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Jewett-Cameron Trading Company (JCTC)
NASDAQ:JCTC
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Jewett-Cameron Trading Company (JCTC) AI Stock Analysis

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JCTC

Jewett-Cameron Trading Company

(NASDAQ:JCTC)

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)

Jewett-Cameron Trading Company Business Overview & Revenue Model

Company DescriptionJewett-Cameron Trading Company Ltd., through its subsidiaries, engages in the manufacturing and distribution of specialty metal products and wholesale distribution of wood products to home centers, eCommerce providers, on-line direct consumers, and other retailers. The company operates through three segments: Industrial Wood Products; Pet, Fencing and Other; and Seed Processing and Sales. The Industrial Wood Products segment processes and distributes industrial wood products. It offers treated plywood to the transportation industry. The Pet, Fencing and Other segment is involved in the wholesale of pet products, including various enclosures/kennels, beds, bowls, and compostable dog waste bags; fencing and containment products, such as post systems, wood and other fencing infill products, and kitted security fencing solutions; and other products comprising garden, landscaping, and miscellaneous products for the home. The Seed Processing and Sales segment processes and distributes agricultural seeds to distributors, as well as cleaning seeds. The company markets its products under the Lucky Dog, Adjust-A-Gate, Fit-Right, Perimeter Patrol, Lifetime Post, Early Start, Spring Gardner, Greenline, and Weatherguard brands. It also distributes sustainable bag products. It operates in the United States, Canada, Mexico, Latin America, the Caribbean, Europe, and the Asia Pacific. The company was founded in 1953 and is headquartered in North Plains, Oregon.
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
60
Neutral
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.
Balance Sheet
75
Positive
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.
Cash Flow
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue44.14M47.15M54.29M62.90M57.50M44.95M
Gross Profit3.92M8.88M12.25M13.79M14.15M12.47M
EBITDA-2.27M-1.42M828.61K2.06M4.67M4.08M
Net Income-2.07M721.75K-20.63K1.16M3.45M2.78M
Balance Sheet
Total Assets29.24M27.49M29.80M34.52M29.14M23.28M
Cash, Cash Equivalents and Short-Term Investments1.20M4.85M83.70K484.46K1.18M3.80M
Total Debt2.42M0.001.26M7.00M3.00M680.71K
Total Liabilities6.21M2.64M5.70M10.42M6.26M3.93M
Stockholders Equity23.03M24.85M24.10M24.09M22.87M19.35M
Cash Flow
Free Cash Flow-2.28M5.92M5.27M-4.70M-5.62M-2.67M
Operating Cash Flow-2.18M6.03M5.60M-3.44M-4.42M-2.22M
Investing Cash Flow-88.54K149.00-256.17K-1.26M-1.19M-448.88K
Financing Cash Flow2.42M-1.26M-5.74M4.00M3.00M-3.19M

Jewett-Cameron Trading Company Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.70
Price Trends
50DMA
3.68
Negative
100DMA
3.74
Negative
200DMA
4.12
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
45.45
Neutral
STOCH
11.53
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 3.7 is below the 20-day moving average (MA) of 3.75, above the 50-day MA of 3.68, and below the 200-day MA of 4.12, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 11.53 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
$6.05B17.5510.71%1.34%-5.09%-26.13%
61
Neutral
$10.27B6.370.76%2.91%3.10%-36.03%
61
Neutral
$658.80M4.60-69.18%3.28%-0.62%-39.91%
59
Neutral
$353.00M33.74-4.36%-26.71%-329.19%
57
Neutral
$13.02M25.57-8.62%-9.09%-271.61%
43
Neutral
$213.67M-23.39%9.55%-2.16%44.89%
34
Underperform
$21.52M-65.63%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JCTC
Jewett-Cameron Trading Company
3.70
-0.90
-19.57%
CLW
Clearwater Paper
21.92
-8.41
-27.73%
MERC
Mercer International
3.19
-2.15
-40.26%
MATV
Mativ Holdings
12.05
-5.31
-30.59%
UFPI
UFP Industries
102.64
-9.74
-8.67%
NWGL
Nature Wood Group Limited Sponsored ADR
1.30
-0.19
-12.75%
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.Date of analysis: Apr 21, 2025