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 12th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for BlueLinx Holdings Inc ended up being:
9% of the company's capital comes from equity, which is greater than merely 3.2% of stocks in our cash flow based forecasting set.
As a business, BlueLinx Holdings Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Basic Materials), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BXC, try CX, MDU, SMG, OLN, and CLW.
Investing in Bluelinx Holdings (BXC) at current prices is an opportunity to buy a company in a pivotal moment. The stock price has gone from $40 in mid 2018 to $9, while the company has done a great job integrating Cedar Creek acquisition, with integration costs lower than initial projections...
Miguel Marecos Duarte on Seeking Alpha | June 15, 2020
The financial regulations require hedge funds and wealthy investors that exceeded the $100 million equity holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn't the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F […]