QUANEX BUILDING PRODUCTS (NX)

US7476191041 - Common Stock

34.75  -0.18 (-0.52%)

After market: 34.75 0 (0%)

Fundamental Rating

5

NX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 43 industry peers in the Building Products industry. NX has an excellent financial health rating, but there are some minor concerns on its profitability. NX has a valuation in line with the averages, but it does not seem to be growing.



5

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.
NX had positive earnings in 4 of the past 5 years.
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 10.68%, NX is in the better half of the industry, outperforming 65.12% of the companies in the same industry.
The Return On Equity of NX (15.65%) is comparable to the rest of the industry.
NX has a Return On Invested Capital (12.85%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for NX is in line with the industry average of 13.68%.
Industry RankSector Rank
ROA 10.68%
ROE 15.65%
ROIC 12.85%
ROA(3y)10.02%
ROA(5y)5.68%
ROE(3y)15.9%
ROE(5y)8.88%
ROIC(3y)13.05%
ROIC(5y)10.84%

1.3 Margins

NX has a Profit Margin of 7.84%. This is comparable to the rest of the industry: NX outperforms 51.16% of its industry peers.
In the last couple of years the Profit Margin of NX has grown nicely.
With a Operating Margin value of 10.31%, NX perfoms like the industry average, outperforming 44.19% of the companies in the same industry.
NX's Operating Margin has improved in the last couple of years.
NX has a worse Gross Margin (25.02%) than 65.12% of its industry peers.
NX's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 10.31%
PM (TTM) 7.84%
GM 25.02%
OM growth 3Y14.26%
OM growth 5Y18.56%
PM growth 3Y17.3%
PM growth 5Y19.54%
GM growth 3Y2.73%
GM growth 5Y2.53%

7

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 reduced compared to 1 year ago.
The number of shares outstanding for NX has been reduced compared to 5 years ago.
The debt/assets ratio for NX is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 5.42 indicates that NX is not in any danger for bankruptcy at the moment.
NX's Altman-Z score of 5.42 is fine compared to the rest of the industry. NX outperforms 65.12% of its industry peers.
The Debt to FCF ratio of NX is 0.59, which is an excellent value as it means it would take NX, only 0.59 years of fcf income to pay off all of its debts.
NX's Debt to FCF ratio of 0.59 is fine compared to the rest of the industry. NX outperforms 76.74% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that NX is not too dependend on debt financing.
NX's Debt to Equity ratio of 0.11 is fine compared to the rest of the industry. NX outperforms 72.09% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF 0.59
Altman-Z 5.42
ROIC/WACC1.13
WACC11.41%

2.3 Liquidity

NX has a Current Ratio of 2.27. This indicates that NX is financially healthy and has no problem in meeting its short term obligations.
NX has a Current ratio (2.27) which is comparable to the rest of the industry.
NX has a Quick Ratio of 1.31. 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 1.31 is in line compared to the rest of the industry. NX outperforms 48.84% of its industry peers.
Industry RankSector Rank
Current Ratio 2.27
Quick Ratio 1.31

3

3. Growth

3.1 Past

NX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.52%, which is quite good.
NX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.54% yearly.
Looking at the last year, NX shows a decrease in Revenue. The Revenue has decreased by -8.92% in the last year.
Measured over the past years, NX shows a small growth in Revenue. The Revenue has been growing by 4.91% on average per year.
EPS 1Y (TTM)9.52%
EPS 3Y30.57%
EPS 5Y33.54%
EPS growth Q2Q0%
Revenue 1Y (TTM)-8.92%
Revenue growth 3Y9.91%
Revenue growth 5Y4.91%
Revenue growth Q2Q-8.69%

3.2 Future

Based on estimates for the next years, NX will show a decrease in Earnings Per Share. The EPS will decrease by -1.26% on average per year.
The Revenue is expected to grow by 0.86% on average over the next years.
EPS Next Y-11.18%
EPS Next 2Y-1.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.98%
Revenue Next 2Y0.86%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 12.59, NX is valued correctly.
86.05% of the companies in the same industry are more expensive than NX, based on the Price/Earnings ratio.
NX is valuated cheaply when we compare the Price/Earnings ratio to 28.43, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.91, the valuation of NX can be described as correct.
Based on the Price/Forward Earnings ratio, NX is valued a bit cheaper than 79.07% of the companies in the same industry.
NX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.51, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.59
Fwd PE 12.91

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 88.37% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NX is valued a bit cheaper than 69.77% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.62
EV/EBITDA 7.42

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y-1.26%
EPS Next 3YN/A

5

5. Dividend

5.1 Amount

NX has a yearly dividend return of 0.92%, which is pretty low.
Compared to an average industry Dividend Yield of 1.16, NX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, NX's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.92%

5.2 History

On average, the dividend of NX grows each year by 9.37%, which is quite nice.
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)9.37%
Div Incr Years0
Div Non Decr Years14

5.3 Sustainability

NX pays out 12.23% of its income as dividend. This is a sustainable payout ratio.
DP12.23%
EPS Next 2Y-1.26%
EPS Next 3YN/A

QUANEX BUILDING PRODUCTS

NYSE:NX (5/10/2024, 7:10:18 PM)

After market: 34.75 0 (0%)

34.75

-0.18 (-0.52%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.15B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.92%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 12.59
Fwd PE 12.91
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.38
Profitability
Industry RankSector Rank
ROA 10.68%
ROE 15.65%
ROCE
ROIC
ROICexc
ROICexgc
OM 10.31%
PM (TTM) 7.84%
GM 25.02%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.36
Health
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.27
Quick Ratio 1.31
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)9.52%
EPS 3Y30.57%
EPS 5Y
EPS growth Q2Q
EPS Next Y-11.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.92%
Revenue growth 3Y9.91%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y