NYSE:BCC

Stock Analysis Report

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Executive Summary

Boise Cascade Company manufactures wood products and distributes building materials in the United States and Canada.


Snowflake Analysis

Excellent balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Boise Cascade's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BCC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.5%

BCC

3.8%

US Forestry

1.9%

US Market


1 Year Return

56.8%

BCC

10.9%

US Forestry

16.4%

US Market

Return vs Industry: BCC exceeded the US Forestry industry which returned 8.5% over the past year.

Return vs Market: BCC exceeded the US Market which returned 16.3% over the past year.


Shareholder returns

BCCIndustryMarket
7 Day-5.5%3.8%1.9%
30 Day15.7%13.9%4.5%
90 Day51.1%32.3%17.6%
1 Year62.6%56.8%14.5%10.9%18.9%16.4%
3 Year61.0%49.2%7.9%-1.0%44.1%34.8%
5 Year51.4%40.3%11.6%-1.9%75.3%56.3%

Price Volatility Vs. Market

How volatile is Boise Cascade's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Boise Cascade undervalued compared to its fair value and its price relative to the market?

19.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BCC ($44.69) is trading above our estimate of fair value ($18.92)

Significantly Below Fair Value: BCC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BCC is good value based on its PE Ratio (20x) compared to the US Forestry industry average (22.5x).

PE vs Market: BCC is poor value based on its PE Ratio (20x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: BCC is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: BCC is overvalued based on its PB Ratio (2.4x) compared to the US Forestry industry average (1.1x).


Next Steps

Future Growth

How is Boise Cascade forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BCC's forecast earnings growth (6.2% per year) is above the savings rate (2.2%).

Earnings vs Market: BCC's earnings (6.2% per year) are forecast to grow slower than the US market (23.1% per year).

High Growth Earnings: BCC's earnings are forecast to grow, but not significantly.

Revenue vs Market: BCC's revenue (5.9% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: BCC's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BCC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Boise Cascade performed over the past 5 years?

-1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BCC has high quality earnings.

Growing Profit Margin: BCC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BCC's earnings have declined by 1.5% per year over the past 5 years.

Accelerating Growth: BCC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BCC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Forestry industry (6.7%).


Return on Equity

High ROE: BCC's Return on Equity (11.8%) is considered low.


Next Steps

Financial Health

How is Boise Cascade's financial position?


Financial Position Analysis

Short Term Liabilities: BCC's short term assets ($1.2B) exceed its short term liabilities ($485.3M).

Long Term Liabilities: BCC's short term assets ($1.2B) exceed its long term liabilities ($616.1M).


Debt to Equity History and Analysis

Debt Level: BCC's debt to equity ratio (59.8%) is considered high.

Reducing Debt: BCC's debt to equity ratio has reduced from 66.2% to 59.8% over the past 5 years.

Debt Coverage: BCC's debt is well covered by operating cash flow (67.2%).

Interest Coverage: BCC's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


Next Steps

Dividend

What is Boise Cascade current dividend yield, its reliability and sustainability?

3.13%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: BCC's dividend (3.13%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: BCC's dividend (3.13%) is low compared to the top 25% of dividend payers in the US market (4.35%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BCC has been paying a dividend for less than 10 years.

Growing Dividend: BCC's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.4%), BCC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Nate Jorgensen (55 yo)

0.42

Tenure

US$1,413,415

Compensation

Mr. Nathan Jorgensen, also known as Nate, has been the Chief Operating Officer at Boise Cascade Company since January 22, 2019 and Serves as Chief Executive Officer and Director since March 06, 2020 and is ...


CEO Compensation Analysis

Compensation vs Market: Nate's total compensation ($USD1.41M) is below average for companies of similar size in the US market ($USD4.53M).

Compensation vs Earnings: Insufficient data to compare Nate's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Nathan Jorgensen
CEO, COO & Director0.42yrUS$1.41m0.043%
$ 751.3k
Wayne Rancourt
Executive VP11yrsUS$2.82m0.079%
$ 1.4m
Nick Stokes
Executive Vice President of Building Materials Distribution9.5yrsUS$1.80m0.057%
$ 997.9k
Dean Brown
Executive Vice President of Wood Products Division2.75yrsUS$1.28m0.036%
$ 628.9k
Jill Twedt
VP, General Counsel & Corporate Secretary1.58yrsno data0.060%
$ 1.0m
Erin Nuxoll
Senior Vice President of Human Resources1.58yrsno datano data
Richard Viola
Senior Vice President of Sales & Marketing - Building Materials Distribution4.5yrsno datano data
Kelly Hibbs
VP & Controller9.5yrsno data0.051%
$ 891.6k

3.6yrs

Average Tenure

57.5yo

Average Age

Experienced Management: BCC's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nathan Jorgensen
CEO, COO & Director0.42yrUS$1.41m0.043%
$ 751.3k
Christopher McGowan
Independent Director7.5yrsUS$219.99k0.080%
$ 1.4m
Richard Fleming
Independent Director7.5yrsUS$199.99k0.036%
$ 632.4k
Mack Hogans
Lead Independent Directorno dataUS$234.99k0.024%
$ 412.2k
Duane McDougall
Independent Director7.5yrsUS$199.99k0.036%
$ 632.4k
David Hannah
Independent Director5.75yrsUS$199.99k0.023%
$ 408.8k
Kristopher Matula
Independent Director6.08yrsUS$206.74k0.036%
$ 627.8k
Thomas Carlile
Independent Chairman5.42yrsUS$324.99k0.14%
$ 2.5m
Karen Gowland
Independent Director6.58yrsUS$218.86k0.023%
$ 408.8k
Steven Cooper
Independent Director5.5yrsUS$206.33k0.023%
$ 408.8k
Sue Taylor
Independent Director0.83yrUS$50.50k0.0030%
$ 53.1k

5.9yrs

Average Tenure

62yo

Average Age

Experienced Board: BCC's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BCC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Boise Cascade Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Boise Cascade Company
  • Ticker: BCC
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Forest Products
  • Sector: Materials
  • Market Cap: US$1.752b
  • Shares outstanding: 39.20m
  • Website: https://www.bc.com

Number of Employees


Location

  • Boise Cascade Company
  • 1111 West Jefferson Street
  • Suite 300
  • Boise
  • Idaho
  • 83702
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BCCNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 2013
BC0DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2013

Biography

Boise Cascade Company manufactures wood products and distributes building materials in the United States and Canada. It operates in two segments, Wood Products and Building Materials Distribution. The Wood ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 00:30
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.