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Jewett-Cameron Trading Company (JCTC)
NASDAQ:JCTC
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Jewett-Cameron Trading Company
(NASDAQ:JCTC)
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Rating:57Neutral
Price Target:―
Jewett-Cameron Trading Company's overall stock score reflects a cautious outlook. Despite strong equity positions and cash flow management, the company's declining revenue and operational challenges weigh heavily on its financial health. The earnings call highlighted some positive strategic initiatives, but the technical analysis indicates a bearish trend, and the valuation suggests potential overvaluation. These factors combined result in a moderate score, emphasizing the need for operational improvement and strategic execution.
Jewett-Cameron Trading Company (JCTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.07M
Dividend YieldN/A
Average Volume (3M)14.97K
Price to Earnings (P/E)25.6
Beta (1Y)0.06
Revenue Growth-9.09%
EPS Growth-271.61%
CountryUS
Employees62
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)-0.18
Shares Outstanding3,518,119
10 Day Avg. Volume21,728
30 Day Avg. Volume14,974
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue0.33
Enterprise Value/Gross Profit3.76
Enterprise Value/Ebitda-6.49
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Jewett-Cameron Trading Company Business Overview & Revenue Model
Company DescriptionJewett-Cameron Trading Company (JCTC) is a diversified holding company based in North Plains, Oregon, primarily engaged in the manufacturing and distribution of a wide range of products within the industrial, agricultural, and pet sectors. The company's operations span several key segments, including lawn, garden, and pet supply products, industrial tools, and wood products. JCTC is known for its quality offerings that cater to both consumer and commercial markets, providing solutions that enhance productivity and meet various customer needs.
How the Company Makes MoneyJewett-Cameron Trading Company generates revenue through the sale of its diverse product lines, which are distributed across multiple channels, including direct sales and through retail partners. The company's revenue streams are primarily derived from its core segments: industrial tools, where it provides high-quality equipment; lawn, garden, and pet supplies, which cater to homeowners and agricultural businesses; and wood products, which serve construction and industrial applications. JCTC benefits from strategic partnerships with retailers and distributors, enabling it to expand its market reach and maintain a steady flow of income. The company's ability to innovate and adapt to market demands plays a crucial role in sustaining its profitability.
Jewett-Cameron Trading Company Earnings Call Summary
Earnings Call Date:Jul 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Dec 02, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments and challenges. While the company showed growth in revenue, store presence, and certain product categories, it faced issues with declining margins, net losses, and weak demand in the pet products segment. The successful implementation of supply chain strategies and inventory management indicates strong operational improvements, but the financial metrics and market challenges suggest a cautious outlook.Q2-2025 Updates
Positive Updates
Increased Revenue and Store Presence
Revenue for Q2 2025 was $9.1 million, up from $8.2 million in Q2 2024. The company exceeded its target by getting Lifetime Steel Post displayers into over 330 Home Depot and Lowe's stores, a 65% increase from three months prior.
Supply Chain Strategy Success
Jewett-Cameron's multi-sourcing strategy has reduced dependence on a single supplier, offering competitive pricing and lessening tariff impacts. The initiative began in 2023 and has been crucial amidst changing tariff policies.
Growth in Sustainable Products
The transition to MyEcoWorld sustainable bag products, including new grocery channel adoption and success in Mexico, has been strong, driven by online sales and a new line of recycled plastic dog waste bags.
Greenwood Segment Growth
Sales at Greenwood increased 31% for the current quarter to $1.1 million from $0.9 million in Q2 of 2024, partially due to tariff uncertainty.
Improved Inventory Management
Inventory balances were reduced by 23% to $14.9 million at February 28, 2025, from $17.6 million at February 29, 2024.
Negative Updates
Decline in Gross Margins
Gross margins for Q2 2025 were 20.1% compared to 25.1% in Q2 2024, due to a shift in sales mix to lower-margin products and high domestic production costs for in-store display units.
Net Loss for the Quarter
Net loss for Q2 2025 was $0.6 million or $0.16 per share compared to net income of $0.5 million or $0.15 per share in Q2 2024.
Weak Demand for Pet Products
Sales in the pet products category declined compared to Q2 2024 due to downstream retail channel inventory congestion.
Material Constraints Affect Wood Fence Products
Revenue from wood fence products fell slightly from the previous year due to material constraints.
Company Guidance
During the second quarter of fiscal year 2025, Jewett-Cameron Trading Company reported significant progress in several key areas, with a focus on enhancing shareholder value. The company achieved a revenue of $9.1 million, up from $8.2 million in the same quarter last year, largely driven by the successful rollout of its Lifetime Steel Post displayers, which increased to over 330 Home Depot and Lowe's stores, marking a 65% increase from three months prior. Despite a decrease in gross margins to 20.1% from 25.1% in Q2 2024 due to high initial domestic production costs, the company expects future margin improvements from overseas production. Additionally, Jewett-Cameron reported a net loss of $0.6 million, or $0.16 per share, compared to a net income of $0.5 million in Q2 2024, while continuing to strengthen its balance sheet by reducing inventory by 23% and maintaining zero long-term debt. The company's strategic focus includes product innovation, supply chain diversification, and operational efficiency, alongside exploring asset monetization opportunities such as the potential sale of a seed cleaning facility listed for $9 million.Jewett-Cameron Trading Company Financial Statement Overview
Summary
Jewett-Cameron Trading Company demonstrates financial resilience despite declining revenues and operational challenges. The company benefits from strong equity and cash flow management, positioning it for potential recovery. However, the negative EBIT and EBITDA margins highlight the need for operational improvements to sustain long-term profitability.Income Statement
Jewett-Cameron Trading Company has seen a declining revenue trend from 2022 to 2024, with a notable decrease of 13.2% in 2023 and a further drop of 13.2% in 2024. The gross profit margin decreased from 21.9% in 2022 to 18.8% in 2024. The net profit margin improved from a negative margin in 2023 to a positive 1.5% in 2024, indicating a recovery in profitability. However, EBIT and EBITDA margins have turned negative, signaling operational challenges.60
Neutral
Balance Sheet
The company presents a strong equity position with a high equity ratio of 90.4% in 2024, reflecting financial stability and low reliance on debt. The debt-to-equity ratio improved significantly to 0.0 in 2024, indicating no debt burden. The return on equity is modest at 2.9% in 2024, demonstrating moderate profitability on equity.75
Positive
Cash Flow
Jewett-Cameron Trading Company shows a healthy free cash flow in 2024, with a growth rate of 12.3% from 2023. The operating cash flow to net income ratio is robust at 8.35, reflecting strong cash generation relative to net earnings. The free cash flow to net income ratio is also favorable at 8.2, indicating efficient cash flow management despite fluctuating net income.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 44.14M | 47.15M | 54.29M | 62.90M | 57.50M | 44.95M |
| Gross Profit | 3.92M | 8.88M | 12.25M | 13.79M | 14.15M | 12.47M |
| EBITDA | -2.27M | -1.42M | 828.61K | 2.06M | 4.67M | 4.08M |
| Net Income | -2.07M | 721.75K | -20.63K | 1.16M | 3.45M | 2.78M |
Balance Sheet | ||||||
| Total Assets | 29.24M | 27.49M | 29.80M | 34.52M | 29.14M | 23.28M |
| Cash, Cash Equivalents and Short-Term Investments | 1.20M | 4.85M | 83.70K | 484.46K | 1.18M | 3.80M |
| Total Debt | 2.42M | 0.00 | 1.26M | 7.00M | 3.00M | 680.71K |
| Total Liabilities | 6.21M | 2.64M | 5.70M | 10.42M | 6.26M | 3.93M |
| Stockholders Equity | 23.03M | 24.85M | 24.10M | 24.09M | 22.87M | 19.35M |
Cash Flow | ||||||
| Free Cash Flow | -2.28M | 5.92M | 5.27M | -4.70M | -5.62M | -2.67M |
| Operating Cash Flow | -2.18M | 6.03M | 5.60M | -3.44M | -4.42M | -2.22M |
| Investing Cash Flow | -88.54K | 149.00 | -256.17K | -1.26M | -1.19M | -448.88K |
| Financing Cash Flow | 2.42M | -1.26M | -5.74M | 4.00M | 3.00M | -3.19M |
Jewett-Cameron Trading Company Technical Analysis
Negative
3.48
Price Trends
3.62
Negative
3.69
Negative
4.05
Negative
Market Momentum
-0.06
Positive
42.85
Neutral
12.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JCTC, the sentiment is Negative. The current price of 3.48 is below the 20-day moving average (MA) of 3.56, below the 50-day MA of 3.62, and below the 200-day MA of 4.05, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 42.85 is Neutral, neither overbought nor oversold. The STOCH value of 12.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JCTC.
Jewett-Cameron Trading Company Risk Analysis
Jewett-Cameron Trading Company disclosed 16 risk factors in its most recent earnings report. Jewett-Cameron Trading Company 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
Jewett-Cameron Trading Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | 5.57B | 16.08 | 10.96% | 1.50% | -5.09% | -26.13% | |
61 Neutral | 623.81M | -1.37 | -5.67% | 3.51% | -0.62% | -39.91% | |
59 Neutral | 338.83M | -3.35 | 24.06% | ― | -26.71% | -329.19% | |
57 Neutral | $12.07M | 25.57 | -8.62% | ― | -9.09% | -271.61% | |
43 Neutral | 182.86M | -1.67 | -24.47% | 11.15% | -2.16% | 44.89% | |
34 Underperform | 23.17M | -2.65 | -95.83% | ― | ― | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
Performance Comparison
JCTC
Jewett-Cameron Trading Company
3.48
-1.44
-29.27%
CLW
Clearwater Paper
21.04
-7.48
-26.23%
MERC
Mercer International
2.73
-3.61
-56.94%
MATV
Mativ Holdings
11.41
-4.95
-30.26%
UFPI
UFP Industries
92.23
-37.38
-28.84%
NWGL
Nature Wood Group Limited Sponsored ADR
1.44
-0.11
-7.10%
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.