BlueLinx Holdings Inc. (NYSE:BXC): An Opportunity for Fundamental Investors?

BlueLinx Holdings Inc. (NYSE:BXC) shares traded lower over the last trading session, losing -1.08% on 07/06/20. The shares fell to a low of $8.165 before closing at $8.21. Intraday shares traded counted 74951.0, which was 66.39% higher than its 30-day average trading volume of 223.03K. BXC’s previous close was $8.30 while the outstanding shares total 9.37M. The firm has a beta of 1.95. The stock’s Relative Strength Index (RSI) is 53.11, with weekly volatility at 9.14% and ATR at 0.83. The BXC stock’s 52-week price range has touched low of $3.60 and a $35.40 high.

Investors have identified the Building Products & Equipment company BlueLinx Holdings Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $80.29 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

BlueLinx Holdings Inc. (BXC) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For BXC, the company has in raw cash 12.56 million on their books with 9.19 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 665569000 million total, with 199568000 million as their total liabilities.

BXC were able to record -60.43 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 0.92 million. In cash movements, the company had a total of -59.19 million as operating cash flow.

Potential earnings growth for BlueLinx Holdings Inc. (BXC)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, BlueLinx Holdings Inc. recorded a total of 662.07 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 3.53% coming in sequential stages and their sales for the third quarter increasing by 7.34%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 568.86 million trying to sell their products during the last quarter, with the result yielding a gross income of 93.21 million. This allows shareholders to hold on to 9.37M with the revenue now reading -0.08 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (-0.38 cents a share).

Having a look at the company’s valuation, the company is expected to record -1.25 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on BXC sounds very interesting.

Is the stock of BXC attractive?

In related news, SVP, CFO AND TREASURER, Janzen Kelly bought 9,000 shares of the company’s stock in a transaction that recorded on May 11. The purchase was performed at an average price of 5.32, for a total value of 47,880. As the purchase deal closes, the SVP, CFO AND TREASURER, Janzen Kelly now bought 6,000 shares of the company’s stock, valued at 32,280. Also, Chief Human Resource Officer, Sasadu Brian J. bought 1,242 shares of the company’s stock in a deal that was recorded on Mar 13. The shares were cost at an average price of 6.03 per share, with a total market value of 7,492. Following this completion of disposal, the Chief Operating Officer, Averitt Alexander S now holds 1,500 shares of the company’s stock, valued at 21,300. In the last 6 months, insiders have changed their ownership in shares of company stock by 3.20%.

0 out of 1 analysts covering the stock have rated it a Buy, while 1 have maintained a Hold recommendation on BlueLinx Holdings Inc.. 0 analysts has assigned a Sell rating on the BXC stock. The 12-month mean consensus price target for the company’s shares has been set at $6.00.