One-glance verdict
Undervalued
$50.85 our estimate vs market $2.91
94% below our estimate, below the bear case
Fundamentals snapshot
Jewett-Cameron Trading Company Ltd.
JCTC · NCM · Basic Materials · Lumber & Wood Production
Current price
$2.91
52-week range
$1.54 - $3.82
Market cap
$10.24M
Balance sheet
Distressed
-8.18x Concerning
Net debt $264.47K. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 6/10 years.
- Risk Return on equity was -43.7% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from 3.1% to -7.8% over 3 years.
What this company does
Jewett-Cameron Trading Company Ltd.
Jewett-Cameron makes and sells products for home and yard projects, such as "Lucky Dog" pet kennels and "Adjust-A-Gate" fencing kits. The company earns most of its money by selling these goods in large quantities to home improvement stores and other retailers. This means its business tends to do well when people are spending more on their homes and pets.
How the company got here
Jewett-Cameron started in 1953 as a small lumber wholesale business in Oregon. [1, 4] For about 30 years, it operated quietly until new owners took over in 1984 and began to grow the company by acquiring other businesses. [1, 2] This led to the creation of a holding company (a parent company that owns other companies) in 1987. [1, 4] Over the years, it expanded from just wood into metal fencing, pet kennels, and other products, often by buying other companies with established brands. [1, 12] Recently, the company has been streamlining its operations by closing less profitable divisions to focus on its strongest product lines. [4]
What it actually does
Jewett-Cameron makes and sells products for home, farm, and industrial use that you might see at retailers like Home Depot or Lowe's. [12] Their main items include do-it-yourself fence and gate kits, steel fence posts, and dog kennels sold under brand names like Adjust-A-Gate and Lucky Dog. [11] They also sell specialty wood products, like treated plywood used in transportation, and a line of eco-friendly pet waste and compost bags called MyEcoWorld. [6, 10]
Pet, Fencing and Other
This is the company's largest business segment, making up most of its sales. [5] It includes a variety of branded products you could buy at a home improvement or farm supply store. This part of the business sells things like do-it-yourself gate-building kits (Adjust-A-Gate), steel fence posts (Lifetime Steel Post), and popular dog kennels and crates (Lucky Dog). [11, 12] It also includes a newer line of sustainable products, like compostable bags, under the MyEcoWorld brand. [10] Customers are typically homeowners, do-it-yourselfers, and pet owners who pay for these finished products at major retail stores. [12]
Industrial Wood Products
This is a smaller, more specialized part of the company. [9] Through a subsidiary (a company it owns) called Greenwood Products, it processes and sells wood products to other businesses, not directly to everyday shoppers. [6] A key product is treated plywood that is durable enough to be used in the transportation industry for things like buses and boats. [6] The customers for this segment are industrial manufacturers who buy these specialized wood materials for their own production needs.
What management is betting on now
The company's current strategy is focused on growing its core, most profitable products. [8] Management is investing in new product designs, like updated gate kits and dog kennels, to attract more customers. [13] They are also focused on getting more shelf space and better in-store displays at major retailers to increase sales. [8, 13] To improve profitability, they are working to find new supply chain partners (the network of companies that get a product from manufacturing to the customer) to lower costs and are selling off unused assets, like property from a closed division, to raise cash. [4, 13]
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$3.79M
FY2025 Q1
$-1.81M
FY2025 Q2
$-2.60M
FY2025 Q3
$-1.65M
FY2025 Q4
$-658.04K
FY2026 Q1
$-1.32M
FY2026 Q2
$-531.63K
FY2026 Q3
$3.46M
Revenue
$9.85M
Net income
$-814.33K
Diluted EPS
-0.23
Operating cash flow
$3.46M
Free cash flow
$3.46M
Fetching…
Sources
Revenue
$10.54M
Net income
$-1.25M
Diluted EPS
-0.35
Operating cash flow
$-531.63K
Free cash flow
$-531.63K
Fetching…
Sources
Revenue
$8.65M
Net income
$-3.94M
Diluted EPS
-1.12
Operating cash flow
$-1.32M
Free cash flow
$-1.32M
Fetching…
Sources
Revenue
$10.37M
Net income
$-2.25M
Diluted EPS
-0.65
Operating cash flow
$-636.41K
Free cash flow
$-658.04K
Fetching…
Sources
Revenue
$12.61M
Net income
$-649.63K
Diluted EPS
-0.18
Operating cash flow
$-1.62M
Free cash flow
$-1.65M
Fetching…
Sources
Revenue
$9.05M
Net income
$-573.09K
Diluted EPS
-0.16
Operating cash flow
$-2.58M
Free cash flow
$-2.60M
Fetching…
Sources
Revenue
$9.27M
Net income
$-658.72K
Diluted EPS
-0.19
Operating cash flow
$-1.78M
Free cash flow
$-1.81M
Fetching…
Sources
Revenue
$13.21M
Net income
$-190.50K
Diluted EPS
-0.05
Operating cash flow
$3.79M
Free cash flow
$3.79M
Fetching…
Sources
Is it cheap or expensive?
Fair value $50.85 vs current price $2.91
Our most-likely fair value is $50.85 a share — about 1,647.5% above today's price of $2.91, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $264,469. Interest coverage -8.2x.
Net debt
$264.47K
Interest coverage
-8.18x
Jewett-Cameron Trading Company Ltd.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
JCTC
BASELINE
Jewett-Cameron Trading Company Ltd.
Total debt $1.33M Interest coverage -8.18x This is the baseline the peer rows are being compared against.
Total debt $6.07M Interest coverage -6.78x Neither company has much profit cushion over interest right now.
Total debt $408.40M Interest coverage 33.62x This peer still has a real interest-payment cushion, while JCTC does not.
Total debt $549.25M Interest coverage 8.39x This peer still has a real interest-payment cushion, while JCTC does not.
Total debt $671.43M Interest coverage 1.00x This peer still has a real interest-payment cushion, while JCTC does not.
Total debt $446.50M Interest coverage 58.29x This peer still has a real interest-payment cushion, while JCTC does not.
What you should know
The case for and against JCTC
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 6/10 years.
Risks
-
Return on equity was -43.7% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 3.1% to -7.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
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P/B
0.69x
P/S
0.26x
EV/EBITDA
-1.54x
PEG ratio
0.42x
Profitability
How much profit each dollar creates
Gross margin
8.1%
Operating margin
-7.8%
Net margin
-20.9%
ROE
-43.7%
ROA
-18.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.09x
Current ratio
4.22x
Quick ratio
1.54x
Total debt
$1.33M
Total cash
$1.06M
Growth
How the business has been compounding
Revenue TTM
$39.41M
Revenue 5Y CAGR
-7.9%
EPS TTM
-2.35
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$974.54K
Free CF TTM
$-6.73M
FCF margin
-17.1%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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