Boise Cascade Co: A Strong Contender in the Building Materials Industry with a GF Score of 86
Boise Cascade Co (NYSE:BCC), a prominent player in the Building Materials industry, is currently trading at $106.37 with a market cap of $4.22 billion. The company's stock price has seen a gain of 2.78% today and an impressive 17.14% over the past four weeks. According to the GF Score, a stock performance ranking system developed by GuruFocus, BCC has a score of 86 out of 100. This score indicates good outperformance potential and is based on five key aspects: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank.
Financial Strength Analysis
Boise Cascade Co's Financial Strength rank is 8 out of 10. This rank measures the company's financial situation based on its debt burden, debt to revenue ratio, and Altman Z-Score. BCC's interest coverage is 30.25, indicating a low debt burden. The company's debt to revenue ratio is 0.07, suggesting a healthy financial position. Furthermore, its Altman Z score is 6.46, indicating a low risk of bankruptcy.
Profitability Rank Analysis
The company's Profitability Rank is 9 out of 10, reflecting its strong profitability. BCC's Operating Margin is 11.57%, and its Piotroski F-Score is 5, indicating a healthy financial situation. The company has shown consistent profitability over the past 10 years and has a Predictability Rank of 3.
Growth Rank Analysis
Boise Cascade Co's Growth Rank is 10 out of 10, indicating strong growth in terms of its revenue and profitability. The company's 5-year revenue growth rate is 14.10%, and its 3-year revenue growth rate is 21.20%. Furthermore, its 5-year EBITDA growth rate is 50.20%, demonstrating robust growth in the company's business operations.
GF Value Rank Analysis
The company's GF Value Rank is 1 out of 10, suggesting that the stock is currently overvalued. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth.
Momentum Rank Analysis
Boise Cascade Co's Momentum Rank is 9 out of 10, indicating strong momentum in the company's stock price. This rank is determined using the standardized momentum ratio and other momentum indicators.
Competitor Analysis
When compared to its competitors in the same industry, Boise Cascade Co stands out with its high GF Score. Summit Materials Inc (NYSE:SUM) has a GF Score of 71, Tecnoglass Inc (NYSE:TGLS) has a GF Score of 78, and United States Lime & Minerals Inc (NASDAQ:USLM) has a GF Score of 82.
Conclusion
In conclusion, Boise Cascade Co's overall GF Score of 86 indicates good outperformance potential. The company's strong financial strength, high profitability, robust growth, and strong momentum make it a compelling choice for potential investors. However, its low GF Value Rank suggests that the stock is currently overvalued. Therefore, investors should exercise caution and conduct further research before making an investment decision.
This article first appeared on GuruFocus.
