Bluelinx Holdings Inc. Common Stock (BXC)

FairStock Score: 24/100 — RISKY

Key Financials

Strengths

• Generates $11 million in annual free cash flow (2.4% yield on market cap)

Concerns

• Trades significantly above Graham Number ($6) with negative 866% margin of safety—limited downside protection
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

Bluelinx Holdings Inc. Common Stock is a micro-cap industrials company valued at $451 million. Revenue stands at $3.0 billion, though the company is currently unprofitable. From a quality standpoint, Bluelinx shows Altman Z-Score of 1.8 in the grey zone and modest 0% ROE. On valuation, the stock is commanding a steep 2875.5x multiple, with trades far above its Graham Number ($6) with no margin of safety. Growth dynamics show revenue growing at 0.7% and profit growth of -262.2%. Our composite FairStock Score of 24/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $11 million in annual free cash flow (2.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 2876x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer