Last Updated: 19 Sep 2024
Executive Summary
Boise Cascade Company (BCC) is a leading manufacturer and distributor of wood products and building materials in North America. With a market capitalization of $5.3 billion, BCC is a well-established company with a strong financial position. The company's recent financial performance has been solid, with revenue and earnings growing in recent quarters. BCC's stock price has outperformed the broader market over the past year. The company's fundamentals are strong, with solid profitability and a healthy balance sheet. Technically, BCC's stock is in a bullish trend and is trading above its key moving averages. Analysts are generally positive on BCC, with a consensus rating of "Buy." The company's short-term outlook is positive, with analysts expecting continued growth in revenue and earnings. The long-term outlook is also positive, with BCC well-positioned to benefit from the growing demand for wood products and building materials.
Company Overview
Boise Cascade Company is a leading manufacturer and distributor of wood products and building materials in North America. The company operates through three segments: Wood Products, Building Materials Distribution, and Paper and Packaging. BCC's Wood Products segment manufactures and sells lumber, plywood, and other wood products. The Building Materials Distribution segment distributes a wide range of building materials, including lumber, plywood, siding, roofing, and windows. The Paper and Packaging segment manufactures and sells paper and packaging products, including corrugated boxes, paperboard, and specialty papers. BCC has a strong presence in the United States and Canada, with over 100 manufacturing and distribution facilities. The company's products are used in a variety of applications, including residential and commercial construction, industrial packaging, and consumer products.
Fundamental Analysis
BCC's financial performance has been solid in recent quarters. The company's revenue has grown steadily over the past year, and earnings have also increased. In the most recent quarter, BCC reported revenue of $6.92 billion, an increase of 1.5% year-over-year. Net income was $732.4 million, an increase of 2.6% year-over-year. BCC's profitability metrics are also strong. The company's gross margin is 27.6%, and its operating margin is 8.2%. BCC has a healthy balance sheet, with total assets of $10.5 billion and total debt of $3.6 billion. The company's debt-to-equity ratio is 0.34, which is a manageable level.
Technical Analysis
BCC's stock price has outperformed the broader market over the past year. The stock is currently trading at $137.06, up 15% over the past year. BCC's stock is in a bullish trend and is trading above its key moving averages. The 50-day moving average is $130.36, and the 200-day moving average is $131.96. The relative strength index (RSI) is 62.5, which indicates that the stock is in a neutral zone. The moving average convergence divergence (MACD) is also in a neutral zone. Overall, the technical analysis is positive for BCC.
Short Term Outlook
Analysts are generally positive on BCC's short-term outlook. The consensus rating on the stock is "Buy." Analysts expect BCC to continue to grow its revenue and earnings in the coming quarters. The company is well-positioned to benefit from the growing demand for wood products and building materials. BCC's stock price is expected to continue to trade higher in the short term.
Long Term Outlook
The long-term outlook for BCC is also positive. The company is a leader in the wood products and building materials industry, and it is well-positioned to benefit from the growing demand for these products. BCC has a strong financial position and a solid track record of growth. The company's stock is expected to continue to perform well over the long term.
Analyst Recommendations
Analysts are generally positive on BCC. The consensus rating on the stock is "Buy." The following are some of the analyst recommendations for BCC:
Wells Fargo: Buy, target price $145
Credit Suisse: Buy, target price $140
Barclays: Buy, target price $135
Morgan Stanley: Hold, target price $130
Goldman Sachs: Sell, target price $125
