BOISE CASCADE CO (BCC) Stock Fundamental Analysis
NYSE:BCC - New York Stock Exchange, Inc. - US09739D1000 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to BCC. BCC was compared to 48 industry peers in the Trading Companies & Distributors industry. BCC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on BCC. This makes BCC very considerable for value investing!
1. Profitability
1.1 Basic Checks
BCC had positive earnings in the past year.
In the past year BCC had a positive cash flow from operations.
BCC had positive earnings in each of the past 5 years.
BCC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BCC (11.17%) is better than 91.49% of its industry peers.
BCC has a better Return On Equity (17.49%) than 63.83% of its industry peers.
BCC has a Return On Invested Capital of 13.10%. This is amongst the best in the industry. BCC outperforms 82.98% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BCC is significantly above the industry average of 9.53%.
The 3 year average ROIC (20.56%) for BCC is well above the current ROIC(13.10%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.17% | ||
| ROE | 17.49% | ||
| ROIC | 13.1% |
ROA(3y)17.21%
ROA(5y)17.64%
ROE(3y)27.07%
ROE(5y)30.89%
ROIC(3y)20.56%
ROIC(5y)23.38%
1.3 Margins
The Profit Margin of BCC (5.60%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of BCC has grown nicely.
BCC's Operating Margin of 7.29% is in line compared to the rest of the industry. BCC outperforms 51.06% of its industry peers.
In the last couple of years the Operating Margin of BCC has grown nicely.
BCC has a Gross Margin of 19.79%. This is amonst the worse of the industry: BCC underperforms 80.85% of its industry peers.
BCC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.29% | ||
| PM (TTM) | 5.6% | ||
| GM | 19.79% |
OM growth 3Y-15.92%
OM growth 5Y19.91%
PM growth 3Y-14.61%
PM growth 5Y26.29%
GM growth 3Y-1.19%
GM growth 5Y6.28%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BCC is creating value.
The number of shares outstanding for BCC has been reduced compared to 1 year ago.
The number of shares outstanding for BCC has been reduced compared to 5 years ago.
Compared to 1 year ago, BCC has a worse debt to assets ratio.
2.2 Solvency
BCC has an Altman-Z score of 5.68. This indicates that BCC is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.68, BCC belongs to the best of the industry, outperforming 91.49% of the companies in the same industry.
The Debt to FCF ratio of BCC is 2.27, which is a good value as it means it would take BCC, 2.27 years of fcf income to pay off all of its debts.
BCC has a better Debt to FCF ratio (2.27) than 70.21% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that BCC is not too dependend on debt financing.
The Debt to Equity ratio of BCC (0.22) is better than 65.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 5.68 |
ROIC/WACC1.24
WACC10.54%
2.3 Liquidity
A Current Ratio of 3.34 indicates that BCC has no problem at all paying its short term obligations.
BCC has a Current ratio of 3.34. This is amongst the best in the industry. BCC outperforms 87.23% of its industry peers.
A Quick Ratio of 1.92 indicates that BCC should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.92, BCC belongs to the best of the industry, outperforming 85.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.34 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
The earnings per share for BCC have decreased strongly by -21.12% in the last year.
BCC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.93% yearly.
The Revenue has decreased by -1.67% in the past year.
The Revenue has been growing slightly by 7.69% on average over the past years.
EPS 1Y (TTM)-21.12%
EPS 3Y-18.94%
EPS 5Y35.93%
EPS Q2Q%-27.05%
Revenue 1Y (TTM)-1.67%
Revenue growth 3Y-5.33%
Revenue growth 5Y7.69%
Sales Q2Q%-4.67%
3.2 Future
BCC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.87% yearly.
BCC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.27% yearly.
EPS Next Y7.8%
EPS Next 2Y9.42%
EPS Next 3Y10.87%
EPS Next 5YN/A
Revenue Next Year4.64%
Revenue Next 2Y4.06%
Revenue Next 3Y3.27%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.69, which indicates a very decent valuation of BCC.
Compared to the rest of the industry, the Price/Earnings ratio of BCC indicates a rather cheap valuation: BCC is cheaper than 85.11% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.75. BCC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.91, which indicates a very decent valuation of BCC.
Based on the Price/Forward Earnings ratio, BCC is valued cheaper than 87.23% of the companies in the same industry.
BCC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.69 | ||
| Fwd PE | 9.91 |
4.2 Price Multiples
85.11% of the companies in the same industry are more expensive than BCC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BCC is valued a bit cheaper than 74.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.79 | ||
| EV/EBITDA | 5.78 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of BCC may justify a higher PE ratio.
PEG (NY)1.37
PEG (5Y)0.3
EPS Next 2Y9.42%
EPS Next 3Y10.87%
5. Dividend
5.1 Amount
BCC has a yearly dividend return of 0.82%, which is pretty low.
The stock price of BCC dropped by -29.96% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.98, BCC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, BCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
The dividend of BCC is nicely growing with an annual growth rate of 33.47%!
BCC has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of BCC decreased recently.
Dividend Growth(5Y)33.47%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BCC pays out 60.80% of its income as dividend. This is not a sustainable payout ratio.
BCC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.8%
EPS Next 2Y9.42%
EPS Next 3Y10.87%
102.16
-1.5 (-1.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners100.27%
Inst Owner Change0.61%
Ins Owners0.81%
Ins Owner Change-0.12%
Market Cap3.92B
Analysts70.91
Price Target144.5 (41.44%)
Short Float %3.34%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend5.89
Dividend Growth(5Y)33.47%
DP60.8%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.22%
Min EPS beat(2)-1.73%
Max EPS beat(2)-0.71%
EPS beat(4)2
Avg EPS beat(4)3.82%
Min EPS beat(4)-1.73%
Max EPS beat(4)12.6%
EPS beat(8)5
Avg EPS beat(8)12.59%
EPS beat(12)8
Avg EPS beat(12)13.37%
EPS beat(16)12
Avg EPS beat(16)22.31%
Revenue beat(2)0
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)-0.54%
Revenue beat(4)2
Avg Revenue beat(4)0.72%
Min Revenue beat(4)-1.28%
Max Revenue beat(4)4.21%
Revenue beat(8)3
Avg Revenue beat(8)0.52%
Revenue beat(12)6
Avg Revenue beat(12)1.14%
Revenue beat(16)10
Avg Revenue beat(16)3.98%
PT rev (1m)0%
PT rev (3m)-3.08%
EPS NQ rev (1m)-32.46%
EPS NQ rev (3m)-34.51%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.97%
Revenue NQ rev (1m)-7.33%
Revenue NQ rev (3m)-8.81%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.69 | ||
| Fwd PE | 9.91 | ||
| P/S | 0.58 | ||
| P/FCF | 18.79 | ||
| P/OCF | 8.95 | ||
| P/B | 1.82 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 5.78 |
EPS(TTM)9.56
EY9.36%
EPS(NY)10.31
Fwd EY10.09%
FCF(TTM)5.44
FCFY5.32%
OCF(TTM)11.41
OCFY11.17%
SpS175.11
BVpS56.02
TBVpS47.04
PEG (NY)1.37
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.17% | ||
| ROE | 17.49% | ||
| ROCE | 17.47% | ||
| ROIC | 13.1% | ||
| ROICexc | 17.57% | ||
| ROICexgc | 21.03% | ||
| OM | 7.29% | ||
| PM (TTM) | 5.6% | ||
| GM | 19.79% | ||
| FCFM | 3.1% |
ROA(3y)17.21%
ROA(5y)17.64%
ROE(3y)27.07%
ROE(5y)30.89%
ROIC(3y)20.56%
ROIC(5y)23.38%
ROICexc(3y)31.07%
ROICexc(5y)35.84%
ROICexgc(3y)37.77%
ROICexgc(5y)41.09%
ROCE(3y)27.41%
ROCE(5y)31.18%
ROICexcg growth 3Y-31.63%
ROICexcg growth 5Y14.19%
ROICexc growth 3Y-34.18%
ROICexc growth 5Y11.92%
OM growth 3Y-15.92%
OM growth 5Y19.91%
PM growth 3Y-14.61%
PM growth 5Y26.29%
GM growth 3Y-1.19%
GM growth 5Y6.28%
F-Score5
Asset Turnover2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.27 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 155.74% | ||
| Cap/Sales | 3.41% | ||
| Interest Coverage | 21.68 | ||
| Cash Conversion | 68.76% | ||
| Profit Quality | 55.47% | ||
| Current Ratio | 3.34 | ||
| Quick Ratio | 1.92 | ||
| Altman-Z | 5.68 |
F-Score5
WACC10.54%
ROIC/WACC1.24
Cap/Depr(3y)141.55%
Cap/Depr(5y)127.1%
Cap/Sales(3y)2.64%
Cap/Sales(5y)2.14%
Profit Quality(3y)87.05%
Profit Quality(5y)92.55%
High Growth Momentum
Growth
EPS 1Y (TTM)-21.12%
EPS 3Y-18.94%
EPS 5Y35.93%
EPS Q2Q%-27.05%
EPS Next Y7.8%
EPS Next 2Y9.42%
EPS Next 3Y10.87%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.67%
Revenue growth 3Y-5.33%
Revenue growth 5Y7.69%
Sales Q2Q%-4.67%
Revenue Next Year4.64%
Revenue Next 2Y4.06%
Revenue Next 3Y3.27%
Revenue Next 5YN/A
EBIT growth 1Y-21.52%
EBIT growth 3Y-20.41%
EBIT growth 5Y29.13%
EBIT Next Year35.74%
EBIT Next 3Y14.55%
EBIT Next 5YN/A
FCF growth 1Y-55.77%
FCF growth 3Y-28.05%
FCF growth 5Y5.09%
OCF growth 1Y-36.24%
OCF growth 3Y-13.06%
OCF growth 5Y12.28%