Boise Cascade manufactures wood products and distributes building materials in the United States and Canada. Its Wood Products segment manufactures plywood, EWP, studs, particleboard and ponderosa pine lumber. Its Building Materials Distribution segment is a wholesale distributor of various building materials, including EWP, OSB, plywood, lumber and general line items, such as siding, metal products, insulation, roofing and composite decking. The company was founded in 2004 and is based in Boise, Idaho.
BCC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for BOISE CASCADE Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that BOISE CASCADE Co ranked in the 67th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for BOISE CASCADE Co ended up being:
The company's balance sheet shows it gets 74% of its capital from equity, and 26% of its capital from debt. Its equity weight surpasses that of 58.34% of free cash flow generating stocks in the Basic Materials sector.
BOISE CASCADE Co's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 20.27% of tickers in our DCF set.
BOISE CASCADE Co's effective tax rate, as measured by taxes paid relative to net income, is at 17 -- greater than 67.96% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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BOISE, Idaho--(BUSINESS WIRE)--Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported net income of $12.2 million, or $0.31 per share, on sales of $1.2 billion for the first quarter ended March 31, 2020. First quarter 2020 results include $15.0 million and $1.7 million, respectively, of pre-tax accelerated depreciation and other curtailment related costs, or $0.32 per share after-tax, due to the previously announced permanent curtailment of I-joist pro