QUANEX BUILDING PRODUCTS (NX) Stock Fundamental Analysis
NYSE:NX - New York Stock Exchange, Inc. - US7476191041 - Common Stock - Currency: USD
Overall NX gets a fundamental rating of 4 out of 10. We evaluated NX against 42 industry peers in the Building Products industry. Both the profitability and financial health of NX have multiple concerns. A decent growth rate in combination with a cheap valuation! Better keep an eye on NX.
1. Profitability
1.1 Basic Checks
NX had positive earnings in the past year.
In the past year NX had a positive cash flow from operations.
NX had positive earnings in each of the past 5 years.
Each year in the past 5 years NX had a positive operating cash flow.
1.2 Ratios
NX has a Return On Assets of 0.54%. This is in the lower half of the industry: NX underperforms 78.57% of its industry peers.
Looking at the Return On Equity, with a value of 1.23%, NX is doing worse than 76.19% of the companies in the same industry.
NX's Return On Invested Capital of 2.13% is on the low side compared to the rest of the industry. NX is outperformed by 78.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NX is below the industry average of 12.90%.
The 3 year average ROIC (10.24%) for NX is well above the current ROIC(2.13%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 1.23% | ||
| ROIC | 2.13% |
ROA(3y)7.85%
ROA(5y)7.41%
ROE(3y)12.47%
ROE(5y)12.36%
ROIC(3y)10.24%
ROIC(5y)10.17%
1.3 Margins
With a Profit Margin value of 0.83%, NX is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of NX has declined.
NX has a worse Operating Margin (3.61%) than 78.57% of its industry peers.
In the last couple of years the Operating Margin of NX has declined.
The Gross Margin of NX (24.08%) is worse than 73.81% of its industry peers.
In the last couple of years the Gross Margin of NX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.61% | ||
| PM (TTM) | 0.83% | ||
| GM | 24.08% |
OM growth 3Y-18.09%
OM growth 5Y-5.04%
PM growth 3Y-21.34%
PM growth 5YN/A
GM growth 3Y2.14%
GM growth 5Y1.4%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NX is creating some value.
The number of shares outstanding for NX has been increased compared to 1 year ago.
The number of shares outstanding for NX has been increased compared to 5 years ago.
Compared to 1 year ago, NX has a worse debt to assets ratio.
2.2 Solvency
NX has an Altman-Z score of 1.55. This is a bad value and indicates that NX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.55, NX is doing worse than 90.48% of the companies in the same industry.
NX has a debt to FCF ratio of 22.54. This is a negative value and a sign of low solvency as NX would need 22.54 years to pay back of all of its debts.
With a Debt to FCF ratio value of 22.54, NX is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
NX has a Debt/Equity ratio of 0.75. This is a neutral value indicating NX is somewhat dependend on debt financing.
The Debt to Equity ratio of NX (0.75) is worse than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 22.54 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.24
WACC8.74%
2.3 Liquidity
NX has a Current Ratio of 2.39. This indicates that NX is financially healthy and has no problem in meeting its short term obligations.
NX has a Current ratio (2.39) which is comparable to the rest of the industry.
NX has a Quick Ratio of 1.17. This is a normal value and indicates that NX is financially healthy and should not expect problems in meeting its short term obligations.
NX's Quick ratio of 1.17 is in line compared to the rest of the industry. NX outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The earnings per share for NX have decreased strongly by -20.65% in the last year.
NX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.07% yearly.
The Revenue has grown by 29.87% in the past year. This is a very strong growth!
NX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.41% yearly.
EPS 1Y (TTM)-20.65%
EPS 3Y7.8%
EPS 5Y18.07%
EPS Q2Q%5.56%
Revenue 1Y (TTM)29.87%
Revenue growth 3Y6.03%
Revenue growth 5Y7.41%
Sales Q2Q%67.27%
3.2 Future
The Earnings Per Share is expected to grow by 16.40% on average over the next years. This is quite good.
Based on estimates for the next years, NX will show a very strong growth in Revenue. The Revenue will grow by 22.15% on average per year.
EPS Next Y20.84%
EPS Next 2Y16.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year44.71%
Revenue Next 2Y22.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.94, the valuation of NX can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of NX indicates a rather cheap valuation: NX is cheaper than 95.24% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, NX is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.88, the valuation of NX can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NX indicates a rather cheap valuation: NX is cheaper than 100.00% of the companies listed in the same industry.
NX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.94 | ||
| Fwd PE | 5.88 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NX.
NX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.64 | ||
| EV/EBITDA | 12.09 |
4.3 Compensation for Growth
NX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as NX's earnings are expected to grow with 16.40% in the coming years.
PEG (NY)0.38
PEG (5Y)0.44
EPS Next 2Y16.4%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NX has a Yearly Dividend Yield of 1.82%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.20, NX pays a better dividend. On top of this NX pays more dividend than 88.10% of the companies listed in the same industry.
NX's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
The dividend of NX decreases each year by -1.38%.
NX has paid a dividend for at least 10 years, which is a reliable track record.
NX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-1.38%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
110.18% of the earnings are spent on dividend by NX. This is not a sustainable payout ratio.
DP110.18%
EPS Next 2Y16.4%
EPS Next 3YN/A
17.38
-0.18 (-1.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners103.31%
Inst Owner Change-1.05%
Ins Owners0.99%
Ins Owner Change10.56%
Market Cap820.86M
Analysts86
Price Target32.98 (89.76%)
Short Float %5.25%
Short Ratio4.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend0.3
Dividend Growth(5Y)-1.38%
DP110.18%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1897.78%
Min EPS beat(2)6.23%
Max EPS beat(2)3789.32%
EPS beat(4)4
Avg EPS beat(4)954.25%
Min EPS beat(4)0.53%
Max EPS beat(4)3789.32%
EPS beat(8)8
Avg EPS beat(8)501.64%
EPS beat(12)11
Avg EPS beat(12)343%
EPS beat(16)14
Avg EPS beat(16)261.95%
Revenue beat(2)1
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-2.68%
Max Revenue beat(2)1.67%
Revenue beat(4)1
Avg Revenue beat(4)-1.24%
Min Revenue beat(4)-2.68%
Max Revenue beat(4)1.67%
Revenue beat(8)3
Avg Revenue beat(8)-0.91%
Revenue beat(12)6
Avg Revenue beat(12)0.44%
Revenue beat(16)9
Avg Revenue beat(16)1.71%
PT rev (1m)0%
PT rev (3m)-11.42%
EPS NQ rev (1m)-1.05%
EPS NQ rev (3m)-13.3%
EPS NY rev (1m)0%
EPS NY rev (3m)5.25%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-1.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.94 | ||
| Fwd PE | 5.88 | ||
| P/S | 0.57 | ||
| P/FCF | 24.64 | ||
| P/OCF | 11.33 | ||
| P/B | 0.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.09 |
EPS(TTM)2.19
EY12.6%
EPS(NY)2.95
Fwd EY16.99%
FCF(TTM)0.71
FCFY4.06%
OCF(TTM)1.53
OCFY8.83%
SpS30.46
BVpS20.58
TBVpS-3.76
PEG (NY)0.38
PEG (5Y)0.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 1.23% | ||
| ROCE | 2.61% | ||
| ROIC | 2.13% | ||
| ROICexc | 2.19% | ||
| ROICexgc | 5.36% | ||
| OM | 3.61% | ||
| PM (TTM) | 0.83% | ||
| GM | 24.08% | ||
| FCFM | 2.32% |
ROA(3y)7.85%
ROA(5y)7.41%
ROE(3y)12.47%
ROE(5y)12.36%
ROIC(3y)10.24%
ROIC(5y)10.17%
ROICexc(3y)11.21%
ROICexc(5y)11.1%
ROICexgc(3y)19.09%
ROICexgc(5y)19.49%
ROCE(3y)12.52%
ROCE(5y)12.43%
ROICexcg growth 3Y-37.63%
ROICexcg growth 5Y-18.59%
ROICexc growth 3Y-44.12%
ROICexc growth 5Y-22.16%
OM growth 3Y-18.09%
OM growth 5Y-5.04%
PM growth 3Y-21.34%
PM growth 5YN/A
GM growth 3Y2.14%
GM growth 5Y1.4%
F-Score5
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 22.54 | ||
| Debt/EBITDA | 5.76 | ||
| Cap/Depr | 52.94% | ||
| Cap/Sales | 2.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.58% | ||
| Profit Quality | 279.4% | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 1.55 |
F-Score5
WACC8.74%
ROIC/WACC0.24
Cap/Depr(3y)77.09%
Cap/Depr(5y)68.38%
Cap/Sales(3y)2.97%
Cap/Sales(5y)2.84%
Profit Quality(3y)120.93%
Profit Quality(5y)130.73%
High Growth Momentum
Growth
EPS 1Y (TTM)-20.65%
EPS 3Y7.8%
EPS 5Y18.07%
EPS Q2Q%5.56%
EPS Next Y20.84%
EPS Next 2Y16.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)29.87%
Revenue growth 3Y6.03%
Revenue growth 5Y7.41%
Sales Q2Q%67.27%
Revenue Next Year44.71%
Revenue Next 2Y22.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-54.55%
EBIT growth 3Y-13.15%
EBIT growth 5Y2%
EBIT Next Year139.82%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-62.74%
FCF growth 3Y-1.77%
FCF growth 5Y-6.27%
OCF growth 1Y-40.98%
OCF growth 3Y4.16%
OCF growth 5Y-1.63%