Boise Cascade L.L.C. logged a 3.2% change during Friday's session, and is now trading at a price of $104.41 per share.
Boise Cascade L.L.C. returned gains of 61.0% last year, with its stock price reaching a high of $112.58 and a low of $59.32. Over the same period, the stock outperformed the S&P 500 index by 45.0%. More recently, the company's 50-day average price was $99.94. Boise Cascade Company engages in manufacture of wood products and distribution of building materials in the United States and Canada. It operates through two segments, Wood Products and Building Materials Distribution. The Wood Products segment manufactures laminated veneer lumber and laminated beams used in headers and beams; I-joists for residential and commercial flooring and roofing systems, and other structural applications; structural, appearance, and industrial plywood panels; and ponderosa pine lumber products. This segment's products are used in new residential construction, residential repair-and-remodeling markets, light commercial construction, and industrial applications. Based in Boise, ID, the mid-cap Consumer Discretionary company has 7,250 full time employees. Boise Cascade L.L.C. has offered a 0.6% dividend yield over the last 12 months.
The Business Has Weak Operating Margins:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $4,995 | $4,643 | $5,475 | $7,926 | $8,387 | $7,143 |
| Gross Margins | 1% | 3% | 6% | 12% | 14% | 11% |
| Operating Margins | 1.0% | 3.0% | 6.0% | 12.0% | 14.0% | 11.0% |
| Net Margins | 0.0% | 2.0% | 3.0% | 9.0% | 10.0% | 8.0% |
| Net Income (MM) | $20 | $81 | $175 | $712 | $858 | $580 |
| Net Interest Expense (MM) | $26 | $26 | $26 | $25 | $25 | $26 |
| Depreciation & Amort. (MM) | $147 | $80 | $95 | $81 | $102 | $122 |
| Earnings Per Share | $0.52 | $2.06 | $4.44 | $17.97 | $21.56 | $14.56 |
| Diluted Shares (MM) | 39 | 39 | 39 | 40 | 40 | 40 |
| Free Cash Flow (MM) | $84 | $163 | $215 | $560 | $927 | $754 |
| Capital Expenditures (MM) | $80 | $83 | $79 | $107 | $114 | $142 |
| Net Current Assets (MM) | $529 | $574 | $724 | $1,198 | $1,400 | $1,613 |
| Long Term Debt (MM) | $439 | $441 | $444 | $445 | $444 | $445 |
| Net Debt / EBITDA | 1.13 | 0.72 | 0.11 | -0.28 | -0.44 | -0.68 |
Boise Cascade L.L.C. has growing revenues and increasing reinvestment in the business and exceptional EPS growth. Additionally, the company's financial statements display low leverage and generally positive cash flows. However, the firm has weak operating margins with a positive growth rate. Finally, we note that Boise Cascade L.L.C. has similar gross margins to its peers.
Boise Cascade L.L.C. Is Potentially Undervalued and Trades Below Its Graham Number:
Boise Cascade L.L.C. has a trailing twelve month P/E ratio of 7.9, compared to an average of 22.33 for the Consumer Discretionary sector. Based on its EPS guidance of $11.0, the company has a forward P/E ratio of 9.1. The company doesn't provide forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 74.3%. On this basis, Boise Cascade L.L.C.'s PEG ratio is 0.11. Using instead the 11.5% weighted average of Boise Cascade L.L.C.'s earnings CAGR and the broader market's anticipated 5-year EPS growth rate, the company's PEG ratio is 0.69, which implies that its shares may be underpriced. Additionally, the market is possibly undervaluing Boise Cascade L.L.C. in terms of its equity because its P/B ratio is 1.79 whereas the sector average is 3.12. The company's shares are currently trading -22.0% below their Graham number.
Boise Cascade L.L.C. Has an Average Rating of Hold:
The 5 analysts following Boise Cascade L.L.C. have set target prices ranging from $108.0 to $130.0 per share, for an average of $118.6 with a hold rating. As of April 2023, the company is trading -15.7% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Boise Cascade L.L.C. has an average amount of shares sold short because 3.1% of the company's shares are sold short. Institutions own 93.9% of the company's shares, and the insider ownership rate stands at 0.78%, suggesting a small amount of insider investors. The largest shareholder is Blackrock Inc., whose 16% stake in the company is worth $668,478,679.
