BOISE CASCADE CO (NYSE:BCC) – A Quality Stock Worth Considering

BOISE CASCADE CO (NYSE:BCC) stands out as a potential candidate for quality investors, meeting several key criteria from our Caviar Cruise screen. The company, which manufactures and distributes engineered wood products and plywood, demonstrates strong fundamentals in profitability, financial health, and efficient capital allocation. Below, we examine why BCC fits the quality investing profile.

Key Strengths of BCC

• Strong Profitability: BCC has an impressive Return on Invested Capital (ROIC) of 16.44%, well above our 15% threshold. This indicates efficient use of capital to generate profits.
• Healthy Debt Management: The company’s Debt-to-Free Cash Flow ratio of 3.54 suggests it can repay its debt in just over three years using current cash flows—a sign of financial stability.
• High Profit Quality: With a 5-year average Profit Quality of 92.55%, BCC converts nearly all its net income into free cash flow, reflecting strong earnings reliability.
• EBIT Growth Outpacing Revenue: BCC’s 5-year EBIT growth of 29.13% exceeds revenue growth, signaling improving operational efficiency and pricing power.

Fundamental Analysis Summary

BCC earns a solid fundamental rating of 6/10, with standout scores in profitability (7/10) and financial health (7/10). Key takeaways:

• Valuation: Trading at a P/E of 11.63, BCC is priced below industry and S&P 500 averages, offering reasonable value.
• Stability: The company has consistently generated positive earnings and cash flows over the past five years.
• Growth Concerns: Recent declines in EPS and revenue growth (-34.88% and -4.67%, respectively) warrant caution, though long-term trends remain positive.

For investors seeking quality stocks with strong fundamentals, BCC presents a compelling case.

Our Caviar Cruise screener lists more quality investment candidates and is updated regularly.

Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.