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BlueLinx is a leading wholesale distributor of residential and commercial building products in the United States. Two-step distributors purchase products from manufacturers and distribute those products to dealers and other suppliers in local markets, who then sell those products to end users.
Operating margin is thin at 2.39%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 0.0%, essentially flat. This is a business that needs a catalyst.
Free cash flow declined 27% versus the prior year, cash generation momentum has weakened. Net debt of $288M represents 8.8x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$2.98B
Net Income (TTM)
-$4M
▼ -99.6% YoY
Op. Margin
2.26%
▼ -0.6pp YoY
ROIC
4.12%
▼ -1.2pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$13M
▼ -27.1% YoY
Op. Cash Flow (TTM)
$36M
▼ -29.8% YoY
Net Debt
$348M
Cash & Equiv.
$319M
5Y CAGR: -0.9%
5Y CAGR: -8.5%
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