QUANEX BUILDING PRODUCTS (NX) Stock Fundamental Analysis
NYSE:NX - US7476191041 - Common Stock
21.27 USD
-0.1 (-0.47%)
21.26 USD
-0.01 (-0.05%)
NX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. NX has a bad profitability rating. Also its financial health evaluation is rather negative. NX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year NX was profitable.
In the past year NX had a positive cash flow from operations.
In the past 5 years NX has always been profitable.
In the past 5 years NX always reported a positive cash flow from operatings.
1.2 Ratios
NX has a worse Return On Assets (0.74%) than 75.61% of its industry peers.
With a Return On Equity value of 1.70%, NX is not doing good in the industry: 73.17% of the companies in the same industry are doing better.
NX has a Return On Invested Capital of 2.56%. This is in the lower half of the industry: NX underperforms 78.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NX is below the industry average of 12.73%.
The last Return On Invested Capital (2.56%) for NX is well below the 3 year average (10.24%), which needs to be investigated, but indicates that NX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.74% | ||
| ROE | 1.7% | ||
| ROIC | 2.56% |
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
The Profit Margin of NX (1.05%) is worse than 75.61% of its industry peers.
In the last couple of years the Profit Margin of NX has declined.
NX has a worse Operating Margin (3.98%) than 78.05% of its industry peers.
NX's Operating Margin has declined in the last couple of years.
NX has a worse Gross Margin (25.33%) than 68.29% of its industry peers.
NX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.98% | ||
| PM (TTM) | 1.05% | ||
| GM | 25.33% |
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
NX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
NX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NX has more shares outstanding
The debt/assets ratio for NX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.68, we must say that NX is in the distress zone and has some risk of bankruptcy.
NX has a Altman-Z score of 1.68. This is amonst the worse of the industry: NX underperforms 80.49% of its industry peers.
NX has a debt to FCF ratio of 36.09. This is a negative value and a sign of low solvency as NX would need 36.09 years to pay back of all of its debts.
NX has a worse Debt to FCF ratio (36.09) than 73.17% of its industry peers.
NX has a Debt/Equity ratio of 0.75. This is a neutral value indicating NX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.75, NX is doing worse than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 36.09 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.27
WACC9.43%
2.3 Liquidity
NX has a Current Ratio of 2.41. This indicates that NX is financially healthy and has no problem in meeting its short term obligations.
NX has a better Current ratio (2.41) than 63.41% of its industry peers.
A Quick Ratio of 1.26 indicates that NX should not have too much problems paying its short term obligations.
The Quick ratio of NX (1.26) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The earnings per share for NX have decreased strongly by -22.83% in the last year.
Measured over the past years, NX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.07% on average per year.
The Revenue has grown by 47.66% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 7.41% on average over the past years.
EPS 1Y (TTM)-22.83%
EPS 3Y7.8%
EPS 5Y18.07%
EPS Q2Q%-9.09%
Revenue 1Y (TTM)47.66%
Revenue growth 3Y6.03%
Revenue growth 5Y7.41%
Sales Q2Q%69.98%
3.2 Future
Based on estimates for the next years, NX will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.04% on average per year.
The Revenue is expected to grow by 22.12% on average over the next years. This is a very strong growth
EPS Next Y23.43%
EPS Next 2Y16.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year44.79%
Revenue Next 2Y22.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
Based on the Price/Earnings ratio of 9.99, the valuation of NX can be described as reasonable.
NX's Price/Earnings ratio is rather cheap when compared to the industry. NX is cheaper than 100.00% of the companies in the same industry.
NX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.13.
The Price/Forward Earnings ratio is 7.25, which indicates a rather cheap valuation of NX.
Based on the Price/Forward Earnings ratio, NX is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.76, NX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 7.25 |
4.2 Price Multiples
68.29% of the companies in the same industry are more expensive than NX, based on the Enterprise Value to EBITDA ratio.
NX's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. NX is more expensive than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.68 | ||
| EV/EBITDA | 11.49 |
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.
NX's earnings are expected to grow with 16.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)0.55
EPS Next 2Y16.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NX has a Yearly Dividend Yield of 1.50%.
Compared to an average industry Dividend Yield of 1.11, NX pays a better dividend. On top of this NX pays more dividend than 87.80% of the companies listed in the same industry.
NX's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
The dividend of NX decreases each year by -1.38%.
NX has been paying a dividend for at least 10 years, so it has a reliable track record.
NX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-1.38%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
83.40% of the earnings are spent on dividend by NX. This is not a sustainable payout ratio.
DP83.4%
EPS Next 2Y16.04%
EPS Next 3YN/A
21.27
-0.1 (-0.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners105.2%
Inst Owner Change-1.97%
Ins Owners1.02%
Ins Owner Change0%
Market Cap977.78M
Analysts86
Price Target34.42 (61.82%)
Short Float %3.61%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
Yearly Dividend0.3
Dividend Growth(5Y)-1.38%
DP83.4%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1906.3%
Min EPS beat(2)23.29%
Max EPS beat(2)3789.32%
EPS beat(4)4
Avg EPS beat(4)954.84%
Min EPS beat(4)0.53%
Max EPS beat(4)3789.32%
EPS beat(8)8
Avg EPS beat(8)497.51%
EPS beat(12)11
Avg EPS beat(12)338.36%
EPS beat(16)14
Avg EPS beat(16)260.9%
Revenue beat(2)1
Avg Revenue beat(2)0.83%
Min Revenue beat(2)0%
Max Revenue beat(2)1.67%
Revenue beat(4)1
Avg Revenue beat(4)-0.82%
Min Revenue beat(4)-2.68%
Max Revenue beat(4)1.67%
Revenue beat(8)3
Avg Revenue beat(8)-0.69%
Revenue beat(12)5
Avg Revenue beat(12)-0.37%
Revenue beat(16)8
Avg Revenue beat(16)0.84%
PT rev (1m)0%
PT rev (3m)4.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.99%
EPS NY rev (1m)0%
EPS NY rev (3m)2.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 7.25 | ||
| P/S | 0.6 | ||
| P/FCF | 45.68 | ||
| P/OCF | 14.41 | ||
| P/B | 0.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.49 |
EPS(TTM)2.13
EY10.01%
EPS(NY)2.94
Fwd EY13.8%
FCF(TTM)0.47
FCFY2.19%
OCF(TTM)1.48
OCFY6.94%
SpS35.35
BVpS21.79
TBVpS-3.15
PEG (NY)0.43
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.74% | ||
| ROE | 1.7% | ||
| ROCE | 3.13% | ||
| ROIC | 2.56% | ||
| ROICexc | 2.64% | ||
| ROICexgc | 6.18% | ||
| OM | 3.98% | ||
| PM (TTM) | 1.05% | ||
| GM | 25.33% | ||
| FCFM | 1.32% |
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-Score6
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 36.09 | ||
| Debt/EBITDA | 5.08 | ||
| Cap/Depr | 56.5% | ||
| Cap/Sales | 2.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.2% | ||
| Profit Quality | 125.46% | ||
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 1.68 |
F-Score6
WACC9.43%
ROIC/WACC0.27
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)-22.83%
EPS 3Y7.8%
EPS 5Y18.07%
EPS Q2Q%-9.09%
EPS Next Y23.43%
EPS Next 2Y16.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)47.66%
Revenue growth 3Y6.03%
Revenue growth 5Y7.41%
Sales Q2Q%69.98%
Revenue Next Year44.79%
Revenue Next 2Y22.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-43.3%
EBIT growth 3Y-13.15%
EBIT growth 5Y2%
EBIT Next Year138.77%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-79.4%
FCF growth 3Y-1.77%
FCF growth 5Y-6.27%
OCF growth 1Y-50.94%
OCF growth 3Y4.16%
OCF growth 5Y-1.63%