QUANEX BUILDING PRODUCTS (NX) Stock Fundamental Analysis
USA - NYSE:NX - US7476191041 - Common Stock
15.06 USD
-0.29 (-1.89%)
15.06 USD
0 (0%)
Taking everything into account, NX scores 4 out of 10 in our fundamental rating. NX was compared to 41 industry peers in the Building Products industry. Both the profitability and financial health of NX have multiple concerns. NX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
NX had positive earnings in the past year.
NX had a positive operating cash flow in the past year.
In the past 5 years NX has always been profitable.
NX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -14.41%, NX is doing worse than 85.37% of the companies in the same industry.
NX's Return On Equity of -39.63% is on the low side compared to the rest of the industry. NX is outperformed by 82.93% of its industry peers.
NX has a worse Return On Invested Capital (3.54%) than 78.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NX is below the industry average of 12.70%.
The 3 year average ROIC (10.24%) for NX is well above the current ROIC(3.54%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.41% | ||
| ROE | -39.63% | ||
| ROIC | 3.54% |
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
NX's Profit Margin has declined in the last couple of years.
NX's Operating Margin of 4.02% is on the low side compared to the rest of the industry. NX is outperformed by 78.05% of its industry peers.
NX's Operating Margin has declined in the last couple of years.
The Gross Margin of NX (26.02%) is worse than 65.85% 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 | 4.02% | ||
| PM (TTM) | N/A | ||
| GM | 26.02% |
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.
Compared to 1 year ago, NX has more shares outstanding
The number of shares outstanding for NX has been increased compared to 5 years ago.
NX has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that NX is in the distress zone and has some risk of bankruptcy.
NX has a Altman-Z score of 1.69. This is amonst the worse of the industry: NX underperforms 85.37% of its industry peers.
NX has a debt to FCF ratio of 26.28. This is a negative value and a sign of low solvency as NX would need 26.28 years to pay back of all of its debts.
NX's Debt to FCF ratio of 26.28 is on the low side compared to the rest of the industry. NX is outperformed by 70.73% of its industry peers.
NX has a Debt/Equity ratio of 0.97. This is a neutral value indicating NX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.97, NX is not doing good in the industry: 75.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 26.28 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.41
WACC8.68%
2.3 Liquidity
A Current Ratio of 2.20 indicates that NX has no problem at all paying its short term obligations.
NX has a Current ratio of 2.20. This is in the better half of the industry: NX outperforms 63.41% of its industry peers.
A Quick Ratio of 1.18 indicates that NX should not have too much problems paying its short term obligations.
NX has a Quick ratio (1.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The earnings per share for NX have decreased strongly by -17.06% 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.
Looking at the last year, NX shows a very strong growth in Revenue. The Revenue has grown by 70.18%.
NX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.41% yearly.
EPS 1Y (TTM)-17.06%
EPS 3Y7.8%
EPS 5Y18.07%
EPS Q2Q%-5.48%
Revenue 1Y (TTM)70.18%
Revenue growth 3Y6.03%
Revenue growth 5Y7.41%
Sales Q2Q%76.67%
3.2 Future
NX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.12% yearly.
NX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.96% yearly.
EPS Next Y-4.8%
EPS Next 2Y2.07%
EPS Next 3Y8.12%
EPS Next 5YN/A
Revenue Next Year42.59%
Revenue Next 2Y19.7%
Revenue Next 3Y13.96%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.21, which indicates a rather cheap valuation of NX.
Compared to the rest of the industry, the Price/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/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.57.
NX is valuated cheaply with a Price/Forward Earnings ratio of 6.63.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, NX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.21 | ||
| Fwd PE | 6.63 |
4.2 Price Multiples
92.68% of the companies in the same industry are more expensive than NX, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as NX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.15 | ||
| EV/EBITDA | 7.59 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.4
EPS Next 2Y2.07%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.23%, NX has a reasonable but not impressive dividend return.
The stock price of NX dropped by -23.94% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
NX's Dividend Yield is rather good when compared to the industry average which is at 1.25. NX pays more dividend than 97.56% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, NX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
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 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
The earnings of NX are negative and hence is the payout ratio. NX will probably not be able to sustain this dividend level.
DP-5.37%
EPS Next 2Y2.07%
EPS Next 3Y8.12%
15.06
-0.29 (-1.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners102.96%
Inst Owner Change-0.08%
Ins Owners1.03%
Ins Owner Change0.77%
Market Cap690.95M
Revenue(TTM)1.84B
Net Income(TTM)-284294000
Analysts86
Price Target28.56 (89.64%)
Short Float %4.43%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend0.3
Dividend Growth(5Y)-1.38%
DP-5.37%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.4%
Min EPS beat(2)-20.49%
Max EPS beat(2)23.29%
EPS beat(4)3
Avg EPS beat(4)949.59%
Min EPS beat(4)-20.49%
Max EPS beat(4)3789.32%
EPS beat(8)7
Avg EPS beat(8)489.34%
EPS beat(12)10
Avg EPS beat(12)334.51%
EPS beat(16)14
Avg EPS beat(16)260.05%
Revenue beat(2)0
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-2.2%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-2.68%
Max Revenue beat(4)1.67%
Revenue beat(8)2
Avg Revenue beat(8)-1.03%
Revenue beat(12)4
Avg Revenue beat(12)-0.94%
Revenue beat(16)8
Avg Revenue beat(16)0.72%
PT rev (1m)0%
PT rev (3m)-17.04%
EPS NQ rev (1m)-0.78%
EPS NQ rev (3m)-46.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-22.87%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-6.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.21 | ||
| Fwd PE | 6.63 | ||
| P/S | 0.38 | ||
| P/FCF | 25.15 | ||
| P/OCF | 8.41 | ||
| P/B | 0.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.59 |
EPS(TTM)2.09
EY13.88%
EPS(NY)2.27
Fwd EY15.08%
FCF(TTM)0.6
FCFY3.98%
OCF(TTM)1.79
OCFY11.89%
SpS40.1
BVpS15.64
TBVpS-2.46
PEG (NY)N/A
PEG (5Y)0.4
Graham Number27.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.41% | ||
| ROE | -39.63% | ||
| ROCE | 4.33% | ||
| ROIC | 3.54% | ||
| ROICexc | 3.69% | ||
| ROICexgc | 7.46% | ||
| OM | 4.02% | ||
| PM (TTM) | N/A | ||
| GM | 26.02% | ||
| FCFM | 1.49% |
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%
ROICexgc growth 3Y-37.63%
ROICexgc 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-Score4
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 26.28 | ||
| Debt/EBITDA | 3.88 | ||
| Cap/Depr | 51.97% | ||
| Cap/Sales | 2.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 45.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.69 |
F-Score4
WACC8.68%
ROIC/WACC0.41
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)-17.06%
EPS 3Y7.8%
EPS 5Y18.07%
EPS Q2Q%-5.48%
EPS Next Y-4.8%
EPS Next 2Y2.07%
EPS Next 3Y8.12%
EPS Next 5YN/A
Revenue 1Y (TTM)70.18%
Revenue growth 3Y6.03%
Revenue growth 5Y7.41%
Sales Q2Q%76.67%
Revenue Next Year42.59%
Revenue Next 2Y19.7%
Revenue Next 3Y13.96%
Revenue Next 5YN/A
EBIT growth 1Y-25.97%
EBIT growth 3Y-13.15%
EBIT growth 5Y2%
EBIT Next Year105.68%
EBIT Next 3Y33.72%
EBIT Next 5YN/A
FCF growth 1Y-76.02%
FCF growth 3Y-1.77%
FCF growth 5Y-6.27%
OCF growth 1Y-45.5%
OCF growth 3Y4.16%
OCF growth 5Y-1.63%