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Boise Cascade Company (BCC)

Company Dividend Discount ModelIndustry: Construction MaterialsSector: Basic Materials

Valuation Snapshot

Stable Growth$118.94 - $315.52$181.87
Multi-Stage$80.83 - $88.34$84.51
Blended Fair Value$133.19
Current Price$86.82
Upside53.41%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS33.50%0.00%6.019.104.195.612.081.421.330.070.000.00
YoY Growth---33.96%117.15%-25.33%169.82%46.78%6.60%1,773.94%0.00%0.00%0.00%
Dividend Yield--6.13%5.95%6.63%8.08%3.48%5.96%4.97%0.18%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)193.00
(-) Cash Dividends Paid (M)34.91
(=) Cash Retained (M)158.09
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)38.6024.1314.48
Cash Retained (M)158.09158.09158.09
(-) Cash Required (M)-38.60-24.13-14.48
(=) Excess Retained (M)119.49133.97143.62
(/) Shares Outstanding (M)38.0638.0638.06
(=) Excess Retained per Share3.143.523.77
LTM Dividend per Share0.920.920.92
(+) Excess Retained per Share3.143.523.77
(=) Adjusted Dividend4.064.444.69
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$118.94$181.87$315.52
Upside / Downside37.00%109.48%263.42%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)193.00205.55218.91233.14248.29264.43272.36
Payout Ratio18.09%32.47%46.85%61.24%75.62%90.00%92.50%
Projected Dividends (M)34.9166.74102.56142.76187.75237.99251.94

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)60.6061.1861.75
Year 2 PV (M)84.5686.1787.80
Year 3 PV (M)106.87109.94113.07
Year 4 PV (M)127.62132.53137.58
Year 5 PV (M)146.89153.98161.35
PV of Terminal Value (M)2,549.952,673.112,800.99
Equity Value (M)3,076.503,216.923,362.53
Shares Outstanding (M)38.0638.0638.06
Fair Value$80.83$84.51$88.34
Upside / Downside-6.90%-2.66%1.75%

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