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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for BlueLinx Holdings Inc. To summarize, we found that BlueLinx Holdings Inc ranked in the 94th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 3385.67% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for BXC, they are:
36% of the company's capital comes from equity, which is greater than only 11.07% of stocks in our cash flow based forecasting set.
BlueLinx Holdings Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 22.23% of tickers in our DCF set.
Relative to other stocks in its sector (Basic Materials), BlueLinx Holdings Inc has a reliance on debt greater than 95.39% of them.
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 TGLS, FUL, FRTA, CMC, and PQG.
In this article we are going to use hedge fund sentiment as a tool and determine whether BlueLinx Holdings Inc. (NYSE:BXC) is a good investment right now. We like to analyze hedge fund sentiment before conducting days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy League graduates, […]
If you are looking for the best ideas for your portfolio you may want to consider some of Greenhaven Road Capital‘s top stock picks. Greenhaven Road Capital, an investment management firm, is bullish on BlueLinx Holdings Inc. (NYSE:BXC) stock. In its Q3 2019 investor letter – you can download a copy here – the firm […]
Net Sales of $871 million generating Net Income of $55 million Record Adjusted EBITDA of $81 million compared to $19 million in Q3 2019 $181 million Decrease in Total Outstanding Bank Debt since Q3 2019MARIETTA, Ga., Oct. 28, 2020 (GLOBE NEWSWIRE) -- BlueLinx Holdings Inc. (NYSE:BXC), a leading distributor of building and industrial products, today reported financial results for the three months ended September 26, 2020.2020 Third Quarter Financial Results Review (all comparisons versus the prior-year period unless otherwise noted) * Net sales increased $192 million, or 28.3%, to $871 million * Gross margin increased 450 basis points to 18.3% * Net income increased $62 million to $55 million * Adjusted EBITDA was $81 million, increasing by $62 million * Reduced total outstanding...