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Boise Cascade (BCC)
NYSE:BCC
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Boise Cascade
(NYSE:BCC)
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Rating:69Neutral
Price Target:
$97.00
▲(24.95% Upside)
Boise Cascade's overall stock score reflects a solid financial foundation with a strong balance sheet and reasonable valuation. However, technical indicators and earnings call insights reveal challenges such as declining sales and profitability pressures, which weigh on the stock's outlook.
Positive Factors
Operational Efficiency
The completion of the Oakdale mill modernization enhances operational efficiency, potentially reducing costs and improving production reliability, which can strengthen Boise Cascade's competitive position in the long term.
Gross Margin Improvement
The improvement in BMD's gross margin indicates effective cost management and pricing strategies, which can contribute to sustained profitability and financial health over time.
Dividend Increase
The dividend increase reflects confidence in cash flow stability and financial strength, enhancing shareholder value and potentially attracting income-focused investors.
Negative Factors
Decline in Net Income
The decline in net income suggests pressure on profitability, which may impact the company's ability to reinvest in growth initiatives and maintain competitive advantages.
Decrease in Sales
The decrease in sales across segments indicates potential challenges in market demand and competitive pressures, which could affect long-term revenue growth and market position.
Challenges in Residential Construction
Challenges in residential construction could lead to sustained demand weakness, impacting Boise Cascade's core markets and potentially limiting growth opportunities in the near to medium term.
Boise Cascade (BCC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.90B
Dividend Yield1.09%
Average Volume (3M)324.84K
Price to Earnings (P/E)11.4
Beta (1Y)1.14
Revenue Growth-5.26%
EPS Growth-40.75%
CountryUS
Employees7,670
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)1.64
Shares Outstanding37,337,475
10 Day Avg. Volume326,164
30 Day Avg. Volume324,839
Financial Highlights & Ratios
PEG Ratio-0.59
Price to Book (P/B)2.16
Price to Sales (P/S)0.69
P/FCF Ratio22.26
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue0.51
Enterprise Value/Gross Profit2.78
Enterprise Value/Ebitda6.37
Forecast
1Y Price Target
$100.75Price Target Upside29.78% Upside
Rating ConsensusHold
Number of Analyst Covering5
Boise Cascade Business Overview & Revenue Model
Company DescriptionBoise Cascade Company manufactures wood products and distributes building materials in the United States and Canada. It operates through two segments, Wood Products and Building Materials Distribution. The Wood Products segment manufactures laminated veneer lumber and laminated beams used in headers and beams; I-joists for residential and commercial flooring and roofing systems, and other structural applications; structural, appearance, and industrial plywood panels; and ponderosa pine lumber products. This segment's products are used in new residential construction, residential repair-and-remodeling markets, light commercial construction, and industrial applications. It sells its products to wholesalers, home improvement centers, retail lumberyards, and industrial converters. The Building Materials Distribution segment distributes a line of building materials, including oriented strand boards, plywood, and lumber; general line items, such as siding, composite decking, doors, metal products, insulation, and roofing; and engineered wood products. This segment sells its products to dealers, home improvement centers, and specialty distributors. The company was founded in 2004 and is headquartered in Boise, Idaho.
How the Company Makes MoneyBoise Cascade generates revenue primarily through the sale of its wood products, which include engineered wood products like I-joists and laminated veneer lumber, as well as plywood and lumber. The company operates two main segments: the Wood Products segment and the Building Materials Distribution segment. The Wood Products segment contributes significant revenue from manufacturing and selling a range of wood products, while the Building Materials Distribution segment earns revenue by distributing building materials sourced from various manufacturers. Key revenue streams include direct sales to contractors and builders, as well as sales through distribution centers. Additionally, strategic partnerships with suppliers and manufacturers enhance BCC's product offerings and market reach, further driving sales growth.
Boise Cascade Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 03, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with significant achievements like the completion of the Oakdale mill modernization and a dividend increase. However, these were countered by declines in net income, sales, and segment EBITDA, along with ongoing challenges in residential construction and a strike at the Billings facility.Q2-2025 Updates
Positive Updates
Modernization Project Completion
The modernization project at the Oakdale mill is substantially complete, enhancing operational efficiency and reliability.
Gross Margin Improvement
BMD's gross margin improved by 60 basis points year-over-year to 15.4%.
Dividend Increase
The Board of Directors approved a $0.22 per share quarterly dividend, representing a 5% increase.
LVL Volume Growth
LVL volumes increased 8% year-over-year and 18% sequentially.
Capital Expenditure and Expansion
Capital expenditure of $132 million with investments in Wood Products and BMD, including modernization projects and new distribution centers.
Negative Updates
Decline in Net Income
Net income decreased to $62 million from $112.3 million in the year-ago quarter.
Decrease in Sales and Segment EBITDA
Consolidated sales decreased by 3%, Wood Product sales fell by 9%, and BMD sales fell by 2% compared to the second quarter of 2024. Segment EBITDA for Wood Products and BMD also decreased.
Plywood Volume and Price Decline
Plywood sales volume decreased from 383 million feet to 356 million feet, and the average net sales price dropped by 6% year-over-year.
Scheduled Mill Outages Impact
Scheduled outages at Oakdale and Kettle Falls mills negatively impacted year-over-year EBITDA comparisons.
Challenges in Residential Construction
Ongoing headwinds in residential construction activity, with forecasted EBITDA declines in the third quarter due to reduced demand and inventory adjustments.
Strike at Billings Facility
A strike involving 19 union-represented employees at the Billings facility, although limited in scope, is ongoing.
Company Guidance
During Boise Cascade's Second Quarter 2025 Earnings Call, the company provided guidance and discussed various metrics that reflect their current financial performance and future outlook. The company's consolidated second quarter sales were $1.7 billion, marking a 3% decline from the same period in 2024. Net income for the quarter was reported at $62 million, or $1.64 per share, compared to $112.3 million, or $2.84 per share, in the previous year. The Wood Products segment reported sales of $447.2 million, down 9% from the prior year, and segment EBITDA of $37.3 million compared to $95.1 million last year. The Building Materials Distribution (BMD) segment had sales of $1.6 billion, a 2% decrease from last year, and reported segment EBITDA of $91.8 million. The company also highlighted capital expenditures of $132 million in the first half of 2025 and projected third quarter EBITDA for Wood Products to be between $20 million and $30 million, and for BMD between $70 million and $80 million. They also noted challenges such as affordability constraints in the housing market and competitive pressures affecting pricing, while expressing optimism about long-term demand drivers and the completion of their modernization project at the Oakdale mill.Boise Cascade Financial Statement Overview
Summary
Boise Cascade's financial performance is solid with a strong balance sheet and effective cost management. However, declining revenue and net profit margins, along with reduced free cash flow growth, indicate some financial pressures.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.56B | 6.72B | 6.84B | 8.39B | 7.93B | 5.47B |
| Gross Profit | 1.19B | 1.33B | 1.43B | 1.91B | 1.63B | 938.79M |
| EBITDA | 521.43M | 669.94M | 803.01M | 1.26B | 1.05B | 424.45M |
| Net Income | 262.27M | 376.35M | 483.66M | 857.66M | 712.49M | 174.98M |
Balance Sheet | ||||||
| Total Assets | 3.45B | 3.37B | 3.46B | 3.24B | 2.57B | 1.97B |
| Cash, Cash Equivalents and Short-Term Investments | 481.02M | 713.26M | 949.57M | 998.34M | 748.91M | 405.38M |
| Total Debt | 507.91M | 516.22M | 529.79M | 523.08M | 531.79M | 531.40M |
| Total Liabilities | 1.29B | 1.22B | 1.26B | 1.18B | 1.22B | 1.11B |
| Stockholders Equity | 2.15B | 2.15B | 2.20B | 2.06B | 1.35B | 850.80M |
Cash Flow | ||||||
| Free Cash Flow | 118.38M | 208.75M | 472.02M | 927.10M | 560.47M | 215.09M |
| Operating Cash Flow | 273.85M | 438.32M | 687.46M | 1.04B | 666.98M | 294.52M |
| Investing Cash Flow | -213.38M | -237.82M | -375.55M | -625.46M | -105.59M | -78.72M |
| Financing Cash Flow | -431.65M | -436.81M | -360.68M | -166.33M | -217.87M | -95.66M |
Boise Cascade Technical Analysis
Negative
77.63
Price Trends
83.86
Negative
85.98
Negative
97.06
Negative
Market Momentum
-2.33
Positive
38.71
Neutral
33.79
Neutral
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 77.63 is below the 20-day moving average (MA) of 81.04, below the 50-day MA of 83.86, and below the 200-day MA of 97.06, indicating a bearish trend. The MACD of -2.33 indicates Positive momentum. The RSI at 38.71 is Neutral, neither overbought nor oversold. The STOCH value of 33.79 is Neutral, 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 28 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $7.61B | 17.28 | 31.87% | 0.43% | 0.88% | -4.17% | |
76 Outperform | $40.26B | 42.59 | 11.89% | 0.63% | 0.19% | 4.33% | |
76 Outperform | $38.28B | 35.17 | 12.10% | 0.50% | 1.02% | -45.31% | |
69 Neutral | $2.90B | 11.41 | 11.77% | 1.09% | -5.26% | -40.75% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | $951.05M | 13.35 | 8.93% | ― | -33.46% | -32.34% |
* Basic Materials Sector Average
BCC
Boise Cascade
77.63
-62.47
-44.59%
EXP
Eagle Materials
234.60
-48.86
-17.24%
MLM
Martin Marietta Materials
634.77
119.09
23.09%
VMC
Vulcan Materials
304.70
68.42
28.96%
LOMA
Loma Negra Compania Industrial Argentina Sociedad Anonima
7.48
-0.87
-10.42%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.