indicating a decline in sales, primarily due to market fluctuations in the construction materials industry. Despite this, the company maintains a robust EBIT margin, though it's slightly lower than previous periods, suggesting some pressure on profitability.75
Positive
Balance Sheet
The balance sheet is solid with a low debt-to-equity ratio, indicating prudent financial management and a strong equity position. The return on equity is declining, reflecting reduced profitability, but remains healthy. The equity ratio is strong, showcasing a well-capitalized balance sheet with sufficient assets to cover liabilities.80
Positive
Cash Flow
Boise Cascade demonstrates strong free cash flow generation, although there is a decline in free cash flow growth. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to profitability. However, the free cash flow to net income ratio highlights some capital expenditure constraints impacting cash reserves.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 6.72B | 6.84B | 8.39B | 7.93B | 5.47B | Gross Profit |
| 1.33B | 1.43B | 1.91B | 1.63B | 938.79M | EBIT |
| 490.04M | 624.39M | 1.16B | 971.80M | 335.03M | EBITDA |
| 673.23M | 803.01M | 1.26B | 1.05B | 424.45M | Net Income Common Stockholders |
| 376.35M | 483.66M | 857.66M | 712.49M | 174.98M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 713.26M | 949.57M | 998.34M | 748.91M | 405.38M | Total Assets |
| 3.37B | 3.46B | 3.24B | 2.57B | 1.97B | Total Debt |
| 70.06M | 529.79M | 523.08M | 531.79M | 531.40M | Net Debt |
| 70.06M | -419.79M | -475.26M | -217.12M | 126.02M | Total Liabilities |
| 1.22B | 1.26B | 1.18B | 1.22B | 1.11B | Stockholders Equity |
| 2.15B | 2.20B | 2.06B | 1.35B | 850.80M |
| Cash Flow | Free Cash Flow | |||
| 438.32M | 472.02M | 927.10M | 560.47M | 215.09M | Operating Cash Flow |
| 438.32M | 687.46M | 1.04B | 666.98M | 294.52M | Investing Cash Flow |
| -10.22M | -375.55M | -625.46M | -105.59M | -78.72M | Financing Cash Flow |
| -436.81M | -360.68M | -166.33M | -217.87M | -95.66M |
Boise Cascade Technical Analysis
Negative
100.79
Price Trends
119.25
Negative
129.66
Negative
128.20
Negative
Market Momentum
-6.59
Positive
27.72
Positive
6.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCC, the sentiment is Negative. The current price of 100.79 is below the 20-day moving average (MA) of 113.09, below the 50-day MA of 119.25, and below the 200-day MA of 128.20, indicating a bearish trend. The MACD of -6.59 indicates Positive momentum. The RSI at 27.72 is Positive, neither overbought nor oversold. The STOCH value of 6.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BCC.
Boise Cascade Risk Analysis
Boise Cascade disclosed 27 risk factors in its most recent earnings report. Boise Cascade reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Boise Cascade Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $22.34B | 56.68 | 3.97% | 2.59% | -7.17% | -52.62% | |
66 Neutral | $6.44B | 15.69 | 12.80% | 1.24% | -7.84% | -17.33% | |
65 Neutral | $6.24B | 28.17 | 28.90% | ― | 5.17% | 10.39% | |
64 Neutral | $6.63B | 16.09 | 26.08% | 1.10% | 13.95% | 138.97% | |
64 Neutral | $3.81B | 10.48 | 17.32% | 0.83% | -1.67% | -21.20% | |
60 Neutral | $15.37B | 19.32 | -118.61% | 1.63% | -1.74% | -6.91% | |
47 Neutral | $2.64B | -4.00 | -31.55% | 3.33% | 2.93% | -29.90% |
* Basic Materials Sector Average
Performance Comparison
BCC
Boise Cascade
100.79
-22.85
-18.48%
LPX
Louisiana-Pacific
93.76
17.68
23.24%
MAS
Masco
74.15
-1.53
-2.02%
TREX
Trex Company
57.50
-37.40
-39.41%
UFPI
UFP Industries
107.29
-6.65
-5.84%
WY
Weyerhaeuser
30.22
-3.95
-11.56%
Boise Cascade Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -13.30% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment with strong full-year financial performance and improvements in specific segments like BMD and LVL volumes, alongside challenges in declining sales and income, particularly in wood products, and operational disruptions due to weather.Highlights
Strong Full-Year Financial Performance
Reported full-year net income of $376.4 million or $9.57 per diluted share, showcasing solid financial performance for 2024.
BMD Segment Margin Improvement
BMD's fourth quarter EBITDA margin was 5.9%, up from 5.4% in the prior year quarter and up 30 basis points sequentially, despite a 4% sales decline.
LVL Volume Growth
Fourth quarter volumes for LVL increased by an impressive 11% year-over-year, outperforming the 4% decline in single-family starts.
Shareholder Returns
Paid $220 million in regular and special dividends and repurchased approximately 1.75 million shares or 4.5% of outstanding shares for $225 million.
Lowlights
Decline in Fourth Quarter Sales and Income
Consolidated fourth quarter sales of $1.6 billion were down 5% year-over-year, with net income at $68.9 million, down from $97.5 million in the prior year.
Wood Product Sales Decline
Fourth quarter wood product sales were $419.7 million, down 7% compared to the fourth quarter of 2023, primarily due to lower EWP and plywood sales prices.
Challenges with Plywood and Oakdale Facility
Plywood sales volumes and pricing faced challenges, and the modernization project at Oakdale is expected to negatively impact plywood volumes and costs in the near term.
Weather-Related Operational Disruptions
Unplanned downtime due to weather across several manufacturing and distribution locations affected operations at the start of the first quarter.
Company Guidance
In the fourth quarter of 2024, Boise Cascade reported a net income of $68.9 million or $1.78 per share, compared to $97.5 million or $2.44 per share in the same quarter the previous year. This decline was partly due to a decrease in total sales to $1.6 billion, down 5% from the fourth quarter of 2023. The Wood Products segment saw a 7% decline in sales to $419.7 million, with segment EBITDA dropping to $56.6 million from $92.7 million, primarily due to lower sales prices for EWP and plywood. The Building Materials Distribution (BMD) segment, despite a 4% decrease in sales to $1.4 billion, reported an increase in segment EBITDA to $84.5 million from $80.6 million, aided by a 60 basis point rise in gross margin percentage. Looking ahead, Boise Cascade anticipates modest increases in EWP volumes but expects sequential declines in pricing for the first quarter of 2025. Capital expenditures for 2025 are projected between $220 million and $240 million, including investments in EWP production capabilities and new distribution centers. The company also highlighted its balanced capital allocation strategy, returning $220 million to shareholders through dividends and repurchasing 1.75 million shares in 2024.Boise Cascade Corporate Events
Executive/Board ChangesDividends
Boise Cascade Appoints New Executive VP for Building Materials
Positive
Feb 12, 2025
On February 7, 2025, Boise Cascade announced the appointment of Joanna Barney as Executive Vice President of Building Materials Distribution, effective February 17, 2025. The company’s board also declared a quarterly dividend of $0.21 per share, payable on March 19, 2025, reflecting continued confidence in its financial health and commitment to returning value to shareholders.
Executive/Board ChangesBusiness Operations and Strategy
Boise Cascade Appoints Jeff Strom as COO
Positive
Jan 16, 2025
On January 16, 2025, Boise Cascade announced the appointment of Jeff Strom as Chief Operating Officer effective January 20, 2025. This strategic leadership change underscores the company’s focus on operational excellence and market growth, with Strom bringing extensive experience from his previous roles in the company.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.