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Jewett-Cameron Trading Company
(NASDAQ:JCTC)
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Rating:52Neutral
Price Target:
$2.50
▼(-0.40% Downside)
Action:Reiterated
Date:07/17/26
The score is primarily held back by weak financial performance—shrinking revenue, compressed margins, and a large TTM net loss—despite a relatively conservative balance sheet and recently positive (but volatile) cash flow. Technicals provide a modest offset with bullish trend signals (price above major DMAs and positive MACD), though overbought indicators (high RSI/Stoch) temper that support. Valuation is neutral-to-weak because the company is unprofitable (negative P/E) and no dividend yield is available.
Positive Factors
Conservative balance sheet / low leverage
Low absolute debt versus a meaningful equity base provides structural financial flexibility. Manageable leverage reduces insolvency risk, supports working-capital needs, and gives capacity to fund inventory, absorb continued losses, or invest in distribution without immediate external financing pressure.
Negative Factors
Revenue decline and gross margin compression
Falling sales alongside a sharp drop in gross margin signals structural pricing pressure or rising input/fulfillment costs that hurt core profitability. Persisting top-line contraction plus lower margins weaken the firm's ability to cover fixed costs and invest in distribution or product development.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Low absolute debt versus a meaningful equity base provides structural financial flexibility. Manageable leverage reduces insolvency risk, supports working-capital needs, and gives capacity to fund inventory, absorb continued losses, or invest in distribution without immediate external financing pressure.
Read all positive factors
Jewett-Cameron Trading Company (JCTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.33M
Dividend YieldN/A
Average Volume (3M)12.91K
Price to Earnings (P/E)―
Beta (1Y)0.34
Revenue Growth-10.71%
EPS Growth-297.69%
CountryUS
Employees45
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)-2.34
Shares Outstanding3,520,113
10 Day Avg. Volume8,848
30 Day Avg. Volume12,913
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.61
Price to Sales (P/S)0.31
P/FCF Ratio-1.89
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Jewett-Cameron Trading Company Business Overview & Revenue Model
Company Description
Jewett-Cameron Trading Company Ltd. (JCTC) manufactures and supplies specialized metal goods, alongside operating as a wholesale distributor of timber products. The company caters to a wide range of customers, including major home improvement cent...
How the Company Makes Money
JCTC makes money primarily by selling physical consumer and light industrial products at a margin between its cost to source/manufacture and the price it sells to customers. Its key revenue streams come from (1) wholesale/retail distribution of la...
Jewett-Cameron Trading Company Earnings Call Summary
Earnings Call Date:Jan 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Dec 01, 2026
Earnings Call Sentiment Negative
The call outlined meaningful operational actions — pricing renegotiations, headcount reductions, monetization of non-core assets, and expanded short-term liquidity — and highlighted bright spots such as a 45% increase at Greenwood and resilience in the metal fence business. However, these positives are outweighed by significant near-term financial deterioration: a swing from +18.3% to -12.5% gross margin driven by $2.2M of write-downs, a sharply higher inventory reserve, SG&A step-ups, and a substantially larger net loss of $3.9M. The company is executing remediation plans, but near-term results remain heavily impacted by inventory impairments, tariff uncertainty, and pressured categories (lumber and pet).Positive Updates
Revenue and Core Category Resilience
Total revenue was $8.3M in Q1 FY2026, down 7% from $9.3M a year ago, while the core metal fence business — the company's largest category — posted slight year-over-year sales growth, demonstrating resilience amid tariffs and weak consumer sentiment.
Negative Updates
Sharp Gross Margin Deterioration
Gross operating margin swung from +18.3% in Q1 FY2025 to -12.5% in Q1 FY2026, a deterioration of 30.8 percentage points, primarily driven by $2.2M in inventory write-downs and liquidation sales that carried little or no margin.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Core Category Resilience
Total revenue was $8.3M in Q1 FY2026, down 7% from $9.3M a year ago, while the core metal fence business — the company's largest category — posted slight year-over-year sales growth, demonstrating resilience amid tariffs and weak consumer sentiment.
Read all positive updates
Company Guidance
The company guided that its clear objective is to exit FY2026 with a sustainable, more focused business model, targeting annual operating expense reductions of $1.0–$3.0 million and continuing headcount cuts (wages and benefits down to $1.2M from $1.7M) to align costs with pricing; Q1 revenue was $8.3M (down 7% from $9.3M), gross operating margin was negative 12.5% (vs. +18.3% a year ago) principally due to $2.2M of inventory write-downs, and net loss was $3.9M, or $1.12 per share (vs. a $658K loss, $0.19 per share, in Q1 2025). Management emphasized focusing on its resilient metal fence business (sales up slightly) and Greenwood (sales +45%), monetizing non‑core assets (industrial lumber, selected pet assets, wood fencing, seed processing/storage and innovation studio), reducing slow‑moving pet and lumber inventory, and improving pricing (most renegotiated price increases began implementing in 2026). On the balance sheet, inventory was $13.5M at 11/30/2025 (vs. $15.9M in August) with an inventory allowance of $3.05M (up $1.85M from August, including a $2.2M reserve adjustment); financing flexibility was increased via a NorthRim amendment (AR purchase cap raised from 80% to 90% and ceiling from $6M to $8M, inventory advance rate from 25% to 50%, max borrowing from $4M to $6.5M) and the company had $4.2M borrowed under the line as of 11/30/2025.Jewett-Cameron Trading Company Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
62
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Nov 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 39.41M | 41.30M | 47.15M | 54.29M | 62.90M | 57.50M |
| Gross Profit | 3.20M | 6.25M | 8.88M | 12.25M | 13.79M | 14.15M |
| EBITDA | -7.08M | -3.56M | 1.16M | 898.86K | 2.06M | 4.67M |
| Net Income | -8.26M | -4.13M | 721.75K | -20.63K | 1.16M | 3.45M |
Balance Sheet | ||||||
| Total Assets | 18.41M | 25.48M | 27.49M | 29.80M | 34.52M | 29.14M |
| Cash, Cash Equivalents and Short-Term Investments | 1.06M | 226.21K | 4.85M | 83.70K | 484.46K | 1.18M |
| Total Debt | 1.33M | 2.10M | 0.00 | 1.26M | 7.00M | 3.00M |
| Total Liabilities | 3.63M | 4.70M | 2.73M | 5.79M | 10.42M | 6.26M |
| Stockholders Equity | 14.77M | 20.78M | 24.85M | 24.10M | 24.09M | 22.87M |
Cash Flow | ||||||
| Free Cash Flow | 952.91K | -6.73M | 5.92M | 5.27M | -4.70M | -5.62M |
| Operating Cash Flow | 974.54K | -6.61M | 6.03M | 5.60M | -3.44M | -4.42M |
| Investing Cash Flow | -21.43K | -114.21K | 149.00 | -256.17K | -1.26M | -1.19M |
| Financing Cash Flow | -1.09M | 2.10M | -1.26M | -5.74M | 4.00M | 3.00M |
Jewett-Cameron Trading Company Technical Analysis
Positive
2.51
Price Trends
2.35
Positive
2.10
Positive
2.20
Positive
Market Momentum
0.09
Positive
57.96
Neutral
67.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JCTC, the sentiment is Positive. The current price of 2.51 is below the 20-day moving average (MA) of 2.61, above the 50-day MA of 2.35, and above the 200-day MA of 2.20, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 57.96 is Neutral, neither overbought nor oversold. The STOCH value of 67.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | $339.17M | -6.92 | -6.13% | ― | -1.93% | 48.75% | |
53 Neutral | $481.18M | 6.29 | 17.12% | 4.58% | 0.82% | ― | |
52 Neutral | $9.33M | -1.13 | -48.58% | ― | -10.71% | -297.69% | |
48 Neutral | $2.97M | -0.28 | -4.53% | ― | -0.28% | -4.98% | |
42 Neutral | $4.19M | -0.71 | -87.51% | ― | -32.13% | ― | |
41 Neutral | $42.33M | -0.08 | -242.96% | 11.18% | -7.34% | -479.98% |
* Basic Materials Sector Average
JCTC
Jewett-Cameron Trading Company
2.69
-1.00
-27.12%
CLW
Clearwater Paper
22.85
0.35
1.56%
MERC
Mercer International
0.71
-2.53
-78.15%
ITP
IT Tech Packaging
0.18
-0.02
-9.50%
MATV
Mativ Holdings
9.20
2.88
45.68%
NWGL
Nature Wood Group Limited Sponsored ADR
0.28
-0.85
-75.45%
Jewett-Cameron Trading Company Corporate Events
Executive/Board Changes
Jewett-Cameron Announces Retirement of Independent Board Director
Neutral
Jun 23, 2026
On June 19, 2026, Jewett-Cameron Trading Company Ltd. announced that independent director Ian Wendler intends to retire from its Board of Directors on or about July 31, 2026, after having joined the board in December 2023 and being reelected on Fe...
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.