One-glance verdict
Undervalued
$228.00 our estimate vs market $65.16
Wall Street consensus: $85.00 (-62.7% lower than our fair-value estimate)
71% below our estimate, below the bear case
Fundamentals snapshot
BlueLinx Holdings Inc.
BXC · NYQ · Industrials · Industrial Distribution
Current price
$65.16
52-week range
$44.78 - $93.80
Market cap
$512.45M
Balance sheet
Stretched
1.00x Concerning
Net debt $314.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 4.0% last year.
- Reward Free cash flow was positive in 8/10 years.
- Risk Operating margin compressed from 9.9% to 1.3% over 3 years.
- Risk Return on equity was -0.7% last year — the company lost money on shareholders' equity.
What this company does
BlueLinx Holdings Inc.
BlueLinx Holdings (BXC) is like a big hardware store for builders, distributing building materials from lumber to outdoor living items across the United States. The money they make mainly comes from selling these products, and it matters because their success shows how much building is happening in the country.
How the company got here
BlueLinx Holdings Inc. was established in 2004, emerging from the distribution business of Georgia-Pacific. It has since focused on distributing a wide array of building products across the United States. The company has navigated the cyclical nature of the construction industry, adapting its strategies to meet the evolving demands of both residential and commercial markets. Its history is rooted in providing essential materials to builders and manufacturers, aiming to be a reliable link in the construction supply chain.
What it actually does
Imagine you're building a house or a commercial building. BlueLinx is like a giant warehouse store for many of the key materials needed for that construction. They don't make the lumber or the windows themselves, but they buy these products in large quantities from manufacturers and then sell them to other businesses, like lumber yards, big home improvement stores, and construction companies. They handle the logistics of getting these materials to where they are needed, acting as a crucial intermediary in the building process.
Structural Products
This is a core part of BlueLinx's business, focusing on the fundamental materials that form the skeleton of a building. They distribute items like lumber, plywood, and oriented strand boards (OSB), which are essential for framing walls, floors, and roofs. Think of these as the sturdy bones that give a structure its shape and support. This segment serves customers who need large volumes of these foundational building components for new construction or major renovations.
Specialty Products
Beyond the basic structural elements, BlueLinx also distributes a variety of specialized building materials that add to a home's or building's functionality and appearance. This includes items like engineered wood (stronger, more consistent wood products), siding (the exterior material that protects the building), millwork (decorative and functional wood pieces like moldings and trim), and products for outdoor living spaces. These products often require more specific handling and knowledge, catering to customers looking for enhanced features and aesthetics.
What management is betting on now
BlueLinx's management is focused on strengthening its position as a key distributor in the building products industry. A major priority is enhancing its product mix, particularly by growing its higher-margin specialty products segment. They are also investing in improving operational efficiency and leveraging technology to better serve their diverse customer base, which includes national home centers and local dealers. The goal is to provide more value-added services and solutions, making BlueLinx an indispensable partner in the construction supply chain.
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.
FY2025 Q4
$-1.53M
FY2026 Q1
$-39.84M
FY2026 Q2
$-36.37M
FY2026 Q3
$52.67M
FY2026 Q4
$56.39M
FY2027 Q1
$-59.83M
FY2027 Q2
$8.79M
FY2027 Q3
$39.57M
Revenue
$812.61M
Net income
$-625.00K
Diluted EPS
-0.07
Operating cash flow
$44.68M
Free cash flow
$39.57M
Fetching…
Sources
Revenue
$814.08M
Net income
$6.41M
Diluted EPS
0.81
Operating cash flow
$11.18M
Free cash flow
$8.79M
Fetching…
Sources
Revenue
$731.15M
Net income
$-1.46M
Diluted EPS
-0.18
Operating cash flow
$-57.23M
Free cash flow
$-59.83M
Fetching…
Sources
Revenue
$715.80M
Net income
$-8.55M
Diluted EPS
-1.05
Operating cash flow
$61.83M
Free cash flow
$56.39M
Fetching…
Sources
Revenue
$748.87M
Net income
$1.66M
Diluted EPS
0.20
Operating cash flow
$58.62M
Free cash flow
$52.67M
Fetching…
Sources
Revenue
$780.11M
Net income
$4.31M
Diluted EPS
0.54
Operating cash flow
$-26.76M
Free cash flow
$-36.37M
Fetching…
Sources
Revenue
$709.23M
Net income
$2.81M
Diluted EPS
0.33
Operating cash flow
$-33.91M
Free cash flow
$-39.84M
Fetching…
Sources
Revenue
$710.64M
Net income
$5.27M
Diluted EPS
0.67
Operating cash flow
$18.74M
Free cash flow
$-1.53M
Fetching…
Sources
Is it cheap or expensive?
Fair value $228.00 vs current price $65.16
Wall Street consensus is the average analyst price target: $85.00 (-62.7% lower than our fair-value estimate).
Our most-likely fair value is $228.00 a share — about 249.9% above today's price of $65.16, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $314.0M. Interest coverage 1.0x.
Net debt
$314.00M
Interest coverage
1.00x
BlueLinx Holdings Inc.'s profit covers its interest bill about 1.0 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
BXC
BASELINE
BlueLinx Holdings Inc.
Total debt $663.82M Interest coverage 1.00x This is the baseline the peer rows are being compared against.
Total debt $562.47M Interest coverage 8.39x +736% vs BXC Carries about 8.4x more debt cushion than BXC.
Total debt $5.28B Interest coverage 2.87x +186% vs BXC Carries about 2.9x more debt cushion than BXC.
Total debt $411.44M Interest coverage 33.62x +3,249% vs BXC Carries about 33.5x more debt cushion than BXC.
Total debt $1.61B Interest coverage 3.70x +269% vs BXC Carries about 3.7x more debt cushion than BXC.
What you should know
The case for and against BXC
2 Rewards
2 Risks
Rewards
-
Revenue grew 4.0% last year.
-
Free cash flow was positive in 8/10 years.
Risks
-
Operating margin compressed from 9.9% to 1.3% over 3 years.
-
Return on equity was -0.7% last year — the company lost money on shareholders' equity.
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
33.85x
P/B
0.82x
P/S
0.17x
EV/EBITDA
9.95x
PEG ratio
2.19x
Profitability
How much profit each dollar creates
Gross margin
16.3%
Operating margin
1.3%
Net margin
-0.1%
ROE
-0.7%
ROA
1.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.06x
Current ratio
3.84x
Quick ratio
2.34x
Total debt
$663.82M
Total cash
$349.82M
Growth
How the business has been compounding
Revenue TTM
$3.07B
Revenue 5Y CAGR
-8.8%
EPS TTM
-0.52
EPS 5Y CAGR
-91.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$60.47M
Free CF TTM
$32.85M
FCF margin
1.1%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2007-12-12