Jim Cramer Says “Boise’s Too Levered to Only a Certain Part of the Food Chain”

Boise Cascade Company (NYSE:BCC) is one of the stocks Jim Cramer mentioned in his latest comments. When a caller inquired about the stock during the lightning round, Cramer stated:

“Well, I mean, look, the problem is this is connected housing. Anything connected to housing is just bad. We have to see the Fed cut rates. If the Fed cut rates, I’d rather see you in one of the major big box home companies than I would see [you in] Boise because Boise’s too levered to only a certain part of the food chain. I’m sorry.”

Photo by Adam Nowakowski on Unsplash

Boise Cascade Company (NYSE:BCC) manufactures engineered wood products and plywood and distributes building materials, including lumber, siding, roofing, and millwork. Third Avenue Management stated the following regarding Boise Cascade Company (NYSE:BCC) in its third quarter 2025 investor letter:

“During the quarter, the Fund initiated new positions in building materials distributor and manufacturer, Boise Cascade Company (NYSE:BCC).

Boise Cascade (“Boise”) is a leading manufacturer and distributor of building materials in the United States. The company operates through two segments, building materials distribution and wood products. On the distribution side, Boise distributes various products through the wholesale channel, including wood products, siding, composite decking, insulation, and roofing. On the wood products side, Boise primarily manufactures engineered wood products, such as laminated lumber veneer (LVL), I-joists, and plywood.

After a decade of respectable results, Boise’s profitability began to soften in 2024 while facing headwinds from slowing housing-related activity. While the near-term outlook remains challenged, Boise retains a strong financial position, which should provide the company with staying-power to participate in an eventual recovery in housing-related demand. Furthermore, the building material distribution industry has seen a substantial amount of consolidation activity in recent years, which could provide a backstop to valuation, as well as offer additional options for management to surface value transactionally.

In summary, we perceive Boise to be inexpensive on a “what is” basis with a good probability that, in the future, less depressed markets for U.S. homebuilding and renovation & remodeling could return the company to much higher levels of profitability. Meanwhile, a net cash balance sheet and a relative absence of liabilities offer the company a considerable amount of staying power. Finally, in our view, the attractiveness of Boise’s portfolios of distribution and manufacturing assets raises the probability that high levels of consolidation activity could one day involve Boise.”

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.