Boise Cascade (BCC) AI Stock Analysis

• Market Cap: $3.16B
• Dividend Yield: 1%
• Average Volume (3M): 254.78K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 1.16
• Revenue Growth: -4.67%
• EPS Growth: -35.04%
• Country: US
• Employees: 7,670
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Construction Materials
• EPS (TTM): 1.06
• Shares Outstanding: 37,629,680
• 10 Day Avg. Volume: 267,416
• 30 Day Avg. Volume: 254,783
• PEG Ratio: -0.64
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.38
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 1.28
• Enterprise Value/Ebitda: 1.23
• 1Y Price Target: $115.00
• Price Target Upside: 36.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 65 Neutral
• Price Target: $98.00 ▲(16.72%Upside)

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

Capital Allocation

The company is buying back stock and executing well with margins at decent levels while being 15% below mid-cycle.

Strategic Investments

Boise Cascade Company is strategically deploying capital by investing in high-functioning sites, positioning well for when the market improves.

Negative Factors

Earnings 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

Deteriorating macro conditions persist, with little change regarding tariffs, interest rates, or the general level of economic uncertainty.

Pricing and Margin Risks

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 (NYSE: BCC) is a prominent North American manufacturer and distributor of building materials. Headquartered in Boise, Idaho, the company operates through two main segments: Wood Products and Building Materials Distribution. The Wood Products segment is involved in the manufacture of engineered wood products, plywood, and lumber, while the Building Materials Distribution segment focuses on the wholesale distribution of a wide range of building materials, including wood products manufactured by the company and other third-party producers.

How the Company Makes Money

Boise Cascade generates revenue primarily through the sale of its manufactured wood products and the distribution of a broad array of building materials. In the Wood Products segment, the company earns money by producing and selling engineered wood products, plywood, and lumber to a variety of customers, including retail lumberyards, home improvement centers, and industrial manufacturers. The Building Materials Distribution segment contributes to Boise Cascade's earnings by purchasing building materials from suppliers and selling them to a network of dealers and retailers. This segment benefits from strong relationships with suppliers and a comprehensive distribution network. Additionally, strategic partnerships and a focus on operational efficiency help the company maintain competitive pricing and enhance its market presence, further contributing to its financial performance.

Boise Cascade Financial Statement Overview

Summary

Boise Cascade's financial performance is solid, with strong gross profit margins and a robust balance sheet. However, challenges include decreased net profit margins and declining sales, which are impacting financial resilience despite stable EBIT and EBITDA margins.

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
561.78M	713.26M	949.57M	998.34M	748.91M	405.38M
	Total Assets
3.48B	3.37B	3.46B	3.24B	2.57B	1.97B
	Total Debt
514.03M	516.22M	529.79M	523.08M	531.79M	531.40M
	Net Debt
-47.76M	-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: 83.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 83.96 is below the 20-day moving average (MA) of 86.97, below the 50-day MA of 90.23, and below the 200-day MA of 116.45, indicating a bearish trend. The MACD of -1.38 indicates Positive momentum. The RSI at 45.78 is Neutral, neither overbought nor oversold. The STOCH value of 15.93 is Positive, 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	$34.10B	36.60	12.10%	0.76%	-2.24%	3.00%
EXP	76 Outperform	$6.40B	14.20	33.52%	0.51%	0.05%	0.96%
MLM	75 Outperform	$32.48B	30.98	11.88%	0.59%	-0.54%	-48.61%
JHX	72 Outperform	$10.40B	24.85	21.05%	―	-1.59%	-15.58%
BCC	65 Neutral	$3.16B	10.49	14.26%	1.00%	-4.67%	-35.04%
LOMA	64 Neutral	$1.38B	13.65	14.05%	―	-37.30%	32.91%
Sector *	51 Neutral	$2.01B	-1.27	-21.11%	5.15%	2.92%	-30.46%

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.

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.