As a fundamental investor, you are looking for companies trading at a discount to their value based on the business fundamentals. The starting point in assessing the business fundamentals is looking at the historical performances. When you apply this approach to NYSE Boise Cascade Company (BCC), you may not get a realistic picture. This is because its performance over the past few years were skewed by extra-ordinary high wood prices. My ...
Boise Cascade's low P/E ratio is due to its forecast of declining earnings. Investors believe that the potential for an improvement in earnings is not significant enough to justify a higher P/E ratio.
Recent insider selling at Boise Cascade raises caution. Despite insiders owning shares, the lack of buying and volume of selling could concern potential investors. The company also shows 3 warning signs in investment analysis.
Boise Cascade or BCC is one of the largest producers of engineered wood products and plywood in North America. Its growth in PAT over the past decade was driven mostly by the past 2 years' outlier product prices, which have since declined. The company is fundamentally sound with strong financials. BCC is a cyclical company heavily influenced by the housing sector, and valuations based on probability-weighting the outlier prices show no margin of safety. For mor...
When hunting for companies in the wood-based products business, I found that those in Bursa Malaysia are mainly in the furniture sector. But many in the US are in the building materials sector. This is because in the US, most houses are timber-based whereas in Malaysia, most houses are brick and cement based. For example, Bursa Malaysia Dominan manufactures and sells engineered wood mouldings and laminated wood panel products worl...
The significant selling of shares by an insider, with no insider buying recorded in the past year, is a potential red flag for investors. Some level of investment alignment with other shareholders is implied by the insider ownership, yet caution is recommended due to recent insider selling activity.
RDK79
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BCC’s net sales increased 21.1% year-over-year to $1.78 billion in the fourth quarter, ended Dec. 31, 2021. Its income from operations grew 129.4% from the year-ago value to $227.38 million, while its net income improved 550.3% year-over-year to $169.08 million over the period. The company’s EPS increased 545.5% from its year-ago value to $4.26. In terms of forward non-GAAP P/E, BCC is currently trading at 6.072x, which is 66.5% lower than the 18.1x industry average. Its 0.4 forward Price/Sales multiple is 71.4% lower than the 1.41 industry average.
Boise Cascade Stock Forum
When you apply this approach to NYSE Boise Cascade Company (BCC), you may not get a realistic picture. This is because its performance over the past few years were skewed by extra-ordinary high wood prices.
My ...
For mor...
This is because in the US, most houses are timber-based whereas in Malaysia, most houses are brick and cement based.
For example, Bursa Malaysia Dominan manufactures and sells engineered wood mouldings and laminated wood panel products worl...
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