Last Updated: 09 Nov 2024
Executive Summary
Boise Cascade Company (BCC), a leading manufacturer and distributor of wood products and building materials, has experienced a decline in its quarterly earnings and revenue growth in the latest quarter. However, the company's strong fundamentals and positive analyst outlook suggest potential for future growth.
Company Overview
BCC is headquartered in Boise, Idaho, and operates in the United States and Canada. The company's products include lumber, plywood, engineered wood products, and building materials. BCC has a market capitalization of $5.47 billion and is traded on the NYSE.
Fundamental Analysis
Revenue: BCC's revenue for the trailing twelve months (TTM) was $6.8 billion, with a quarterly growth rate of -0.066% year-over-year.
Earnings: Diluted EPS for the TTM was $10.32, with a quarterly growth rate of -0.349% year-over-year.
Profitability: BCC's profit margin is 5.96%, operating margin is 6.85%, return on assets is 9.35%, and return on equity is 18.30%.
Valuation: The company's trailing PE ratio is 13.79, forward PE ratio is 5.1, and price-to-sales ratio is 0.804.
Technical Analysis
Price Action: BCC's stock price has been trending sideways in recent months, with a 52-week high of $148.01 and a 52-week low of $95.23.
Moving Averages: The 50-day moving average is $136.36 and the 200-day moving average is $134.65.
Support and Resistance: Key support levels are around $135 and $125, while resistance levels are around $145 and $150.
Short Term Outlook
In the short term, BCC's stock price may face headwinds due to the decline in its quarterly earnings and revenue growth. However, the company's strong fundamentals and positive analyst outlook suggest that the stock could rebound in the coming months.
Long Term Outlook
In the long term, BCC is expected to benefit from the growing demand for wood products and building materials. The company's focus on sustainability and innovation is also expected to drive growth in the future.
Analyst Recommendations
Analysts have a mixed outlook on BCC's stock. Two analysts recommend a buy rating, three recommend a hold rating, and one recommends a sell rating. The average analyst target price is $144.4.
