Boise Cascade Company (BCC) delivered outstanding financial results in the last reported quarter, despite facing lower new single-family starts and commodities pricing headwinds. Its revenue came in 4.6% above analyst estimates, while earnings per share (EPS) surpassed forecasts by an impressive 49.1%, demonstrating the company’s robust business model.
Management remains steadfast in its strategies and growth initiatives, confidently relying on the strength of its balance sheet to weather economic uncertainty. What’s more, BCC offers a reliable dividend.
Let’s dig into some of BCC’s key metrics to uncover why this stock is worth considering.
Tracking BCC’s Growth Over 3 Years
Since June 2020, BCC’s revenue has steadily increased from $47.8 million to $79.3 million in March 2023, representing a growth rate of 65.6%.
BCC’s gross margin has shown a generally increasing trend over the past few years, with fluctuations along the way. The gross margin in June 2020 was 15.2%, increasing to 23.0% in September 2023. This indicates a growth of 52.6% from June 2020 to September 2023. The most recent value reported was 21.5% in March 2023.
BCC’s Dividend Per Share (DPS) has seen an overall growth trend over the past three years, from $1.39 on June 30, 2020, to $4.04 on March 31, 2023. Its value of $5.96 on June 30, 2022, is a growth rate of 330% compared to the first value in the series. Over the period, the DPS has fluctuated between a high of $5.98 on September 30, 2022, and a low of $2.00 on December 31, 2020.
BCC’s Share Price Uptrend: November 2022-May 2023
Between November 2022 and May 2023, BCC’s share price has fluctuated around $70, but overall, there has been a general upward trend. BCC’s growth rate has accelerated from an initial value of $72.88 on November 25, 2022, to the current value of $75.01 on May 18, 2023 (an increase of $2.13 or 2.9% in total). Here is a chart of BCC’s price over the past 180 days.
Analysis of BCC’s POWR Ratings
BCC has an overall B rating, translating to a Buy in our POWR Ratings system. It is ranked first among the six stocks in the Industrial - Wood industry.
BCC’s two most noteworthy dimensions, according to its POWR ratings, are Quality and Value. Quality has a rating of 79, while Value has the highest rating at 99. Over time, Quality and Value ratings have largely stayed the same.
How does Boise Cascade Company (BCC) Stack Up Against its Peers?
Other stocks that may be worth considering are Universal Forest Products Inc. (UFPI), Carrier Global Corp. (CARR), and Terex Corporation (TEX), which are also rated B.
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BCC shares were trading at $75.86 per share on Friday afternoon, down $0.58 (-0.76%). Year-to-date, BCC has gained 10.69%, versus a 9.80% rise in the benchmark S&P 500 index during the same period.
About the Author: Subhasree Kar
Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics.
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