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:
Below please find a table outlining a discounted cash flow forecast for BCC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that BOISE CASCADE Co ranked in the 78th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 475%. As for the metrics that stood out in our discounted cash flow analysis of BOISE CASCADE Co, consider:
Interest coverage, a measure of earnings relative to interest payments, is 5.48 -- which is good for besting 63.54% of its peer stocks (US stocks in the Basic Materials sector with positive cash flow).
The company's compound free cash flow growth rate over the past 5.43 years comes in at 0.33%; that's greater than 71.52% of US stocks we're applying DCF forecasting to.
BOISE CASCADE Co's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 15.5% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
NGVT, WMS, HGLD, SCCO, and KL can be thought of as valuation peers to BCC, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
Foraying into the Nashville market, Boise Cascade ([[BCC]] +4.6%) closed the purchase of a new property with building structures in Gallatin, TN. The facility has warehouse and office space; company plans to commence construction and site improvements immediately.New facility operations expected to begin in 2Q21; current facility will remain open during the transition."The investment...
BOISE, Idaho--(BUSINESS WIRE)--Boise Cascade Company (NYSE: BCC) today announced that it has completed the purchase of a new property with building structures in Gallatin, TN. “The acquisition of this new facility will allow us to expand our operations in the Nashville market, one of the strongest housing growth markets in the U.S.,” said Jeff Strom, vice president and Building Materials Distribution (BMD) general manager of Eastern Operations. The 13-acre facility currently has 183,000 sq. ft.
BOISE, Idaho--(BUSINESS WIRE)--Boise Cascade Company’s (Boise Cascade or the Company) (NYSE: BCC) Board of Directors has declared a supplemental dividend of $1.60 per share to holders of its common stock. The dividend will be paid on November 2, 2020 to stockholders of record on October 15, 2020. Future dividend declarations, including amount per share, record date and payment date, will be made by the Board of Directors and will depend upon, among other things, legal capital requirements and s
BOISE, Idaho--(BUSINESS WIRE)--Boise Cascade Company ("Boise Cascade," the "Company," "we," or "our") (NYSE: BCC) today reported net income of $33.6 million, or $0.85 per share, on sales of $1.2 billion for the second quarter ended June 30, 2020. "As we navigate this pandemic, the performance of our 5,700+ associates has been nothing short of outstanding. I am humbled by how our people have led with our shared values in response to the daily challenges in front of us, while continuing to suppor