QUANEX BUILDING PRODUCTS (NX) Stock Fundamental Analysis
NYSE:NX - New York Stock Exchange, Inc. - US7476191041 - Common Stock - Currency: USD
NX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 42 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 Return On Assets of 0.74%. This is in the lower half of the industry: NX underperforms 76.19% of its industry peers.
NX has a Return On Equity of 1.70%. This is in the lower half of the industry: NX underperforms 73.81% of its industry peers.
NX has a Return On Invested Capital of 2.56%. This is in the lower half of the industry: NX underperforms 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 12.71%.
The 3 year average ROIC (10.24%) for NX is well above the current ROIC(2.56%). The reason for the recent decline needs to be investigated.
| 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 76.19% of its industry peers.
NX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 3.98%, NX is doing worse than 78.57% of the companies in the same industry.
In the last couple of years the Operating Margin of NX has declined.
NX's Gross Margin of 25.33% is on the low side compared to the rest of the industry. NX is outperformed by 71.43% 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 | 3.98% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NX is destroying 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.
Compared to 1 year ago, NX has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.65, we must say that NX is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.65, NX is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
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.
The Debt to FCF ratio of NX (36.09) is worse than 73.81% 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.
NX's Debt to Equity ratio of 0.75 is on the low side compared to the rest of the industry. NX is outperformed by 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 36.09 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.22
WACC11.67%
2.3 Liquidity
A Current Ratio of 2.41 indicates that NX has no problem at all paying its short term obligations.
NX has a Current ratio of 2.41. This is in the better half of the industry: NX outperforms 61.90% of its industry peers.
A Quick Ratio of 1.26 indicates that NX should not have too much problems paying its short term obligations.
NX's Quick ratio of 1.26 is in line compared to the rest of the industry. NX outperforms 52.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
NX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.83%.
The Earnings Per Share has been growing by 18.07% on average over the past years. This is quite good.
Looking at the last year, NX shows a very strong growth in Revenue. The Revenue has grown by 47.66%.
Measured over the past years, NX shows a small growth in Revenue. The Revenue has been growing by 7.41% on average per year.
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
NX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.40% yearly.
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
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.
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 9.07, which indicates a very decent valuation of NX.
NX's Price/Earnings ratio is rather cheap when compared to the industry. NX is cheaper than 88.10% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. NX is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.54 indicates a rather cheap valuation of NX.
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 22.13, NX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.07 | ||
| Fwd PE | 6.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NX is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
NX's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. NX is more expensive than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.6 | ||
| EV/EBITDA | 11.04 |
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)0.44
PEG (5Y)0.5
EPS Next 2Y16.4%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NX has a Yearly Dividend Yield of 1.61%.
NX's Dividend Yield is rather good when compared to the industry average which is at 1.20. NX pays more dividend than 88.10% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, NX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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
83.40% of the earnings are spent on dividend by NX. This is not a sustainable payout ratio.
DP83.4%
EPS Next 2Y16.4%
EPS Next 3YN/A
19.31
-0.62 (-3.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners105.19%
Inst Owner Change-1.04%
Ins Owners1.02%
Ins Owner Change6.12%
Market Cap912.01M
Analysts86
Price Target35.45 (83.58%)
Short Float %5.29%
Short Ratio5.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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)7.47%
PT rev (3m)-4.79%
EPS NQ rev (1m)-1.99%
EPS NQ rev (3m)-3.1%
EPS NY rev (1m)0%
EPS NY rev (3m)5.25%
Revenue NQ rev (1m)-0.74%
Revenue NQ rev (3m)-2.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.07 | ||
| Fwd PE | 6.54 | ||
| P/S | 0.56 | ||
| P/FCF | 42.6 | ||
| P/OCF | 13.44 | ||
| P/B | 0.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.04 |
EPS(TTM)2.13
EY11.03%
EPS(NY)2.95
Fwd EY15.3%
FCF(TTM)0.45
FCFY2.35%
OCF(TTM)1.44
OCFY7.44%
SpS34.41
BVpS21.21
TBVpS-3.06
PEG (NY)0.44
PEG (5Y)0.5
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 | 1.65 |
F-Score6
WACC11.67%
ROIC/WACC0.22
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 Y20.84%
EPS Next 2Y16.4%
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 Year44.71%
Revenue Next 2Y22.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-43.3%
EBIT growth 3Y-13.15%
EBIT growth 5Y2%
EBIT Next Year139.82%
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%