One-glance verdict
Undervalued
$36.75 our estimate vs market $2.85
92% below our estimate, below the bear case
Fundamentals snapshot
Jewett-Cameron Trading Company Ltd.
JCTC · NCM · Basic Materials · Lumber & Wood Production
Current price
$2.85
52-week range
$1.54 - $3.32
Market cap
$10.03M
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 Trading Company makes and sells various products like fences, pet enclosures, and eco-friendly bags, and also specialty wood items. Their money mainly comes from selling these products through stores, online, and directly to people, so their success depends on how well these different sales channels perform. The company’s ability to make a profit from its sales is important, meaning their margins (the money left over after paying for the costs of making and selling their goods) need to be healthy.
How the company got here
Jewett-Cameron Trading Company Ltd. began in 1953 as a small lumber brokerage business in Oregon, known then as Jewett-Cameron Lumber Company. For about 30 years, it operated with a low profile. A significant turning point came in 1984 when new investors, including Donald M. Boone and Michael C. Nasser, took the helm. This leadership injected ambition, leading to the formation of Jewett-Cameron Trading Company Ltd. in 1987 as a holding company. This marked the start of a more dynamic period of growth, acquisitions, and diversification beyond its original lumber focus.
What it actually does
Jewett-Cameron Trading Company Ltd. is a manufacturer and distributor with a diverse product portfolio. While its origins are in lumber, the company now specializes in products that enhance outdoor living and cater to pet owners. They design, source, and distribute these items, aiming to provide practical and innovative solutions for both everyday consumers and professional clients. The company operates through several distinct business units, each contributing to its overall offerings.
Pet, Fencing and Other
This segment represents the largest portion of Jewett-Cameron's business and is a primary source of its revenue. It includes a wide array of products such as fencing solutions, branded under names like Adjust-A-Gate and Euro Fence, which are designed to provide security, privacy, and aesthetic appeal to properties. This segment also features pet products, most notably under the Lucky Dog brand, offering items like kennels, crates, and exercise pens. Additionally, it encompasses other miscellaneous products, including sustainable bags for various uses.
Industrial Wood Products
This part of Jewett-Cameron's business focuses on the manufacturing and distribution of industrial wood products. A specialized area within this segment involves creating advanced noise and vibration reduction panels. These panels are utilized in demanding environments such as transit buses, motor coaches, light rail cars, and boats. The segment also produces structural panels designed for a range of industrial applications, operating under entities like Greenwood Products, Inc.
Seed Processing and Sales
This segment, historically managed by Jewett-Cameron Seed Co., was involved in processing and distributing agricultural seeds. The company sold seeds to various distributors and also provided seed cleaning services. However, in recent strategic shifts, this division has been discontinued due to declining demand and increasing operational costs. The company has ceased operations in this area and is looking to sell the associated property to recover value.
What management is betting on now
Jewett-Cameron's current strategy is centered on strengthening its financial health and streamlining its operations. Management is prioritizing its successful fencing product lines while actively seeking ways to sell off non-essential assets. Efforts are underway to improve the company's cash position, including exploring options for asset sales and renegotiating credit agreements. The company is also focused on increasing efficiency and reducing expenses, which has involved workforce adjustments and exiting less profitable business areas.
Price history
How the share price has moved
—
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 $36.75 vs current price $2.85
Our most-likely fair value is $36.75 a share — about 1,189.4% above today's price of $2.85, 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 $4.09M Interest coverage -6.78x Neither company has much profit cushion over interest right now.
Total debt $411.44M Interest coverage 33.62x This peer still has a real interest-payment cushion, while JCTC does not.
Total debt $562.47M Interest coverage 8.39x This peer still has a real interest-payment cushion, while JCTC does not.
Total debt $663.82M Interest coverage 1.00x This peer still has a real interest-payment cushion, while JCTC does not.
Total debt $413.08M 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
—
P/B
0.68x
P/S
0.25x
EV/EBITDA
-1.51x
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
0.0%
Payout ratio
0.0%
Last ex-div date
—