BlueLinx Holdings Inc. distributes building and industrial products in North America. It distributes products in two principal categories, structural products and specialty products. The companys structural products include plywood, oriented strand board, rebar and remesh, lumber, and other wood products primarily used for structural support, walls, and floorings in construction projects. Its specialty products comprise roofing, insulation, specialty panels, moldings, engineered wood products, vinyl products, outdoor living and metal products, and particle boards. The company was founded in 1996 and is based in Atlanta, Georgia.
BXC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for BlueLinx Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that BlueLinx Holdings Inc ranked in the 82th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for BXC, they are:
As a business, BXC is generating more cash flow than merely 22.18% of positive cash flow stocks in the Basic Materials.
23% of the company's capital comes from equity, which is greater than just 9.13% of stocks in our cash flow based forecasting set.
BlueLinx Holdings Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of BlueLinx Holdings Inc? See PGTI, SUM, TROX, TGLS, and NX.
The overall risk aversion environment means that these prices aren't being priced correctly.- John Cairns Whilst providing a compendium of the sectoral performance in The Lead-Lag Report, I had highlighted how badly tech had fared this month; conversely, at the other end of the spectrum, the materials and industrials segments...
Michael A. Gayed, CFA on Seeking Alpha | October 2, 2020
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