4/11/2014

Daily Value Idea 04/10/14 , Nano Cap

(JCTCF): Jewett-Cameron Trading Company manufactures and distributes specialty metal products, wood products to home centers/retailers. Operates four segments: Industrial Wood Products; Lawn, Garden, Pet, and Other; Seed Processing and Sales; and Industrial Tools and Clamps. JCTCF was founded in 1953 based in North Palins, Oregon.

Management is shareholder friendly with a history of buying back shares. Current valuation is attractive.

Why consider this value based nano cap? Consistent high annual average ROIC of 15.43% from 2012 to TTM with an EV/EBITDA of 4.85. Consistent growing book value per share. 2011 BV per share was 4.58 to the current TTM balance of 6.58. Solid financial position with a book value of 6.68 per share, cash per share of 2.58, deep discount in valuation to its industry for price to sales and book. Share count was 4,779,778 at the end of 2010. Management reduced that count by 35% to 3,133,740 for the most recent quarter!!Operating margins inched up from a 2011 OM balance of 6.72% to the TTM OM% of 8.91%. Note YTD price performance is down -5.84% but 2013, 2012 posted returns of 54.83% and 65.22% respectfully.
  




“Board of Directors has authorized the implementation of a share repurchase plan to purchase for cancellation up to 300,000 common shares”. “This amount represents approximately 10.6% of the 2,821,443 common shares outstanding. Since the 4(th) quarter of Fiscal 2010, the Company repurchased 1,960,511 common shares (adjusted for a 2 for 1 stock split effective May 1, 2013) under prior formal plans of repurchase.”

Market Cap: 29.99M
Enterprise Value: 22.88M
Price/Sales:0.64,Price/Book: 1.48
Enterprise Value/Revenue: 0.48
Enterprise Value/EBITDA : 4.85
Return on Assets (ttm): 13.08%
Return on Equity (ttm): 15.35%

Qtrly Revenue Growth (yoy):     -13.90%
Gross Profit (ttm):9.83M ,EBITDA:  4.71M
Total Cash:8.10M ,Cash Per Share: 2.58
Current Ratio:  15.62 ,Book Value Per Share: 6.68
52-Week Change: 6.93%
52-Week High: 13.88  ,52-Week Low:8.49
Shares Outstanding:3.13M ,Float:  1.96M

% Held by Insiders:42.91% ,% Held by Institutions:4.80%
























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