StockStory Cites Weak Sales and Cash Flow at Boise Cascade

StockStory said Boise Cascade’s falling revenue, weaker free-cash-flow margin and declining return on invested capital weigh on its business outlook. The publisher also argued the shares had limited appeal at its cited price of $77.16.

The article said Boise Cascade had gained 2.9% over six months, trailing the S&P 500’s 21.4% rise. As of 18:32 UTC on Sept. 28, the shares traded at $77.28, up 0.18% since the previous close.

Boise Cascade’s revenue declined by 2.5% a year over the past five years, according to StockStory. The publisher said the company’s free-cash-flow margin fell 6.8 percentage points over that period and stood at 1.6% for the trailing 12 months.

StockStory also reported that the company’s return on invested capital had decreased significantly in recent years, but gave no figure for the decline. The article cited a forward price-to-earnings ratio of 17.2 and said it viewed that valuation as pricing in substantial good news.