Boise Cascade (BCC) AI Stock Analysis

• Market Cap: $3.66B
• Dividend Yield: 0.86%
• Average Volume (3M): 387.27K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.14
• Revenue Growth: -1.67%
• EPS Growth: -21.20%
• Country: US
• Employees: 7,560
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Construction Materials
• EPS (TTM): 9.55
• Shares Outstanding: 38,041,084
• 10 Day Avg. Volume: 271,208
• 30 Day Avg. Volume: 387,273
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.32
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $123.75
• Price Target Upside: 28.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Boise Cascade's solid financials, including a strong balance sheet and prudent capital management, support its stability. However, declining sales and operational challenges suggest caution. Technical indicators and mixed earnings call sentiment indicate potential short-term pressure despite a reasonable valuation.

Positive Factors

Competitive Advantage

The company's focus on single-family residential construction, which accounts for roughly eighty percent of overall sales, is a major competitive advantage.

Financial Flexibility

A strong balance sheet supports a balanced capital allocation strategy that has included strategic growth investments, M&A, and returning capital to shareholders.

Valuation

The recent pullback in the stock is making valuation attractive.

Negative Factors

Macro Environment

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

Market Uncertainty

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.

Pricing Risks

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 (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 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 shows strong profitability and a healthy balance sheet with low leverage. However, declining revenue and net income alongside capital expenditure constraints are areas of concern.

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
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

• Technical Analysis Sentiment: Neutral
• Last Price: 96.15
• 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 Neutral. The current price of 96.15 is above the 20-day moving average (MA) of 94.09, below the 50-day MA of 98.00, and below the 200-day MA of 123.02, indicating a neutral trend. The MACD of -1.41 indicates Negative momentum. The RSI at 50.27 is Neutral, neither overbought nor oversold. The STOCH value of 49.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$35.28B	38.98	12.10%	0.70%	-2.24%	3.00%
EXP	76 Outperform	$7.79B	16.72	33.51%	0.43%	0.64%	-1.15%
MLM	75 Outperform	$32.30B	16.54	11.88%	―	-0.54%	-48.61%
LOMA	74 Outperform	$1.35B	9.34	24.53%	―	-42.74%	242.59%
JHX	68 Neutral	$10.45B	24.05	21.77%	―	1.26%	-17.38%
BCC	64 Neutral	$3.66B	10.04	17.32%	0.86%	-1.67%	-21.20%
Sector *	49 Neutral	$1.96B	-1.28	-21.20%	3.73%	0.86%	-29.40%

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.

Boise Cascade Appoints New Executive VP for Building Materials

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.