BlueLinx Holdings Inc. (BXC) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

BlueLinx's EV/EBITDA of 6.1 is above its 5-year median of 3.9.

P/B below the industry

BlueLinx's price-to-book of 0.80 is below the Wholesale Trade-durable Goods median of 2.15.

Trading below fair value

The share price of $63.32 is below our fair value estimate of $103.22.

Margin of safety over 20%

The price is 38.7% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -12.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -91.4% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -107% over the last twelve months, against a 5-year average of -69.3% a year.

Growing slower than the industry

Revenue grew 2.1% over the last twelve months; the Wholesale Trade-durable Goods median is 8.4%.

Guidance lowered

BlueLinx lowered its fourth quarter 2026 structural product gross margin outlook on Nov 3, 2026.

Gross margin slipping

Gross margin was 15.8% over the last twelve months, against 15.9% a year earlier.

Return on equity under 15%

Return on equity was -0.3% over the last twelve months and averaged 43.7% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 4.8%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

BlueLinx's return on equity of -0.3% is below the Wholesale Trade-durable Goods median of 7.6%.

Earnings shrank over 5 years

Net income shrank 69.3% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was -0.1% over the last twelve months, against a 5-year average of 3.4%.

Net margin below the industry

BlueLinx's net margin of -0.1% is below the Wholesale Trade-durable Goods median of 1.9%.

High debt

Debt is 47.8% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 546% five years ago to 47.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 25.0% of total debt.

Interest not well covered

Operating income covers interest expense 0.7 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 4.01 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.31; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

BlueLinx has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.