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Bluelinx Holdings Inc. (BXC)
NYSE:BXC
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Bluelinx Holdings (BXC) AI Stock Analysis

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Bluelinx Holdings

(NYSE:BXC)

Rating:68Neutral
Price Target:
$88.00
▲(8.44%Upside)
Bluelinx Holdings' overall stock score reflects a balance of mixed financial performance and cautious technical indicators. Strong cash flow and a stable balance sheet are positives, while declining revenues and profitability margins pose challenges. The appointment of a new CFO and strategic initiatives provide potential for future growth. Overall, the stock is positioned for improvement but faces near-term headwinds.
Positive Factors
Business Opportunities
The company has found new opportunities for direct business which have further supported volume and been EBITDA accretive.
Market Share
Gaining share in an uncertain market as the company pushed harder to win share with both multi-family and national accounts, which paid off as volumes came in relatively strong.
Negative Factors
Margins
Margins through the first four weeks of the quarter have lagged sequentially, suggesting the pricing environment remains challenging.
Specialty Products
Specialty products remain under pressure as sales for the segment were down due to continued price deflation and market specific volume pressures.

Bluelinx Holdings (BXC) vs. SPDR S&P 500 ETF (SPY)

Bluelinx Holdings Business Overview & Revenue Model

Company DescriptionBlueLinx Holdings Inc., together with its subsidiaries, distributes residential and commercial building products in the United States. The company distributes specialty products comprising engineered wood, industrial products, cedar, moulding, siding, metal, and insulation products; and structural products include lumber, plywood, oriented strand boards, rebars and remesh, spruce, and other wood products primarily that are used for structural support in construction projects. It also provides various value-added services and solutions to customers and suppliers. The company serves dealers, specialty distributors, national home centers, and manufactured housing customers through a network of distribution centers. BlueLinx Holdings Inc. was incorporated in 2004 and is headquartered in Marietta, Georgia.
How the Company Makes MoneyBluelinx Holdings generates revenue primarily through the sale of building and industrial products. The company maintains an extensive distribution network, allowing it to deliver a wide range of products to its customers efficiently. Key revenue streams include the distribution of both structural and specialty building products. Bluelinx leverages its relationships with a vast network of suppliers to procure products at competitive prices, which it then sells to its diverse customer base. Additionally, strategic partnerships and logistical capabilities enable the company to optimize its supply chain and meet the demands of the construction and industrial sectors effectively.

Bluelinx Holdings Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 12.19%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong gross margins, successful digital transformation efforts, and strategic volume growth in key product categories. However, these positives were balanced by challenges such as price deflation, macroeconomic pressures, increased SG&A expenses, and concerns over tariffs that could impact future margins. Despite a solid financial position and share repurchase efforts, the overall sentiment remains cautious due to ongoing market uncertainties.
Q1-2025 Updates
Positive Updates
Strong Gross Margins in Specialty and Structural Products
Specialty products achieved gross margins of over 18% and structural products just over 9%, despite continued price deflation and lower volumes due to weather and macroeconomic factors.
Volume Growth in Key Product Categories
The company achieved volume growth in engineered wood products (EWP), lumber, and panels, which partially offset price deflation impacts.
Digital Transformation Progress
Phase 1 of the digital transformation efforts is on track to be completed by Q3 2025.
Greenfield Expansion Success
The Greenfield in Portland, Oregon, is performing better than expected and expanding its product offering monthly.
Strong Financial Position
The company has $449 million cash on hand and a net leverage ratio of negative 0.7 times, positioning it well for market rebounds and strategic initiatives.
Share Repurchase Plan
The company repurchased $15 million in shares during Q1 2025, with $31 million remaining in the current authorization.
Negative Updates
Price Deflation Impact
Specialty product net sales declined nearly 5% year-over-year due to continued price deflation, mainly in engineered wood products and millwork.
Macroeconomic Challenges
Lower housing starts and R&R activity, poor weather, and challenges faced by large track builders in regions like Texas have negatively impacted performance.
Specialty Products Margin Pressure
Gross margin for specialty products decreased from 20.7% in Q1 2024 to 18.7% in Q1 2025 due to price deflation and volume declines.
SG&A Increase
SG&A expenses increased by $2.8 million from the previous year's first quarter, attributed to technology investments and higher logistics costs.
Challenging Housing Market
The housing market is experiencing its lowest existing home sales in 30 years, impacting repair and remodel activities.
Tariff Concerns
Tariffs could pressure gross margins, and the company may face challenges in passing these costs to customers.
Company Guidance
In the BlueLinx Holdings First Quarter 2025 Earnings Conference Call, the company reported net sales of $709 million, with an adjusted EBITDA of $19.6 million, representing a 2.8% adjusted EBITDA margin. Specialty products accounted for about 70% of net sales and 80% of gross profit, although specialty net sales declined nearly 5% year-over-year due to price deflation and volume pressures. Despite these challenges, the company achieved a gross margin of 18.7% in specialty products, with structural products showing a 9.3% gross margin. The company emphasized its strategic initiatives, including digital transformation, expanding through Greenfields and M&A opportunities, and maintaining a strong balance sheet with cash on hand of $449 million. The company also highlighted its focus on gaining market share in engineered wood, siding, and multifamily housing segments, while noting ongoing challenges such as housing market conditions and tariffs potentially affecting margins.

Bluelinx Holdings Financial Statement Overview

Summary
Bluelinx Holdings shows mixed financial performance. The income statement indicates declining revenues and lower profitability margins, reflecting operational challenges. However, the balance sheet is stable with moderate leverage and solid equity. Robust cash flow generation provides liquidity and financial flexibility, supporting future growth and debt servicing.
Income Statement
65
Positive
The income statement for Bluelinx Holdings shows moderate performance. The gross profit margin for TTM stands at approximately 15.75%, indicating a solid ability to cover cost of goods sold, though there is room for improvement. The net profit margin is 1.31%, suggesting slimmer profitability, which has decreased notably from the previous year. Revenue has declined by about 6.32% from the last annual report, reflecting potential market challenges. The EBIT margin is 2.37%, and the EBITDA margin is 3.95%, both indicating a decline in operational efficiency and profitability compared to prior periods.
Balance Sheet
72
Positive
Bluelinx Holdings maintains a stable balance sheet with a debt-to-equity ratio of 1.04, which represents a balanced leverage profile for the construction industry. The return on equity (ROE) is 6.04%, which is relatively moderate, reflecting the company's ability to generate returns on shareholder investments. The equity ratio stands at 38.94%, indicating a solid equity base relative to total assets, suggesting financial stability and less reliance on debt financing.
Cash Flow
77
Positive
The cash flow statement reflects robust performance with a free cash flow growth rate of 51.0% year-over-year, signaling improved liquidity and cash generation from operations. The operating cash flow to net income ratio is 2.14, indicating strong cash flow relative to net earnings. The free cash flow to net income ratio is 1.77, suggesting efficient conversion of earnings into cash. These metrics highlight the company's solid cash management capabilities, supporting future investment and debt servicing needs.
BreakdownTTMDec 2024Dec 2023Dec 2022Mar 2022Mar 2021
Income Statement
Total Revenue2.94B2.95B3.14B4.45B4.28B3.10B
Gross Profit462.47M489.14M527.02M832.98M778.43M477.73M
EBITDA124.24M128.54M137.68M464.07M453.91M171.40M
Net Income38.43M53.12M48.54M296.18M296.13M80.88M
Balance Sheet
Total Assets1.63B1.58B1.54B1.49B1.32B1.05B
Cash, Cash Equivalents and Short-Term Investments449.02M505.62M521.74M298.94M85.20M82.00K
Total Debt658.73M636.20M617.97M612.94M615.66M646.60M
Total Liabilities997.36M931.28M903.32M900.01M954.21M989.04M
Stockholders Equity636.11M646.44M634.29M590.03M363.25M59.09M
Cash Flow
Free Cash Flow62.09M45.07M278.76M364.41M130.61M51.33M
Operating Cash Flow82.41M85.18M306.29M400.30M145.02M55.02M
Investing Cash Flow-37.28M-39.21M-26.86M-98.69M-4.09M9.16M
Financing Cash Flow-77.41M-62.09M-56.62M-87.87M-55.81M-75.74M

Bluelinx Holdings Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price81.15
Price Trends
50DMA
72.23
Positive
100DMA
74.06
Positive
200DMA
92.38
Negative
Market Momentum
MACD
3.65
Negative
RSI
57.87
Neutral
STOCH
33.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BXC, the sentiment is Neutral. The current price of 81.15 is above the 20-day moving average (MA) of 78.17, above the 50-day MA of 72.23, and below the 200-day MA of 92.38, indicating a neutral trend. The MACD of 3.65 indicates Negative momentum. The RSI at 57.87 is Neutral, neither overbought nor oversold. The STOCH value of 33.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BXC.

Bluelinx Holdings Risk Analysis

Bluelinx Holdings disclosed 43 risk factors in its most recent earnings report. Bluelinx Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Bluelinx Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$7.82B52.6710.62%5.93%3.50%
JBJBI
77
Outperform
$1.25B24.449.51%-13.95%-63.37%
71
Outperform
¥255.19B13.588.48%3.01%6.34%13.16%
BXBXC
68
Neutral
$672.82M18.075.96%-4.22%-16.01%
GMGMS
68
Neutral
$4.18B38.058.02%0.22%-57.02%
66
Neutral
$762.21M77.89-4.13%-5.58%-465.52%
45
Neutral
$383.85M-55.39%-14.12%-1264.86%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BXC
Bluelinx Holdings
81.49
-33.00
-28.82%
GMS
GMS
110.00
18.63
20.39%
JELD
JELD-WEN
4.13
-12.25
-74.79%
JBI
Janus International Group
8.56
-4.97
-36.73%
AZEK
AZEK Company
54.35
10.23
23.19%
SWIM
Latham Group
6.20
2.77
80.76%

Bluelinx Holdings Corporate Events

Business Operations and Strategy
Bluelinx Holdings Revises 2025 Incentive Program Metrics
Neutral
Jun 11, 2025

On June 6, 2025, BlueLinx Holdings Inc. announced a revision to the performance measure for its 2025 long-term incentive program’s performance-based restricted stock unit awards. The new measure will focus on the company’s total shareholder return relative to a comparison group over a three-year period, replacing the previous metrics of cumulative Adjusted EBITDA and average return on working capital. This change aims to align the company’s incentives with shareholder interests, potentially impacting the vesting of awards, which could reach up to 200% of the target if maximum performance is achieved.

The most recent analyst rating on (BXC) stock is a Buy with a $137.00 price target. To see the full list of analyst forecasts on Bluelinx Holdings stock, see the BXC Stock Forecast page.

Executive/Board ChangesShareholder Meetings
BlueLinx Holdings Elects Directors at Annual Meeting
Neutral
May 21, 2025

On May 15, 2025, BlueLinx Holdings Inc. held its Annual Meeting of Stockholders where eight directors were elected, Ernst & Young LLP was ratified as the independent auditor for the fiscal year ending January 3, 2026, and an advisory resolution on executive compensation was approved. The meeting saw participation from 7,256,822 shares, establishing a quorum, and all proposals were successfully passed, indicating strong shareholder support for the company’s governance and financial oversight.

The most recent analyst rating on (BXC) stock is a Buy with a $137.00 price target. To see the full list of analyst forecasts on Bluelinx Holdings stock, see the BXC Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
BlueLinx Holdings Appoints New CFO Christopher Kelly Wall
Positive
May 13, 2025

On May 13, 2025, BlueLinx Holdings Inc. announced the appointment of Christopher Kelly Wall as Senior Vice President, Chief Financial Officer, and Treasurer, effective May 19, 2025. Mr. Wall brings 30 years of finance experience and a proven track record in optimizing capital structures and executing strategic transactions. His appointment is expected to enhance shareholder value and accelerate growth, aligning with BlueLinx’s strategy to deepen operational excellence and build long-term value for shareholders.

The most recent analyst rating on (BXC) stock is a Buy with a $137.00 price target. To see the full list of analyst forecasts on Bluelinx Holdings stock, see the BXC Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 02, 2025