QUANEX BUILDING PRODUCTS (NX) Stock Fundamental Analysis
USA - NYSE:NX - US7476191041 - Common Stock
13.8 USD
+0.31 (+2.3%)
13.8 USD
0 (0%)
NX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. Both the profitability and financial health of NX have multiple concerns. NX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NX was profitable.
NX had a positive operating cash flow in the past year.
Each year in the past 5 years NX has been profitable.
Each year in the past 5 years NX had a positive operating cash flow.
1.2 Ratios
NX has a worse Return On Assets (-14.41%) than 85.37% of its industry peers.
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 Return On Invested Capital of 3.54%. This is in the lower half of the industry: NX underperforms 78.05% of its industry peers.
NX had an Average Return On Invested Capital over the past 3 years of 10.24%. This is below the industry average of 12.76%.
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
In the last couple of years the Profit Margin of NX has declined.
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.
In the last couple of years the Operating Margin of NX has declined.
NX has a Gross Margin of 26.02%. This is in the lower half of the industry: NX underperforms 68.29% 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
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.
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
NX has an Altman-Z score of 1.65. 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 1.65, NX is doing worse than 82.93% of the companies in the same industry.
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 73.17% 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.
Looking at the Debt to Equity ratio, with a value of 0.97, NX is doing worse than 75.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 26.28 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.39
WACC9.15%
2.3 Liquidity
NX has a Current Ratio of 2.20. This indicates that NX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.20, NX is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
NX has a Quick Ratio of 1.18. This is a normal value and indicates that NX is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.18, NX perfoms like the industry average, outperforming 48.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
NX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.06%.
NX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.07% yearly.
NX shows a strong growth in Revenue. In the last year, the Revenue has grown by 70.18%.
The Revenue has been growing slightly by 7.41% on average over the past years.
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
Based on estimates for the next years, NX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.12% on average per year.
Based on estimates for the next years, NX will show a quite strong growth in Revenue. The Revenue will grow by 13.96% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 6.60, which indicates a rather cheap valuation of NX.
Based on the Price/Earnings ratio, NX is valued cheaper than 100.00% of the companies in the same industry.
NX is valuated cheaply when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
NX is valuated cheaply with a Price/Forward Earnings ratio of 6.08.
Based on the Price/Forward Earnings ratio, NX is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
NX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.89, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.6 | ||
| Fwd PE | 6.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NX indicates a rather cheap valuation: NX is cheaper than 95.12% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.04 | ||
| EV/EBITDA | 7.11 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y2.07%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.20%, NX has a reasonable but not impressive dividend return.
The stock price of NX dropped by -28.39% 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 1.16. NX pays more dividend than 97.56% of the companies in the same industry.
NX's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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 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 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%
13.8
+0.31 (+2.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners102.96%
Inst Owner Change-1.97%
Ins Owners1.03%
Ins Owner Change0.77%
Market Cap633.14M
Analysts86
Price Target28.56 (106.96%)
Short Float %3.48%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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)-17.04%
PT rev (3m)-19.42%
EPS NQ rev (1m)-45.65%
EPS NQ rev (3m)-46.6%
EPS NY rev (1m)-22.87%
EPS NY rev (3m)-21.21%
Revenue NQ rev (1m)-6.4%
Revenue NQ rev (3m)-7.13%
Revenue NY rev (1m)-1.52%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.6 | ||
| Fwd PE | 6.08 | ||
| P/S | 0.34 | ||
| P/FCF | 23.04 | ||
| P/OCF | 7.71 | ||
| P/B | 0.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.11 |
EPS(TTM)2.09
EY15.14%
EPS(NY)2.27
Fwd EY16.46%
FCF(TTM)0.6
FCFY4.34%
OCF(TTM)1.79
OCFY12.97%
SpS40.1
BVpS15.64
TBVpS-2.46
PEG (NY)N/A
PEG (5Y)0.37
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%
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-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 | 1.65 |
F-Score4
WACC9.15%
ROIC/WACC0.39
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%