BXCBlueLinx Holdings Inc.
Is the business good?
The checks split: earnings fully cash-backed (2.7×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is BXC?
BlueLinx Holdings Inc. earns 4.6% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 4.4 points below what the capital costs: growth destroys value
- Operating margin
- 1.1%
Operating margin · Industrial Distribution median 8.3% · 12 months to Q2 2026
- Cash conversion
- 2.72×
Cash conversion · 0.44× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.5%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 4.6% |
| FY2021 | 10% |
| FY2022 | 9.9% |
| FY2023 | 4.4% |
| FY2024 | 3.0% |
| FY2025 | 1.1% |
Details›
- Gross margin12 months to Q2 2026
- 16%
- Operating margin12 months to Q2 2026
- 1.1%
- Net margin12 months to Q2 2026
- −0.06%
- Free cash flow margin
- 1.9%
- Revenue, trailing twelve months
- $3.01B
- Free cash flow, trailing twelve months
- $58M
- Net income, trailing twelve months
- −$1.9M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.6%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.