Looking at some ROIC (Return on Invested Capital) numbers, BlueLinx Holdings Inc. (NYSE:BXC)’s ROIC Quality Score is 1.204337. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits. This formula is calculated by 5 year average Return on Invested Capital (ROIC) / Standard Deviation of the 5 year ROIC. The higher the ratio, the better as a higher score indicates a more stable return on invested capital.
One of the biggest obstacles standing in the way of the individual investor is unrealistic expectations. Many times, investors will have an incorrect vision of what they expect to get from their investments in terms of actual returns. Creating unrealistic expectations can lead to overextending risk in the future. If an investor loses patience and thinks that they should be seeing bigger returns than they are currently generating, this may cause them to enter into a few ill advised trades in order to try to hit that previously determined number. Setting realistic, attainable goals may help the investor immensely, not just in terms of future returns, but in terms of the psyche as well.
BlueLinx Holdings Inc. (NYSE:BXC) has a Price to Book ratio of -23.618521. This ratio is calculated by dividing the current share price by the book value per share. Investors may use Price to Book to display how the market portrays the value of a stock. Checking in on some other ratios, the company has a Price to Cash Flow ratio of 4.190656, and a current Price to Earnings ratio of -11.445432. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.
Checking in on some valuation rankings, BlueLinx Holdings Inc. (NYSE:BXC) has a Value Composite score of 43. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 51.
Watching some historical volatility numbers on shares of BlueLinx Holdings Inc. (NYSE:BXC), we can see that the 12 month volatility is presently 52.144200. The 6 month volatility is 49.888100, and the 3 month is spotted at 40.842400. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.
We can now take a quick look at some historical stock price index data. BlueLinx Holdings Inc. (NYSE:BXC) presently has a 10 month price index of 1.31000. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.37452, the 24 month is 3.71216, and the 36 month is 4.10787. Narrowing in a bit closer, the 5 month price index is 1.61125, the 3 month is 1.52617, and the 1 month is currently 1.00124.
The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course of 8 years. The score is a number between one and one hundred (1 being best and 100 being the worst). The Gross Margin Score of BlueLinx Holdings Inc. (NYSE:BXC) is 26.00000. The more stable the company, the lower the score. If a company is less stable over the course of time, they will have a higher score.
The C-Score is a system developed by James Montier that helps determine whether a company is involved in falsifying their financial statements. The C-Score is calculated by a variety of items, including a growing difference in net income verse cash flow, increasing days outstanding, growing days sales of inventory, increasing assets to sales, declines in depreciation, and high total asset growth. The C-Score of BlueLinx Holdings Inc. (NYSE:BXC) is 0.00000. The score ranges on a scale of -1 to 6. If the score is -1, then there is not enough information to determine the C-Score. If the number is at zero (0) then there is no evidence of fraudulent book cooking, whereas a number of 6 indicates a high likelihood of fraudulent activity. The C-Score assists investors in assessing the likelihood of a company cheating in the books.
The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength. The score helps determine if a company’s stock is valuable or not. The Piotroski F-Score of BlueLinx Holdings Inc. (NYSE:BXC) is 3. A score of nine indicates a high value stock, while a score of one indicates a low value stock. The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also determined by change in gross margin and change in asset turnover.
The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price. The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of BlueLinx Holdings Inc. (NYSE:BXC) is 9645. A company with a low rank is considered a good company to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.
The Shareholder Yield is a way that investors can see how much money shareholders are receiving from a company through a combination of dividends, share repurchases and debt reduction. The Shareholder Yield of BlueLinx Holdings Inc. (NYSE:BXC) is -0.014875. This percentage is calculated by adding the dividend yield plus the percentage of shares repurchased. Dividends are a common way that companies distribute cash to their shareholders. Similarly, cash repurchases and a reduction of debt can increase the shareholder value, too. Another way to determine the effectiveness of a company’s distributions is by looking at the Shareholder yield (Mebane Faber). The Shareholder Yield (Mebane Faber) of BlueLinx Holdings Inc. NYSE:BXC is 0.30067. This number is calculated by looking at the sum of the dividend yield plus percentage of sales repurchased and net debt repaid yield.
Individual investors might be digging a little deeper into the playbook in order to create a winning plan for the remainder of the calendar year. The diligent investor typically has a portfolio that is diversified and ready to encounter any unforeseen market action. Even after creating the well-planned portfolio with expected returns, nobody can be absolutely sure that those returns will be seen. Setting realistic expectations can help the investor from becoming discouraged if the original plan runs into a bit of a snag. Of course every investor would like to enter the stock market and see sizeable profits right off the bat. This may only be wishful thinking for investors who aren’t ready to put in the time and energy to make sure the overall strategy stays on track and the portfolio stays properly managed.