Boise Cascade (BCC) AI Stock Analysis

• Market Cap: $3.43B
• Dividend Yield: 0.9%
• Average Volume (3M): 354.97K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.14
• Revenue Growth: -4.67%
• EPS Growth: -35.04%
• Country: US
• Employees: 7,670
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Construction Materials
• EPS (TTM): 1.06
• Shares Outstanding: 37,629,680
• 10 Day Avg. Volume: 381,657
• 30 Day Avg. Volume: 354,968
• PEG Ratio: -0.65
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $115.00
• Price Target Upside: 27.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Boise Cascade's overall stock score reflects a balanced view of its financial strength, reasonable valuation, and strategic efforts in shareholder returns. However, the score is moderated by technical weaknesses and a challenging market environment impacting profitability and sales.

Positive Factors

Distribution Business Performance

Distribution’s margin consistency remains a bright spot.

Valuation

The recent pullback in the stock is making valuation attractive.

Negative Factors

Financial Performance

Boise Cascade reported softer than anticipated first quarter results as severe weather, competitive pricing, and slowing starts weighed on both sales price and volume while a planned plant outage further weighed on quarterly margins.

Macroeconomic Environment

Stagnant macro environment limits near term upside, resulting in suppressed demand and volumes.

Wood Products Pricing

There are some risks on the pricing and margin front in Wood Products, particularly if the recently slower activity persists into 2025.

Boise Cascade Business Overview & Revenue Model

Company Description

Boise 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 Money

Boise 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 has a strong financial foundation with effective cost management reflected in its income statement. Despite declining revenue and net profit margins, the company maintains robust gross and EBIT margins. The balance sheet is solid with low leverage, supporting financial stability. Cash flow generation is strong, although there are constraints in capital expenditures that affect liquidity.

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.

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.

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.62B	6.72B	6.84B	8.39B	7.93B	5.47B
	Gross Profit
2.49B	1.33B	1.43B	1.91B	1.63B	938.79M
	EBIT
411.49M	490.04M	624.39M	1.16B	971.80M	335.03M
	EBITDA
539.42M	669.94M	803.01M	1.26B	1.05B	424.45M
	Net Income Common Stockholders
312.58M	376.35M	483.66M	857.66M	712.49M	174.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	713.26M	949.57M	998.34M	748.91M	405.38M
	Total Assets
0.00	3.37B	3.46B	3.24B	2.57B	1.97B
	Total Debt
67.64M	516.22M	529.79M	523.08M	531.79M	531.40M
	Net Debt
67.64M	-197.04M	-419.79M	-475.26M	-217.12M	126.02M
	Total Liabilities
1.35B	1.22B	1.26B	1.18B	1.22B	1.11B
	Stockholders Equity
2.13B	2.15B	2.20B	2.06B	1.35B	850.80M
Cash Flow		Free Cash Flow
187.14M	208.75M	472.02M	927.10M	560.47M	215.09M
	Operating Cash Flow
382.38M	438.32M	687.46M	1.04B	666.98M	294.52M
	Investing Cash Flow
-200.66M	-237.82M	-375.55M	-625.46M	-105.59M	-78.72M
	Financing Cash Flow
-457.96M	-436.81M	-360.68M	-166.33M	-217.87M	-95.66M

Boise Cascade Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 89.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 89.92 is below the 20-day moving average (MA) of 92.19, below the 50-day MA of 95.16, and below the 200-day MA of 120.65, indicating a bearish trend. The MACD of -1.43 indicates Negative momentum. The RSI at 43.50 is Neutral, neither overbought nor oversold. The STOCH value of 48.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BCC.

Boise Cascade Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMC	78 Outperform	$36.46B	39.06	12.10%	0.68%	-2.24%	3.00%
EXP	76 Outperform	$8.05B	17.15	33.52%	0.42%	0.64%	-1.15%
LOMA	76 Outperform	$1.55B	15.02	14.05%	―	-37.30%	32.91%
MLM	75 Outperform	$34.25B	32.43	11.88%	0.55%	-0.54%	-48.61%
JHX	68 Neutral	$10.60B	24.61	21.77%	―	1.26%	-17.38%
BCC	65 Neutral	$3.43B	11.49	14.26%	0.90%	-4.67%	-35.04%
Sector *	50 Neutral	$1.98B	-1.08	-21.29%	3.61%	1.96%	-30.59%

Boise Cascade Corporate Events

Boise Cascade Declares Quarterly Dividend Announcement

On May 1, 2025, Boise Cascade announced that its board of directors declared a quarterly dividend of $0.21 per share, payable on June 18, 2025, to stockholders of record on June 2, 2025. This decision reflects the company’s ongoing financial strategy and commitment to returning value to shareholders, while future dividends will depend on various financial and operational factors.

Spark’s Take on BCC Stock

According to Spark, TipRanks’ AI Analyst, BCC is a Neutral.

Boise Cascade’s solid financials and reasonable valuation are offset by negative technical indicators and mixed earnings call sentiment. The company’s strong balance sheet and prudent capital management support stability, but declining sales and operational challenges suggest caution. The stock’s current technical weakness indicates potential short-term pressure, despite its long-term value proposition.

To see Spark’s full report on BCC stock, click here.

Boise Cascade Enters New $450M Credit Agreement

On April 14, 2025, Boise Cascade Company entered into a new Credit Agreement with JPMorgan Chase Bank, N.A., and other lenders, establishing a $450 million revolving loan facility. This agreement, which matures in 2030, replaces the previous credit agreement and includes provisions for a swingline sub-facility and a letter of credit sub-facility. The new credit arrangement allows for flexible borrowing and repayment terms based on various interest rate options and is secured by a first priority security interest in most of the company’s assets. At closing, $50 million was borrowed to repay the previous term loan facility, and existing letters of credit were transferred to the new agreement without penalties.

Spark’s Take on BCC Stock

According to Spark, TipRanks’ AI Analyst, BCC is a Neutral.

Boise Cascade’s stock score reflects a balanced view of its financial stability, strategic leadership changes, and modest valuation. However, technical indicators suggest bearish momentum, and operational challenges impact the outlook. Despite solid financial performance and shareholder returns, market conditions and declining sales weigh on the overall score.

To see Spark’s full report on BCC stock, click here.